Annual Report 2024
3D Energi Limited | ABN 40 105 597 279
Over the past 12 months
we have delivered numerous
value lift milestones as we
progress toward the 2025
Otway exploration drilling
program providing a
transformational opportunity
for shareholder value.
Noel Newell, Executive Chairman
Contents
Executive Chairman’s letter to shareholders
6
Review of FY24 operations
8
Directors’ report
26
Auditor’s independence declaration
40
Financial reports
41
Consolidated statement of profit or loss
42
and other comprehensive income
Consolidated statement of financial position
43
Consolidated statement of changes in equity
44
Consolidated statement of cash flows
45
Notes to the consolidated financial statements
46
Directors’ declaration
69
Independent auditor’s report to the members
70
of 3D Energi Limited
Shareholder information
74
Corporate directory
78
On the move
FY23 – Established
a pathway towards
a commercial gas
discovery with
Joint Venturer
ConocoPhillips
Australia, in what has
been one of our most
exciting years yet.
Tranforming
FY24 – We are on a
transformational
pathway, emerging
from an explorer to
potential producer
and an important
player in the Australian
energy sector.
Delivering
FY25 – We are
strategically
positioned adjacent
to the under supplied
east coast gas market,
with the aim to produce
much needed gas into
the market.
3D Energi Limited | Annual Report 2024
3
WE ARE
PROGRESSING
TOWARDS
OUR GOAL OF
BECOMING AN
EAST COAST
GAS PRODUCER
4
3D Energi vision
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.
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 organisation 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.
Our Purpose
To provide energy solutions to our local
communities through collaboration
and consultation resulting in reliable,
affordable and sustainable energy.
Our Vision
Our aim is to enable the development of 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.
5
3D Energi Limited | Annual Report 2024
Here at 3D Energi (TDO) it certainly feels a bit like ‘Saturday
afternoon before the party’ with our Otway drilling campaign
just around the corner. While there is of course so much more
to undertake prior to drilling this journey started over a decade
ago when we acquired the Tasmanian permit T/49P. What
followed from this acquisition to the point of now drilling up
to six wells is an incredible journey.
What triggered the commencement this journey was not
just good fortune, but the early prediction of the east coast
gas shortage combined with the identification of the critical
geological elements in the southern Otway Basin that were
not previously recognised.
What followed were years of patient technical work including
the acquisition of the Flanagan 3D seismic survey (funded by
Beach as part of the Beach/TDO joint venture) prior to their
exit and introduction of ConocoPhillips Australia (COPA).
The wealth of work undertaken by TDO resulted in the
Company presenting to most of the major international oil
and gas companies as part of a global search for a suitable
joint venture partner. This culminated in a variety of companies
engaging with TDO to potentially farm-in – our technical work
was routinely praised by majors.
The Company ultimately selected COPA as our preferred
partner, on excellent terms for TDO – arguably the best
farm-out in Australia for over two decades.
This process for T/49P was in itself an impressive achievement.
To repeat that process again with the acquisition of VIC/P79
and then almost immediate farm-out that permit to COPA
within 2 years is nothing short of extraordinary.
3D Energi is now poised to participate in one of the most
exciting drilling programs in offshore Australia for many years;
at a time when the East Coast is desperate for gas. Our Joint
Venture with COPA is preparing to drill up to 6 wells in the
campaign with the first two carried for TDO up to US$65M in
accordance with the terms of the Joint Venture agreements.
What is especially exciting is that we are drilling in an area
which has had an almost 100% success rate in the discovery
of gas for two decades. It has a rare set of properties which
provide geophysical anomalies on seismic which have
resulted in one of the highest success rates in the world.
Further, our prospects are in shallow water, close to under-
utilised infrastructure which supplies the burgeoning east
coast gas market. It is difficult to imagine a drilling campaign
with greater value creation potential. The word transformation
is often overused but, in this case, it is entirely appropriate
in relation TDO. Pending a successful drilling campaign, the
Company is now on the cusp of transitioning from an explorer
to an explorer/producer.
It is important to emphasise, TDO will remain an explorer post
becoming a producer – it’s in our DNA. To continue with the
party theme, the Otway offers an exploration banquet, the JV
being the largest acreage holders in the basin. The western
part of VIC/P79 has tantalising bright spots on 2D seismic –
our Regia Survey will likely reveal a variety of further prospects
Have you ever organised a big party at your home with that
associated sense of impending excitement in the lead up?
The weeks of planning and ticking off the items that need to
be undertaken prior. Finally, the Saturday arrives of the party
and there are the final touches but then the quiet period just
before it starts.
Executive Chairman’s
letter to shareholders
6
to add to our existing, not insignificant, portfolio in the permit.
Another exciting near term event for the company.
Then of course is our original Otway permit T/49P with an
array of exciting prospects, albeit with more associated risk.
The 1.3 TCF Flanagan Prospect remains a future target –
we are further encouraged by the likelihood that Beach plan to
drill a prospect in the coming campaign just west of Flanagan.
All in all, the Otway offers years of future gas exploration for
our JV.
Oil is rarely mentioned in exploration circles in Australia these
days which is extraordinary considering we only supply about
12% of our needs with a daily deficit of almost 750,000 bbls.
In fact, Australia ranks about 16th in the world as an oil importer.
Meanwhile global oil consumption continues to rise and
exceeded 100 mmbbls/day in 2023.
Oil is still critical to Australia and will remain so for decades.
WA-527-P provides TDO significant exposure to oil, being
located adjacent to the recent Dorado discovery – the largest
oil discovery in Australia in over 3 decades – and also the recent
Pavo discovery. We were recently granted an EP to acquire the
Sauropod 3D seismic, as well as a Suspension and Extension
of our seismic commitment, providing more time to attract
a farmin partner.
In my view this is currently the most prospective block for
oil in the farmout market in Australia – and I think we are well
credentialed to make that call.
With the rapidly changing energy scene, combined with the
tough financial markets, a small company such as TDO needs
to be nimble. The acquisition of the depleted and abandoned
Caroline carbon dioxide field was a great example of this –
we literally put an application in to the South Australian
government the day after it was relinquished. This field has
potential for a number of uses but may ultimately be used
for CCUS for any CO2 production.
We will continue to review new opportunities – and often
they may be completely left field – but in the short term our
primary focus will be the Otway and our first priority to become
a producer.
Bring on Saturday night.
On behalf of the Company, I thank the Board and the
3D Energi team for their endeavours, commitment
and energy over the last year – they are an inspiration
and honour to work with but also an integral part
of realising our ambition to become a significant
Australian energy company.
Noel Newell
Executive Chairman
3D Energi is now poised
to participate in one of
the most exciting drilling
programs in offshore
Australia for many years;
at a time when the East
Coast is desperate for gas.
3D Energi Limited | Annual Report 2024
7
Review of FY24 operations
1. Prospective resources cautionary statement
Prospective Resources are those estimated quantities of petroleum that may potentially be recovered by the application of a future development
project(s) relate to undiscovered accumulations. These estimates have both a risk of discovery and a risk of development. Further exploration
appraisal and evaluation is required to determine the existence of a significant quantity of potentially recoverable hydrocarbons.
Highlights
We are on a
transformational
pathway, emerging
from an explorer to
potential producer
and an important
player in the Australian
energy sector.
We are strategically
positioned adjacent
to the under supplied
east coast gas market,
with the aim to produce
much needed gas into
the market.
Over the past
12 months we have
delivered numerous
value lift milestones
as we progress toward
the 2025 Otway
exploration drilling
program providing
a transformational
opportunity for
shareholder value.
8
59%
Increase in net
prospective resources.
(VIC/P79)
316 Bcf
Best estimate Prospective
Resource identified at
Monarch Prospect.1
1135km2
3D seismic reprocessed
(La Bella) with significant
value uplift.
3271km2
Environmental Plan
area submitted for
Otway Exploration Drilling
Program (June 2024).
3447km2
Environmental Plan
approved for Sauropod
3D seismic survey
(NW Shelf).
US$30M
ConocoPhillips Australia
T/49P well carry now
transferrable to VIC/P79.
3D Energi has continued the
rapid build-up of activities through
FY24 and has taken significant
steps towards its goal of becoming
an east coast gas producer.
Transocean Equinox drilling rig
contracted and mobilised to Australia
ahead of 2025 Otway Exploration
Drilling Program (Phase 1). Success
will be transformational for 3D.
3D Energi has streamlined the
pathway to a commercial Otway
gas development through its well carry
transfer option on the ConocoPhillips
Australia T/49P well carry.
3D Energi has executed a Gas Sales
Right of First Refusal (ROFR) deed
with ConocoPhillips Australia in regard
to its share of future Otway
gas production.
3D Energi has diversified its range
of energy solutions via entry into gas
storage exploration and continues to
assess the depleted Caroline gas field
as a potential gas storage site.
3D Energi has progressed towards
delineating prospectivity on the
Northwest Shelf by securing an
Environmental Plan to acquire the
Sauropod 3D seismic survey.
3D Energi Limited | Annual Report 2024
9
THE SUCCESS
OF A DRILLING
PROGRAM CAN
BE A TRANS-
FORMATIONAL
OPPORTUNITY
FOR A SMALL
COMPANY.
10
3D Energi Limited | Annual Report 2024
11
East Coast
offshore exploration
3D Energi is strategically positioned as an
active offshore east coast gas explorer and
potential producer. Events through this
financial year have highlighted the growing
relevance of 3D Energi’s business model.
Fiscal Year 2024 (FY24) has seen significant political
discussion, at both Federal and State levels, around the role
of gas in Australia’s future energy mix.
In recent months, the Australian Energy Market Operator
(AEMO) warned of imminent gas shortfalls due to the rapid
depletion of Victoria’s gas storage supply, attributable to
spikes in seasonal energy demand following cold weather
conditions, lulls in renewable energy generation, an outage
at the Longford Gas Plant and the decline from ExxonMobil’s
Gippsland production. This prompted the Australian
Competition and Consumer Commission (ACCC) to call
for the urgent development of new sources of gas supply,
particularly on the Australian East Coast.
In the short to mid-term, AEMO has warned of ongoing
seasonal supply gaps in Victoria through 2026 and 2027,
followed by growing annual supply gaps from 2028.
Victoria’s gas demand is higher than any other state, with
only a marginal decline forecast over the coming decades1.
Production from the Bass Strait gas fields is expected to
decrease by 40% over the next five years1.
The release of the Australian Government’s Future Gas Strategy
in May 2024 demonstrates the long-term role gas plays in the
Australian energy mix.
The AEMO Gas Statement of Opportunities 2024 forecasts that
gas-powered electricity generation will play a crucial role in
the National Electricity Market (NEM) from the mid-2030s,
providing firming support during extended periods of low
variable renewable energy generation.
3D Energi believes it has a significant role to play
in securing the future energy needs of Victoria
through its Otway Basin gas exploration projects
with Joint Venturer ConocoPhillips Australia.
3D Energi is one of the few remaining companies utilising the
traditional methods adopted by small exploration companies,
this being to acquire exploration rights over broad areas, apply
advanced exploration techniques to target potential gas or
oil reservoirs, analyse these areas, and continue with the
derisking process.
With the maturation of prospects, an exploration partner is
typically sought to provide additional expertise and resources,
including financial. Ultimately, the parties will arrive at a decision
point to test this technical work with an exploration drilling
program, an expensive and complex process. The success
of a drilling program can be a transformational opportunity
for a small company.
Simplistically, this is the setting the Company now finds itself in.
The macro environment outlined above, coupled with our
commitment to drill at least two significant exploration wells in
2025, is the culmination of years of dedicated exploration work.
We are pleased to report the advancement of the company’s
exploration activities as outlined below.
1. AEMO Gas Statement of Opportunities
12
2. Refer to Prospective Resources cautionary statement on Page 8 of this document.
3. AEMO Gas Bulletin Board.
Figure 1 – Value lift pyramid
Otway Basin
VIC/P79 Exploration Permit – Offshore Victoria
T/49P Exploration Permit – Offshore Tasmania
80% ConocoPhillips Australia (COPA) (Operator)
20% 3D Energi Limited (TDO)
The Otway Basin is central to 3D Energi’s
evolution and progression up the value
lift pyramid (Figure 1):
► The COPA/TDO Joint Venture (The Joint Venture) is exploring
~7,265km2 along the shallow inner margin of the continental
shelf across two exploration permits, VIC/P79 and T/49P.
► The Joint Venture has access to 78% of offshore Otway
Basin exploration permits (by area) as of June 2024.
► 849 Bcf gross prospective resource2 (best estimate) has
been identified in VIC/P79, with 170 Bcf net to 3D Energi.
► High impact prospects with Direct Hydrocarbon
Indicators (DHIs) have been identified on new and
recently reprocessed 3D seismic.
► Gas exploration prospects with DHIs in the Otway
have an 88% drilling success rate – extraordinarily
high in a global context.
► Low risk prospects are proximal to existing gas fields,
pipelines and gas plants. Athena Gas Plant is currently
operating at ~16% of its nameplate capacity3.
► The Joint Venture has plans to undertake the drilling
of up to 6 exploration wells as part of the Otway
Exploration Drilling Program (OEDP), commencing
in 2025.
► US$65M well carry towards 2 exploration wells from
Joint Venturer COPA.
► There is significant room to expand the portfolio of
drill targets with >4000km2 of 3D seismic available
across both permits, and a further ~1000km2 under
planning (Regia 3D).
3D Energi Limited | Annual Report 2024
13
Commercial
TDO and COPA agree to amending the Farmout
Agreements to provide drilling target flexibility
During the final stage of FY2024, TDO and COPA agreed to
amendments of the original Otway Farmout Agreements (FOAs)
to allow flexibility in selecting drilling locations for the Otway
Exploration Drilling Program (OEDP).
In the original T49/P and VIC/P79 FOAs with COPA, signed in
December 2019 and July 2022 respectively, TDO secured a
carry for one (1) exploration well on each of T/49P and VIC/P79
permits, which together amount to the value of US$65 million.
Under the June 2024 amendments, TDO reached an agreement
regarding COPA’s farmout obligations that allows the US$30M
T/49P well carry obligation to be applied either in T/49P or
VIC/P79 (TDO ASX release 24 June 2024). This has important
implications to TDO for several reasons. Firstly, the FOA
amendments ensures TDO retains its US$30M well carry,
regardless of where it is drilled. COPA could have otherwise
elected to drill the second firm well in VIC/P79 and TDO would
not have been carried on the second well.
Secondly, the Joint Venture now has the flexibility to
strategically manage exploration prospects within both permits
as one large portfolio. This provides the ability to optimise
decision-making around exploration drilling that facilitates
a faster pathway to commerciality, incorporating proximity
to infrastructure, risk, and estimates of prospective resources.
TDO recognises three main exploration fairways spanning
both permits, all of which are important to a future
commercialisation strategy, but with different exploration
maturities and/or proximity to infrastructure, and therefore
different minimum success volumes and development costs
(TDO ASX release 24 June 2024). These fairways are broadly
consistent with the operational areas defined by the Joint
Venture for the upcoming OEDP, having been recently revised
in June 2024.
Execution of Gas Sales Right of First Refusal
Deed with COPA
TDO has also entered into a Right of First Refusal Deed with
COPA in regard to the sale of its share of future gas production
(TDO ASX release 24 June 2024). The agreement provides
3D Energi with a mechanism to achieve at least market parity
pricing. This agreement also marks another milestone for the
Company - illustrating how fast the Company is transforming
from explorer to potential producer.
4. Refer to Prospective Resources cautionary statement on Page 8 of this document.
FY24 Highlights
■ The Transocean Equinox semi-submersible drilling rig was
contracted to drill two exploration wells in 2025, with the
option for an additional 120 days of drilling.
■ The drilling rig mobilised to Australian waters from Norway.
■ COPA agreed the US$30M T/49P well carry obligation
can be applied in either T/49P or VIC/P79.
■ Gas Sales Right of First Refusal (“ROFR”) deed was
executed with COPA.
■ Delivered significant uplift in image quality after La Bella
3D seismic reprocessing completed in VIC/P79.
■ Direct Hydrocarbon Indicators uncovered at the Monarch
Prospect, the largest undrilled structure in VIC/P79.
■ Upgraded the Prospective Resource estimates over
southern VIC/P79 to 849 Bcf (gross best estimate)4.
■ COPA submitted its Environmental Plan for the
drilling of up to six (6) exploration wells to the regulator
for assessment.
■ Commenced planning for the acquisition of the
Regia 3D seismic survey in VIC/P79.
■ Continued interpretation of the Sequoia 3D seismic survey.
■ T/49P suspension and extension, variation, and exemption
approved by the regulator, the National Offshore Petroleum
Titles Administrator (NOPTA).
FY25 Activities
■ Conduct seabed surveys for upcoming exploration wells.
■ Finalise drilling-related contracts in preparation for
the OEDP.
■ Finalise interpretation of 3D and 2D seismic data across
both permits.
■ Complete prospectivity updates and revisions to
prospective resource estimates in VIC/P79 and T/49P.
■ Transocean Equinox to mobilise to the Otway.
■ Continue planning for the Regia 3D seismic survey.
14
Figure 2 – Location map of Otway Basin offshore exploration permits VIC/P79
and T/49P and Otway Exploration Drilling Program operational areas.
Exploration
Progressing rapidly
towards drilling
On behalf of the Joint Venture,
ConocoPhillips Australia has rapidly
progressed drilling preparation
activities during FY24 in support of the
upcoming OEDP, commencing in 2025.
Procurement activities are advanced,
and COPA has entered contracts for the
supply of critical drilling items, including
subsea wellheads and conductor pipes,
as well as casing and liners.
Three OEDP operational areas have
been defined, including VIC/P79 North,
VIC/P79 South and T/49P (Figure 2), each
having their own revised limits on the
number of seabed surveys and wells to
minimise impacts within each area. These
adjustments have been made as a result
of ongoing processing of subsurface data
and the selection of some areas with a
high probability of success.
During FY24, the Transocean Equinox
mobilised from Norway to Australia, via
Singapore, for an initial five-well drilling
contract on the Northwest Shelf. After
completion of that campaign, the rig will
mobilise to the Otway for an initial 16-well
firm drilling campaign for a consortium of
operators, including 2 exploration wells
for the Joint Venture with an additional
120 days of optional drilling.
The rig is currently expected to arrive
in the Otway during the first quarter of
2025. The timing of drilling is determined
by the programs of parties within the
rig consortium who are drilling prior to
the Joint Venture program and timing
of environmental permitting approvals.
Table 1: Monarch prospective resource estimate (TDO ASX release 12 February 2024).
Gross Recoverable Gas (Bcf)
Net TDO Recoverable Gas (Bcf)
GPoS
P90
P50
P10
P90
P50
P10
%
Monarch
176
316
506
35
63
101
47
The new prospective resource estimate at Monarch has upgraded
the total prospective resource base for southern VIC/P79 to
849 Bcf (gross best estimate)5.
3D Energi Limited | Annual Report 2024
15
Delivering uplift in 3D seismic image quality
to fully delineate prospectivity
A key milestone of FY24 has been the completion of the
La Bella 3D seismic reprocessing project, covering ~1135km2
of southern VIC/P79 (TDO ASX release 31 January 2024).
This project has employed state-of-the-art processing
techniques to deliver a significant enhancement in image
quality across the survey beneath extensive Tertiary channeling,
present across much of the La Bella 3D survey. This is especially
apparent at the La Bella Complex, a series four (4) leads and
prospects that form a chain of traps leading up to the La Bella
gas discovery (Figures 3 and 4).
The new data also now provides a clear and consistent image
over the highly prospective Essington Prospect (Figure 3),
which spans two seismic surveys, supporting a robust
assessment of previously identified Direct Hydrocarbon
Indicators (DHIs). Essington Prospect is located adjacent to
the producing Thylacine and Geographe gas fields (operated
by Beach Energy), the largest gas fields in the basin.
Direct Hydrocarbon Indications at Monarch
A comprehensive evaluation of the newly reprocessed
La Bella 3D seismic is underway and yielded signifcant early
results. For the first time, a clear and continuous image of the
seismic reflections at Monarch and Rosetta prospects is now
available, located at the western end of the La Bella Complex.
Importantly, the reprocessing revealed a previously disguised
Direct Hydrocarbon Indicator (DHI) at Monarch (Figure 5),
in the form of an interpreted flat spot within the Waarre C
reservoir, which is likely indicative of a gas-water contact.
This enabled the first prospective resource assessment of
the Monarch Prospect (TDO ASX release 12 February 2024).
TDO estimates a prospective resource of 316 Bcf (gross best
estimate)5 within the Waarre C reservoir at Monarch (Table 1),
representing a substantial addition to the VIC/P79 portfolio
and the largest prospect by volume identified in the permit
to date. The prospect has an estimated Geological Probability
of Success (GPoS) of 47%, indicating the probability of
encountering a measurable volume of mobile hydrocarbons.
Wider Otway prospectivity evaluation
During FY24, subsurface studies of the newly reprocessed
La Bella 3D have progressed in support of prospectivity
and prospective resource updates, as well as prospect
maturation as we progress towards the OEDP. These studies
include seismic interpretation and detailed velocity modelling
(and sensitivity analysis) to support the accurate depth
conversion of reservoir horizons. Comprehensive rock physics,
Amplitude Versus Offset (AVO) and seismic inversion studies
are also supporting the above efforts and will be completed
throughout FY25.
The Company has continued its thorough evaluation and
mapping of the recently processed ~1782km2 Sequoia 3D
seismic survey in T/49P, marking the largest survey conducted
in the basin to date. This survey substantiates the previously
identified structures within the permit area, while also revealing
a more complex faulting system compared to the earlier
observations from widely spaced 2D seismic data.
Current efforts are focused on refining the interpretation of
key horizons and the fault architecture at major leads along the
central corridor, including Whistler Point, British Admiral, and
Seal Rocks. These activities are supporting planned velocity
modelling and depth conversion studies across the permit in
support of prospectivity and prospective resource updates,
along with maturation the overall exploration portfolio of
T/49P. These studies will provide valuable insights to guide
the exploration strategy moving forward.
5. Refer to Prospective Resources cautionary statement on Page 8 of this document.
Figure 3 – 3D view of VIC/P79 prospects
(Waarre C reservoir two-way-time map)
(x4 vertical exaggeration).
Figure 4 – 3D seismic cross-section through La Bella Complex prospects with amplitude extraction
along the Waarre C reservoir (contours are Waarre C two-way time) (x5 vertical exaggeration).
16
Figure 5 – The La Bella Complex extending to Monarch Prospect, which exhibits a flat spot within the Waarre C reservoir,
a Direct Hydrocarbon Indicator (DHI) that represents a likely gas-water contact.
3D Energi Limited | Annual Report 2024
17
Regulatory
During FY24, a series of regulatory applications were
approved by the regulator, NOPTA, in T/49P. This included
an 18-month suspension and extension of the Year 5 work
program, extending the permit’s term to February 21, 2026.
This extension is designed to support the maturation of
exploration prospects by utilising the newly acquired Sequoia
3D seismic data, as well as to facilitate comprehensive drill
planning and preparation.
The Joint Venture now has until February 21, 2025, to
complete the minimum work requirements for Year 5.
Following this period, the Joint Venture has the option
to enter year 6, which requires the drilling of one
exploration well. As per the T/49P FOA with ConocoPhillips
Australia SH1 Pty Ltd, the Company will be carried for up to
US$30 million in drilling costs, after which it will contribute
20% of drilling costs in line with its interest in the permit.
As per the amended T/49P FOA with COPA, TDO has an
option to apply this well carry to VIC/P79 in the event the
Joint Venture elects a second well in VIC/P79.
Gippsland Basin
VIC/P74 Exploration Permit – Offshore Victoria
100% 3D Energi Limited (Operator)
Gippsland Basin exploration and
development opportunities have been an
important focus for the Company since its
inception, however, the Company strategy
must evolve as the risks of different
pathways become evident. VIC/P74 always
appeared very exciting with its proximity to
the giant Kingfish Oil Field and its minimal
exploration history.
► FY24 corresponded with the start of the secondary term
work program, designed to address geological uncertainties
identified in the primary term.
► Based on the results of detailed FY24 subsurface studies,
the Company has applied to NOPTA for consent to voluntarily
surrender the VIC/P74 exploration permit (Figure 6),
with no further commitments to the Company.
► This will allow TDO to focus our resources more effectively
towards the delivery of projects that provide the best
opportunity for commercial success.
FY24 Highlights
■ Regulatory approval received to vary the Year 4 seismic
acquisition or purchase work program to Year 5.
■ Regulatory approval received for a 12-month suspension
and extension of Year 4 until 25 July 2024, thereby
extending the permit term to 25 July 2026.
■ Year 4 work activities focused on further maturing the
Bigfin Prospect in advance of any seismic acquisition
or purchase in Year 5.
■ Completed rock physics, AVO forward modeling studies,
and detailed depth conversion work to reduce the
uncertainty around key petroleum system elements
at Bigfin Prospect.
FY25 Activities
■ No planned activities.
18
Exploration
During FY24, the Company has focused on maturing its
technical evaluation of Bigfin Prospect prior to licencing new
multi-client 3D seismic over the prospect. The newly acquired
3D seismic is only available over Bigfin and does not cover
other prospects in the portfolio.
Detailed rock physics studies have been undertaken for key
wells to understand the application of the new multi-client data
in resolving the presence of gas within the Golden Beach and
Emperor reservoirs. Results suggest that we should anticipate
an AVO response from porous gas sands within the Golden Beach
Subgroup, though this is less reliable in the Emperor reservoir.
AVO forward modelling of local wells was utilised to determine
the type of AVO response we should anticipate in the presence
of gas, highlighting complexities in the seismic response and
reservoirs between existing well locations. Synthetic AVO
forward modelling was also applied to determine the effect
of thickness variations within the volcanic seal layer on the
response of seismic with different frequency contents.
Despite these efforts, it remained unclear as to whether new
seismic data would improve our understanding of the volcanic
seal layer distribution, and its predictability at Bigfin Prospect.
Assuming the new data is of higher quality and possesses a
broader frequency range than the existing reprocessed data,
the detection of volcanics, if present, may have been possible.
The final component of the work program included depth
conversion of reprocessed 3D seismic, aimed at reducing
uncertainty around the closure at Bigfin. Depth conversion in
the Gippsland Basin is traditionally very challenging owing to
rapid vertical and lateral variations in lithologies, and therefore
velocities, within the overburden above drill targets. Additionally,
there are only limited well penetrations of the Golden Beach
target across the area.
Preliminary results from detailed velocity modelling have
enhanced our understanding of the sensitivity of the trapping
configuration and volume at Bigfin to various velocity models.
Figure 6 – Location map of VIC/P74 showing leads with prospective resources.
3D Energi Limited | Annual Report 2024
19
West Coast
offshore exploration
Bedout Sub-Basin, Northwest shelf
WA-527-P Exploration Permit –
Offshore Western Australia
100% Participating Interest (Operator)
The WA-527-P exploration permit (Figure 8)
represents a diversification of 3D Energi’s
portfolio, marking our entry into the prolific
offshore Northwest Shelf, where we are
targeting outstanding oil prospectivity
within the Bedout Sub-Basin:
► The Bedout Sub-Basin hosts the largest oil discovery
in 30+ years on the Northwest Shelf, Dorado Field.
► WA-527-P covers 6,500km2 along the margin of the
basin and has access to a wide variety of plays.
► 2D seismic reprocessing has revealed Dorado look-alike
features (incised valleys) in WA-527-P, which could have
potential for large closures like Dorado (Figure 7).
► These potential incised valleys are located directly along
trend from the latest oil discovery, Pavo Field, which
demonstrates the migration of hydrocarbons to the
basin margin.
► The Sauropod 3D seismic survey is under planning to fully image
these potential incised valleys and identify possible drill targets.
► Up to 350 million barrels (MMbbls) of oil (gross best estimate)
is estimated across three existing leads, including Salamander,
the third largest undrilled structure in the basin (by area).
FY24 Highlights
■ The EP preparation and approvals process was
a core focus for FY24.
■ A 2-year Environmental Plan (EP) to acquire the
Sauropod 3D seismic survey over an area of 3447km2
was approved by government regulator NOPSEMA.
■ A 2-year Suspension and Extension of the primary
term work commitment was approved by NOPTA.
■ The Company continued to diligently market the
opportunity to prospective partners to fund the
Sauropod 3D seismic survey.
FY25 Activities
■ Continue to diligently market the opportunity to
prospective partners to fund the Sauropod 3D.
■ Potential acquisition of the Sauropod 3D seismic survey.
Exploration
During FY24, 3D Energi has focused on obtaining the necessary
regulatory permits for the acquisition and processing of the
Sauropod 3D seismic survey, covering a minimum area of ≥510 km².
The Sauropod 3D forms a critical element of the primary term
(Years 1-3) minimum work program and is essential for evaluating
the full prospectivity of the permit area. The primary objective
of the survey is to image the possible northern extension of the
Dorado incised valley channel system in the southwest corner of
the permit, identified via reprocessed 2D seismic data, with the
aim to identify new drill targets for a subsequent drilling program
in the secondary term.
Significant progress was made in FY24 towards planning for
the Sauropod MC3D acquisition, working in collaboration with
CGG, who are responsible for managing the EP preparation.
Figure 7 – 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).
20
Figure 8 – WA-527-P exploration permit with Sauropod 3D Environmental Planning area (red polygon).
Stakeholder consultation stands as a critical element in the EP
approvals process and was a core focus throughout the year.
RPS environmental consultants, in consultation with CGG, reviewed,
redesigned and implemented a new stakeholder consultation
process that ensured genuine and rigorous consultation, while
continuing ongoing engagement with the regulator.
This process culminated in a significant update to the
Sauropod EP, which was submitted to NOPSEMA for public
comment on 18 September 2023. Following a 30-day public
comment period, feedback was thoroughly analysed, and a
comprehensive ‘Titleholders report on public comment’ was
compiled and submitted to NOPSEMA.
On 15 April 2024, the EP was approved by the National Offshore
Petroleum Safety and Environmental Management Authority
(NOPSEMA) (TDO ASX release 15 April 2024), permitting the
acquisition of the Sauropod 3D within a two-year acquisition
window extending from January-May (inclusive) 2024 or 2025.
The Sauropod 3D covers a maximum full-fold acquisition area
of 3447km2 and is anticipated to take approximately two months
to acquire.
The Company has since been engaged with CGG in relation to
the latest costings for the Sauropod Multi-Client 3D seismic
survey and vessel availability over the upcoming acquisition
window in 2025.
The Company’s preferred strategy to fund the forward
exploration program, which includes the acquisition of the
Sauropod 3D, has been to secure a farm-in partner and
replicate the recent successful introduction of super-major
ConocoPhillips Australia into Otway permits T/49P and
VIC/P79 (TDO ASX release 15 April 2024).
Furthermore, the regulator granted a 2-year suspension and
extension for the acquisition of the Sauropod 3D (TDO ASX
release 19 March 2024), which was critical to 3D Energi’s
preferred funding strategy for the forward exploration program.
3D Energi Limited | Annual Report 2024
21
Otway Basin,
South Australia
GSEL 759 Gas Storage Exploration Permit –
Onshore South Australia
100% Participating Interest (Operator)
Gas Storage Exploration Licence (GSEL)
759 (Figure 9) was awarded 100% to
3D Energi in July 2022. The permit is
located approximately 20 km southeast
of Mount Gambier and is in close proximity
to the South East Pipeline System (SEPS).
Encompassing an area of 1.02 km², the
licence is centrally situated around the
plugged and abandoned Caroline-1
wellhead, covering part of the now
depleted Caroline Field.
Evaluation
GSEL 759 is currently in the second year of a five-year work
program designed to develop a gas storage business model.
This detailed work program includes reservoir deliverability and
seal integrity studies, seismic interpretation (potentially including
reprocessing) to support the development of both static and
dynamic models, and the building of an economic model that
incorporates drilling, completions, and engineering studies.
During FY24, the Company continued its comprehensive
assessment of Caroline’s suitability as a gas storage reservoir.
The depleted CO2 reservoir is being evaluated for potential
storage of hydrogen, natural gas, or carbon dioxide.
Detailed reservoir/seal studies are underway to understand
the reservoir deliverability and seal integrity. These studies are
complemented by ongoing geomechanical and geophysical
studies, aimed at determining the most feasible business
model from multiple gas storage and supply scenarios.
FY24 Highlights
■ Progressed with technical studies to evaluate the
potential of the depleted Caroline Field for the storage
of hydrogen, natural gas, or carbon dioxide.
FY25 Activities
■ Continue undertaking comprehensive technical studies
to enhance understanding of the Caroline Field’s storage
capacity, reservoir deliverability and seal integrity.
22
23
3D Energi Limited | Annual Report 2024
Figure 9 – GSEL 759 location relative to Mount Gambier (yellow), the South East Pipeline System and electricity transmission lines.
East Coast
gas storage
Gas storage forms part of an 3D Energi’s
emerging broader energy strategy,
particularly in light of the impending energy
crisis in Eastern Australia and the transition
in the domestic and global energy sector.
3D Energi is exploring the suitability of the depleted Caroline
carbon dioxide (CO2) field, within the onshore Otway Basin, as a
gas storage site for natural gas, hydrogen, or carbon dioxide.
Underground Gas Storage (UGS), such as the depleted Iona
gas field, is an important component of the east coast gas
supply, ensuring the maintenance of a reliable gas supply during
periods of high demand by addressing annual, seasonal and
daily supply gaps. Shallow storage facilities, such as Dandenong
(VIC) and Newcastle (NSW), are comparatively limited in their
GAS STORAGE
FORMS PART OF
OUR BROADER
STRATEGY
storage volumes and are slow to re-fill due to the liquification
process prior to storage. Key variables for a successful gas
storage project, such as subsurface storage capacity, reservoir
injectivity and reservoir deliverability, are currently under
assessment by 3D Energi.
Australia has a goal to become a future major global producer
of hydrogen, and in fact, significant concentrations of natural
hydrogen has recently been detected in an exploration well in
South Australia. Large-scale underground hydrogen storage
within depleted gas fields may be the most cost-effective and
safest storage alternative, acting as a buffer for fluctuations
in domestic and international supply and demand. Currently,
there is no local market for hydrogen, and various subsurface
reservoir and seal studies are required to assess Caroline’s
suitability for hydrogen storage.
Carbon Capture and Storage (CCS) is a proven and safe technology
that permanently stores captured CO2 emissions within suitable
geologic formations deep underground. The Caroline reservoir is
a potential candidate for CCS due to its previous life as a carbon
dioxide field. The Company is evaluating if this model can be
commercialised at the Caroline scale.
24
Term
Definition
2D seismic
Two-dimensional seismic
3D seismic
Three-dimensional seismic
BCF
Billion Cubic Feet
CO2
Carbon Dioxide
DHI
A Direct Hydrocarbon Indicator
An anomalous seismic amplitude value that could be explained by the presence of hydrocarbon. Examples
include AVO, flat spots and bright amplitudes or “amplitude anomalies” (conforming with the trap).
Refer to Flat spot definition for additional information.
Flanagan 3D
974km2 3D seismic survey acquired in 2014 and reprocessed by the Joint Venture in 2024.
Flat Spot
A seismic anomaly that appears as a horizontal reflection cutting across inclined rock layers. It represents
a hydrocarbon contact between either gas and oil, gas and water, or oil and water. It is a form of Direct
Hydrocarbon Indicator.
La Bella Complex
A series of leads and prospects extending west of the La Bella gas discovery, including Defiance,
Trident, Rosetta and Monarch.
La Bella 3D
886km2 3D seismic survey acquired in 2013 and reprocessed by the Joint Venture in 2024.
MMbbls
Millions of barrels (1,000,000 barrels)
Joint Venture
The joint ventures formed pursuant to finalised farmout agreements announced on 11 June 2020
(T/49P) and 16 March 2023 (VIC/P79) by and between 3D Oil T49P Pty Limited and ConocoPhillips
Australia SH1 Pty Ltd; and 3D Energi Limited and ConocoPhillips Australia SH2 Pty Ltd, respectively.
Operator
Company responsible for the exploration, development and production of a petroleum title.
Primary term
The first 3 years of a work program for a petroleum exploration title. This forms the minimum work commitment.
Prospect(s)
A prospect is a potential trap/structure that may contain hydrocarbons, usually defined on 3D seismic,
and has undergone significant geological and seismic investigation to evaluate the petroleum system.
Prospective
Resources
Prospective Resources are those estimated quantities of petroleum that may potentially be recovered by
the application of a future development project(s) relate to undiscovered accumulations. These estimates
have both a risk of discovery and a risk of development. Further exploration appraisal and evaluation is
required to determine the existence of a significant quantity of potentially recoverable hydrocarbons.
Reservoir
A porous and permeable formation of sedimentary rock, typically a sandstone or limestone.
Regia 3D
Planned 3D seismic survey (≥1000km2) over northern VIC/P79.
Sauropod 3D
Planned 3D seismic survey with an approved Environmental Plan for 3447km2 over WA-527-P
exploration permit. Approved seismic acquisition window covers January-May 2025 inclusive.
Seabed Survey
Seabed surveys are different from a seismic survey. They are designed specifically to map the seabed
and directly below the seabed (up to approximately 100 metres), whereas seismic surveys are designed
to image the subsurface up to several kilometres below the seabed. Sound generated from seabed survey
equipment is significantly lower in intensity and duration than sound produced from a seismic array.
Seal
A layer of impermeable rock, called the cap rock, the prevents the upwards or lateral escape
of hydrocarbons.
Secondary term
Permit years 4, 5 and 6 for a petroleum exploration title. The work commitment for each year becomes
guaranteed on entry.
Semi-submersible
A specialised offshore drilling rig with a platform type deck that is buoyant and floats during operations
on partially submerged (ballasted) watertight pontoons that are stable and capable of withstanding rough
water conditions.
Sequoia 3D
1815km2 3D seismic survey acquired over T/49P exploration permit in 2021.
Glossary
25
3D Energi Limited | Annual Report 2024
Directors’
report
26
The Directors present their report, together
with the financial statements, on the
consolidated entity (referred to hereafter
as the ‘Consolidated Entity’) consisting
of 3D Energi 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 2024.
Directors
The following persons were Directors of 3D Energi Limited
during the whole of the financial year and up to the date
of this report, unless otherwise stated:
● Noel Newell
● Ian Tchacos
● Leo De Maria
● 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.
Review of operations
The loss for the Consolidated Entity after providing for
income tax amounted to $2,174,797 (30 June 2023:
profit of $3,414,258).
Refer to the detailed Review of Operations preceding this
Directors’ Report.
Financial position
The net assets increased by $964,746 to $10,869,983 at
30 June 2024 (30 June 2023: $9,905,237). During the year
the Consolidated Entity invested $1,667,682 (30 June 2023:
$1,029,655) on exploration assets, mainly in relation to
VIC/P79, T/49P and WA-527-P.
The working capital position of the Consolidated Entity as
at 30 June 2024 is $2,662,011 (30 June 2023: $2,708,803).
The Consolidated Entity incurred net operating cash
outflows of $1,393,604 ( 30 June 2023 : $1,405,663).
The cash balances as at 30 June 2024 was $3,157,805
(30 June 2023 : $3,221,377).
Risks and uncertainties
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
$3,157,805 and net assets of $10,869,983 as at 30 June 2024.
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.
Foreign currency risk
Certain exploration transactions denominated in foreign
currency and is exposed to foreign currency risk through
foreign exchange rate fluctuations, which is beyond
the control of the Company. The Company uses sensitivity
analysis and measurement of this risk via cash flow forecasting.
3D Energi Limited | Annual Report 2024
27
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.
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.
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.
28
Significant changes in the state of affairs
On 12 July 2023, the Company announced that ConocoPhillips
Australia has issued a Letter of Award securing the Transocean
Equinox drilling rig for an exploration drilling program in
exploration permits VIC/P79 and T/49P in the Otway Basin.
ConocoPhillips Australia is the Operator of the two exploration
permits in which 3D Energi Limited has a 20% interest in both.
On 30 November 2023, the Company has changed its name
from 3D Energi Limited to 3D Energi Limited. The ASX ticker
code will remain unchanged as TDO.
On 22 December 2023, the Company issued 4,000,000
performance rights to directors of the Company. These
performance rights were approved by the Shareholders at
the 2023 Annual General Meeting held on 24 November 2023.
The Performance Rights were issued for Nil consideration as
remuneration and are subject to various vesting conditions.
The Performance Rights expire on 21 December 2026.
On 23 February 2024, the Company raised $3.3M (before
transactions costs) by issuing 66,100,000 fully paid ordinary
shares at issue price of $0.05 (5 cents) per share.
On 24 June 2024, the Company and ConocoPhillips
Australia (COPA, Joint Venture Partner and operators)
agreed for an amendment to farmout agreements (FOA)
with its of VIC/P79 and T/49P exploration permits. Under the
amendment, COPA the provided an option to discharge the
well carry obligation anywhere across T/49P and VIC/P79.
This allows the Joint Venture to optimally explore and
appraise the combined acreage position. On the same day,
the Company has executed a Right of First Refusal Deed with
a COPA Group company in relation to any sales gas produced
from either of Joint Venture permits VIC/P79 and T/49P.
Under the deed COPA has an opportunity to acquire
TDO’s share of joint venture production however the ROFR
mechanism gives TDO ample opportunity to capture market
parity pricing from COPA or otherwise a third-party buyer.
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 2024
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
- 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 2024.
3D Energi Limited | Annual Report 2024
29
Information on Directors
Name:
Mr Noel Newell
Title:
Executive Chairman
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:
45,702,487 ordinary fully paid shares.
Interests in options:
None
Interests in rights:
1,000,000
Name:
Mr Leo De Maria
Title:
Non-Executive Director
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:
1,000,000
30
Name:
Mr Ian Tchacos
Title:
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:
1,000,000
Name:
Trevor Slater
Title:
Non-Executive Director
Qualifications:
B.Bus (Acc), Fellow of CPA Australia, Fellow of the Governance Institute of Australia.
Experience and expertise:
Mr Slater 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, Mr Slater
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.
Mr Slater 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:
1,000,000
‘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.
3D Energi Limited | Annual Report 2024
31
Company secretary
Mr Stefan Ross BBus (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.
Mr Ross is employed at Vistra Australia, a professional advisory and corporate services firm.
Meetings of Directors
The number of meetings of the Company’s Board of Directors (‘the Board’) held during the year ended 30 June 2024, and the
number of meetings attended by each Director were:
Board
Remuneration and Nomination
Committee
Audit and Risk Committee
Meetings
Held
Meetings
Attended
Meetings
Held
Meetings
Attended
Meetings
Held
Meetings
Attended
Mr N Newell
8
8
-
-
-
-
Mr L De Maria
8
8
1
1
2
2
Mr I Tchacos
8
8
1
1
2
2
Mr T Slater
8
8
1
1
2
2
Held: represents the number of meetings held during the time the Director held office.
●
competitiveness and reasonableness
●
acceptability to shareholders
●
alignment of executive compensation
●
transparency
The Board is responsible for determining and reviewing
remuneration arrangements for its directors and executives.
The performance of the Consolidated Entity and the Company
depends on the quality of its directors and executives.
The remuneration philosophy is to attract, motivate and
retain high performance and high quality personnel.
The Board has structured an executive remuneration framework
that is market competitive and complementary to the reward
strategy of the Consolidated Entity.
The reward framework is designed to align executive reward
to shareholders’ interests. The Board have considered that
it should seek to enhance shareholders’ interests by:
●
focusing on sustained growth in shareholder wealth,
consisting of dividends and growth in share price,
and delivering constant or increasing return on assets
as well as focusing the executive on key non-financial
drivers of value
●
attracting and retaining high calibre executives
Additionally, the reward framework should seek to enhance
executives’ interests by:
●
rewarding capability and experience
●
reflecting competitive reward for contribution
to growth in shareholder wealth
●
providing a clear structure for earning rewards
Remuneration report (audited)
The remuneration report, which has been audited, outlines
the director and executive remuneration arrangements for
the Company, in accordance with the requirements of the
Corporations Act 2001 and its Regulations.
Key management personnel are those persons having
authority and responsibility for planning, directing and
controlling the activities of the entity, directly or indirectly,
including all Directors.
The remuneration report is set out under the following
main headings:
●
Principles used to determine the nature and
amount of remuneration
●
Details of remuneration
●
Service agreements
●
Share-based compensation
●
Additional information
●
Additional disclosures relating to key
management personnel
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:
32
In accordance with best practice corporate governance,
the structure of non-executive Director and executive
Director remuneration is separate.
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.
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.
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. Options and performance
rights are valued using the Monte Carlo Simulation.
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 2024 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 (30 June 2023: Nil).
Voting and comments made at the Company’s
24 November 2023 Annual General Meeting (‘AGM’)
The Company received 97.71% of ‘for’ votes in relation to
its remuneration report for the year ended 30 June 2023,
during the AGM held on 24 November 2023. The Company
did not receive any specific feedback at the AGM regarding
its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of 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 Consolidated Entity)
are set out in the following tables.
The key management personnel of the Consolidated Entity
consisted of the following Directors of 3D Energi Limited:
● Mr Noel Newell
● Mr Ian Tchacos
● Mr Leo De Maria
● Mr Trevor Slater
3D Energi Limited | Annual Report 2024
33
Name
Short-term
benefits
Short-term
benefits
Post-
employment
benefits
Long-term
benefits
Equity settled
share based
payments
Salaries
and fees
Annual
leave(i)
Super-
annuation
Long service
leave
Performance
rights
Total
2024
$
$
$
$
$
$
Non-Executive Directors:
Mr I Tchacos
42,760
-
4,704
-
8,145
55,609
Mr L De Maria
40,724
-
4,480
-
8,145
53,349
Mr T Slater
40,724
-
4,480
-
8,145
53,349
Executive Directors:
Mr N Newell
344,988
2,094
27,500
9,831
8,145
392,558
469,196
2,094
41,164
9,831
32,580
554,865
Name
Short-term
benefits
Short-term
benefits
Post-
employment
benefits
Long-term
benefits
Equity settled
share based
payments
Salaries
and fees
Annual
leave(i)
Super-
annuation
Long service
leave
Performance
rights
Total
2023
$
$
$
$
$
$
Non-Executive Directors:
Mr I Tchacos
42,760
-
4,509
-
(5,180)
42,089
Mr L De Maria
40,724
-
4,276
-
(5,180)
39,820
Mr T Slater
40,724
-
4,276
-
9,815
54,815
Executive Directors:
Mr N Newell
344,988
(9,085)
27,069
7,782
-
370,754
469,196
(9,085)
40,130
7,782
(545)
507,478
(i) Employee leave benefits represent annual leave and long service leave entitlements, measured on an accrual basis, and reflects the net movement
in the entitlements over the year. Negative movement indicates leave taken that exceeds leave accrued during the year.
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Fixed remuneration
At-risk long term remuneration
2024
2023
2024
2023
Non-Executive Directors:
Mr I Tchacos
85%
112%
15%
(12%)
Mr L De Maria
85%
113%
15%
(13%)
Mr T Slater
85%
82%
15%
18%
Executive Directors:
Mr N Newell
98%
100%
2%
-
34
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements.
Details of these agreements are as follows:
Name:
Mr Noel Newell
Title:
Executive Chairman
Agreement commenced:
1 November 2006
Details:
(i) Mr Newell may resign from his position and thus terminate this contract by giving
6 months written notice.
(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.
Name:
Mr Ian Tchacos
Title:
Non-Executive Director
Agreement commenced:
14 October 2016
Details:
(i) Mr Tchacos may cease to hold office as a Director at any time if Mr Tchacos resigns
by written notice.
Name:
Mr Leo De Maria
Title:
Non-Executive Director
Agreement commenced:
1 October 2014
Details:
(i) Mr De Maria may cease to hold office as a Director at any time if Mr De Maria resigns
by written notice.
Name:
Trevor Slater
Title:
Non-Executive Director
Agreement commenced:
15 November 2021
Details:
(i) Mr Slater may cease to hold office as a Director at any time if Mr Slater resigns
by written notice.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
3D Energi Limited | Annual Report 2024
35
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 2024 (30 June 2023: Nil).
Options
There were no options over ordinary shares issued to Directors and other key management personnel as part of
compensation that were outstanding as at 30 June 2024 (30 June 2023: 185,185).
Performance rights
There were 4,000,000 performance rights over ordinary shares issued to Directors as part of compensation that
were outstanding as at 30 June 2024 (30 June 2023: Nil).
Grant date
Vesting date and
exercisable date
Expiry date
Share price
hurdle for
vesting
Fair value
per right
at grant date
22 December 2023
21 December 2026
21 December 2026
$0.070
$0.049
22 December 2023
21 December 2026
21 December 2026
$0.090
$0.045
22 December 2023
21 December 2026
21 December 2026
$0.110
$0.042
Performance rights granted carry no dividend or voting rights. No performance rights vested and were exercised
during the year.
Additional information
The earnings of the Consolidated Entity for the five years to 30 June 2024 are summarised below:
2024
$
2023
$
2022
$
2021
$
2020
$
Other income including interest income
42,721
4,202,908
467
87,478
85,279
Net (loss)/profit before tax
(2,174,797)
3,414,258
(1,147,179)
(1,142,095)
(3,006,065)
Net (loss)/profit after tax
(2,174,797)
3,414,258
(1,147,179)
(1,142,095)
(3,006,065)
The factors that are considered to affect total shareholders return (‘TSR’) are summarised below:
2024
2023
2022
2021
2020
Share price at financial year start ($)
0.050
0.050
0.050
0.070
0.110
Share price at financial year end ($)
0.076
0.050
0.050
0.050
0.070
Basic (loss)/earnings per share
(cents per share)
(0.752)
1.287
(0.433)
(0.430)
(1.130)
36
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:
Balance at
the start of
the year
Received
as part of
remuneration
Additions
Disposals/
other
Balance at
the end of
the year
Ordinary shares
Mr N Newell
44,875,960
-
826,527
-
45,702,487
Mr L De Maria
650,070
-
-
-
650,070
Mr I Tchacos
428,500
-
-
-
428,500
Mr T Slater
449,938
-
-
-
449,938
46,404,468
-
826,527
-
47,230,995
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:
Balance at
the start of
the year
Granted
Vested
Expired/
forfeited/
other
Balance at
the end of
the year
Performance rights over ordinary shares
Mr N Newell
-
1,000,000
-
-
1,000,000
Mr L De Maria
-
1,000,000
-
-
1,000,000
Mr I Tchacos
-
1,000,000
-
-
1,000,000
Mr T Slater
-
1,000,000
-
-
1,000,000
-
4,000,000
-
-
4,000,000
This concludes the remuneration report, which has been audited.
3D Energi Limited | Annual Report 2024
37
Shares under option
There were no unissued ordinary shares of 3D Energi Limited under option outstanding at the date of this report.
Shares issued on the exercise of options
There were no ordinary shares of 3D Energi Limited issued on the exercise of options during the year ended 30 June 2024
and up to the date of this report.
Shares under performance rights
Unissued ordinary shares of 3D Energi Limited under performance rights at the date of this report are as follows:
Grant date
Expiry date
Exercise
price
Number
under rights
5 March 2023
5 March 2026
$0.000
431,000
22 December 2023
21 December 2026
$0.000
4,000,000
4,431,000
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
performance rights
There were no ordinary shares of 3D Energi Limited issued
on the exercise of performance rights during the year ended
30 June 2024.
Indemnity and insurance of officers
The Consolidated Entity has indemnified the directors of the
Company for costs incurred, in their capacity as a director,
for which they may be held personally liable, except where
there is a lack of good faith.
During the financial year, the Company paid a premium in
respect of a contract to insure the directors of the Company
against a liability to the extent permitted by the Corporations
Act 2001. The contract of insurance prohibits disclosure of the
nature of liability and the amount of the premium.
Indemnity and insurance of auditor
The Company has not otherwise, during or since the financial
year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by
the auditor.
During the financial year, the Company has not paid a premium
in respect of a contract to insure the auditor of the Company
or any related entity.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the
Corporations Act 2001 for leave to bring proceedings on behalf
of the Company, or to intervene in any proceedings to which
the Company is a party for the purpose of taking responsibility
on behalf of the Company for all or part of those proceedings.
Non-audit services
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 19 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 19 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.
38
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required
under section 307C of the Corporations Act 2001 is set out
immediately after this Directors’ report.
This report is made in accordance with a resolution of Directors,
pursuant to section 306(3)(a) of the Corporations Act 2001.
Auditor
RSM Australia Partners was appointed as Company’s auditor
in the previous year and continues in office in accordance with
section 327 of the Corporations Act 2001
Rounding of amounts
3D Energi 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
27 August 2024
Melbourne
3D Energi Limited | Annual Report 2024
39
40
Financial
reports
3D Energi Limited | Annual Report 2024
41
Note
Consolidated
2024
$
2023
$
Other income
5
-
4,188,464
Interest income
42,721
14,444
Expenses
Corporate expenses
(627,706)
(690,826)
Employment expenses
6
(764,233)
(630,156)
Occupancy expenses
(19,528)
(27,014)
Depreciation and amortisation expense
6
(92,537)
(119,742)
Impairment of exploration asset
(702,877)
-
R&D tax provision write-back
-
695,894
Finance costs
6
(10,637)
(16,806)
(Loss)/profit before income tax expense
(2,174,797)
3,414,258
Income tax expense
7
-
-
(Loss)/profit after income tax expense for the year attributable to the
owners of 3D Energi Limited
(2,174,797)
3,414,258
Other comprehensive income/(loss) for the year, net of tax
-
-
Total comprehensive (loss)/income for the year attributable to the owners
of 3D Energi Limited
(2,174,797)
3,414,258
Cents
Cents
Basic (loss)/earnings per share
27
(0.752)
1.287
Diluted (loss)/earnings per share
27
(0.752)
1.285
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction
with the accompanying notes
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2024
42
Note
Consolidated
2024
$
2023
$
Assets
Current assets
Cash and cash equivalents
8
3,157,805
3,221,377
Other receivables
10,319
8,729
Financial assets
9
93,577
93,577
Prepayments
50,872
41,002
Total current assets
3,312,573
3,364,685
Non-current assets
Property, plant and equipment
13,259
11,126
Right-of-use assets
10
80,802
168,957
Intangibles
19,923
22,038
Exploration and evaluation
11
8,105,119
7,095,490
Total non-current assets
8,219,103
7,297,611
Total assets
11,531,676
10,662,296
Liabilities
Current liabilities
Trade and other payables
12
283,425
327,486
Lease liabilities
14
96,267
93,763
Employee benefits
13
270,870
234,633
Total current liabilities
650,562
655,882
Non-current liabilities
Lease liabilities
14
-
96,267
Employee benefits
11,131
4,910
Total non-current liabilities
11,131
101,177
Total liabilities
661,693
757,059
Net assets
10,869,983
9,905,237
Equity
Issued capital
15
58,581,400
55,483,678
Reserves
43,669
1,823
Accumulated losses
(47,755,086)
(45,580,264)
Total equity
10,869,983
9,905,237
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
Consolidated statement of financial position
As at 30 June 2024
3D Energi Limited | Annual Report 2024
43
Issued
capital
Accumulated
losses
Reserves
Total equity
Consolidated
$
$
$
$
Balance at 1 July 2022
55,483,678
(49,027,011)
17,559
6,474,226
Profit after income tax expense for the year
-
3,414,258
-
3,414,258
Other comprehensive income/(loss) for the year, net of tax
-
-
-
-
Total comprehensive income/(loss) for the year
-
3,414,258
-
3,414,258
Transactions with owners in their capacity as owners:
Share-based payments
-
-
16,753
16,753
Lapse of performance rights
-
32,489
(32,489)
-
Balance at 30 June 2023
55,483,678
(45,580,264)
1,823
9,905,237
Issued
capital
Accumulated
losses
Reserves
Total equity
Consolidated
$
$
$
$
Balance at 1 July 2023
55,483,678
(45,580,264)
1,823
9,905,237
Loss after income tax expense for the year
-
(2,174,797)
-
(2,174,797)
Other comprehensive income/(loss) for the year, net of tax
-
-
-
-
Total comprehensive income/(loss) for the year
-
(2,174,797)
-
(2,174,797)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 15)
3,097,722
-
-
3,097,722
Share-based payments (note 28)
-
-
41,846
41,846
Balance at 30 June 2024
58,581,400
(47,755,061)
43,669
10,870,008
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
Consolidated statement of changes in equity
For the year ended 30 June 2024
44
Note
Consolidated
2024
$
2023
$
Cash flows from operating activities
Payments to suppliers and employees (inclusive of GST)
(1,425,031)
(1,400,777)
Interest received
41,536
13,269
Interest on lease liabilities paid
(10,109)
(18,155)
Net cash used in operating activities
26
(1,393,604)
(1,405,663)
Cash flows from investing activities
Payments for exploration and evaluation
(1,667,682)
(1,029,655)
Payments for property, plant and equipment
(4,400)
-
Receipts from farmout arrangement
-
4,468,200
Net cash from/(used in) investing activities
(1,672,082)
3,438,545
Cash flows from financing activities
Proceeds from issue of shares
15
3,305,000
-
Share issue transaction costs
(207,278)
-
Payment of principal element of lease liabilities
(94,290)
(76,013)
Net cash from/(used in) financing activities
3,003,432
(76,013)
Net increase/(decrease) in cash and cash equivalents
(62,254)
1,956,869
Cash and cash equivalents at the beginning of the financial year
3,221,377
1,243,195
Effects of exchange rate changes on cash and cash equivalents
(1,318)
21,313
Cash and cash equivalents at the end of the financial year
8
3,157,805
3,221,377
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
Consolidated statement of cash flows
For the year ended 30 June 2024
3D Energi Limited | Annual Report 2024
45
Note 1. General information
The financial statements cover 3D Energi Limited as a
consolidated entity consisting of 3D Energi 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 Energi Limited’s functional and presentation currency.
3D Energi 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 27 August 2024.
The Directors have the power to amend and reissue the
financial statements.
Note 2. Material accounting
policy information
The accounting policies that are material to the Consolidated
Entity are set out either in the respective notes or below.
The accounting policies adopted are consistent with those
of the previous financial year, 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.
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 a loss of $ 2,174,797 and net operating cash
outflows of $ 1,393,604 for year ended 30 June 2024. The
Consolidated Entity also invested $ 1,667,682 in exploration
and evaluation during the period.
The Consolidated Entity is required to fund the exploration
commitments as noted in note 21 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 does 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 Energi 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
Notes to the consolidated financial statements
30 June 2024
46
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 23 .
Principles of consolidation
The consolidated financial statements incorporate the
assets and liabilities of all subsidiaries of 3D Energi Limited
(‘Company’ or ‘parent entity’) as at 30 June 2024 and the
results of all subsidiaries for the year then ended. 3D Energi
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.
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 Energi 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.
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.
3D Energi Limited | Annual Report 2024
47
Exploration Expenditure
Exploration expenditure incurred is accumulated in respect of
each identifiable area of interest. These costs are only carried
forward in relation to each area of interest to the extent the
following conditions are satisfied:
(a) the rights to tenure of the area of interest are current; and
(b) at least one of the following conditions is also met:
(i)
the exploration and evaluation expenditures are
expected to be recouped through successful
development and exploitation of the area of interest,
or alternatively, by its sale; or
(ii)
exploration and evaluation activities in the area of
interest have not at the reporting date reached a stage
which permits a reasonable assessment of the existence
or otherwise of economically recoverable reserves, and
active and significant operations in, or in relation to, the
area of interest are continuing.
Accumulated costs in relation to an abandoned area are written
off in full against profit in the year in which the decision to
abandon the area is made.
When production commences, the accumulated costs for
the relevant area of interest are amortised over the life of the
area according to the rate of depletion of the economically
recoverable reserves.
A regular review is undertaken of each area of interest
to determine the appropriateness of continuing to carry
forward cost in relation to that area of interest.
Costs of site restoration are provided over the life of the facility
from when exploration commences and are included in the cost
of that stage. Site restoration costs include the dismantling
and removal of mining plant, equipment and building structures,
waste removal, and rehabilitation of the site in accordance
with clauses of the mining permits. Such costs have been
determined using estimates of future costs, current legal
requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted
on a prospective basis. In determining the costs of site
restoration, there is uncertainty regarding the nature and
extent of the restoration due to community expectations
and future legislation. Accordingly the costs have been
determined on the basis that the restoration will be
completed within one year of abandoning the site.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset’s fair value less
costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to
the asset using a pre-tax discount rate specific to the asset
or cash-generating unit to which the asset belongs. Assets
that do not have independent cash flows are grouped together
to form a cash-generating unit.
Leases
At inception of a contract, the Consolidated Entity assesses
whether a contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control
the use of an identified asset for a period of time in exchange
for consideration. To assess whether a contract conveys the
right to control the use of an identified asset, the Consolidated
Entity assesses whether:
●
The contract involves the use of an identified asset –
this may be specified explicitly or implicitly and should
be physically distinct or represent substantially all of the
capacity of a physically distinct asset. If the supplier has
a substantive substitution right, then the asset is not
identified;
●
The Consolidated Entity has the right to obtain
substantially all of the economic benefits from use
of the asset throughout the period of use; and
●
The Consolidated Entity has the right to direct the use
of the asset. The Consolidated Entity has this right when
it has the decision-making rights that are most relevant
to changing how and for what purpose the asset is used.
In rare cases where the decision about how and for
what purpose the asset is used is predetermined, the
Consolidated Entity has the right to direct the use of
the asset if either:
- The Consolidated Entity has the right to operate the
asset; or
- The Consolidated Entity designed the asset in a way that
predetermine how and for what purpose it will be used.
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
48
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.
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 2024. 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.
3D Energi Limited | Annual Report 2024
49
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.
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily
determined, an incremental borrowing rate is estimated to
discount future lease payments to measure the present value
of the lease liability at the lease commencement date. Such
a rate is based on what the Consolidated Entity estimates it
would have to pay a third party to borrow the funds necessary
to obtain an asset of a similar value to the right-of-use asset,
with similar terms, security and economic environment.
Employee benefits provision
As discussed in note 2, the liability for employee benefits
expected to be settled more than 12 months from the
reporting date are recognised and measured at the present
value of the estimated future cash flows to be made in respect
of all employees at the reporting date. In determining the
present value of the liability, estimates of attrition rates and
pay increases through promotion and inflation have been
taken into account.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the
basis that the Consolidated Entity will commence commercial
production in the future, from which time the costs will
be amortised in proportion to the depletion of the mineral
resources. Key judgements are applied in considering costs
to be capitalised which includes determining expenditures
directly related to these activities and allocating overheads
between those that are expensed and capitalised. In addition,
costs are only capitalised that are expected to be recovered
either through successful development or sale of the relevant
mining interest. The expectation of recovery of the costs
capitalised is based on the assumption that the 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.
Note 4. Operating segments
AASB 8 requires operating segments to be identified on the basis
of internal reports about the components of the Consolidated
Entity that are regularly reviewed by the chief decision maker
in order to allocate resources to the segment and to assess its
performance. 3D Energi Limited operates in the development
of oil and gas within Australia. The Consolidated Entity’s
activities are therefore classified as one operating segment.
The chief decision makers, being the Board of Directors,
assess the performance of the Consolidated Entity as a
whole and as such through one segment.
Accounting policy for operating segments
Operating segments are presented using the ‘management
approach’, where the information presented in this financial
statements is on the same basis as the internal reports
provided to the Chief Operating Decision Makers (‘CODM’).
The CODM is responsible for the allocation of resources to
operating segments and assessing their performance.
50
Note 5. Other income
Consolidated
2024
$
2023
$
Gain from farm-out arrangement
-
4,188,464
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 was recognised as other income net of carried
forward costs of $279,736.
Note 6. Expenses
Consolidated
2024
$
2023
$
(Loss)/profit before income tax includes the following specific expenses:
Depreciation
Plant and equipment
(2,266)
(6,416)
Right-of-use assets
(88,155)
(88,152)
Total depreciation
(90,421)
(94,568)
Amortisation
Software
(2,116)
(25,174)
Total depreciation and amortisation
(92,537)
(119,742)
Superannuation contributions
(51,126)
(45,539)
Share based payments
(41,846)
(16,753)
Salaries, wages and other employment expenses
(671,261)
(567,864)
Total employment costs
(764,233)
(630,156)
Finance costs
Interest and finance charges paid/payable on lease liabilities
(10,637)
(16,806)
3D Energi Limited | Annual Report 2024
51
Note 7. Income tax expense
Consolidated
2024
$
2023
$
Numerical reconciliation of income tax expense and tax at the statutory rate
(Loss)/profit before income tax expense
(2,174,797)
3,414,258
Tax at the statutory tax rate of 25%
(543,699)
853,565
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Permanent differences
10,679
(184,260)
Prior period adjustments
(62,125)
(10,875)
Amounts not brought to account as deferred tax assets
595,145
(658,430)
Income tax expense
-
-
Petroleum Resource Rent Tax
Petroleum Resource Rent Tax (PRRT) applies to petroleum projects in Australian onshore and offshore areas under the
Petroleum Resource Rent Tax Assessment Act 1987. PRRT is assessed on a project basis or production licence area
and is levied on the taxable profits of a petroleum project at a rate of 40%. Eligible expenditure incurred in relation
to permits VIC/P57, VIC/P74, T/49P and WA-527-P, attach to the permit and can be carried forward. Certain specified
un-deducted expenditure is eligible for annual compounding at set rates. The compound amount can be deducted
against assessable receipts in future years.
The Company has not recognised a deferred tax asset with respect to the carried forward un-deducted expenditure.
Consolidated
2024
2023
Net deferred Tax Assets not recognised at 25% (30 June 2023: 25%)
Deferred tax assets not recognised comprises temporary differences attributable to:
Temporary differences relating to provisions, accruals, other
176,955
69,940
Exploration expenditure
(2,026,279)
(1,795,681)
Tax losses
15,712,577
14,942,030
Net deferred Tax Assets not recognised
13,863,253
13,216,289
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.
52
Note 8. Current assets - Cash and cash equivalents
Consolidated
2024
$
2023
$
Cash at bank
3,157,805
3,221,377
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 - Financial assets
Consolidated
2024
$
2023
$
Cash on deposit
93,577
93,577
This amount relates to cash on deposit held with an original term to maturity greater than 3 months.
Note 10. 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
2024
$
2023
$
Office space - right-of-use
516,286
516,286
Less: Accumulated depreciation
(435,484)
(347,329)
80,802
168,957
Refer note 14 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 2024.
3D Energi Limited | Annual Report 2024
53
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
Total
Consolidated
$
$
Balance at 1 July 2022
257,109
257,109
Depreciation expense
(88,152)
(88,152)
Balance at 30 June 2023
168,957
168,957
Depreciation expense
(88,155)
(88,155)
Balance at 30 June 2024
80,802
80,802
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.
54
Note 11. Non-current assets - Exploration and evaluation
Consolidated
2024
$
2023
$
Exploration and evaluation expenditure
8,105,119
7,095,490
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:
Area of
interest
T/49P
Area of
interest
VIC/P74
Area of
interest
WA-527-P
Area of
interest
VIC/P79
Area of
interest
GSEL 759
Total
Consolidated
$
$
$
$
$
$
Balance at 1 July 2022
4,360,030
563,259
1,159,489
124,479
-
6,207,257
Additions during the year
477,821
102,499
250,371
337,277
-
1,167,968
Amount de-recognised
on from farm-out (Note 5)
-
-
-
(279,735)
-
(279,735)
Balance at 30 June 2023
4,837,851
665,758
1,409,860
182,021
-
7,095,490
Additions during the year
707,485
37,119
261,809
625,608
80,485
1,712,506
Impairment of asset
-
(702,877)
-
-
-
(702,877)
Balance at 30 June 2024
5,545,336
-
1,671,669
807,629
80,485
8,105,119
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 in Victoria. 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 2024.
Based on the review, carried forward costs of VIC/P74 was
impaired in full and no impairments indicators were identified
in relation the other tenements.
Farm-out in the exploration and evaluation phase
The Consolidated Entity does not record any expenditure made
by the farminee on its account. It also does not recognise any gain
or loss on its exploration and evaluation farm-out arrangements
but redesignates any costs previously capitalised in relation
to the whole interest as relating to the partial interest
retained. Any cash consideration received directly from
the farminee is credited against costs previously capitalised
in relation to the whole interest with any excess accounted
for by the farmor as a gain on disposal. Please refer to note
25 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.
3D Energi Limited | Annual Report 2024
55
Note 12. Current liabilities - Trade and other payables
Consolidated
2024
$
2023
$
Trade payables
124,726
220,386
Sundry payables and accrued expenses
158,699
107,100
283,425
327,486
Refer to note 17 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 13. Current liabilities - Employee benefits
Consolidated
2024
$
2023
$
Annual leave
78,176
66,055
Long service leave
161,163
149,024
Employee benefits
31,531
19,554
270,870
234,633
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 companydoes 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.
56
Note 14. Lease liabilities
Consolidated
2024
$
2023
$
Lease liabilities
Current lease liabilities
96,267
93,763
Non-current lease liabilities
-
96,267
Total lease liabilities
96,267
190,030
Lease liability maturity analysis - contractual undiscounted cash flows
Consolidated
2024
2023
Less than one year
99,194
104,397
Two to five years
-
99,194
Total undiscounted lease liabilities
99,194
203,591
Lease liability finance costs
During the year ended 30 June 2024, the Consolidated Entity
incurred interest charges of $10,637, as disclosed in note 6.
Lease liability outflows
During the year ended 30 June 2024 , lease liability related cash
outflows was $94,290 as disclosed in the statement of cashflows.
Accounting policy for lease liabilities
A lease liability is recognised at the commencement date of
a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the
lease, discounted using the interest rate implicit in the lease or,
if that rate cannot be readily determined, the Consolidated
Entity’s incremental borrowing rate. Lease payments comprise
of fixed payments less any lease incentives receivable, variable
lease payments that depend on an index or a rate, amounts
expected to be paid under residual value guarantees, exercise
price of a purchase option when the exercise of the option
is reasonably certain to occur, and any anticipated termination
penalties. The variable lease payments that do not depend
on an index or a rate are expensed in the period in which they
are incurred.
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.
3D Energi Limited | Annual Report 2024
57
Note 15. Equity - Issued capital
Consolidated
2024
Shares
2023
Shares
2024
$
2023
$
Ordinary shares - fully paid
331,473,557
265,373,557
58,581,400
55,483,678
Movements in ordinary share capital
Details
Date
Shares
$
Balance
1 July 2022
265,188,372
55,483,678
Shares issued upon exercise of options
12 May 2023
185,185
-
Balance
30 June 2023
265,373,557
55,483,678
Issue of fully paid ordinary shares
23 February 2024
66,100,000
3,305,000
Capital Raising Costs
-
(207,278)
Balance
30 June 2024
331,473,557
58,581,400
Ordinary shares
Ordinary shares entitle the holder to participate in
dividends and the proceeds on the winding up of the
Company in proportion to the number of and amounts
paid on the shares held. The fully paid ordinary shares
have no par value and the Company does not have a
limited amount of authorised capital.
On a show of hands every member present at a meeting
in person or by proxy shall have one vote and upon a poll
each share shall have one vote.
Capital risk management
The Company’s objectives when managing capital are
to safeguard its ability to continue as a going concern,
so that it can provide returns for shareholders and
benefits for other stakeholders 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 2023 Annual Report.
Accounting policy for issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of
new shares or options are shown in equity as a deduction,
net of tax, from the proceeds.
Note 16. Equity - Dividends
There were no dividends paid or declared during the current
or previous financial year.
Accounting policy for dividends
Dividends are recognised when declared during the financial
year and no longer at the discretion of the Company.
58
Note 17. Financial instruments
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.
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.
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.
AUD strengthened
AUD weakened
Consolidated - 2024
% change
Effect on
profit after tax
Effect on
equity
% change
Effect on
profit after tax
Effect on
equity
US dollar
10%
(62,623)
(62,623)
10%
62,623
62,623
AUD strengthened
AUD weakened
Consolidated - 2023
% change
Effect on
profit after tax
Effect on
equity
% change
Effect on
profit after tax
Effect on
equity
US dollar
10%
(158,662)
(158,662)
10%
209,863
209,863
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.
3D Energi Limited | Annual Report 2024
59
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.
Weighted
average
interest rate
1 year or less
Between 1 and
2 years
Between 2
and 5 years
Remaining
contractual
maturities
Consolidated - 2024
%
$
$
$
$
Non-derivatives
Non-interest bearing
Trade and other payables
-
283,425
-
-
283,425
Interest-bearing - fixed rate
Lease liability
7.50%
99,194
-
-
99,194
Total non-derivatives
382,619
-
-
382,619
Weighted
average
interest rate
1 year or less
Between 1 and
2 years
Between 2
and 5 years
Remaining
contractual
maturities
Consolidated - 2023
%
$
$
$
$
Non-derivatives
Non-interest bearing
Trade and other payables
-
327,486
-
-
327,486
Interest-bearing - fixed rate
Lease liability
7.50%
104,397
99,194
-
203,591
Total non-derivatives
431,883
99,194
-
531,077
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial
instruments reflect their fair value. The carrying amounts
of trade receivables and trade payables are assumed to
approximate their fair values due to their short-term nature.
Where appropriate, the fair value of financial liabilities is
estimated by discounting the remaining contractual maturities
at the current market interest rate that is available for similar
financial instruments.
60
Note 18. Key management personnel disclosures
Directors
The following persons were Directors of 3D Energi Limited during
the financial year:
● Noel Newell
Executive Chairman
● Ian Tchacos
Non-Executive Director
● Leo De Maria
Non-Executive Director
● 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:
Consolidated
2024
$
2023
$
Short-term employee benefits
471,290
460,111
Post-employment benefits
41,164
40,130
Long-term benefits
9,831
7,782
Share-based payments
32,580
(545)
554,865
507,478
Note 19. Remuneration of auditors
During the financial year the following fees were paid or payable
for services provided by RSM Australia Partners, the auditor
of the Company, and its network firms:
Consolidated
2024
$
2023
$
Audit or review of the financial statements
RSM Australia Partners (Audit and review fees)
63,000
40,000
Grant Thornton Audit Pty Ltd (Audit and review fees at 31 December 2022
and 30 June 2022)
-
30,500
63,000
70,500
Other services - RSM Australia Partners
Preparation of the tax return
22,055
8,750
Other taxation services
440
12,900
22,495
21,650
3D Energi Limited | Annual Report 2024
61
Note 20. Contingent liabilities
The Consolidated Entity provided a security deposit of $48,827
(30 June 2023: $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 2024.
Note 21. Commitments
Consolidated
2024
$
2023
$
Exploration Licenses - Commitments for Expenditure
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
50,000
4,610,000
Two to five years
3,060,000
40,000
3,110,000
4,650,000
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.
Commitments from year 4 onwards are confirmed on a
year-by-year basis dependent on the Company agreeing to
proceed. The company received a Suspension and Extension
to extend the Year 4 work commitment to 25/07/2024.
Year 4 work program commitments have been completed
and the company has applied to NOPTA to surrender the
permit before entry into Year 5.
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 24-month suspension
of the WA-527-P permit condition in respect of the Permit
Year 1-3 work program commitment with a corresponding
24-month extension of the WA 527-P permit team.
Accordingly, the primary term (Permit Year 1-3) will now
end on 28 December 2025 and the permit term will end
on 28 December 2028.
The commitment table above includes $3.06 million for
indicative expenditure in the year 3 amounting, which ends
on 28 December 2025. 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
has received regulatory approval for the Sauropod MC3D
Environmental Plan (EP), which covers a two-year acquisition
window extending from January-May (inclusive) 2024 or
2025. The EP covers 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 2026-2028 years.
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
Operation. The commitments above do not include commitments
for indicative expenditure relating to Exploration Permit T/49P,
as they are expected to be covered by the farm-in partner,
ConocoPhillips Australia SH1 Pty Ltd, as per Joint Operating
Agreement. Under the terms of Joint Operating Agreement,
the Company will contribute 10% of the Joint Operation expenses
until ConocoPhillips Australia has completed an exploration well
or spent at least US$30 million toward drilling of an exploration
well (which are excluded from the commitment table above).
62
On 7 October 2023, NOPTA issued a Suspension and
Extension for Exploration Permit T/49P, as a result of which
the drilling of an exploration well in Year 6 has been deferred
to the year beginning 22 February 2025. COPA has applied
for a Suspension and Extension of the Primary Term as the
rig is currently anticipated to arrive in the Otway during
Q1 2025. Commitments from year 4 onwards are confirmed
on a year-by-year basis dependent on the Joint Venture
agreeing to proceed.
On 24 June 2024, the Company finalised an amendment
to the FOA, consolidating COPA farmout obligations to allow
the US$30M T/49P well carry obligation to be applied either
in T/49P or VIC/P79.
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 Operation.
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 Operating Agreement. In addition,
under the terms of Joint Operating Agreement, the Company
will contribute 10% of the Joint Operation’s expenses (which are
excluded from the commitment table on page 62).
It is expected that the ConocoPhillips Australia (COPA) 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.
COPA has applied for a Suspension and Extension of the
Primary Term as the rig is currently anticipated to arrive
in the Otway during Q1 2025.
Commitments from year 4 onwards are confirmed on a year-
by-year basis dependent on the Company agreeing to proceed.
If the Company and farm-in partner, ConocoPhillips Australia
SH2 Pty Ltd was to proceed beyond year 4, the current
indicative expenditure commitment for Years 4-6 is gross
$12.8 million and this would be occurring in 2025-2028 year.
However, as noted above, the timing of these commitments
is likely to be altered to a future date subject to regulatory
approvals. A 3D seismic acquisition commitment may be
brought forward to the primary term.
Note 22. Related party transactions
Parent entity
3D Energi Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 24.
Joint operations
Interests in joint operations are set out in note 25.
Key management personnel
Disclosures relating to key management personnel are
set out in note 18 and the remuneration report included
in the Directors’ report.
Transactions with related parties
During the year, the Company paid $88,475 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.
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.
3D Energi Limited | Annual Report 2024
63
Note 23. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
2024
$
2023
$
(Loss)/profit after income tax
(2,174,797)
3,413,944
Total comprehensive income/(loss)
(2,174,797)
3,413,944
Statement of financial position
Parent
2024
$
2023
$
Total current assets
3,312,542
3,364,630
Total assets
8,780,198
7,910,794
Total current liabilities
650,561
506,858
Total liabilities
661,692
757,059
Equity
Issued capital
58,581,400
55,483,678
Share-based payments reserve
43,669
1,823
Accumulated losses
(50,506,563)
(48,331,766)
Total equity
8,118,506
7,153,735
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 2024 and 30 June 2023.
Contingent liabilities
The parent entity had no contingent liabilities as at
30 June 2024 and 30 June 2023.
Capital commitments - Property, plant and equipment
Other than the commitments disclosed in note 21, the
parent entity had no capital commitments for property,
plant and equipment as at 30 June 2024 and
30 June 2023.
Material accounting policy information
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.
64
Note 24. 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:
Ownership interest
Name
Principal place of business /
Country of incorporation
2024
$
2023
$
3D Oil T49P Pty Ltd
Australia
100.00%
100.00%
Note 25. 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:
Ownership interest
Name
Principal place of business /
Country of incorporation
2024
$
2023
$
T/49P, Otway Basin, offshore Tasmania
Australia
20.00%
20.00%
VIC/P79, Otway Basin, offshore Victoria**
Australia
20.00%
20.00%
Note 26. Reconciliation of (loss)/profit after income tax to net cash
used in operating activities
Consolidated
2024
$
2023
$
(Loss)/profit after income tax expense for the year
(2,174,797)
3,414,258
Adjustments for:
Depreciation and amortisation
93,065
119,717
Gain from farm-out arrangement
-
(4,188,464)
Share-based payments
41,846
16,753
Impairment of exploration and evaluation
702,878
-
Unrealised gain on foreign currency translation
1,318
(21,313)
Change in operating assets and liabilities:
Decrease/(increase) in other receivables
(1,590)
3,239
Increase in prepayments
(9,895)
(40,977)
Decrease in trade and other payables
(84,385)
(718,060)
Increase in employee benefits
37,956
9,184
Net cash used in operating activities
(1,393,604)
(1,405,663)
3D Energi Limited | Annual Report 2024
65
Note 27. (Loss) / earnings per share
Consolidated
2024
$
2023
$
(Loss)/profit after income tax attributable to the owners of 3D Energi Limited
(2,174,797)
3,414,258
Number
Number
Weighted average number of ordinary shares used in calculating
basic earnings/(loss) per share
289,212,901
265,213,740
Adjustments for calculation of diluted earnings per share:
Performance rights
-
431,000
Weighted average number of ordinary shares used in calculating
diluted earnings/(loss) per share
289,212,901
265,644,740
Cents
Cents
Basic (loss)/earnings per share
(0.752)
1.287
Diluted (loss)/earnings per share
(0.752)
1.285
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 Energi Limited, excluding any costs of
servicing equity other than ordinary shares, by the weighted
average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares
issued during the financial year.
Diluted loss per share
Diluted loss per share adjusts the figures used in the
determination of basic loss per share to take into account
the after income tax effect of interest and other financing
costs associated with dilutive potential ordinary shares
and the weighted average number of shares assumed
to have been issued for no consideration in relation to
dilutive potential ordinary shares.
66
Note 28. Share-based payments
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.
On 22 December 2023, the Company issued 4,000,000
performance rights to directors of the Company. These
performance rights were approved by the Shareholders at
the 2023 Annual General Meeting held on 24 November 2023.
The Performance Rights were issued for Nil consideration as
remuneration and are subject to various vesting conditions.
The Performance Rights expire on 21 December 2026.
2024
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
09/03/2023
09/03/2026
$0.000
431,000
-
-
-
431,000
22/12/2023
21/12/2026
$0.000
-
4,000,000
-
-
4,000,000
431,000
4,000,000
-
-
4,431,000
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
09/03/2023
09/03/2026
$0.000
431,000
-
-
-
431,000
-
-
-
431,000
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
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
interest rate
Fair value
at grant date
22/12/2023
21/12/2026
$0.054
$0.000
78.920%
-
3.714%
$0.049
22/12/2023
21/12/2026
$0.054
$0.000
78.920%
-
3.714%
$0.045
22/12/2023
21/12/2026
$0.054
$0.000
78.920%
-
3.714%
$0.042
The weighted average remaining contractual life of performance rights at 30 June 2024 is 2 years.
3D Energi Limited | Annual Report 2024
67
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 29. Events after the
reporting period
No matter or circumstance has arisen since 30 June 2024
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.
68
Entity name
Entity type
Place formed /
Country of
incorporation
Ownership
interest
%
Tax
residency
3D Energi Limited
Body Corporate
Australia
-
Australian
3D Oil T49P Pty Ltd
Body Corporate
Australia
100.00%
Australian
Consolidated entity disclosure statement
As at 30 June 2024
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 2024 and of its performance for the
financial year ended on that date;
●
there are reasonable grounds to believe that the
Company will be able to pay its debts as and when they
become due and payable; and
●
the information disclosed in the attached consolidated
entity disclosure statement is true and correct.
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
27 August 2024
Melbourne
Directors’ declaration
30 June 2024
3D Energi Limited | Annual Report 2024
69
70
3D Energi Limited | Annual Report 2024
71
72
3D Energi Limited | Annual Report 2024
73
Shareholder information
30 June 2024
74
The shareholder information set out below was applicable as at 23 August 2024.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary
shares
Ordinary
shares
Number
of holders
% of total
shares
issued
total
shares
issued
%
performance
rights
Number of
performance
rights
Number of
performance
holders
1 to 1,000
51
0.00
14,073
-
-
-
1,001 to 5,000
109
0.11
367,366
-
-
-
5,001 to 10,000
129
0.33
1,108,430
-
-
-
10,001 to 100,000
455
5.86
19,440,199
1.94
86,000
1.00
100,001 and over
287
93.69
310,543,489
98.06
4,345,000
5.00
1,031
100.00
331,473,557
100.00
4,431,000
6.00
Holding less than a
marketable parcel
100
0.04
120,868
-
-
-
3D Energi Limited | Annual Report 2024
75
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
Number held
% of total
shares issued
MR NOEL NEWELL
38,604,620
11.65
OCEANIA HIBISCUS SDN BHD\C
30,963,000
9.34
TREASURY SERVICES GROUP PTY LTD
16,803,335
5.07
MR JOHN PHILIP DANIELS
13,081,816
3.95
CITICORP NOMINEES PTY LIMITED
11,307,788
3.41
BNP PARIBAS NOMS PTY LTD
10,835,900
3.27
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
7,601,441
2.29
BILL HOPPER
6,475,000
1.95
NORTHERN BUSINESS PLANNING CENTRE PTY LTD
5,995,874
1.81
EQUITY TRUSTEES LIMITED
5,948,769
1.79
SANLIRRA PTY LTD
5,000,000
1.51
BOND STREET CUSTODIANS LIMITED
4,847,658
1.46
MR TAI TRAN
4,500,000
1.36
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
4,270,341
1.29
PENGOLD PTY LTD
3,714,000
1.12
MR CHRISTOPHER HALL
3,100,000
0.94
LONG LIFE SUPER PTY LTD
2,953,450
0.89
VIN NAIDU + WENDY NAIDU
2,837,500
0.86
MR RICHARD JOHN LOVERIDGE + MRS KATRINA LOVERIDGE
2,771,419
0.84
MR GIOVANNI MONTELEONE + MRS FRANCES MONTELEONE
2,550,000
0.77
184,161,911
55.56
Unquoted equity securities
Number
on issue
Number
of holders
Performance rights over ordinary shares issued
4,431,000
6
76
Substantial holders
Substantial holders in the Company are set out below:
Ordinary shares
Number held
% of total
shares issued
Noel Newell
45,345,960
13.68
Oceania Hibiscus SDN BHD
30,963,000
9.34
Treasury Services Group Pty Ltd (ACN 123 878 384) ATF Nero Resource Fund;
Nero Resource Fund Pty Ltd (ACN 143 456 017)
20,300,000
6.12
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
All issued shares carrying voting rights on a one-for-one basis.
Performance rights
There are no voting rights attached to performance rights.
There are no other classes of equity securities.
Corporate Governance Statement
The Company’s 2024 Corporate Governance Statement
is available on the Company’s website at:
https://3denergi.com.au/company/corporate-governance/
Annual General Meeting
3D Energi Limited advises that its Annual General Meeting
will be held on Thursday, 24 October 2024. 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 12 September 2024.
Petroleum Tenement Holdings
Beneficial
interest
%
VIC/P79 Offshore Otway Basin, VIC
20.00%
T/49P Offshore Otway Basin, TAS
20.00%
WA-527-P Offshore Roebuck Basin, WA
100.00%
VIC/P74 Offshore Gippsland Basin, VIC
100.00%
GSEL759 Otway Basin, SA
100.00%
77
3D Energi Limited | Annual Report 2024
Corporate
directory
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: (03) 9415 4000
Auditor
RSM Australia Partners
Level 27, 120 Collins Street
Melbourne, Victoria 3000
Stock exchange listing
3D Energi Limited securities are listed on the
Australian Securities Exchange (ASX Code: TDO)
Website
www.3denergi.com.au
78
Level 18, 41 Exhibition Street
Melbourne, VIC 3000
Telephone: +61 3 9650 9866
3denergi.com.au