ANNUAL REPORT
For the financial year ended
31 December 2020
CORPORATE DIRECTORY
ABN: 13 008 694 817
Contents
Directors
Peter F Mullins, Chairman
Giustino Guglielmo
Hector M Gordon
Mark L Lindh
Managing Director
Giustino Guglielmo
Company Secretary
Robyn M Hamilton
Registered Office and Principal
Administration Office
Level 5, 11-19 Bank Place
Melbourne, Victoria, 3000, Australia
Telephone +61 (3) 9927 3000
Facsimile +61 (3) 9614 6533
Email
admin@bassoil.com.au
Auditors
Grant Thornton Australia Ltd
Collins Square
Tower 5/727 Collins Street
Melbourne, Victoria, 3008, Australia
Share Registry
Link Market Services Limited
Tower 4, 727 Collins Street
Melbourne, Victoria, 3008, Australia
Telephone +61 (3) 9615 9800
Facsimile +61 (3) 9615 9900
Stock Exchange Listing
Australian Stock Exchange Ltd
525 Collins Street
Melbourne, Victoria, 3000, Australia
ASX Codes: BAS – Ordinary Shares
Web Site: www.bassoil.com.au
Chairman’s Message .................................. 3
Managing Director’s Report ........................ 4
Reserves and Resources ............................ 8
Safety .................................................. .11
Environment .......................................... 12
Directors’ Report .................................... 13
Remuneration Report .............................. 16
Auditor’s Independence Declaration ........... 24
Directors’ Declaration ............................. .25
Consolidated Statement of Profit or
Loss and Other Comprehensive Income ...... 26
Consolidated Statement of Financial
Position ................................................. 27
Consolidated Statement of Changes
in Equity ............................................... .28
Consolidated Statement of Cash Flows ....... 29
Notes to the Financial Statements ............. 30
Independent Auditor’s Report .................. 62
Shareholder & Other Information .............. 65
Forward Looking Statements
This Annual 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 Group or not currently
considered material by the Group.
CHAIRMAN’S MESSAGE
Dear fellow Bass Oil shareholders,
The year 2020 will go down in history, due to COVID-19’s domestic and global economic impacts, as one
of the most turbulent years in living memory. That turbulence and associated unstable business
conditions created a number of challenges and hurdles for our Company that needed to be overcome,
and we did overcome them. It is in this context that I am pleased on behalf of your Board, to present to
you the Annual Report of Bass Oil Limited for the 12 months ended 31 December, 2020.
Importantly, Bass is proud to report that it recorded zero incidents resulting in injuries over 2020, which
is a credit to all staff in Indonesia and Australia. Furthermore, the Company, its employees, consultants
and contractors, have accumulated over 4.7 million working hours without a Lost Time Injury, a truly
creditable performance.
In 2020, Bass and our fellow oil industry peers, saw the full impact of the COVID health pandemic which
had the dual effect of the collapse in the oil markets driving down the oil price for Indonesian product to
almost US$18 per barrel, while restricting movements of personnel in Indonesia, Australia and between
the two. The Company responded to these challenges early and was able to limit their impact. Bass
achieved the following key outcomes. Net entitlement oil production increased 4% from 83,276 barrels
to 86,765 barrels year on year. Sales revenue decreased 38% from US $5.05 million to $3.15 million,
resulting in a net loss after tax of ($0.50) million this year, down from a $0.40 million profit in 2020.
Bass Oil’s focus is on building an energy business, initially in Indonesia. During the downturn in the oil
markets in 2020, the Company worked to also identify acquisition opportunities elsewhere. We have
continued to engage with and assess a number of those potential acquisitions over the period. While
no transaction moved to completion, this reflects your Company’s tight due diligence and adherence to
an expansion policy based on identifying projects with significant growth potential, proven economics
and profitability, not sentiment.
I am pleased to report that there has been no interruption to our operations during the COVID-19 threat
and that oil prices have recently started to recover. Whilst the pandemic continues, Bass is actively
monitoring and complying with all Government directions to ensure the health and safety of all staff is
protected throughout this period. The Company continues to safeguard its financial position, via a
reduction in overheads, which includes a cut to Directors’ fees and salaries.
Fortunately, Bass is in a stable position, being debt free and operating in a low-cost environment. The
Company has optimised its field operations, reducing direct operating costs to around US$20/barrel at
current production rates.
In closing, I thank particularly this year, our shareholders for your loyalty, support of the Company, and
your personal encouragement through the year to our Board and management.
Finally, I thank our Melbourne-based executive team, our Indonesian-based operations team and my
fellow Directors for their diligent attention to the affairs of your Company. We will continue to work on
strategically positioning ourselves for growth in Indonesia and elsewhere as high-quality value-adding
growth opportunities present themselves.
Peter Mullins
Chairman
31 March 2021
Bass Oil Limited Annual Report December 2020
3
MANAGING DIRECTOR’S REPORT
Dear fellow Bass Oil shareholders,
During 2020, the global economy was severely impacted by the onset of the COVID-19 pandemic. The
major impact on the oil and gas sector was a collapse of the oil price which momentarily even saw
prices for benchmark crudes turn negative. The result of this tumult was that Bass immediately
implemented a cost reduction program.
Corporate overheads were significantly reduced, including a 50% cut in Directors’ fees and salaries. All
discretionary activities and expenditure were deferred or suspended. These measures, in combination
with the fact that Bass carries no debt, assisted the Company to successfully weather the storm within
these financial market environments.
The Company is grateful to the efforts of the entire Bass team, in Indonesia and Australia, for their
sacrifice to achieve the outcomes summarised within this annual report for the year ended 31
December, 2020. The financial markets, along with the oil price, have since begun to stabilise and the
Company believes that it is now well positioned to achieve through calendar 2021, the growth that
Directors and shareholders expect. The performance of Bass’ assets, and growth potential, is covered in
this report.
Key financial highlights for the year included:
- Gross revenue totalled $3.15 million – down 38% YoY
-
-
- Net profit/(loss) after tax ($0.50) million
Earnings before interest, tax and depreciation and amortisation (EBITDA) $0.10 million
Earnings before interest and tax (EBIT) ($0.35) million
In regard to COVID-19 and the recent lower oil price environment, our key focus was to remain
disciplined, ensuring the health and safety of our staff, whilst delivering and optimising, ongoing
production throughout CY2020, whilst not compromising the integrity of our field operations.
Bass is committed to supporting government and community efforts in both Indonesia and Australia, to
limit the spread of the virus, and supporting business continuity with regard to our staff and our
contractors.
As such, Bass activated a Business Continuity Plan (BCP) designed to protect the health and safety of our
people, including the wearing of masks at work, health screening protocols, restricting travel and
meetings, implementing working from home protocols and making changes to field and office access
arrangements. The BCP includes contingency plans that will allow production operations to continue in
the event of any of the field operations team contracting the virus.
We are now seeing a welcome recovery in the oil price, improving the opportiunity to take advantage of
more realistically priced assets for sale that are now starting to present themselves.
Bass Oil Limited Annual Report December 2020
4
MANAGING DIRECTOR’S REPORT (cont’d)
Tangai-Sukananti KSO
Bass’ experienced Indonesian on-site personnel and Jakarta-based technical and management teams
operate the Tangai-Sukananti KSO production assets, containing the producing Bunian and Tangai oil
fields, within the oil rich onshore South Sumatran Basin in Indonesia. The team has maintained its focus
throughout 2020 on optimising production within the KSO. This lifted total production capacity and
minimised decline from existing wells (see Figure 1). The KSO is considered long-life with production
expected beyond current license expiry in mid-2025.
The assets provide a future platform for growth through low-cost field development opportunities and
execution of value-accretive acquisitions requiring minimal additional corporate overheads, given Bass’
established Jakarta-based personnel.
Total oil field production for the year ending 31 December 2020, was 157,754 barrels (or 86,765 barrels
on a net entitlement basis). Bass expects to hold production steady through calendar 2021. If the oil
price remains at current levels, the Company anticipates launching its next Indonesia drilling program
later this year, aimed at providing a significant production up-lift in 2022. The next well to be drilled is
expected to be the Tangai-5 development well.
16
14
12
10
)
l
b
b
k
(
n
o
i
t
c
u
d
o
r
P
8
6
4
2
0
Figure 1: Tangai-Sukananti Historical Production (55% basis)
Bass Oil Limited Annual Report December 2020
5
MANAGING DIRECTOR’S REPORT (cont’d)
Substantive technical review
The focus of the Jakarta and Melbourne-based sub-surface teams in 2020 has been to update the
comprehensive, integrated reservoir study and dynamic reservoir model following the drilling of the
successful Bunian-5 development well.
This work was successfully completed during the year. It has been employed to inform the Company’s
future development plans and to update the Company’s 1P, 2P and 3P reserves and contingent resource
estimates for the year end 2020 reserves review.
The study identified a number of exciting production and reserve growth opportunities within our
existing Indonesia fields. These include:
• Increased confidence of the benefits of drilling the Tangai 5 development well which will be
positioned updip of all the existing producers
• The identification of a possible major extension of the Bunian field to the west which would see it
encompass the previously identified Bunian West feature, previously considered a stand-alone
opportunity
• The possible extension of the Bunian field should allow a significant increase in oil rates and
recoveries from a future appraisal and development drilling program
• Modelling of the K reservoir in the Bunian field has identified the potential to improve recoveries and
reduce development costs through the application of horizontal drilling techniques
Bass Oil’s recent completion of its year end 2020 reserves review, has been summarised in this annual
report and in a separate ASX release. For the first time since the Company acquired the Tangai-
Sukananti KSO assets, Bass has reported their 3P reserves as they represent the significant growth
potential of the fields.
The total 100% Field 2P Reserves at 31 December, 2020 are assessed to be 1.703 million barrels of oil.
This reflects the reserves for the Bunian and Tangai oil Fields (Figure 2). In accordance with ASX
reporting requirements for fiscal environments that use production sharing contracts or similar, Bass
reports Net Entitlement 2P Reserves of 0.549 million barrels. Net Entitlement Reserves are the share of
oil costs and profits that Bass is entitled to receive under the KSO signed with PT Pertamina.
Bass Oil Limited Annual Report December 2020
6
MANAGING DIRECTOR’S REPORT (cont’d)
Figure 2: Tangai-Sukananti KSO Location Map
Business development
Bass commenced the 2020 calendar year actively engaged in the evaluation of, and negotiations on a
number of growth opportunities. The onset of the COVID 19 pandemic, the resultant rapid
deterioration of the global fiscal climate, along with the precipitous fall in oil prices, led to a suspension
of business development activities throughout most of 2020.
The final quarter of 2020 saw a substantial recovery in the global economic climate along with an
increase in oil prices and more stable and improving fiscal outlook for the energy industry.
Consequently, Bass recommenced its business development activities and is reviewing a number of
more realistically priced onshore Indonesian and other acquisition opportunities outside of Indonesia.
Bass applies stringent and consistent evaluation criteria to all opportunities which it considers,
commencing with the Petroleum System, and including all aspects of production materiality, geographic
location, acquisition costs and execution risk.
Your company anticipates that this reactivated Business Development focus will continue during
calendar 2021.
Bass Oil Limited Annual Report December 2020
7
RESERVES AND RESOURCES
Reserves and Contingent Resources
(For 12 month period ending 31 December 2020)
The 2020 reserves review has been influenced by strong performance at all existing wells, in particular
Bunian-3 and Tangai-1, throughout 2020.
The outcomes at Bunian-5, along with the conclusion of over 12 months of geotechnical studies
informed a Static and Dynamic Model update in 2020 that significantly improved the Oil-in-place for the
Tangai Field, increased the oil column in the Bunian Field and indicated a 3P case for the Bunian field
with substantial upside potential. This upside potential was identified during the study where the main
Bunian structure may extend and in fact, envelope the Bunian West feature as described in figure 1.
Whilst the gross field reserves decreased slightly, largely reflecting the year’s production, the year-on-
year movements in Net Entitlement Reserves reflect a slight increase in both the 1P and 2P reserves for
the Bunian and Tangai fields under the fiscal terms of the KSO. .
The results give your Board and management a high level of confidence in our forward development
drilling program for 2021/22 and beyond.
Resources & Reserves as at 31 December, 2020
100% Field Reserves (MMbbl)
Proved
1P
1.263
Proved & Probable
2P
Proved, Probable &
Possible
3P
1.703
3.422
BAS Net Entitlement Reserves (MMbbl)
Proved
1P
0.436
Proved & Probable
2P
Proved, Probable &
Possible
3P
0.549
0.842
Category
Developed &
Undeveloped
Category
Developed &
Undeveloped
100% Field Contingent Resources (MMbbl)
3C
2C
1C
1.401
0.836
0.283
Category
Total
Table 1: Tangai-Sukananti Reserves and Resources
Bass Oil Limited Annual Report December 2020
8
RESERVES AND RESOURCES (cont’d)
Reserves
The 2P Field Reserves in the Tangai-Sukananti KSO are assessed as at 31 December, 2020, to be 1.703
million barrels of oil on a 100% JV basis. This reflects the proved and probable reserves for the Bunian
and Tangai oilfields (see Tables 1 and 2 as well as figure 2). In accordance with ASX reporting
requirements for fiscal environments that use production sharing contracts or similar, Bass reports Net
Entitlement 2P Reserves of 0.549 million barrels. Net Entitlement Reserves are the share of cost oil and
profit oil that Bass is entitled to receive under the KSO signed with the Indonesian government body, PT
Pertamina. The Net Entitlement Reserves formula varies with the fiscal environment, cost recovery
status and oil price.
Contingent Resources
The total 100% Field 2C Contingent Resources for the Tangai-Sukananti KSO at 31 December, 2020 are
assessed to be 0.836 million barrels of oil. The Field Contingent Resources comprise volumes attributed
to currently producing or future planned wells in the Bunian and Tangai oil fields post licence expiry in
July, 2025. This presents a future development opportunity to increase, or bring forward reserves.
Notes on Calculation of Reserves and Resources
The 2020 Dynamic Model have updated the oil volumetrics, development scenarios and drilling locations used in this report.
Additionally, a decline curve analysis (DCA) was conducted on the current wells. The 1P, 2P and 3P cases are a combination of the
forecasts from both the Dynamic Model and the DCA as deemed to best represent realistic outcomes.
The Bunian Field is currently producing from only the TRM3 sandstone. However, the K reservoir is expected to become a
significant contributor to future production with future planned drilling. The Tangai Field has one producing reservoir (the M
sandstone).
All reserves and resources are estimated by deterministic estimation methodologies consistent with the definitions and guidelines in
the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources Management System (PRMS).
Under the SPE PRMS guidelines, “Reserves are those quantities of petroleum anticipated to be commercially recoverable by
application of development projects to known accumulations from a given date forward under defined conditions”. Net Entitlement
Reserves are the reserves that Bass has a net economic entitlement to. That is, a share of cost oil and profit oil that Bass is entitled
to receive under the KSO signed with the Indonesian government body, PT Pertamina
Contingent Resources are “those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known
accumulations by application of development projects, but which are not currently considered to be commercially recoverable owing
to one or more contingencies”.
Qualified Petroleum Reserves and Resources Evaluator Statement
The information contained in this section regarding Bass Oil’s 2020 reserves and contingent resources is based on and fairly
represents information and supporting documentation reviewed by Mr Giustino Guglielmo who is an employee of Bass Oil Limited
and holds a Bachelor of Engineering (Mech). He is a member of the Society of Petroleum Engineers (SPE) and a Fellow of the
Institution of Engineers Australia (FIEAust) and as such, is qualified in accordance with ASX listing rule 5.4.1 and has consented to
the inclusion of this information in the form and context in which it appears in this section.
Bass Oil Limited Annual Report December 2020
9
RESERVES AND RESOURCES (cont’d)
Table 2 – Movements in Resources & Reserves as at 31 December, 2020
100% Field Reserves (MMbbl)
Category
100% Field Reserves at 31/12/19
CY 2020 Production
Revisions
100% Field Reserves at 31/12/20
BAS Net Entitlement Reserves (MMbbl)
Category
Net Entitlement Reserves at 31/12/19
CY 2019 Production
Revisions
Net Entitlement Reserves at 31/12/20
100% Field Contingent Resources (MMbbl)
Category
100% Contingent Resources at 31/12/19
Revisions
100% Contingent Resources at 31/12/20
Proved
1P
1.725
(0.240)
(0.222)
1.263
Proved
1P
0.483
(0.087)
0.040
0.436
1C
0.189
0.094
0.283
Proved & Probable
2P
2.191
(0.240)
(0.248)
1.703
Proved & Probable
2P
0.567
(0.087)
0.069
0.549
2C
0.426
0.410
0.836
Proved, Probable
& Possible
3P
-
3.422
3.422
Proved, Probable
& Possible
3P
-
0.842
0.842
3C
-
1.401
1.401
Table 2: Tangai-Sukananti Reserves and Resources including revisions
Bass Oil Limited Annual Report December 2020
10
SAFETY
Bass Oil implements daily, a strict, industry-standard health and safety regime around its Operatorship
of the Tangai-Sukananti production assets. This safety regime is energetically promoted by Pertamina,
Indonesia’s state-owned oil company.
The major safety challenge of 2020 was managing the impact of the COVID 19 pandemic. Whilst the
impact was felt globally, developing countries such as Indonesia were amongst those impacted the
most. Bass implemented pandemic response plans to ensure the health of all employees in the field
and the Jakarta office. To date, these plans have minimised the impact on the Company’s employees as
well as its operations. Bass remains watchful, as uncertainty still exists in Indonesia as a result of the
COVID-19 pandemic. This uncertainty will remain at least until a roll out of an effective COVID vaccine
covers a majority of the population.
Regarding our normal operations, the Bass approach, under our Heath, Safety, Environment, Quality
and Community (HSEQC) protocols, prioritises the ongoing design, implementation and monitoring of
robust and inclusive safety cultures and outcomes across the entire business but in particular, to ensure
the well-being of our Indonesian field teams and reliability of field operations.
In short, we strive for ‘zero incidents’ in all activities.
Bass is proud to report that over 2020, it recorded zero incidents resulting in injuries, an
outcome which is a credit to all staff in Indonesia and Australia. The total Safe Work Hours
achieved up to 31 December, 2020, was more than 4.7 million hours. This is an outstanding
achievement.
All staff and employees are to be commended for their diligence in making Bass a safe place to work.
The challenge remains an ongoing one. We will continue to minimise potential hazards and risks
associated with operations as our assets and operating environment change.
Bass Oil Limited Annual Report December 2020
11
ENVIRONMENT
In addition to our Safety focus, the Company is highly focused to preserve the natural onshore
environment in which we operate, including respect for local communities within our operating
footprint.
Over 2020, our field teams fully met regulated air and noise management requirements. Our monitoring
systems indicated all parameters of ambient air quality and emissions were better than established
quality standards. Noise monitoring in production operations was conducted in accordance with the
provisions of the Indonesian UKL-UPL guidelines and indicated that noise levels at all locations
monitored, met the set quality standards.
In terms of on-site surface Water Quality and Aquatic Biota, new internal monitoring systems to ensure
local water quality remains good and not impacted by production processes, are being implemented,
with stability to date in the diversity index of plankton being monitored in local water bodies.
Laboratory analysis of samples of water drainage, surface water and wells showed good water quality
that met biological measuring standards.
Bass Oil’s environmental protocols include respect for community. In 2020, the Company continued to
deliver on its Corporate Social Responsibility program, via community development assistance,
especially for the villages of Tanjung Leaning and Kayu Ara. Bass also ensured that the increased
movements in heavy vehicle traffic had a minimal impact on the local communities in the area.
Bass continues to strive to achieve the lightest possible footprint in the environment in which we work.
Bass Oil Limited Annual Report December 2020
12
DIRECTORS’ REPORT
The Directors present their report on the results of Bass Oil Limited consolidated entity (“BAS” or “Bass”
or “the Company” or “the Group”) for the year ended 31 December 2020.
DIRECTORS
The names and details of the Company’s directors in office during the financial year and until the date of
this report follow. Directors were in office for the entire period unless otherwise stated.
Peter F Mullins FFin
Chairman and non-executive independent director (Appointed 16 December 2014)
Mr Mullins has over 40 years banking experience in Australia and New York, specialising in
Institutional and Corporate Finance across a broad industry range, including Oil & Gas. He is
experienced in Mergers and Acquisitions, Structured Finance, IPO’s and Capital Raisings.
Mr Mullins retired as Head of Institutional Banking SA&NT with the Commonwealth Bank (CBA) in
2009 and took up a part time role as Senior Advisor, Institutional, Corporate and Business Banking for
CBA in SA&NT. He retired from this role in 2013.
Mr Mullins was a Director of Somerton Energy Limited for 3 years prior to its merger with Cooper
Energy Limited in 2012.
He is a Fellow of the Financial Services Institute of Australasia.
Mr Mullins served on the Audit and Risk Committee during the period.
Giustino (Tino) Guglielmo BEng (Mech)
Managing director from 1 February 2017, previously was Executive Director
(Appointed 16 December 2014)
Mr Guglielmo is a Petroleum Engineer with over 40 years of technical, managerial and senior
executive experience in Australia and internationally.
Mr Guglielmo was the CEO and Managing Director of two ASX listed companies; Stuart Petroleum
Limited for seven years and Ambassador Oil & Gas Limited for three years. Both companies merged
with larger ASX listed companies generating significant value for shareholders following the
identification of compelling resource potential in their respective petroleum resource portfolios.
Mr Guglielmo also worked at Santos Limited, Delhi Petroleum Limited, and internationally with NYSE
listed Schlumberger Corp. His experience spans the Cooper basin, Timor Sea, Gippsland basin, and
exposure to US land and other international basins.
Mr Guglielmo was a member of the Resources and Infrastructure Task Force and the Minerals and
Energy Advisory Council, both South Australian Government advisory bodies. He is a Fellow of the
Institution of Engineers, Australia, a member of the Society of Petroleum Engineers and Australian
Institute of Company Directors. Mr Guglielmo resigned as a director of Octanex Limited - on 17 July
2018.
Mr Guglielmo served on the Audit and Risk Committee during the period.
Mark L Lindh - Non-executive independent director (Appointed 16 December 2014)
Mr Mark Lindh is a corporate advisor with in excess of 15 years’ experience in advising mining and
resources companies with a particular focus on the energy sector.
He is a founding director of Adelaide Equity Partners Limited, an investment and advisory company.
He is currently a non-executive Chairman of Aerometrex Limited (ASX Code AMX) and a Non-Executive
Director of Advanced Braking Technology Limited.
Mr Lindh served on the Audit and Risk Committee during the period.
Bass Oil Limited Annual Report December 2020
13
DIRECTORS’ REPORT (cont’d)
Hector M Gordon BSc (Hons)
Non-executive independent director (Appointed 23 October 2014)
Mr Gordon currently serves on the Board of Cooper Energy Limited as a Non-Executive Director.
Mr Gordon is a geologist with over 40 years of experience in the upstream petroleum industry,
primarily in Australia and Southeast Asia. Until June 2017 Mr Gordon was employed by Cooper Energy
Limited as Executive Director - Exploration & Production.
Mr Gordon's previous employers also include Beach Energy, Santos Limited, AGL Petroleum, TMOC
Resources, Esso Australia and Delhi Petroleum Pty Ltd. He is currently a Non-Executive Director of
Cooper Energy Limited, which is a substantial shareholder of Bass Oil Limited.
Mr Gordon is a member of the American Association of Petroleum Geologists and a member of the
Society of Petroleum Engineers.
Mr Gordon served as Chair of the Audit and Risk Committee during the period.
INTERESTS IN THE SHARES & OPTIONS OF THE COMPANY
As at the date of this report, the interests of the Directors in the shares and options of Bass Oil
Limited were:
Number of Ordinary Shares
Number of Options over
Ordinary Shares
60,800,000
285,630,465
113,811,393
25,266,668
7,600,000
10,000,000
10,000,000
2,500,000
P F Mullins
G Guglielmo
M L Lindh
H M Gordon
COMPANY SECRETARY
Mrs R Hamilton was appointed Company Secretary on the 31st March 2011. She has been a
Chartered Accountant for over 25 years.
DIVIDENDS
During the year and to the date of this report, no dividends were recommended, provided for or paid.
PRINCIPAL ACTIVITY
The principal activity of the Group during the year was oil production from low cost oil production
assets in Indonesia. The Company realigned its corporate strategy following the acquisition of a 55%
interest in Tangai-Sukananti KSO, which contains producing assets located in the prolific oil and gas
region of South Sumatra, Indonesia.
OPERATING AND FINANCIAL REVIEW
Operating results for year
The Group’s operating loss for the year ended 31 December 2020 after income tax was $499,826 (31
December 2019: profit of $398,418).
Bass Oil Limited Annual Report December 2020
14
DIRECTORS’ REPORT (cont’d)
Review of Financial Condition
Liquidity
The Group’s consolidated statement of cash flows for the year recorded a decrease of $545,229
(2019: decrease of $213,246) in cash and cash equivalents. The cash flows were derived from
operating receipts of $3,555,327 (2019: $5,064,484) and capital raising net of transaction costs of
$(6,736) (2019: $944,649).
There were cash outflows to suppliers and employees of $3,384,788 (2019: $3,768,975) and taxation
paid of $249,216 (2019: $486,512). Further cash outflows of deferred payments to Cooper Energy of
$nil (2019: $883,638), and net cash outflows in investing activities of $360,308 (2019: $940,023)
relating to expenditure on oil properties.
Cash assets at 31 December 2020 were $95,642 (2019: $640,871).
CHANGES IN THE STATE OF AFFAIRS
The major challenge of 2020 was managing the impact of the COVID 19 pandemic. Whilst the impact
was felt globally, developing countries such as Indonesia were amongst those impacted the most.
Bass implemented pandemic response plans to ensure the health of all employees in the field and the
Jakarta office. To date, these plans have minimised the impact on the Company’s employees as well
as its operations. Bass remains watchful, as uncertainty still exists in Indonesia as a result of the
COVID-19 pandemic. This uncertainty will remain at least until a roll out of an effective COVID
vaccine covers a majority of the population. There have been no other changes in the state of affairs.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
No other matter or circumstance has occurred subsequent to year end that has significantly affected,
or may significantly affect, the operations of the Company, the results of those operations or the state
of affairs of the entity in subsequent financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
Since assuming the operator role at the Tangai-Sukananti KSO, Bass has highlighted a number of
prospective targets and leads that warrant further testing and development.
The Company’s view is that there is a substantial quantity of oil reserves that remain undeveloped,
within the Bunian and Tangai Fields.
SHARE OPTIONS
Unissued shares
As at the date of this report there were 367,986,328 unissued ordinary shares under options
(367,986,328 at 31 December 2019).
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
BAS maintains a directors and officers insurance policy and has paid an insurance premium for the
policy. The contract of insurance prohibits disclosure of the amount of the premium and the nature of
the liabilities insured. Pursuant to the constitution the Company has entered into Deeds of Indemnity
with the Directors and Chief Financial Officer.
Bass Oil Limited Annual Report December 2020
15
DIRECTORS’ REPORT (cont’d)
INDEMNIFICATION OF OFFICERS AND AUDITORS
The company has not otherwise, during or since the end of the financial year, except to the extent
permitted by law, indemnified or agreed to indemnify an officer or auditor of the company or of any
related body corporate against a liability incurred as such an officer or auditor.
DIRECTORS’ MEETINGS
The number of meetings of directors (including meetings of committees of directors) held during the
year and the number of meetings attended by each director was as follows:
P F Mullins
G Guglielmo
H M Gordon
M L Lindh
Board Meetings
Audit and Risk Committee
Held
Attended
Held
Attended
6
6
6
6
6
6
6
6
2
2
2
2
2
2
2
2
REMUNERATION REPORT (AUDITED) (31 December 2020)
This Remuneration Report outlines the director and executive remuneration arrangements of the
Group in accordance with the Corporations Act 2001 and its Regulations. For the purposes of this
report, key management personnel (KMP) of the Group are defined as those persons having authority
and responsibility for planning, directing and controlling the major activities of the Group, directly or
indirectly, including any director (whether executive or otherwise) of the parent company, and
includes the Company Secretary.
Details of Key Management Personnel (including executives of the Group)
(i) Directors
P F Mullins
Chairman
G Guglielmo
Managing Director
H M Gordon
Director (Non-executive)
M L Lindh
Director (Non-executive)
(ii) Executives
S J Brealey
Staff Geologist New Ventures
R M Hamilton
Company Secretary
There have been no changes to key management personnel after 31 December 2020 and before the
date the financial report was authorised for issue.
The Board of Directors (“the Board”) is responsible for determining and reviewing remuneration
arrangements for the directors and executives. No remuneration consultant was engaged nor was any
remuneration advice sought during the period.
The Board assesses the appropriateness of the nature and amount of remuneration of executives on a
periodic basis by reference to relevant employment market conditions with the overall objective of
ensuring maximum stakeholder benefit from retention of a high quality, high performing executive
team.
Bass Oil Limited Annual Report December 2020
16
DIRECTORS’ REPORT (cont’d)
REMUNERATION REPORT (AUDITED) (31 December 2020) (cont’d)
Remuneration Philosophy
The performance of the Company largely depends upon the quality of its directors and executives. To
this end, the Company embodies the following principles in its remuneration framework:
Provide competitive rewards to attract high calibre executives.
Remuneration Structure
In accordance with best practice corporate governance, the structure of non-executive director and
executive remuneration is separate and distinct.
Non-Executive Director Remuneration
Remuneration policy
The Board seeks to set aggregate remuneration at a level that provides the Company with the ability
to attract and retain directors of the highest calibre, whilst incurring a cost that is acceptable to
shareholders. The amount of aggregate remuneration sought to be approved by shareholders and the
fee structure is reviewed annually. The Board considers advice from external consultants if required,
as well as the fees paid to non-executive directors of comparable companies when undertaking the
annual review process.
The Company’s constitution and the ASX Listing Rules specify that the aggregate remuneration of
non-executive directors shall be determined from time to time by a general meeting. The latest
determination was at the Annual General Meeting held on 3 October 2001, when shareholders
approved an aggregate remuneration of AUD 250,000 per year.
Structure
The remuneration of non-executive directors consists of director’s fees and committee fees for the
non-executive director who chairs the Audit and Risk Committee. The payment of additional fees for
chair of the Audit and Risk Committee recognises the additional time commitment required by a non-
executive director who chairs a sub-committee. The non-executive directors also receive retirement
benefits in the form of superannuation. There are no other retirement benefits, other than
superannuation.
The table below summaries the non-executive director remuneration (excluding superannuation):
Board fees
Chairman
Directors
Incremental Audit and Risk Committee fees
Chairman
AUD
75,000
50,000
5,000
No other fees are paid for serving on Board committees or on boards of wholly owned subsidiaries.
Non-executive directors have been encouraged by the Board to hold shares in the Company.
The remuneration of non-executive directors for the period ending 31 December 2020 and 31 December
2019 is detailed in Table 1 and 2 respectively of this Remuneration Report.
In response to the COVID-19 pandemic all director fees and the executive director’s salary were cut by
50% from 1 April 2020 for twelve months.
Bass Oil Limited Annual Report December 2020
17
DIRECTORS’ REPORT (cont’d)
REMUNERATION REPORT (AUDITED) (31 December 2020) (cont’d)
Executive Remuneration
Objective
The Company aims to reward executives with a level and mix of remuneration commensurate with their
position and responsibilities within the Company so as to:
Reward executives for individual performance;
Align the interests of executives with those of shareholders; and
Ensure that total remuneration is competitive by market standards.
Structure
In determining the level and make-up of executive remuneration, the Board engages external
consultants as needed to provide independent advice. No consultant was engaged in the current year.
Remuneration consists of fixed remuneration being base salary and superannuation and/or consultancy
fees.
The proportion of base salary and superannuation and/or consultancy fees for each executive is set out
in Table 1.
Fixed remuneration
Objective
Fixed remuneration is reviewed regularly by the Board, with access to external advice if required.
Structure
Executives are given the opportunity to receive their fixed (primary) remuneration in a variety of forms
including cash and superannuation. It is intended that the manner of payment chosen will be optimal
for the recipient without creating undue costs for the Company. The fixed remuneration component of
executives is detailed in Table 1.
Employment contracts
Managing Director and Chief Executive Officer
Mr G Guglielmo was appointed Managing Director and Chief Executive Officer (“CEO”) on 1 February
2017.
The Managing Director and CEO is employed under a rolling contract and under the terms of the
contract, Mr Guglielmo receives fixed remuneration of AUD$300,000 per annum. If there is cause for
termination, the Company can terminate the contract immediately without compensation, other than
any employee entitlements up to the date of termination. Otherwise, the contract may be terminated at
any time by either side giving six months’ notice in writing or by the Company paying six months’ salary
in lieu of notice, unless mutually agreed.
Staff Geologist New Ventures
Dr S Brealey was appointed Staff Geologist New Ventures on 16 May 2018.
The Staff Geologist New Ventures was employed under a maximum term contract of 24 months and
under the terms of the contract, Dr Brealey received fixed remuneration of AUD$225,000 per annum.
The contract concluded on 16 May 2020. Dr Brealey was not considered a KMP from 1 January 2020.
Bass Oil Limited Annual Report December 2020
18
DIRECTOR’S REPORT (cont’d)
REMUNERATION REPORT (AUDITED) (31 December 2020) (cont’d)
Consultancy Services Agreements
The Group has entered into consultancy agreements with Robyn Hamilton.
Details of the agreements entered into by the Group and outstanding as at 31 December 2020 are set
out below:
Type
Details
Term
Robyn Hamilton
Consultancy
Minimum of 1 day per
week at an agreed hourly
rate, from 6 October 2014
The agreement is on a
going forward basis with
the Company being able to
terminate the agreement,
at no less than one
month’s notice.
Company performance
The remuneration of Bass executives and contractors is not formally linked to financial performance
measures of the Company. In accordance the Section 300A of the Corporations Act 2001 the following
table summarises Bass’ performance over a four and half year period:
Measure
Dec 2020
Dec 2019
Dec 2018
Dec 2017
June 2017
(6 months)
Net profit/(loss)
$
Basic profit/(loss) per
share
¢ per share *
Share price at the
beginning of the year *
$
Share price at the end of
the year *
$
Dividends per share
¢
(499,826)
398,418
(419,615)
(98,149)
(1,357,287)
0.000
0.000
(0.000)
(0.000)
(0.001)
0.003
0.003
0.003
0.001
0.001
0.002
0.003
0.003
0.003
0.001
Nil
Nil
Nil
Nil
Nil
*
Prices have been rounded to three decimal points
Bass Oil Limited Annual Report December 2020
19
DIRECTORS’ REPORT (cont’d)
REMUNERATION REPORT (AUDITED) (31 December 2020) (cont’d)
Remuneration of key management personnel
No key management personnel appointed during the period received a payment as part of his or her
consideration for agreeing to hold the position.
Table 1: Remuneration for the year ended 31 December 2020
Short-term
benefits
Post-
employment
Share-
based
payments
Long-term
benefits
Salary & fees
Superannuation Options
Long service
leave
Total
USD
USD
USD
USD
USD
Non-executive Directors
(i)
P F Mullins
H M Gordon
M L Lindh
Sub-total non-executive
directors
Managing Director (i)
32,277
23,536
21,418
3,066
2,236
2,035
77,231
7,337
G Guglielmo
130,078
12,357
Other key management
personnel (ii)
R M Hamilton
Sub-total key
management personnel
42,888
42,888
-
-
Totals
250,197
19,694
-
-
-
-
-
-
-
-
-
-
-
-
35,343
25,772
23,453
84,568
-
142,435
-
-
-
42,888
42,888
269,891
(i)
(ii)
In response to the COVID-19 pandemic all director fees and the executive director’s salary
were cut by 50% from 1 April 2020 for twelve months.
Dr Brealey was not considered a KMP from 1 January 2020.
Bass Oil Limited Annual Report December 2020
20
DIRECTORS’ REPORT (cont’d)
REMUNERATION REPORT (AUDITED) (31 December 2020) (cont’d)
Remuneration of key management personnel (cont’d)
Table 2: Remuneration for the year ended 31 December 2019
Short-term
benefits
Post-
employment
Share-
based
payments
Long-term
benefits
Salary & fees
Superannuation Options
Long service
leave
Total
USD
USD
USD
USD
USD
Non-executive Directors
P F Mullins
H M Gordon
M L Lindh
Sub-total non-executive
directors
Managing Director
52,491
38,491
34,990
4,987
3,657
3,324
125,972
11,968
G Guglielmo
208,920
19,847
Other key management
personnel
S J Brealey
R M Hamilton
156,690
14,886
69,821
-
Sub-total key
management personnel
Totals
226,511
561,403
14,886
46,701
Table 3: Shareholdings of key management personnel
Shares held in Bass Oil Limited (number)
-
-
-
-
-
-
-
-
-
-
-
-
-
57,478
42,148
38,314
137,940
-
228,767
-
-
-
-
171,576
69,821
241,397
608,104
1 January 2020
Balance at
beginning of
period
Purchases
Sales
31 December 2020
Balance at end
of period
2020
Directors
P F Mullins
G Guglielmo
H M Gordon
M L Lindh (a)
60,800,000
285,630,465
25,266,668
113,811,393
485,508,526
Other key management
personnel
R M Hamilton
9,500,000
-
-
-
-
-
-
-
-
-
-
-
60,800,000
285,630,465
25,266,668
113,811,393
485,508,526
-
9,500,000
(a) Mr M Lindh’s interest includes 26,885,000 (2019: 26,885,000) shares held directly and 86,926,393 (2019:
86,926,393) shares held indirectly by related parties, Marbel Capital Pty Ltd and Chesser Nominees Pty Ltd
(2019: Marbel Capital Pty Ltd and Chesser Nominees Pty Ltd), all subsidiaries of Adelaide Equity Partners Ltd, a
director related entity of Mr M Lindh.
Bass Oil Limited Annual Report December 2020
21
DIRECTORS’ REPORT (cont’d)
REMUNERATION REPORT (AUDITED) (31 December 2020) (cont’d)
Remuneration of key management personnel (cont’d)
Options held in Bass Oil Limited (number)
1 January 2020
Balance at
beginning of
period
Option
issued
Options
expired
Net change
other
31 December
2020
Balance at
end of period
2020
Directors
P F Mullins
7,600,000
G Guglielmo
10,000,000
H M Gordon
2,500,000
M L Lindh
10,000,000
Other key
management
personnel
-
-
-
-
-
-
-
-
-
-
-
-
7,600,000
10,000,000
2,500,000
10,000,000
R M Hamilton
1,000,000
-
-
-
1,000,000
Other transactions and balances with key management personnel and their related parties
In accordance with AASB 124: “Related Party Disclosures”, key management personnel (KMP) have
authority and responsibility for planning, directing and controlling the activities of the Bass Oil
Limited. Hence, KMP are deemed to include the following:
the non-executive Directors of Bass Oil Limited; and
certain executives in the Managing Director’s senior leadership team.
During the year the Group paid corporate advisory and investor relations fees to Adelaide Equity
Partners Limited (a director related entity of Mr M Lindh) of $6,624 (31 December 2019: $24,015)
and capital raising success fees to Adelaide Equity Partners Limited of $nil (31 December 2019:
$47,304) (both under a corporate advisory and investor relations mandate). The fees were provided
under normal commercial terms and conditions. Amounts outstanding at balance date were $nil (31
December 2019: $11,365). The Group had a corporate advisory & investor relations mandate with
Adelaide Equity Partners. The mandate had a monthly retainer of A$5,000 per month and was
terminated on 20 April 2020.
During the year the Group paid rent to Adelaide Equity Partners Limited of $2,430 (31 December
2019: $7,377) (under a rental of premises mandate). The rental was provided under normal
commercial terms and conditions. Amounts outstanding at balance date were $nil (31 December
2019: $nil). The rental arrangement ceased on 30 April 2020.
End of the REMUNERATION REPORT (AUDITED) (31 December 2020)
Bass Oil Limited Annual Report December 2020
22
DIRECTORS’ REPORT (cont’d)
HEALTH, SAFETY AND ENVIRONMENT
The Company has adopted an Environment Policy and a Safety Policy and conducts its operations in
accordance with the Indonesian government regulations.
The Company’s petroleum exploration and development activities are subject to environmental
conditions specified by the Indonesian regulatory authorities. During the period there were no known
contraventions by the Company of any relevant environmental regulations.
The Company considers all injuries are avoidable and has policies and procedures to ensure employees
and contractors manage safety accordingly. There is a continuous process of monitoring and evaluating
our procedures. During the year there were no recorded health and safety incidents.
CORPORATE GOVERNANCE
The Company’s Corporate Governance Statement for the year ended 31 December 2020 may be
accessed from the Company’s website at www.bassoil.com.au.
AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act
2001 in relation to the audit for the year ended 31 December 2020 is included on page 25.
Non-audit services
The Directors are satisfied that the provision of non-audit services, during the period, 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 Audit and Risk Committee, in
conjunction with the Chief Financial Officer, assesses the provision of non-audit services by the auditors
to ensure that the auditor independence requirements of the Corporation Act 2001 in relation to the
audit are met.
Details of amounts paid or payable to the auditor for non-audit services provided during the period by
the auditor are outlined in note 9 to the financial statements.
The directors are of the opinion that the services as disclosed in note 9 to the financial statements do
not compromise the external auditor’s independence, based on advice received from the Audit and Risk
Committee, 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
Code of Conduct APES 110 Code of Ethics for Professional Accountants issued by the Accounting
Professional & 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.
Signed in accordance with a resolution of the Directors
Chairman
Melbourne, 31 March 2021
Bass Oil Limited Annual Report December 2020
23
Collins Square, Tower 5
727 Collins Street
Melbourne VIC 3008
Correspondence to:
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
F +61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Auditor’s Independence Declaration
To the Directors of Bass Oil Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Bass Oil
Limited for the year ended 31 December 2020, I declare that, to the best of my knowledge and belief, there have been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
Chartered Accountants
T S Jackman
Partner – Audit & Assurance
Melbourne, 31 March 2021
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
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Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
DIRECTORS’ DECLARATION
In accordance with a resolution of the directors of Bass Oil Limited, I state that:
In the opinion of the directors:
(a) the financial statements and notes of the consolidated entity, are in accordance with the
Corporations Act 2001, including:
(i) giving a true and fair view of the consolidated entity’s financial position as at 31 December
2020 and its performance for the year ended on that date; and
(ii) complying with Accounting Standards and Corporations Regulations 2001; and
(b) 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
(c) the financial statements and notes comply with International Financial Reporting Standards as
stated in Note 2(a).
This declaration has been made after receiving the declarations required to be made to the directors
in accordance with section 295A of the Corporations Act 2001 for the financial year ended
31 December 2020.
On behalf of the Board
Chairman
Melbourne, 31 March 2021
Bass Oil Limited Annual Report December 2020
25
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
For the financial year ended 31 December 2020
Consolidated
Note
2020
$
2019
$
Revenue
Oil revenue
Cost of oil sold
Gross profit
Other income
Interest received
Operator fees
Other income
Total revenue and other income
Administrative expenses
Finance costs
Profit/(loss) before income tax
Income tax expense
Profit/(loss) for the year
Other comprehensive loss, net of income tax
Items that may be reclassified to profit or loss
Other comprehensive loss, net of income tax
4
5
8
10(a)
3,150,396
5,052,319
(2,500,899)
(2,398,969)
649,497
2,653,350
352
64,145
132,172
846,166
770
70,443
-
2,724,563
(1,200,123)
(1,925,089)
(14,713)
(368,670)
(131,156)
(499,826)
-
-
(58,709)
740,765
(342,347)
398,418
-
-
Total comprehensive profit/(loss) for the year
(499,826)
398,418
Basic and diluted earnings/(loss) per share
25
0.000
0.000
The above statement of comprehensive income should be read in conjunction with the accompanying notes
Bass Oil Limited Annual Report December 2020
26
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2020
Note
2020
$
2019
$
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Inventories
Other financial assets
Total current assets
Non current assets
Trade and other receivables
Other financial assets
Plant and equipment
Right of use assets
Oil properties
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Provisions
Lease liabilities
Provision for tax
Total current liabilities
Non current liabilities
Provisions
Lease liabilities
Total non current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
11
12
13
14
15
12
15
16
17(a)
18
21
22
17(b)
10(e)
22
17(b)
23
31
24
95,642
1,270,434
12,467
176,586
4,236
640,871
1,408,644
32,694
277,357
3,853
1,559,365
2,363,419
300,900
27,469
423
78,973
1,935,331
2,343,096
3,902,461
337,925
27,469
1,769
169,779
1,945,213
2,482,155
4,845,574
1,007,065
1,296,255
200,875
68,123
589,023
144,760
92,320
715,359
1,865,086
2,248,694
99,909
13,950
113,859
1,978,945
1,923,516
100,346
83,808
184,154
2,432,848
2,412,726
26,684,884
3,129,996
26,674,268
3,129,996
(27,891,364)
(27,391,538)
1,923,516
2,412,726
The above statement of comprehensive income should be read in conjunction with the accompanying notes
Bass Oil Limited Annual Report December 2020
27
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the financial year ended 31 December 2020
Note
Contributed
equity
Accumulated
losses
Consolidated
Currency
translation
reserve
Share option
reserve
Total
$
$
$
$
$
At 1 January 2020
26,674,268
(27,391,538)
3,129,996
-
2,412,726
Net loss for the year
Total comprehensive
income for the period
Reversal of transaction
costs on share issues
Tax consequences of
share issue costs
-
(499,826)
-
(499,826)
2,340
8,276
-
-
-
-
-
-
-
(499,826)
-
(499,826)
-
-
2,340
8,276
At 31 December 2020
26,684,884
(27,891,364)
3,129,996
-
1,923,516
At 1 January 2019
25,728,503
(27,789,956)
3,129,996
-
1,068,543
Net profit for the year
Total comprehensive
income for the period
Shares issued
Transaction costs on
share issues
Tax consequences of
share issue costs
-
-
398,418
398,418
1,008,708
(74,043)
11,100
-
-
-
-
-
-
-
-
-
-
398,418
398,418
-
1,008,708
-
-
(74,043)
11,100
At 31 December 2019
26,674,268
(27,391,538)
3,129,996
-
2,412,726
The above statement of comprehensive income should be read in conjunction with the accompanying notes
Bass Oil Limited Annual Report December 2020
28
CONSOLIDATED STATEMENT OF CASH FLOWS
For the financial year ended 31 December 2020
Consolidated
Note
2020
$
2019
$
30
18
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Interest paid
Taxation paid
Net cash (used in)/provided by
operating activities
Cash flows from investing activities
Oil properties expenditure
Net cash (used in)/provided by
investing activities
Cash flows from financing activities
Proceeds from issue of shares and equity
options
Payment share issue costs
Principal elements of lease payments
Payment of deferred consideration
Net cash (used in)/provided by financing
activities
Net (decrease)/increase in cash and cash
equivalents
Net foreign exchange differences
Cash and cash equivalents at the beginning of
the year
3,555,327
(3,384,788)
352
(14,713)
(249,216)
5,064,484
(3,768,975)
770
(31,706)
(486,512)
(93,038)
778,061
(360,308)
(940,023)
(360,308)
(940,023)
-
1,008,708
(6,736)
(85,147)
-
(64,059)
(111,740)
(883,638)
(91,883)
(50,729)
(545,229)
(212,691)
-
640,871
(555)
854,117
Cash and cash equivalents at the end of the
year
11
95,642
640,871
The above statement of comprehensive income should be read in conjunction with the accompanying notes
Bass Oil Limited Annual Report December 2020
29
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 1. Corporate Information
The consolidated financial statements of Bass Oil Limited (“Parent Entity” or “Company”) and its
controlled entities (collectively as “Consolidated Entity” or “the Group”) for the year ended
31 December 2020 was authorised for issue in accordance with a resolution of the directors on
31 March 2021.
Bass Oil Limited is a company limited by shares incorporated in Australia whose shares are publicly
traded on the Australian Stock Exchange.
The nature of the operations and principal activities of the Group are oil production.
Note 2. Summary of Significant Accounting Policies
Basis of Preparation
The financial report has been prepared on the basis of historical cost, except for the revaluation of
certain non-current assets and financial instruments. Cost is based on the fair values of the
consideration given in exchange for assets. All amounts are presented in United States dollars, unless
otherwise noted.
In the application of the Group’s accounting policies, which are described below, management is
required to make judgements, estimates and assumptions about carrying values of assets and
liabilities that are not readily apparent from other sources. The estimates and associated assumptions
are based on historical experience and various other factors that are believed to be reasonable under
the circumstances, the results of which form the basis of making the judgements. Actual results may
differ from these estimates.
Going Concern
The consolidated financial statements have been prepared on the going concern basis, which assumes
that the Group will be able to realise its assets and extinguish its liabilities in the normal course of
business and at amounts stated in the financial report.
For the year ended 31 December 2020 the Group incurred a loss after tax of $499,826 (31 December
2019: made a profit after tax of $398,418), had a net cash outflow from operating activities of
$93,038 (31 December 2019: inflows of $778,061) had a net cash outflow from investing activities of
$360,308 (31 December 2019: $940,023) and a net cash outflow from financing activities of $91,883
(31 December 2019: $50,729).
At 31 December 2020, the Group has a cash balance of $95,642 (31 December 2019: $640,871) and
the current liabilities exceed current assets by $305,721 (31 December 2019: current assets exceed
current liabilities by $114,725). While current liabilities exceed current assets, $803,259 of current
liabilities is not expected to be payable in the near future.
Further, the cash balance of $95,642 at 31December 2020, was lower than expected as three months
of revenue was outstanding at balance date. Since balance date these invoices have all been received
and the usual payment cycle has resumed.
The Directors have prepared a cash flow forecast through to March 2022 which indicates that the
Group needs to invest in further drilling if production levels are to be maintained. The current cash
resources will not be sufficient to fund planned drilling commitments, business development
opportunities and working capital requirements without the raising of additional funds, and unless
additional funding is obtained, cash resources will be exhausted later in the year.
The Group will be required to secure additional funding (which may include debt, a pro-rata issue to
shareholders and/or a placement of shares) if the Group is to proceed with the planned drilling
programme and business development opportunities through to 31 March 2022.
Bass Oil Limited Annual Report December 2020
30
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 2. Summary of Significant Accounting Policies (cont’d)
Based on the Group’s cash flow forecast and achieving the funding referred to above, the Directors
believe that the Group will be able to continue as a going concern.
Should the Group be unsuccessful in achieving the initiatives set out above, a material uncertainty
would exist that may cast significant doubt on the ability of the Group to continue as a going concern
and, therefore, whether it will realise its assets and extinguish its liabilities in the normal course of
business.
The financial report does not include any adjustments relating to the recoverability and classification
of recorded asset amounts and the amount and classification of liabilities that might be necessary
should the Group not continue as a going concern.
Bass Oil Limited Annual Report December 2020
31
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 2. Summary of Significant Accounting Policies (cont’d)
(a) Statement of Compliance
These financial statements are general purpose financial statements which have been prepared in
accordance with the Corporations Act 2001, Accounting Standards and Interpretations, and comply
with other requirements of the law. The financial statements comprise the consolidated statements of
the Group. For the purpose of preparing the consolidated financial statements, the Company is a for-
profit entity.
Compliance with Australian Accounting Standards ensures that the financial statements and notes of
the Company and the Group comply with International Financial Reporting Standards.
(b) New Accounting Standards and Interpretations
The Group has adopted all of the new and revised Standards and Interpretations issued by the
Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for
an accounting period that begins on or after 1 January 2020.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not
been early adopted.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
Conceptual Framework for Financial Reporting (Conceptual Framework)
The consolidated entity has adopted the revised Conceptual Framework from 1 January 2020. The
Conceptual Framework contains new definition and recognition criteria as well as new guidance on
measurement that affects several Accounting Standards, but it has not had a material impact on the
consolidated entity's financial statements.
(c) Basis of consolidation
The consolidated financial statements comprise the financial statements of Bass Oil Limited and its
subsidiaries as at 31 December each year (the Group).
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement
with the investee and has the ability to affect those returns through its power over the investee.
Specifically, the Group controls an investee if and only if the Group has:
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant
activities of the investee);
Exposure, or rights, to variable returns from its involvement with the investee, and
The ability to use its power over the investee to affect its returns.
The financial statements of subsidiaries are prepared for the same reporting period as the parent
company, using consistent accounting policies. In preparing the consolidated financial statements, all
intercompany balances and transactions, income and expenses and profit and losses resulting from
intra-group transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and
cease to be consolidated from the date on which control is transferred out of the Group.
Bass Oil Limited Annual Report December 2020
32
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 2. Summary of Significant Accounting Policies (cont’d)
(d) Foreign currency translation
Transactions and balances
Transactions in currencies other than an entity’s functional currency are initially recorded in the
functional currency by applying the exchange rate ruling at the date of the transaction. Monetary
assets and liabilities denominated in currencies other than an entity’s functional currency are
retranslated at the foreign exchange rate ruling at the reporting date. Foreign exchange differences
arising on translation are recognised in the income statement.
Foreign exchange differences that arise on the translation of monetary items that form part of the net
investment in a foreign operation are recognised in the translation reserve in the consolidated
financial statements.
Non-monetary assets and liabilities that are measured in terms of historical cost in currencies other
than an entity’s functional currency are translated using the exchange rate at the date of the initial
transaction. Non-monetary assets and liabilities denominated in currencies other than an entity’s
functional currency that are stated at fair value are translated to the functional currency at foreign
exchange rates ruling at the dates the fair value was determined.
The year-end exchange rate used for 31 December 2020 was AUD/USD 1:0.7006 (31 December
2019: 1:0.7058).
(e) Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and short term
deposits with an original maturity of three months or less that are readily convertible to known cash
amounts of cash which are subject to an insignificant risk of changes in value.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash
equivalents as defined above.
(f)
Financial assets
All regular way purchases or sales of financial assets are recognised and derecognised on a trade date
basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery
of assets within the time frame established by regulation or convention in the marketplace.
All recognised financial assets are measured subsequently in their entirety at either amortised cost or
fair value, depending on the classification of the financial assets.
Classification of financial assets
Debt instruments that meet the following conditions are measured subsequently at amortised cost:
the financial asset is held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows; and
the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
Debt instruments that meet the following conditions are measured subsequently at fair value through
other comprehensive income (FVTOCI):
the financial asset is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling the financial assets; and
the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
Bass Oil Limited Annual Report December 2020
33
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 2. Summary of Significant Accounting Policies (cont’d)
(f) Financial assets (cont’d)
By default, all other financial assets are measured subsequently at fair value through profit or loss
(FVTPL).
Despite the foregoing, the Group may make the following irrevocable election/designation at initial
recognition of a financial asset:
the Group may irrevocably elect to present subsequent changes in fair value of an equity
investment in other comprehensive income if certain criteria are met; and
the Group may irrevocably designate a debt investment that meets the amortised cost or FVTOCI
criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting
mismatch.
(i) Amortised cost and effective interest method
The effective interest method is a method of calculating the amortised cost of a debt instrument and
of allocating interest income over the relevant period.
For financial assets other than purchased or originated credit-impaired financial assets (i.e. assets
that are credit-impaired on initial recognition), the effective interest rate is the rate that exactly
discounts estimated future cash receipts (including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and other premiums or discounts)
excluding expected credit losses, through the expected life of the debt instrument, or, where
appropriate, a shorter period, to the gross carrying amount of the debt instrument on initial
recognition. For purchased or originated credit-impaired financial assets, a credit-adjusted effective
interest rate is calculated by discounting the estimated future cash flows, including expected credit
losses, to the amortised cost of the debt instrument on initial recognition.
The amortised cost of a financial asset is the amount at which the financial asset is measured at initial
recognition minus the principal repayments, plus the cumulative amortisation using the effective
interest method of any difference between that initial amount and the maturity amount, adjusted for
any loss allowance.
The gross carrying amount of a financial asset is the amortised cost of a financial asset before
adjusting for any loss allowance.
Interest income is recognised using the effective interest method for debt instruments measured
subsequently at amortised cost and at FVTOCI. For financial assets other than purchased or originated
credit-impaired financial assets, interest income is calculated by applying the effective interest rate to
the gross carrying amount of a financial asset, except for financial assets that have subsequently
become credit-impaired (see below). For financial assets that have subsequently become
credit-impaired, interest income is recognised by applying the effective interest rate to the amortised
cost of the financial asset. If, in subsequent reporting periods, the credit risk on the credit-impaired
financial instrument improves so that the financial asset is no longer credit-impaired, interest income
is recognised by applying the effective interest rate to the gross carrying amount of the
financial asset.
For purchased or originated credit-impaired financial assets, the Group recognises interest income by
applying the credit-adjusted effective interest rate to the amortised cost of the financial asset from
initial recognition. The calculation does not revert to the gross basis even if the credit risk of the
financial asset subsequently improves so that the financial asset is no longer credit-impaired.
Interest income is recognised in profit or loss and is included in the "other income – interest received"
line item.
Bass Oil Limited Annual Report December 2020
34
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 2. Summary of Significant Accounting Policies (cont’d)
(f) Financial assets (cont’d)
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses “ECL” on investments in debt
instruments that are measured at amortised cost or at FVTOCI, lease receivables, trade receivables
and contract assets, as well as on financial guarantee contracts. The amount of expected credit losses
is updated at each reporting date to reflect changes in credit risk since initial recognition of the
respective financial instrument. The Group always recognises lifetime ECL for trade receivables,
contract assets and lease receivables. The expected credit losses on these financial assets are
estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for
factors that are specific to the debtors, general economic conditions and an assessment of both the
current as well as the forecast direction of conditions at the reporting date, including time value of
money where appropriate.
For all other financial instruments, the Group recognises lifetime ECL when there has been
a significant increase in credit risk since initial recognition. However, if the credit risk on the financial
instrument has not increased significantly since initial recognition, the Group measures the loss
allowance for that financial instrument at an amount equal to 12-month ECL.
Lifetime ECL represents the expected credit losses that will result from all possible default events over
the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of
lifetime ECL that is expected to result from default events on a financial instrument that are possible
within 12 months after the reporting date.
(g) Inventories
Inventories are stated at the lower of cost and net realisable value. Costs of inventories are
determined on a first-in-first-out basis. Net realisable value represents the estimated selling price for
inventories less all estimated costs of completion and costs necessary to make the sale.
(h) Joint arrangements
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.
(i) Plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment
losses.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as
follows:
Office furniture and equipment – over 3 to 10 years
The assets' residual values, useful lives and amortisation methods are reviewed and adjusted, if
appropriate, at each financial year end. Gains or losses on disposals are determined by comparing
proceeds with the carrying amount and are included in profit or loss.
Bass Oil Limited Annual Report December 2020
35
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 2. Summary of Significant Accounting Policies (cont’d)
(j)
Leases
The Group as lessee
The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group
recognises a right-of-use asset and a corresponding lease liability with respect to all lease
arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease
term of 12 months or less) and leases of low value assets (such as tablets and personal computers,
small items of office furniture and telephones). For these leases, the Group recognises the lease
payments as an operating expense on a straight-line basis over the term of the lease unless another
systematic basis is more representative of the time pattern in which economic benefits from the
leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at
the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be
readily determined, the Group uses its incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise:
Fixed lease payments (including in-substance fixed payments), less any lease incentives
receivable;
Variable lease payments that depend on an index or rate, initially measured using the index or
rate at the commencement date;
The amount expected to be payable by the lessee under residual value guarantees;
The exercise price of purchase options, if the lessee is reasonably certain to exercise the
options; and
Payments of penalties for terminating the lease, if the lease term reflects the exercise of an
option to terminate the lease.
The lease liability is presented as a separate line in the consolidated statement of financial position.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on
the lease liability (using the effective interest method) and by reducing the carrying amount to reflect
the lease payments made.
The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-
of-use asset) whenever:
The lease term has changed or there is a significant event or change in circumstances
resulting in a change in the assessment of exercise of a purchase option, in which case the
lease liability is remeasured by discounting the revised lease payments using a revised
discount rate.
The lease payments change due to changes in an index or rate or a change in expected
payment under a guaranteed residual value, in which cases the lease liability is remeasured
by discounting the revised lease payments using an unchanged discount rate (unless the lease
payments change is due to a change in a floating interest rate, in which case a revised
discount rate is used).
A lease contract is modified and the lease modification is not accounted for as a separate
lease, in which case the lease liability is remeasured based on the lease term of the modified
lease by discounting the revised lease payments using a revised discount rate at the effective
date of the modification.
The Group did not make any such adjustments during the periods presented.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease
payments made at or before the commencement day, less any lease incentives received and any
initial direct costs. They are subsequently measured at cost less accumulated depreciation and
impairment losses.
Bass Oil Limited Annual Report December 2020
36
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 2. Summary of Significant Accounting Policies (cont’d)
(j)
Leases (cont’d)
Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore
the site on which it is located or restore the underlying asset to the condition required by the terms
and conditions of the lease, a provision is recognised and measured under AASB 137. To the extent
that the costs relate to a right-of-use asset, the costs are included in the related right-of-use asset,
unless those costs are incurred to produce inventories.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the
underlying asset.
If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that
the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the
useful life of the underlying asset. The depreciation starts at the commencement date of the lease.
The right-of-use assets are presented as a separate line in the consolidated statement of financial
position.
The Group applies AASB 136 to determine whether a right-of-use asset is impaired and accounts for
any identified impairment loss as described in Note 2(k) below.
(k)
Impairment of non-financial assets other than indefinite life intangibles
Non-financial assets other than indefinite life intangibles are tested for impairment whenever events
or changes in circumstances indicate that the carrying amount may not be recoverable.
The Group conducts an annual internal review of asset values, which is used as a source of
information to assess any indicators for impairment. If any impairment exists, an estimate of the
asset’s recoverable amount is calculated.
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 assets fair value less costs of disposal
and value in use. Non-financial assets that suffered an impairment are tested for possible reversal of
the impairment whenever events or changes in circumstances indicate that the impairment may have
reversed.
(l) Oil properties
Oil properties are carried at cost including construction, installation of infrastructure such as roads and
the cost of development of wells.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it’s probable that future economic benefits associated with the item will flow to
the Group and the cost of the item can be measured reliably. All other repairs and maintenance are
charged to the profit or loss during the financial period in which they are incurred.
Oil properties are amortised on the Units of Production basis using the latest approved estimate of
Proven (1P) Reserves. Amortisation is charged only once production has commenced. No amortisation
is charged on areas under development where production has not yet commenced.
(m) Provision for restoration
The Group records the present value of its share of the estimated cost to restore operating locations.
The provision is based on the net present value of the current agreed monthly payment to Pertamina
to cover the anticipated obligations relating to the reclamation, waste site closure, plant closure,
production facility removal and other costs associated with the restoration of the site. Pertamina is
responsible for all restoration.
Bass Oil Limited Annual Report December 2020
37
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 2. Summary of Significant Accounting Policies (cont’d)
(m) Provision for restoration (cont’d)
When the liability is recorded the carrying amount of the production asset is increased by the
restoration costs which are depreciated over the producing life of the asset. Over time, the liability is
increased for the change in the present value based on a risk free discount rate and monthly payment
to Pertamina. The unwinding of the discount is recorded as an accretion charge within finance costs.
Any changes in the estimate of the provision for restoration arising from changes in the amount
required to be paid to Pertamina or changes in the discount rate of the restoration provision are
recorded by adjusting the provision and the carrying amount of the production or exploration asset
and then depreciated over the producing life of the asset. Any change in the discount rate is applied
prospectively.
(n) Trade and other payables
Trade payables and other payables are carried at amortised cost due to their short term nature they
are not discounted. They represent liabilities for goods and services provided to the Group prior to the
end of the financial year that are unpaid and arise when the Group becomes obliged to make future
payments in respect of the purchase of these goods and services.
(o) Contributed equity
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.
(p) Revenue recognition
Revenue is recognised in profit or loss when the significant risks and rewards of ownership have been
transferred to the buyer. Revenue is recognised and measured at the fair value of the consideration or
contributions received, net of goods and service tax (“GST”), to the extent it is probable that the
economic benefits will flow to the Group and the revenue can be reliably measured.
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is
expected to be entitled in exchange for transferring goods or services to a customer. For each
contract with a customer, the consolidated entity: identifies the contract with a customer; identifies
the performance obligations in the contract; determines the transaction price which takes into account
estimates of variable consideration and the time value of money; allocates the transaction price to the
separate performance obligations on the basis of the relative stand-alone selling price of each distinct
good or service to be delivered; and recognises revenue when or as each performance obligation is
satisfied in a manner that depicts the transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the
customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer
and any other contingent events. Such estimates are determined using either the 'expected value' or
'most likely amount' method. The measurement of variable consideration is subject to a constraining
principle whereby revenue will only be recognised to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue recognised will not occur. The measurement
constraint continues until the uncertainty associated with the variable consideration is subsequently
resolved. Amounts received that are subject to the constraining principle are recognised as a refund
liability.
Sales revenue
Sales revenue is recognised on the basis of the Group’s interest in a producing field (“entitlements”
method), when the physical product and associated risks and rewards of ownership pass to the purchaser,
which is at the time the oil is received at the Pertamina terminal. Revenue earned under a production
sharing contract (“KSO”) is recognised on a net entitlements basis according to the terms of the KSO.
Bass Oil Limited Annual Report December 2020
38
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 2. Summary of Significant Accounting Policies (cont’d)
(p) Revenue recognition (cont’d)
Other income
Other income is recognised in profit or loss at the fair value of the consideration received or
receivable, net of GST, when the significant risks and rewards of ownership have been transferred to
the buyer or when the service has been performed.
Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will
flow to the Group and the amount of revenue can be measured reliably. Interest income is accrued on
a time basis, by reference to the principle outstanding and at the effective interest rate applicable,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to that asset’s net carrying amount on initial recognition.
(q) Employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual
leave and sick leave in the period the related service is rendered.
Liabilities recognised in respect of short term employee benefits, are measured at their nominal values
using the remuneration rate expected at the time of settlement.
(r)
Income tax and other taxes
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted by the reporting date.
Deferred income tax is provided on all temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred
income tax liabilities are recognised for all taxable temporary differences except:
when the deferred income tax liability arises from the initial recognition of goodwill or of 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 profit nor taxable profit or loss; or
when the taxable temporary difference is associated with investments in subsidiaries, associates
or interests in joint ventures, and the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of
unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the carry-forward of unused tax
credits and unused tax losses can be utilised, except:
when the deferred income tax asset relating to the deductible temporary difference arises from
the initial recognition of an asset or liability in a transaction that is not a business combination
and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
or
when the deductible temporary difference is associated with investments in subsidiaries,
associates or interests in joint ventures, in which case a deferred tax asset is only recognised to
the extent that it is probable that the temporary difference will reverse in the foreseeable future
and taxable profit will be available against which the temporary difference can be utilised. The
carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or
part of the deferred income tax asset to be utilised.
Bass Oil Limited Annual Report December 2020
39
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 2. Summary of Significant Accounting Policies (cont’d)
(r)
Income tax and other taxes (cont’d)
Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to
the extent that it has become probable that future taxable profit will allow the deferred tax asset to be
recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in
the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the reporting date.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to
the same taxable entity and the same taxation authority.
Indonesian First Tranche Petroleum
A provision for deferred income tax payable related to tax potentially payable by the Group on its
share of First Tranche Petroleum which has already been recovered from Tangai-Sukananti KSO
production. This tax is payable in the event the contractors exhaust the pool of cost recovery prior to
expiry of the KSO. The cost recovery pool has been exhausted during the year and tax is now
payable.
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST or VAT except:
when the GST or VAT incurred on a purchase of goods and services is not recoverable from the
taxation authority, in which case the GST or VAT is recognised as part of the cost of acquisition of
the asset or as part of the expense item as applicable; and
receivables and payables, which are stated with the amount of GST or VAT included.
The net amount of GST or VAT recoverable from, or payable to, the taxation authority is included as
part of receivables or payables in the statement of financial position.
Commitments and contingencies are disclosed net of the amount of GST or VAT recoverable from, or
payable to, the taxation authority.
(s) Earnings per share
Basic earnings per share is calculated as net profit/(loss) attributable to members of the parent,
adjusted to exclude any costs of servicing equity (other than dividends), divided by the weighted
average number of ordinary shares, adjusted for any bonus element.
(t) Critical accounting estimates and judgements
The preparation of a financial report in conformity with Australian Accounting Standards requires
management to make judgements, estimates and assumptions that affect the application of policies
and reported amounts of assets and liabilities, income and expenses. The estimates and associated
assumptions are based on historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of making the judgements
about carrying values of assets and liabilities that are not readily apparent from other sources. Actual
results may differ from these estimates.
These accounting policies have been consistently applied by each entity in the consolidated entity, and
the estimates and underlying assumptions are reviewed on an ongoing basis.
The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying values of assets and liabilities within the next financial year are discussed
below.
Bass Oil Limited Annual Report December 2020
40
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 2. Summary of Significant Accounting Policies (cont’d)
(t) Critical accounting estimates and judgements (cont’d)
(i)
Impairment of Oil Property Assets
Oil properties impairment testing requires an estimation of the value in use of the cash
generating unit to which deferred costs have been allocated. The value in use calculation
requires the entity to estimate the future cash flows expected to arise from the cash generating
unit and a suitable discount rate in order to calculate present value. Other assumptions used in
the calculations which could have an impact on future years includes available reserves and oil
prices.
(ii) Useful Life of Oil Property Assets
As detailed at Note 2 (l) in the Annual Report, oil properties are amortised on the Units of
Production basis using the latest approved estimate of Proven (1P) Reserves. Amortisation is
charged only once production has commenced. No amortisation is charged on areas under
development where production has not yet commenced. Estimates of reserve quantities are a
critical estimate impacting amortisation of oil property assets.
(iii) Estimates of Reserve Quantities
The estimated quantities of Proven and Probable hydrocarbon reserves reported by the
Company are integral to the calculation of the amortisation expense relating to oil properties,
and to the assessment of possible impairment of these assets. Estimated reserve quantities are
based upon interpretations of geological and geophysical models and assessments of the
technical feasibility and commercial viability of producing the reserves. These assessments
require assumptions to be made regarding future development and production costs,
commodity prices, exchange rates and fiscal regimes. The estimates of reserves may change
from period to period as the economic assumptions used to estimate the reserves can change
from period to period, and as additional geological data is generated during the course of
operations. Reserves estimates are prepared in accordance with the Company’s policies and
procedures for reserves estimation which conform to guidelines prepared by the Society of
Petroleum Engineers.
(iv) Coronavirus (COVID-19) pandemic
Judgment has been exercised in considering the impacts that the Coronavirus (COVID-19)
pandemic has had, or may have, on the consolidated entity based on known information. This
consideration extends to the nature of the products and services offered, customers, supply
chain, staffing and geographic regions in which the consolidated entity operates. Other than as
addressed in specific notes, there does not currently appear to be either any significant impact
upon the financial statements or any significant uncertainties with respect to events or
conditions which may impact the consolidated entity unfavourably as at the reporting date or
subsequently as a result of the Coronavirus (COVID-19) pandemic.
(v)
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates.
Significant judgement is required in determining the provision for income tax. There are many
transactions and calculations undertaken during the ordinary course of business for which the
ultimate tax determination is uncertain. The consolidated entity recognises liabilities for
anticipated tax audit issues based on the consolidated entity's current understanding of the tax
law. Where the final tax outcome of these matters is different from the carrying amounts, such
differences will impact the current and deferred tax provisions in the period in which such
determination is made.
Bass Oil Limited Annual Report December 2020
41
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 2. Summary of Significant Accounting Policies (cont’d)
(t) Critical accounting estimates and judgements (cont’d)
(vi) 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.
(vii) 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.
(viii) Lease make good provision
A provision has been made for the present value of anticipated costs for future restoration of
leased premises. The provision includes future cost estimates associated with closure of the
premises. The calculation of this provision requires assumptions such as application of closure
dates and cost estimates. The provision recognised for each site is periodically reviewed and
updated based on the facts and circumstances available at the time. Changes to the estimated
future costs for sites are recognised in the statement of financial position by adjusting the asset
and the provision. Reductions in the provision that exceed the carrying amount of the asset will
be recognised in profit or loss.
(ix) Restoration provision
A provision has been made for the present value of anticipated costs for future rehabilitation
of land explored or mined. The consolidated entity's mining and exploration activities are
subject to various laws and regulations governing the protection of the environment. The
consolidated entity recognises management's best estimate for assets retirement obligations
and site rehabilitations in the period in which they are incurred. Actual costs incurred in the
future periods could differ materially from the estimates. Additionally, future changes to
environmental laws and regulations, life of mine estimates and discount rates could affect the
carrying amount of this provision.
(x)
Provision for impairment of inventories
The provision for impairment of inventories assessment requires a degree of estimation and
judgement. Net realisable value tests are performed at least annually and represent the
estimated selling price, less estimated costs of completion and sale.
Bass Oil Limited Annual Report December 2020
42
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 3. Financial Risk Management Objectives and Policies
The Group’s principal financial instruments comprise receivables, payables, cash, deposits and
borrowings.
The Group manages its exposure to key financial risks, including oil price, interest rate and currency
risk in accordance with the Group’s financial risk management policy. The objective of the policy is to
support the delivery of the Group’s financial targets whilst protecting future financial security.
The main risks arising from the Group’s financial instruments are interest rate risk, foreign currency
risk, commodity price risk, credit risk and liquidity risk. The Group uses different methods to measure
and manage different types of risk to which it is exposed. These include monitoring levels of exposure
to interest rate and foreign exchange risk and assessments of market forecasts for interest rates,
foreign exchange and commodity prices. The risks are summarised below.
Primarily responsibility for identification and control of financial risks rests with the Managing Director
under the authority of the Board. The Board reviews and agrees management’s assessment for
managing each of the risks identified below.
The carrying amounts and net fair values of the Group’s financial assets and liabilities at 31 December
2020 are cash and cash equivalents $95,642, trade and other receivables $1,571,334, other financial
assets $31,705, trade and other payables $1,007,065.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises three types of risk: foreign currency risk,
commodity price risk and interest rate risk. Financial instruments affected by market risk include
deposits, trade and other receivables, trade and other payables, and borrowings.
The sensitivity analyses in the following sections relate to the position as at 31 December 2020.
The sensitivity analyses have been prepared on the basis that the amount of the financial instruments
in foreign currencies is all constant. The sensitivity analyses are intended to illustrate the sensitivity
changes in market variables on the Group’s financial instruments and show the impact on profit and
loss and shareholders’ equity, where applicable.
Foreign currency risk
The Group has transactional currency exposure arising from corporate costs which are denominated in
Australian dollars (AUD), and oil sales costs which are denominated in Indonesian Rupiah (IDR) and
United States dollars. The Group does not undertake any hedging activities.
The Group owns oil production assets in Indonesia and is exposed to foreign currency risk arising from
various currency exposures, to the United States dollar.
The Board approved the policy of holding certain funds in United States dollars to manage foreign
exchange risk. The Group’s exposure to foreign exchange risk at the reporting date was as follows:
Bass Oil Limited Annual Report December 2020
43
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 3. Financial Risk Management Objectives and Policies (cont’d)
Foreign currency risk (cont’d)
Financial assets:
Cash and cash equivalents
Trade and other receivables
Financial liabilities:
Trade and other payables
31 December 2020
AUD
$
8,449
454
IDR
$
30,935
521,117
60,898
633,387
At the reporting date, if the currencies set out in the table above, strengthened or weakened against
the United States dollar by the percentage shown, with all other variables held constant, net profit for
the year would increase/(decrease) and net assets would increase/(decrease) by:
Impact on post tax profit
Exchange rate +10%
Exchange rate -10%
Impact on equity
Exchange rate +10%
Exchange rate -10%
31 December 2020
AUD
$
IDR
$
(5,199)
5,199
(5,199)
5,199
(8,133)
8,133
(8,133)
8,133
Management believes the risk exposures as at the reporting date are representative of the risk
exposure inherent in the financial instruments. A movement of +/– 10% is selected because a review
of recent exchange rate movements and economic data suggests this range is reasonable.
Commodity Price Risk
The Group is exposed to commodity price fluctuations through the sale of petroleum products
denominated in US dollars. The Group may enter into commodity crude oil price swap and option
contracts to manage its commodity price risk.
If the US dollar oil price changed by +/-10% from the average oil price during the period, with all
other variables held constant, the estimated impact on post-tax profit and equity would have been:
Impact on post tax profit
USD oil price +10%
USD oil price -10%
Impact on equity
USD oil price +10%
USD oil price -10%
31 December 2020
$
315,040
(315,040)
315,040
(315,040)
Bass Oil Limited Annual Report December 2020
44
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 3. Financial Risk Management Objectives and Policies (cont’d)
Interest rate risk
The Group’s exposure to market interest rates is related primarily to the Group’s cash and cash
equivalents.
The Group constantly analyses its interest rate opportunity and exposure. Within analysis
consideration is given to existing positions and alternative arrangement on fixed or variable deposits.
The following sensitivity analysis is based on the interest rate opportunity/risk in existence at
reporting date.
At reporting date, if interest rates changed by +/- 1%, with all other variables held constant, the
estimated impact on post-tax profit and equity would have been:
Impact on post tax profit
Interest rates +1%
Interest rates - 1%
Impact on equity
Interest rates +1%
Interest rates -1%
31 December 2020
$
956
(956)
956
(956)
A movement of + and-1% is selected because this is historically within the range of rate movements
and available economic data suggests this range is reasonable.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall
due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always
have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Group’s reputation.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built
an appropriate liquidity risk framework for the management of the Group’s short, medium and longer
term funding and liquidity management requirements. The Group manages liquidity risk by
maintaining adequate banking facilities through monitoring of future rolling cash flow forecasts of its
operations, which reflect management’s expectations of the settlement of financial assets and
liabilities.
The financial liabilities are trade and other payables, and borrowings. At 31 December 2020, the
Group had $1,007,065 (2019: $1,296,255) in trade and other payables. Trade payables are non-
interest bearing and have a contractual maturity of less than 30 days.
The only financial assets are cash and cash equivalents, trade and other receivables, and other
financial assets. At 31 December 2020, the Group had $95,642 (2019: $640,871) in cash and cash
equivalents, $1,571,334 (2019: $1,746,569) in trade and other receivables, and $31,705 (2019:
$31,322) in other financial assets.
The following table details the Group’s remaining contractual maturity for its non-derivative financial
liabilities. The table has been drawn up based on the undiscounted cash flows of financial liabilities
based on the earliest date on which the Group can be required to pay. The table includes both interest
and principal cash flows.
Bass Oil Limited Annual Report December 2020
45
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 3. Financial Risk Management Objectives and Policies (cont’d)
Liquidity risk (cont’d)
Weighted
average
effective
interest rate
Less than one
year
One to two
years
Greater than
two years
Total
%
$
$
$
$
-
1,007,065
-
-
1,007,065
-
1,296,255
-
-
1,296,255
31 December 2020
Trade and other
payables
31 December 2019
Trade and other
payables
Credit risk
Credit risk arises from financial assets of the Group, which comprise cash and cash equivalents, trade
and other receivables, and other financial assets.
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the Group. The Group have adopted a policy of only dealing with creditworthy
counterparties and obtaining sufficient collateral or other security, where appropriate, as a means of
mitigating the risk of financial loss from defaults.
The carrying amount of financial assets recorded in the financial statements, net of any provisions for
losses, represents the Group’s maximum exposure to credit risk without taking account of any
collateral or other security obtained.
In addition, receivable balances are monitored on an ongoing basis with the result being that the
Group’s exposure to bad debts is not significant. Currently there are no receivables that are impaired
or past due but not impaired.
Apart from Pertamina, the Indonesian State owned oil Company, the largest customer of the Group,
the Group does not have significant credit risk exposure to any other counterparty.
The credit risk on liquid funds is banks with high ratings assigned by international credit rating
agencies.
Fair value of financial instruments
The Directors consider that the carrying amount of the financial assets and liabilities recorded in the
financial statements approximate their fair values unless otherwise stated.
Capital management
Capital is defined as equity. When managing capital, management’s objective is to ensure the entity
continues as a going concern as well as to maintain optimal returns to shareholders.
The Group will seek to raise further capital, if required, to fund its future strategy for the development
of the Tangai-Sukananti field.
The Group is not subject to any externally imposed capital requirements.
Bass Oil Limited Annual Report December 2020
46
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 4. Other Income
Reimbursement of expenses
Federal Government Grants
State Government Grants
Jobkeeper receipts
Net foreign exchange gains
Note 5. Administrative Expenses
Auditors Remuneration
Consultants fees other
Corporate related costs
Directors’ remuneration
Employee benefits expense
Foreign exchange losses
Insurance
Legal expenses
Travel
Other administrative expenses
Note
Consolidated
2020
$
12,736
66,020
7,108
41,165
5,143
132,172
Consolidated
Note
2020
$
9
7
71,393
68,875
37,401
84,568
630,045
-
24,006
38,841
9,526
235,468
1,200,123
Note 6. Depreciation and Amortisation
Depreciation and amortisation included in the profit and loss is as follows:
Depreciation plant and equipment
Depreciation of right of use assets
Amortisation of oil properties
Consolidated
Note
16
17
18
2020
$
1,365
86,485
370,190
458,040
2019
$
-
-
-
-
-
-
2019
$
58,107
298,392
54,170
138,001
859,472
13,459
21,067
46,325
125,618
310,478
1,925,089
2019
$
1,361
107,123
340,218
448,702
Bass Oil Limited Annual Report December 2020
47
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 7.
Employee Benefits Expense
Wages and salaries
Superannuation
Provision for annual leave
Medical expense
Termination benefits
Workers’ compensation
Payroll tax
Note 8. Finance Costs
Interest on borrowings
Interest on leases
Accretion interest
Note 9. Auditor’s Remuneration
Amounts received or due and receivable by Deloitte
for:
An audit or review of the financial report of the entity
paid to:
Grant Thornton Australia
Grant Thornton Indonesia
Deloitte Touche Tohmatsu Australia
Deloitte Touche Tohmatsu Indonesia
The auditor of Bass Oil Limited is Grant Thornton
Australia (2019: Deloitte Touche Tohmatsu)
Tax services paid to Deloitte Touche Tohmatsu
Australia
Total
Consolidated
Note
2020
$
506,791
19,285
15,584
6,760
80,198
1,427
-
2019
$
717,880
34,733
3,862
8,990
89,178
2,497
2,332
630,045
859,472
Consolidated
Note
2020
$
-
14,713
-
14,713
2019
$
31,706
25,033
1,970
58,709
Consolidated
Note
2020
$
2019
$
46,890
13,000
7,653
-
67,543
3,850
71,393
-
-
45,463
11,220
56,683
1,424
58,107
Bass Oil Limited Annual Report December 2020
48
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 10. Income Tax
Consolidated
Note
2020
$
2019
$
(a) Income tax recognised in profit or loss
Current tax
In respect of the current financial year
122,880
331,247
Deferred tax
In respect of the current financial year
8,276
11,100
Total income tax expenses recognised in profit
or loss
131,156
342,347
The income tax expense for the year can be
reconciled to the accounting profit or loss as
follows:
Profit/(loss) before tax
Income tax calculated at 30% (2019: 30%)
Difference in tax rates
Cost recovery profit that is not liable to income
tax in Indonesia
Other
Current financial year temporary differences not
recognised
Current year revenue tax losses not recognised
Income tax expense recognised in the profit or
loss
(b) Recognised deferred tax assets and
(liabilities)
Deferred tax assets and (liabilities) are
attributable to the following:
Other assets
Trade and other payables
Provisions
Share issue costs
Net deferred tax assets not recognised
Net deferred tax assets and (liabilities)
(c) Unrecognised deferred tax assets
Deferred tax assets have not been recognised in
respect of the following items:
Temporary differences
Revenue tax losses
Capital tax losses
(368,670)
(110,601)
30,720
107,346
-
9,412
94,279
740,765
222,230
82,812
(281,018)
-
14,980
303,343
131,156
342,347
(2,054)
7,596
1,507
14,707
21,756
(21,756)
-
(9,271)
7,717
1,792
22,982
23,220
(23,220)
-
21,756
5,287,927
178,840
5,488,523
23,220
5,193,647
162,679
5,379,546
Bass Oil Limited Annual Report December 2020
49
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 10. Income Tax (cont’d)
Deferred tax assets have not been recognised in respect to these items as it is not probably at this
time that future taxable profits will be available against which the group can utilise the benefit.
(d) Movement in recognised net deferred tax
assets
Opening balance
Recognised in equity
Recognised in income
Closing balance
(e) Movement in provision for tax
Opening balance
Current tax expense
Less payments
Closing balance
Consolidated
Note
2020
$
2019
$
-
(8,276)
8,276
-
715,359
122,880
(249,216)
589,023
-
(11,100)
11,100
-
870,624
331,247
(486,512)
715,359
The provision for tax relates to income tax payable in Indonesia. The tax only becomes payable when
there are no cost recoveries available to be carried forward at the end of the tax year in Indonesia
(31 December). There were no cost recoveries available to be carried forward at 31 December 2020,
meaning that the tax was payable on 30 April 2021. The Group has entered into discussions with the
Indonesian tax office regarding a payment plan for the tax provision of $589,023.
The provision for tax covers the tax years from 2010 to 2020.
Note 11. Cash and Cash Equivalents
Cash at bank and in hand
Note
Consolidated
2020
$
95,642
95,642
2019
$
640,871
640,871
Bass Oil Limited Annual Report December 2020
50
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 12. Trade and Other Receivables
Current
Trade debtors (1)
Other receivables
Goods and services tax
Value-added tax
Non-current
Other receivables(ii)
Consolidated
Note
2020
$
740,981
14,992
454
514,007
1,270,434
2019
$
1,072,787
7,110
1,402
327,345
1,408,644
300,900
300,900
337,925
337,925
(i)
(ii)
At balance date, there are no trade receivables that are past due but not impaired. Due
to the short term nature of these receivables, their carrying value approximates fair value.
Trade receivables are non-interest bearing and are generally on 60 day terms. Details
regarding the credit risk of receivables are disclosed in Note 3. All sales from the Tangai-
Sukananti KSO are to Pertamina, the Indonesia State owned oil Company.
Other receivables is the amount due from Mega Adhyaksa Pratama Sukananti Ltd, the
holder of the remaining 45% interest in Tangai-Sukananti KSO (Note. 20)
Note 13. Other Current Assets
Prepayments
Accrued revenue
Note 14. Inventories
Oil inventories in tank (at cost)
Maintenance spares (at cost)
Note
Note
Consolidated
2020
$
10,889
1,578
12,467
Consolidated
2020
$
42,655
133,931
176,586
2019
$
26,580
6,114
32,694
2019
$
59,650
217,707
277,357
Bass Oil Limited Annual Report December 2020
51
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 15. Other Financial Assets
Current
Security deposit
Non-current
Security deposit
Note 16. Plant and Equipment
Consolidated
Note
2020
$
2019
$
4,236
4,236
3,853
3,853
27,469
27,469
27,469
27,469
Consolidated
Note
2020
$
2019
$
Office equipment, furniture and fittings
Opening balance, net of accumulated
depreciation
Purchases
Disposals
Foreign exchange movement
Depreciation charge for the year
6
Closing balance, net of accumulated depreciation
Cost
Accumulated depreciation
Net carrying amount
Note 17. Leases
(a)
Right of Use Assets
1,769
-
-
19
(1,365)
423
35,181
(34,758)
423
3,178
-
-
(47)
(1,362)
1,769
32,002
(30,233)
1,769
31 December 2020
$
Office Premises
Computers
Motor Vehicles
Total
Opening balance
63,428
11,436
94,915
169,779
Depreciation
(21,096)
(10,702)
(54,687)
(86,485)
Foreign exchange
movement
Closing balance, net of
accumulated depreciation
(1,514)
(323)
(2,484)
(4,321)
40,818
411
37,744
78,973
Bass Oil Limited Annual Report December 2020
52
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 17. Leases (cont’d)
31 December 2019
$
Office Premises
Computers
Motor Vehicles
Total
Opening balance
93,750
26,455
142,630
262,835
Depreciation
(34,855)
(16,459)
(55,809)
(107,123)
Foreign exchange
movement
Closing balance, net of
accumulated depreciation
4,533
1,440
8,094
14,067
63,428
11,436
94,915
169,779
The Group leases several assets including buildings, IT equipment and vehicles. The average lease
term is 3 years (2019: 3 years).
Amounts recognised in profit and loss:
Depreciation expenses on
right-of-use assets
Interest expense on lease
liabilities
Expense relating to short
term leases
Expense relating to leases
of low value assets
Consolidated
2020
$
2019
$
86,485
107,123
14,713
25,033
18,605
4,517
-
-
The total cash outflow for leases amounts to $85,147 (2019: $111,740).
(b)
Lease Liabilities
Current
Non-current
Maturity analysis:
Year 1
Year 2
Year 3
Year 4
Year 5
Onwards
Note
Consolidated
2020
$
68,123
13,950
82,073
68,123
13,950
-
-
-
-
2019
$
92,320
83,808
176,128
92,320
69,563
14,245
-
-
-
82,073
176,128
Bass Oil Limited Annual Report December 2020
53
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 18. Oil Properties
Tangai-Sukananti KSO
Note
Movement in the carrying value of oil properties
Balance at the beginning of year
Expenditure during the period
Disposals during the period
Depreciation, depletion and amortisation
6
Balance at the end of year
Consolidated
2020
$
1,935,331
1,935,331
1,945,213
360,308
-
(370,190)
1,935,331
2019
$
1,945,213
1,945,213
1,345,408
940,023
-
(340,218)
1,945,213
Note 19. Subsidiaries
Name of Subsidiary
Principal activity
Place of
incorporation and
operation
Proportion of ownership
interest and voting
power held by the Group
BSOC Business Services Pty Ltd Non-operating
Australia
Bass Oil Sukananti Ltd
Oil Producer
British Virgin Islands
31 Dec 20
31 Dec 19
100%
100%
100%
100%
Note 20. Joint Arrangements
Name of Joint Venture
Principal activity
Place of
incorporation and
operation
Proportion of ownership
interest and voting
power held by the Group
31 Dec 20
31 Dec 19
Tangai-Sukananti KSO (i),(ii)
Oil Producer
Indonesia
55%
55%
(i) Joint arrangements in which Bass Oil Limited is the operator.
(ii) The accounting for the Joint Venture is in the proportion of 55% for all revenue, expenses, assets
and liabilities.
Note 21. Trade and Other Payables
Current
Trade payables(i) and accruals
Other payables
Consolidated
Note
2020
$
737,892
269,173
2019
$
962,787
333,468
1,007,065
1,296,255
(i) The Group settles creditors on average within 30 days and no interest is charged.
Bass Oil Limited Annual Report December 2020
54
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 22. Provisions
Current
Employee benefits
Non-current
Restoration
Make Good
Consolidated
Note
2020
$
2019
$
200,875
200,875
92,244
7,665
99,909
144,760
144,760
92,519
7,827
100,346
2019
$
246,896
(140,989)
(15,358)
1,970
92,519
Movement in the carrying value of restoration provision
Balance at the beginning of year
Re-estimation of liability
Expenditure during the period
Accretion interest
Balance at the end of year
Consolidated
Note
2020
$
92,519
-
(275)
-
92,244
The restoration provision was agreed with Pertamina EP and will be fully paid when the license expires
in July 2025.
Bass Oil Limited Annual Report December 2020
55
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 23. Contributed Equity
Issued and paid up capital
2020
Shares
2019
Shares
2020
$
2019
$
Ordinary share fully paid
3,342,140,096
2,606,167,481
26,674,268
25,728,503
Movements in ordinary shares
on issue
Ordinary shares on issue at
beginning of period
Issue of ordinary shares
Reversal of transaction
costs/(transaction costs)
Tax consequences of share
issues costs
Ordinary shares on issue at end
of period
3,342,140,096
2,606,167,481
26,674,268
25,728,503
-
735,972,615
-
1,008,708
-
-
-
-
2,340
(74,043)
8,276
11,100
3,342,140,096
3,342,140,096
26,684,884
26,674,268
Terms and Conditions of Contributed Equity
Ordinary shares entitle the holder to receive dividends as declared and, in the event of winding up the
Company, to participate in the proceeds from the sale of all surplus assets in proportion to the
number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote,
either in person or by proxy, at a meeting of the Company.
Share Options on Issue
As at 31 December 2020, the Company has 367,986,328 (2019: 367,986,328) share options on
issue, exercisable on a 1:1 basis for 367,986,328 (2019: 367,986,328) ordinary shares of the
Company at an exercise price of A$0.004 and an expiry date of 31 July 2021.
Movements in options on issue
Balance at the beginning of year
Options issued
Options exercised
Options expired and cancelled
Closing value
Consolidated
Note
2020
Options
2019
Options
367,986,328
-
-
-
-
367,986,328
-
-
367,986,328
367,986,328
Bass Oil Limited Annual Report December 2020
56
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 24. Accumulated Losses
Balance at the beginning of year
Net profit/(loss)
Balance at the end of year
Note 25. Earnings per Share
Consolidated
Note
2020
$
2019
$
(27,391,538)
(27,789,956)
(499,826)
398,418
(27,891,364)
(27,391,538)
The following reflects the income used in the basic earnings per share computations.
Consolidated
Note
2020
$
2019
$
Basic earnings/(loss) per share
Net profit/(loss) attributable to ordinary equity
shareholders of the parent
0.000
0.000
(499,826)
398,418
Issued ordinary shares at 1 January
Effect of shares issued July 2020
Effect of shares issued October 2020
Weighted average number of ordinary shares at
31 December
Note
2020
$
2019
$
3,342,140,096
2,606,167,481
-
-
138,451,459
87,410,959
3,342,140,096
2,832,029,899
There is no dilution effect on diluted EPS as the company was operating at a net loss for the year.
Note 26. Key Management Personnel Disclosures
The aggregate compensation made to directors and other members of key management personnel of
the Group is set out below:
Short-term employee benefits
Post-employment benefits
(a)
Employment agreements
Note
Consolidated
2020
$
250,197
19,694
269,891
2019
$
561,403
46,701
608,104
The Group may terminate Mr Guglielmo’s employment agreement by giving six months’ notice. The
Group has a contingent liability of $115,000 (2019: $116,000) in relation to this agreement, if
Mr Guglielmo is not required to work out the notice period.
Bass Oil Limited Annual Report December 2020
57
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 27. Parent Entity Disclosures
Information relating to Bass Oil Limited
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Contributed equity
Foreign exchange reserve
Accumulated losses
Total shareholder’s equity
Parent
2020
$
84,084
2,284,712
65,921
2,861,166
2019
$
404,242
2,606,217
162,343
2,866,962
(576,454)
(260,745)
26,684,884
3,129,996
26,674,268
3,129,996
(30,391,334)
(30,065,009)
(576,454)
(260,745)
Loss of the parent entity
Total comprehensive income/(loss) of the parent entity
(326,325)
(326,325)
(1,035,178)
(1,035,178)
The Parent Entity has a net asset deficiency of $576,454 as at 31 December 2020.
The commitments and contingencies of the parent entity are the same as disclosures in Note 26
excluding the commitments relating to Tangai-Sukananti KSO.
Note 28. Related Party Disclosures
Terms and conditions of transactions with related parties other than KMP
During the year the Group paid corporate advisory and investor relations fees to Adelaide Equity
Partners Limited (a director related entity of Mr M Lindh) of $6,624 (31 December 2019: $24,015)
and capital raising success fees to Adelaide Equity Partners Limited of $nil (31 December 2019:
$47,304) (both under a corporate advisory and investor relations mandate). The fees were provided
under normal commercial terms and conditions. Amounts outstanding at balance date were $nil (31
December 2019: $11,365). The Group had a corporate advisory & investor relations mandate with
Adelaide Equity Partners. The mandate had a monthly retainer of A$5,000 per month and was
terminated on 20 April 2020.
During the year the Group paid rent to Adelaide Equity Partners Limited of $2,430 (31 December
2019: $7,377) (under a rental of premises mandate). The rental was provided under normal
commercial terms and conditions. Amounts outstanding at balance date were $nil (31 December
2019: $nil). The rental arrangement ceased on 30 April 2020.
Bass Oil Limited Annual Report December 2020
58
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 29. Segment Information
For management purposes there is only one operating segment, which is oil production.
The chief operating decision maker only reviews consolidated financial information. The chief
operating decision maker, who is responsible for allocating resources and assessing performance of
the operating segment, has been identified as the Board.
The Board does not currently receive segment Statement of Financial Position and Statement of
Comprehensive Income information. For exploration activities the Board managed each exploration
activity of each permit through review and approval of joint venture cash calls, Authority for
Expenditure (AFE’s) and other operational information. For oil production (from the Tangai–Sukananti
KSO located in South Sumatra Basin in Indonesia) the Board manages the activity through review of
production details, review and approval of the joint venture cash calls and other operational
information.
The result for the year ended 31 December 2020 was from oil production.
The consolidated entity operates in the oil and gas industry in Indonesia.
The consolidated assets and liabilities as at 31 December 2020 and 2019 relate to oil production.
For the current financial year, the Group’s revenue of $3,150,396 was received from the sale of oil in
Indonesia to Pertamina EP (the Indonesian State owned oil Company).
31 December 2020
Revenue
Other revenue
Total revenue
Segment assets
Segment liabilities
31 December 2019
Revenue
Other revenue
Total revenue
Segment assets
Segment liabilities
Australia
Indonesia
Total
share fully paid
-
3,150,396
3,150,396
196,669
196,669
-
196,669
3,150,396
3,347,065
84,509
3,817,952
3,902,461
(65,921)
(1,913,024)
(1,978,945)
share fully paid
-
5,052,319
5,052,319
71,213
71,213
-
71,213
5,052,319
5,123,532
406,012
4,439,562
4,845,574
(162,340)
(2,270,508)
(2,432,848)
Bass Oil Limited Annual Report December 2020
59
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 30. Reconciliation of Cash Flows from Operating Activities
For the purposes of the Statement of Cash Flows, cash includes cash on hand and at bank, and short
term deposits at call.
Reconciliation of profit after income tax to net cash provided/used in operating activities
Net profit/(loss) after tax
Adjustments for:
Depreciation
Amortisation
Accretion interest
Non-cash decrease in provision
Foreign exchange adjustment
Changes in assets and liabilities
(Increase)/decrease in trade and other
receivables
Decrease/(increase) in other assets
(Increase) in inventories
Increase/(decrease) in provisions
Increase/(decrease) in trade and other payables
(Decrease)/increase in provision for tax
Increase in deferred tax
Net cash flows (used in)/provided by operating
activities
Note 31. Reserves
Currency translation reserve (i)
Note
6
Consolidated
2020
$
2019
$
(499,826)
398,418
87,850
370,190
14,713
-
(2,401)
(29,474)
175,236
20,227
100,770
55,678
(297,415)
(126,336)
8,276
108,485
340,213
27,003
(204,658)
(26,315)
643,146
(258,064)
98,366
(221,413)
125,311
534,880
(155,265)
11,100
(93,038)
778,061
Note
Consolidated
2020
$
3,129,996
3,129,996
2019
$
3,129,996
3,129,996
(i)
The Currency translation reserve was recognised at 31 December 2017 with the change in
functional and presentational currency to USD. In order to derive US dollar opening balances,
the Australian dollar functional currency assets and liabilities at 1 July 2017 were converted at
the spot rate of US$1:A$0.77 on the reporting date; and the contributed equity, reserves and
retained earnings were converted at applicable historical rates and the difference has given rise
to the recognition of the Currency translation reserve.
Note 32. Contingent Liabilities
As at 31 December 2020 the Group had no contingent liabilities (2019:$Nil), except in relation to
Employment agreements with key management personnel as detailed in Note 26.
Bass Oil Limited Annual Report December 2020
60
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2020
Note 33. Subsequent Events
No other matter or circumstance has occurred subsequent to year end that has significantly affected,
or may significantly affect, the operations of the Company, the results of those operations or the
state of affairs of the entity in subsequent financial years.
Note 34. General Information
Bass Oil Limited (the Company) is a listed public company incorporated in Australia. The address of
its registered office and principle place of business is as follows:
Level 5
11-19 Bank Place
Melbourne, VIC, 3000
Australia
Bass Oil Limited Annual Report December 2020
61
Collins Square, Tower 5
727 Collins Street
Melbourne VIC 3008
Correspondence to:
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
F +61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Independent Auditor’s Report
To the Members of Bass Oil Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Bass Oil Limited (the Company) and its subsidiaries (the Group), which comprises
the consolidated statement of financial position as at 31 December 2020, the consolidated statement of profit or loss and
other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for
the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting
policies, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
a giving a true and fair view of the Group’s financial position as at 31 December 2020 and of its performance for the
year ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty related to going concern
We draw attention to Note 2 in the financial statements, which indicates that the Group incurred a net loss of $499,826, and
had a net cash outflow from operating activities of $93,038 during the year ended 31 December 2020. As stated in Note 2,
these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may
cast doubt on the Company’s/Group’s ability to continue as a going concern. Our opinion is not modified in respect of this
matter.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Material uncertainty related to going concern section, we have determined the
matters described below to be the key audit matters to be communicated in our report.
Key audit matter
How our audit addressed the key audit matter
Oil properties - Notes 2(l), 2(t)(i) & 18
At 31 December 2020, the carrying value of oil properties was
$1,935,331.
Our procedures included, amongst others:
• Obtained and corroborated management's assessment of
In accordance with AASB 136 Impairment of Assets, the
Group is required to assess at each reporting date if there are
any indicators of impairment which may suggest the carrying
value is in excess of the recoverable value.
The process undertaken by management to assess whether
there are any impairment indicators involves an element of
management judgement.
This area is a key audit matter due to the significant
judgement involved in determining the existence of
impairment indicators.
impairment indicators;
• Assessed whether any other potential impairment
indicators exist;
• Evaluated the competence, capabilities and objectivity of
management's experts in the evaluation of potential
impairment indicators;
• Obtained and reviewed internal reporting prepared by
management to assess the performance of oil properties;
• Understood and verified the key inputs and assumptions
included in management’s internal reporting; and
• Assessed the appropriateness of the related financial
statement disclosures.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included in the
Group’s annual report for the year ended 31 December 2020, but does not include the financial report and our auditor’s report
thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors’ for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Company’s/Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf. This description forms part of
our auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in the Directors’ report for the year ended 31 December 2020.
In our opinion, the Remuneration Report of Bass Oil Limited, for the year ended 31 December 2020 complies with
section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report,
based on our audit conducted in accordance with Australian Auditing Standards.
Grant Thornton Audit Pty Ltd
Chartered Accountants
T S Jackman
Partner – Audit & Assurance
Melbourne, 31 March 2021
SHAREHOLDER AND OTHER INFORMATION
Compiled as at 29 March 2021
DISTRIBUTION OF ORDINARY SHARES
Ordinary Shares
Number of Holders
Number of Shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total on Issue
194
305
182
577
1,032
2,290
59,014
852,202
1,510,339
24,099,954
3,315,618,587
3,342,140,096
1,478 holders held less than a marketable parcel of ordinary shares. There is no current on-market
buy back.
SUBSTANTIAL SHAREHOLDERS
As disclosed in notices given to the Company.
Name of substantial shareholder
Interest in number of shares
Beneficial and non-beneficial
% of shares
Cooper Energy Ltd
Miller Anderson Pty Ltd
Tattersfield Group
VOTING RIGHTS
353,361,294
285,630,465
171,475,048
10.57
8.55
5.13
At meetings of members or classes of members:
(a)
each member entitled to vote may vote in person or by proxy, attorney or representative;
(b)
(c)
on a show of hands, every person present who is a member or a proxy, attorney or
representative of a member has one vote; and
on a poll, every person present who is a member or a proxy, attorney or representative of a
member has:
(i)
(ii)
for each fully paid share held by him, or in respect of which he is appointed a proxy,
attorney or representative, one vote for the share;
for each partly paid share, only the fraction of one vote which the amount paid (not
credited) on the share bears to the total amounts paid and payable on the share
(excluding amounts credited),
subject to any rights or restrictions attached to any shares or class or classes of shares.
Bass Oil Limited Annual Report December 2020
65
SHAREHOLDER AND OTHER INFORMATION
Compiled as at 29 March 2021
THE 20 LARGEST SHAREHOLDERS OF ORDINARY SHARES
Holder
Somerton Energy Ltd
Ordinary shares
% of total issued
353,361,294
10.57
Miller Anderson Pty Ltd
Yucaja Pty Ltd
Tattersfield Securities Ltd
Miss S Masalkovski
Mr M Saboundjian
Mark Lindh & Belinda Lindh
Wingmont Pty Ltd
Mr P Sciancalepore & Mrs P Sciancalepore
Mr S H Bell & Mrs J K Berveling
Yavern Creek Holdings Pty Ltd
Mr W C Wheelahan
Mr E Pagliarulo
Small Business Finance Pty Ltd
Crescent Nominees Limited
Mr M K H Raabe
Emmett Enterprises Pty Ltd
BNB Super Pty Ltd
Mr M A Tkocz
Mr H Gordon
285,630,465
152,327,955
120,004,173
103,649,828
100,000,000
74,385,000
60,800,000
59,874,860
59,403,577
53,250,000
45,000,000
39,833,333
37,401,351
36,215,155
36,000,000
35,000,000
30,000,000
26,598,277
25,266,668
8.55
4.56
3.59
3.10
2.99
2.23
1.82
1.79
1.78
1.59
1.35
1.19
1.12
1.08
1.08
1.05
0.90
0.80
0.76
The 20 largest shareholders hold 1,734,001,936 shares, representing 51.90% of the issued share
capital.
Bass Oil Limited Annual Report December 2020
66