ANNUAL REPORT
For the financial year ended
31 December 2022
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
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 Securities Exchange Ltd
525 Collins Street
Melbourne, Victoria, 3000, Australia
ASX Codes: BAS – Ordinary Shares
BASO – Share Options
Website: www.bassoil.com.au
Chairman’s Message .................................. 3
Managing Director’s Report ........................ 4
Reserves and Resources ............................ 8
Safety .................................................. .12
Environmental, Social and Governance ...... 13
Directors’ Report .................................... 14
Remuneration Report .............................. 18
Auditor’s Independence Declaration ........... 25
Directors’ Declaration ............................. .26
Consolidated Statement of Profit or
Loss and Other Comprehensive Income ...... 27
Consolidated Statement of Financial
Position ................................................. 28
Consolidated Statement of Changes
in Equity ............................................... .29
Consolidated Statement of Cash Flows ....... 30
Notes to the Financial Statements ............. 31
Independent Auditor’s Report .................. 66
Shareholder & Other Information .............. 70
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
On behalf of the Board, it is my pleasure to present the 2022 Annual Report of Bass Oil Limited. The year
was transformative, with elevated energy market prices providing a favourable environment for Bass to
capitalise on. The Company concluded the acquisition of a portfolio of highly attractive Cooper Basin
assets including two producing oil fields. The financial impact of this acquisition on the growth of Bass is
already becoming apparent with a significant increase on sales revenue, EBITDA and NPAT. I look forward
to a profitable and rewarding 2023.
I am proud to report that our commitment to safety resulted in zero incidents resulting in injuries and
over 5.8 million safe work hours amassed in 2022. As we continue to expand our operations, Bass remains
committed to maintaining a safe work environment and minimising potential hazards. Sustainability is a
top priority for Bass as the Company continued to implement measures to enhance operational efficiency
and reduce our impact on the environment and community.
Our focus in 2022 was on increasing production across our portfolio, which we achieved through the
successful commissioning of the Tangai-5 development well with additional production from the Cooper
Basin assets for only the last five months of the year. Bass produced 124,501 barrels of oil (net) during
2022, up 54% from the previous year. These initiatives have expanded our position as an onshore oil and
gas producer, with significant growth potential still to come.
As we look towards 2023, Bass is pursuing its growth strategy in becoming a mid-tier oil and gas producer.
The team has made significant progress in planning and developing the best way forward to unlock value
for many exciting opportunities across its portfolio and will continue to update our shareholders
throughout the year.
In closing, I would like to thank our Australian and Indonesian teams as well as my fellow board members
for their dedication and contributions to a transformative year for Bass. They have responded to the
current environment on building on a profitable and growing business.
To our shareholders, thank you for your loyalty and support on our exciting growth journey. We remain
committed to delivering shareholder value in 2023 and beyond, and I look forward to sharing our
continued progress.
Peter Mullins
Chairman
31 March 2023
Bass Oil Limited Annual Report December 2022
3
MANAGING DIRECTOR’S REPORT
The full-year 2022 was a landmark year for Bass as the Company achieved key milestones and leveraged
a robust oil market to deliver strong results. Brent crude oil prices reached a high of ~US$120 per barrel
and remained above ~US$80 per barrel throughout the year, providing a favourable environment for Bass'
growth initiatives.
With the completion of the acquisitions from Cooper Energy Limited and Beach Energy Limited, Bass
successfully expanded its operations to the Cooper Basin in central Australia. The settlement of the
transactions added to the production for the year and positioned the Company for future growth in an
environment of elevated oil and gas prices.
2022 was marked by increased production, driven by the successful commissioning of the Tangai-5
development well and additional production from the Cooper Basin assets. Bass is committed to
maximising the potential of these assets through several production improvement opportunities set to
be implemented in early 2023. Free cash flow generated from these producing assets allows financial
flexibility for Bass to pursue its growth strategy.
The focus for 2023 is to grow Bass into a mid-tier oil and gas producer by advancing growth initiatives
across its Indonesian and Australian portfolio. A significant potential ‘company making’ opportunity lies
in the deep Permian coal gas play in Bass' 100% owned PEL 182. The results from an independent
geological expert study highlight a potential material source of gas for the domestic Australian market.
Bass will continue to plan and develop its strategy to commercialise PEL 182 into 2023. Bass is continuing
further feasibility studies for the Kiwi gas discovery, with plans to complete and test the Kiwi 1 well as
soon as practicable.
Sales revenue increased as a result of higher production and higher average realised oil prices, resulting
in an EBITDA of $1.336 million and a $0.043 million net profit after tax for 2022. The Company's strong
performance was further supported by an increase in free cash from operations and its cash balance,
driven by sustained strength in oil prices, and successful capital raisings mid-year.
With no debt and sufficient cash reserves, Bass is well-positioned to execute its strategy and continue its
growth trajectory into 2023.
Full Year Summary
(All amounts are in United States dollars unless otherwise stated, Bass share)
• 53.6% increase in production to 124,500 barrels (CY21 81,000 barrels) with the commissioning of the
successful Tangai-5 development well in Indonesia and production from the Cooper Basin assets
• 95.9% increase in CY22 sales revenue to $5.72 million (CY21 $2.93 million) from higher production
and crude oil prices
• Cash position $1.48 million as at 31 December 2022
• A net profit after tax of approximately $0.04 million (CY21 approximately -$0.60 million)
Bass Oil Limited Annual Report December 2022
4
MANAGING DIRECTOR’S REPORT (cont’d)
Financial and Operating Performance
Key Performance Metrics
Net Production3 (mbbl)
Net Oil Sales3 (mbbl)
Net Entitlement Oil3 (mbbl)
Sales Revenue (US$million)
Cash (US$million)
Average Realised Oil Price (USD)
EBITDA1 (US$,000)
CY22
124.50
119.65
57.55
5.72
1.48
93.09
1,335.75
CY21
80.99
81.38
42.60
2.93
1.49
66.79
-95.70
Change
53.7%
47.0%
35.1%
95.6%
-1.0%
39.4%
na
NPAT/NLAT2 (US$,000)
1. The Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) has been calculated as earnings
before tax ($594,795) plus interest ($9,319) and depreciation and amortisation expense ($731,639).
2. Net Profit / (Loss) After Tax
3 These are Non-IFRS metrics and contain 55% Bass share of Indonesian results and 100% Australian results. Net
production, Oil Sales and Entitlement Oil are all components of the Entitlement Calculation Statement that
generates Sales revenue and reserves in the Company’s Indonesian business.
-602
43
na
Bass produced 124,501 barrels of oil (net) during the year ended 31 December 2022, up 54% from the
prior comparable period. Yearly oil sales were 119,650 barrels of oil net to Bass, up 46%. The net
entitlement oil to Bass was 57,553 barrels for the year after Domestic Market Obligation (DMO), up 35%.
The Company realised a 96% increase in sales revenue driven by the uplift in production and higher
average realised oil prices during the year.
CY21 vs CY22 Production (kbbl)
18
16
14
12
10
8
6
4
2
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
CY21
CY22
Figure 1: Bass Monthly Production
Bass Oil Limited Annual Report December 2022
5
MANAGING DIRECTOR’S REPORT (cont’d)
Liquidity / Cash Position:
As at 31 December 2022, Bass’s cash reserves were $1.48m from $1.49m as at 31 December 2021. This
was held by higher production and higher average realised oil prices, supported by the capital raising
program completed in July & September 2022.
During the year, Bass successfully raised a total $3.6 million (before costs) from sophisticated and
professional investors through the issue of new ordinary shares via a placement, rights issue and shortfall
placement. Bass also undertook two capital management initiatives, comprising:
a) a minimum holding share buy-back in respect of ordinary shares for holders of less than a
marketable parcel of shares, namely $500; and
b) a share consolidation at a ratio of 30-to-1, which successfully received shareholder approval.
The Company is not carrying any debt and holds a US$1.54 million deposit to support a rehabilitation
bond in favor of the South Australian Department for Energy and Mining.
Development Planning:
Since completion of the acquisition of the Cooper Basin assets, the Company has successfully completed
a program of optimisation initiatives to increase production. As a result, production from the fields at
year end has increased from 65 bopd to 96 bopd.
Further, Bass has completed a workover to return to production the Worrior 11 well, which was previously
shut in. The results of the workover have confirmed the presence of undrained attic oil in the McKinlay
zone in this well that has never been produced. This zone is assessed as capable of 200 bopd production
on pump after the completion of an upcoming perforation program.
The Company is also undertaking a Kiwi gas development feasibility study. The study consists of three
separate work packages. The first package is aimed at quantifying the minimum economic potential of
the structural closure at the Kiwi discovery. The second, entails the evaluation of the stratigraphic upside
gas trapping potential and the third, is to quantify the cost and feasibility of connection into the Cooper
Basin gas gathering network.
The second phase is progressing well. Seismic mapping of the Kiwi area has commenced. The mapping is
aimed at evaluating the stratigraphic upside gas trapping potential, utilising the most recent 3D seismic
acquired over the area. The first and third work packages are well advanced and are awaiting the
completion of the seismic mapping to determine the next steps required to appraise and develop this
potentially valuable gas resource.
Concurrently, Bass is planning to complete the Kiwi 1 well as soon as possible and perform an extended
production test in order to confirm the gas composition and potential field size.
The team in Indonesia have started planning for a future drilling program which will likely include the
Bunian 6 development well, targeting the undrained oil in the southwest of the Bunian field. The
potential for an additional development well in the Tangai field will also be evaluated following the
success of Tangai 5.
Bass Oil Limited Annual Report December 2022
6
MANAGING DIRECTOR’S REPORT (cont’d)
Business Development:
During the year, Bass entered and completed a sale and purchase agreement (SPA) with a subsidiary of
Beach Energy Limited to acquire a portfolio of Cooper Basin assets for cash consideration of A$1.3 million
and assumption of future restoration liabilities. Bass holds a US$1.54 million deposit to support a
rehabilitation bond in favor of the South Australian Department for Energy and Mining.
The assets acquired include Beach’s interest in the producing Worrior and Padulla oil fields and a number
of properties that contain prospective appraisal and exploration opportunities. The Company now owns
a 74%-100% interest in eight Cooper Basin tenements, representing a large acreage holding in the core of
the Cooper Basin. The transaction increased Bass’ interests in the producing Worrior oil field from 30% to
100% and added the producing Padulla oil field (100%) to its portfolio. At the end of the fiscal year 2022
the fields were producing ~95 bopd at a net margin of ~A$30 per barrel at a Brent oil price of ~US$80.
The fields will also provide 2P reserves of almost 0.388m barrels of oil and 2C contingent resources of
approximately 0.562m barrels of oil and 2.8 BCF of gas associated with the Kiwi gas discovery.
Bass has identified a capital-efficient work program consisting of three workovers to materially increase
production and convert the 2C contingent resources to 2P reserves, which is continuing into 2023.
Bass is actively seeking opportunities to expand its operations and grow production. The Company is
focused on acquiring assets with low-risk exploration potential that have the potential to deliver
significant returns. By leveraging its expertise and resources, Bass is committed to identifying and
pursuing opportunities that can drive long-term growth and maximise value for stakeholders.
Bass Oil Limited Annual Report December 2022
7
RESERVES AND RESOURCES
Reserves and Contingent Resources
(For year ended 31 December 2022)
The total Bass share of 2P Field Reserves as of 31 December2022 is assessed to be 0.688 million barrels
of oil. The total Bass share of 2C Field Contingent Resources as of 31 December2022 is assessed to be
1.341 million barrels of oil.
On 1 August 2022, Bass finalised the acquisition of producing assets in the Cooper Basin, South Australia,
comprising the 100% owned and operated Worrior and Padulla oil fields. They are included in the
Company’s Reserves and Resources reporting for the first time.
There is a decrease in Indonesian reserves year on year accounting for production, field performance and
a delay in the development drilling program reducing the number of wells expected to be drilled before
permit expiry in 2025. This delay has deferred significant forecast oil production until after contract expiry
in July 2025. This resulted in a concurrent increase in Contingent Resources. Bass is exploring the potential
to bring forward production and or the feasibility of negotiating an extension of the permit tenure.
Table 1 – Developed and Undeveloped Reserves & Resources at 31 December 2022
Field Reserves (MMbbl)
1P (Proved)
2P (Proved & Probable)
3P (Proved, Probable &
Possible)
Australia
Indonesia
Total
Reserves
Australia
Indonesia
Total
0.188
0.194
0.382
1C
0.201
0.276
0.477
0.388
0.300
0.688
Field Contingent Resources (MMbbl)
2C
0.562
0.779
1.341
0.764
0.462
1.226
3C
1.410
0.965
2.375
Table 1: Developed and Undeveloped Reserves and Resources at 31 December 2022
Reserves
The Bass share of 2P Field Reserves for the Cooper Basin in Australia is assessed as of 31 December 2022,
to be 0.388 million barrels of oil. This reflects the proved and probable reserves for the Worrior and
Padulla oil fields (Tables 1 and 2 as well as Figure 1).
The Bass share of 2P Entitlement Field Reserves in the Tangai-Sukananti KSO in Indonesia is assessed as
of 31 December 2022, to be 0.300 million barrels of oil. This reflects the proved and probable reserves for
the Bunian and Tangai oilfields (Tables 1 and 2 as well as Figure 2).
Bass Oil Limited Annual Report December 2022
8
RESERVES AND RESOURCES (Cont’d)
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, oil price and scheduled contract expiry.
Contingent Resources
The Bass share of 2C Field Contingent Resources for the Cooper Basin in Australia is assessed to be 0.562
million barrels of oil (Tables 1 and 2 as well as Figure 2). The Field Contingent Resources comprise volumes
in the Worrior and Padulla oil fields currently considered uneconomic but that may be converted to
reserves under different economic circumstances and/or with projects aimed at extending the current
economic cut-offs such as acceleration of production or reduced crude fuel consumption. Additionally,
in the Worrior Field there are significant contingent resources of oil in the Murta reservoir that may be
converted to reserves post fracture stimulation when their economic potential can be demonstrated. The
stimulation program is planned for the 2023 calendar year.
The Bass share of 2C Field Contingent Resources for the Tangai-Sukananti KSO in Indonesia is assessed to
be 0.779 million barrels of oil (Tables 1 and 2 as well as Figure 3). The Field Contingent Resources comprise
volumes attributed to currently producing or future planned wells in the Bunian and Tangai oil fields post
license expiry in July 2025. This presents a future development opportunity to increase or bring forward
reserves or by re-negotiating the license contract expiry.
Table 2 – Movements in Reserves & Resources at 31 December 2022
Field Reserves (MMbbl)
1P (Proved)
2P (Proved & Probable)
3P (Proved, Probable
& Possible)
Total Reserves
31/12/21
CY 2022 Production
0.316
(0.050)
0.425
(0.050)
Revisions
(0.072)
(0.075)
Acquisitions
Total Reserves
31/12/22
0.188
0.382
0.388
0.688
Field Contingent Resources (MMbbl)
Total Contingent
Resources 31/12/21
Revisions
Acquisitions
Total Contingent
Resources 31/12/22
1C
0.263
0.013
0.201
0.477
2C
0.490
0.289
0.562
1.341
Table 2: Movements in Reserves and Resources at December 2022
0.644
(0.050)
(0.132)
0.764
1.226
3C
0.860
0.105
1.410
2.375
Bass Oil Limited Annual Report December 2022
9
RESERVES AND RESOURCES (Cont’d)
Figure 2: Cooper Basin Location Map
Figure 3: Tangai-Sukananti KSO Location Map
Bass Oil Limited Annual Report December 2022
10
RESERVES AND RESOURCES (Cont’d)
Notes on Calculation of Reserves and Resources
All reserves and resources are estimated by deterministic estimation methodologies consistent with the definitions and guidelines in the
Society of Petroleum Engineers (SPE) 2018 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”.
For the Worrior and Padulla oil fields in the Cooper Basin, decline curve analysis (DCA) was used to determine the remaining technically
recoverable volumes with an economic model overlay to determine the economically recoverable reserves. The reserves are net of crude oil
lease fuel.
The Dynamic Model for the TS-KSO in Indonesia was revised following the successful drilling of Tangai-5 and has updated the oil volumetrics
and development scenarios and drilling locations used in this report. Additionally, a decline curve analysis (DCA) was conducted on the current
wells and informed the production forecast for the planned 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 the field reserves.
Qualified Petroleum Reserves and Resources Evaluator Statement:
The information contained in this report regarding the Bass Oil Limited 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.
Bass Oil Limited Annual Report December 2022
11
SAFETY
At Bass, the health and safety of our employees and operations is a top priority. We strictly adhere to
industry-standard protocols and have implemented a comprehensive Health, Safety, Environment,
Quality, and Community (HSEQC) program to prioritise the well-being of our employees and ensure the
reliability of our field operations.
With a goal of achieving zero incidents, we are proud to report that in 2022, we recorded no injuries and
amassed over 5.8 million safe work hours. This outstanding achievement is a testament to the diligence
and commitment of all Bass employees.
As we continue to expand our operations, we remain dedicated to maintaining a safe work environment
and minimising potential hazards. Our HSEQC program will continue to evolve and adapt as our assets
and operating environment change, ensuring the ongoing safety and well-being of our staff.
Bass Oil Limited Annual Report December 2022
12
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
Bass is committed to responsible and sustainable business practices, recognising the importance of
Environmental, Social, and Governance (ESG) factors in its operations. The Company has developed an
ESG framework that outlines key initiatives in these areas and serves as a foundation for its ESG efforts.
As Bass continues to grow, the Company is committed to developing this framework and strengthening
its commitment to ESG principles in the years to come. The Company recognises that ESG considerations
are not only important for its stakeholders, but also for the long-term success and sustainability of its
business.
Bass Oil Limited Annual Report December 2022
13
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 2022.
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. He 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) FIEAust MSPE MAICD
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.
He is currently a non-executive director of Whitebark Energy Limited (ASX:WBE).
Mr Guglielmo served on the Audit and Risk Committee during the period.
Mark L Lindh
Non-executive independent director (Appointed 16 December 2014)
Mr Lindh is a founder and co-principal of Adelaide Equity Partners, an investment house established in
2006.
Mr Lindh is a corporate advisor with significant experience and has acted as the principal corporate
and financial advisor to a number of Australian corporate success stories. He has extensive experience
in Australian equity and debt markets and advising clients on capital raisings, mergers and
acquisitions and investor relations, particularly in mining and resources companies with a focus on the
energy sector.
He is currently a non-executive Chairman of Aerometrex Limited (ASX:AMX). Mr Lindh resigned as a
non-executive director of Advanced Braking Technology Limited (ASX:ABV) on 15 November 2022.
Mr Lindh served on the Audit and Risk Committee during the period.
Bass Oil Limited Annual Report December 2022
14
DIRECTORS’ REPORT (cont’d)
Hector M Gordon BSc (Hons)
Non-executive independent director (Appointed 23 October 2014)
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 an 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 (ASX:COE).
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
3,100,000
15,881,523
7,340,982
1,343,999
920,000
5,827,174
1,834,564
417,555
P F Mullins
G Guglielmo
M L Lindh
H M Gordon
COMPANY SECRETARY
Mrs R Hamilton was appointed Company Secretary on the 31 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 newly acquired producing
assets in the Cooper Basin, South Australia and a 55% Operated interest in the Tangai-Sukananti
licence in the prolific South Sumatra Basin, Indonesia.
The Company is debt free and committed to creating and maximizing value, leveraging its competitive
strengths in both Australia and Indonesia.
OPERATING AND FINANCIAL REVIEW
Operating results for year
The Group’s operating profit for the year ended 31 December 2022 after income tax was $42,593 (31
December 2021: loss of $601,611).
Bass Oil Limited Annual Report December 2022
15
DIRECTORS’ REPORT (cont’d)
Review of Financial Condition
Liquidity
The Group’s consolidated statement of cash flows for the year recorded a decrease of $15,572 (2021:
increase of $1,397,004) in cash and cash equivalents. The cash flows were derived from operating
receipts of $5,362,170 (2021: $3,221,899) and capital raising net of transaction costs of $3,459,279
(2021: $1,738,395).
There were cash outflows to suppliers and employees of $4,581,198 (2021: $3,212,095) and taxation
paid of $548,516 (2021: $174,815). Further net cash outflows in investing activities of $1,989,930
(2021: $84,748) relating to expenditure on oil properties and a deposit of $1,543,197 (2021: $nil)
into restricted cash.
Cash and cash equivalents at 31 December 2022 were $1,477,074 (2021: $1,492,646).
CHANGES IN THE STATE OF AFFAIRS
The Company completed the acquisition of the Cooper Basin portfolio of assets from Beach Energy
Limited and Cooper Energy Limited including a 100% interest in the Worrior and Padulla producing oil
fields.
The Company raised A$1,200,000 from a private placement to sophisticated and professional
investors through the issue of 800 million new ordinary shares (“Shares”) at A$0.0015 per share.
Placement participants received one free attaching option for every two shares successfully subscribed
for under the Placement, exercisable at A$0.004 on or before 30 September 2024. The Company
undertook an unmarketable parcel share buyback at $0.002 per share, before completing a share
consolidation of 30 to 1, reducing the number of shares on issue by 5,180 million to 179 million
shares. Accordingly, the issued share options were also consolidated 30 to 1 and were repriced to
$0.12, expiring 30 September 2024.
The Company then undertook a Rights Issue to all shareholders, at $0.045 per share with a 1 for 1
free attaching option exercisable at A$0.12 on or before 30 September 2024, which raised a further
A$4,018,759. The additional capital has been used to fund the Cooper Basin acquisition and to
complete a number of low-cost initiatives aimed at increasing production.
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
There are no likely developments of which the directors are aware which could be expected to
significantly affect the results of the Group’s operations in subsequent financial years not otherwise
disclosed in the Principal Activities and Operating and Financial Review or the Significant Events after
the Balance Date sections of the Directors’ Report.
Bass Oil Limited Annual Report December 2022
16
DIRECTORS’ REPORT (cont’d)
SHARE OPTIONS
Unissued shares
As at the date of this report there were 132,340,789 unissued ordinary shares under options
(759,390,150 pre-consolidation, at 31 December 2021).
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
During the financial year the Company did not pay insurance premiums in respect of Directors’ and
Officers’ liability and legal expenses’ insurance contracts, for current Directors and Officers.
There were no legal proceedings entered into on behalf of the Company or the Group by any of the
Directors or Executive Officers of the Company.
Pursuant to the constitution the Company has entered into Deeds of Indemnity with the Directors and
Company Secretary.
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
Bass Oil Limited Annual Report December 2022
17
DIRECTORS’ REPORT (cont’d)
REMUNERATION REPORT (AUDITED) (31 December 2022)
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
R M Hamilton
Company Secretary
There have been no changes to key management personnel after 31 December 2022 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.
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.
Bass Oil Limited Annual Report December 2022
18
DIRECTORS’ REPORT (cont’d)
REMUNERATION REPORT (AUDITED) (31 December 2022) (cont’d)
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 2022 and 31 December
2021 is detailed in Table 1 and 2 respectively of this Remuneration Report.
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.
Bass Oil Limited Annual Report December 2022
19
DIRECTORS’ REPORT (cont’d)
REMUNERATION REPORT (AUDITED) (31 December 2022) (cont’d)
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.
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 2022 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 five year period:
Measure
Dec 2022
Dec 2021
Dec 2020
Dec 2019
Dec 2018
Net (loss)/profit
$
Basic (loss)/profit per
share
¢ per share *
Share price at the
beginning of the year *
¢
Share price at the end of
the year *
¢
Dividends per share
¢
42,593
(601,611)
(499,826)
398,418
(419,615)
0.000
(0.000)
(0.000)
0.000
(0.000)
0.002
0.002
0.003
0.003
0.003
0.069**
0.002
0.002
0.003
0.003
Nil
Nil
Nil
Nil
Nil
*
**
Prices have been rounded to three decimal points
Post consolidation 30 to 1 share
Bass Oil Limited Annual Report December 2022
20
DIRECTORS’ REPORT (cont’d)
REMUNERATION REPORT (AUDITED) (31 December 2022) (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 2: Remuneration for the year ended 31 December 2022
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
52,130
38,229
34,753
5,339
3,915
3,559
125,112
12,813
G Guglielmo
208,520
21,355
Other key management
personnel
R M Hamilton
Totals
81,122
-
414,754
34,168
-
-
-
-
-
-
-
-
-
-
-
57,469
42,144
38,312
137,925
17,800
247,675
-
81,122
17,800
466,722
Table 2: Remuneration for the year ended 31 December 2021
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
55,277
40,537
36,853
5,472
4,013
3,648
132,667
13,133
G Guglielmo
216,014
27,024
Other key management
personnel
R M Hamilton
Totals
62,845
-
411,526
40,157
-
-
-
-
-
-
-
Bass Oil Limited Annual Report December 2022
-
-
-
-
-
-
-
60,749
44,550
40,501
145,800
243,038
62,845
451,683
21
DIRECTORS’ REPORT (cont’d)
REMUNERATION REPORT (AUDITED) (31 December 2022) (cont’d)
Remuneration of key management personnel (cont’d)
Table 3: Shareholdings of key management personnel
Shares held in Bass Oil Limited (number)
1 January
2022
Balance at
beginning of
period
Purchased on
market
Consolidation
Participation
in
Entitlement
Issue
31 December
2022
Balance at end
of period
70,000,000
317,630,465
30,320,003
-
-
-
(67,666,667)
766,667
3,100,000
(307,042,783)
5,293,841
15,881,523
(29,309,337)
333,333
1,343,999
156,573,680
20,000,000
(170,687,892)
1,455,194
7,340,982
574,524,148
20,000,000
(574,706,679)
7,849,035
27,666,504
2022
Directors
P F Mullins
G Guglielmo
H M Gordon
M L Lindh (ii)
Other key management
personnel
R M Hamilton
10,000,000
-
(9,666,667)
166,667
500,000
(i) Mr M Lindh’s interest includes 2,975,400 (2021: 89,262,000) shares held directly and 4,365,579 (2021:
67,311,680) shares held indirectly by related parties, Marbel Capital Pty Ltd and Chesser Nominees Pty Ltd
(2021: Marbel Capital Pty Ltd and Chesser Nominees Pty Ltd), all subsidiaries of Adelaide Equity Partners Ltd, a
director related entity of Mr M Lindh.
Table 4: Option holdings of key management personnel
Options held in Bass Oil Limited (number)
1 January
2022
Balance at
beginning of
period
Consolidation
Participation
in
Entitlement
issue
Net change
other
31 December
2022
Balance at end
of period
2022
Directors
P F Mullins
G Guglielmo
H M Gordon
M L Lindh (a)
Other key management
personnel
4,600,000
(4,446,667)
766,667
16,000,000
(15,466,667)
5,293,841
2,526,668
(2,442,446)
333,333
11,381,144
(11,001,774)
1,455,194
34,507,812
(33,357,554)
7,849,035
R M Hamilton
1,250,000
(1,208,334)
166,667
-
-
-
-
-
-
920,000
5,827,174
417,555
1,834,564
8,999,293
208,333
Bass Oil Limited Annual Report December 2022
22
DIRECTORS’ REPORT (cont’d)
REMUNERATION REPORT (AUDITED) (31 December 2022) (cont’d)
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 $70,999 (31 December 2021: $44,041)
and capital raising success fees to Adelaide Equity Partners Limited of $36,468 (31 December 2021:
$20,483) (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 $5,589
(31 December 2021: $7,982).
The Group has a corporate advisory & investor relations mandate with Adelaide Equity Partners. The
mandate has a monthly retainer of AUD $7,500 per month and commenced on 16 July 2021. The
mandate can be terminated at any time by either party, by written notice to the other party.
End of the REMUNERATION REPORT (AUDITED) (31 December 2022)
Bass Oil Limited Annual Report December 2022
23
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 Australian, South Australian and Indonesian government regulations.
The Company’s petroleum exploration and development activities are subject to environmental
conditions specified by Australian, South Australian and 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 2022 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 2022 is included on page 25.
Non-audit services
During the year Grant Thornton, the Company’s auditor, performed no other services in addition to their
statutory duties.
Signed in accordance with a resolution of the Directors
Chairman
Adelaide, 31 March 2023
Bass Oil Limited Annual Report December 2022
24
Grant Thornton Audit Pty Ltd
Level 22 Tower 5
Collins Square
727 Collins Street
Melbourne VIC 3008
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
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 2022, 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 2023
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited 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 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
25
#9380901v2w
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
2022 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 Australian Accounting 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 2022.
On behalf of the Board
Chairman
Adelaide, 31 March 2023
Bass Oil Limited Annual Report December 2022
26
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
For the financial year ended 31 December 2022
Consolidated
Note
2022
$
2021
$
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
Foreign currency translation
Other comprehensive loss, net of income tax
4
5
8
11(a)
5,721,938
2,925,950
(3,025,368)
(1,891,294)
2,696,570
1,034,656
8,750
70,111
4,752
1,984
58,085
12,186
2,780,183
1,106,911
(2,176,069)
(1,487,226)
(9,319)
594,795
(552,202)
42,593
(7,029)
(387,344)
(214,267)
(601,611)
(42,484)
(42,484)
-
-
Total comprehensive profit/(loss) for the year
109
(601,611)
Basic and diluted earnings/(loss) per share
26
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 2022
27
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2022
Note
2022
$
2021
$
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
Property, 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
12
13
14
15
16
13
16
17
18(a)
19
22
23
18(b)
11(e)
23
18(b)
1,477,074
1,531,519
317,031
245,663
3,726
1,492,646
1,221,205
33,047
141,487
3,991
3,575,013
2,892,376
-
1,570,666
126,885
72,082
5,916,297
7,685,930
11,260,943
980,126
54,147
27,936
583,775
298,195
27,469
-
19,671
1,795,403
2,140,738
5,033,114
923,821
265,301
19,781
615,937
1,645,984
1,824,840
3,082,446
34,954
3,117,400
4,763,384
6,497,559
99,635
-
99,635
1,924,475
3,108,639
24
25
31,598,393
3,349,548
28,435,817
3,165,797
(28,450,382)
(28,492,975)
6,497,559
3,108,639
The above statement of financial position should be read in conjunction with the accompanying notes
Bass Oil Limited Annual Report December 2022
28
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the financial year ended 31 December 2022
Consolidated
Note
Contributed
equity
Accumulated
losses
Currency
translation
reserve
Share based
payments
reserve
Total
$
$
$
$
$
At 1 January 2022
28,435,817
(28,492,975)
3,129,996
35,801
3,108,639
Net profit for the year
Foreign currency
translation loss
Total comprehensive
income for the period
-
-
42,593
-
-
(42,484)
-
42,593
(42,484)
Shares issued
Share buy-back
Transaction costs on
share issues
24
3,616,206
(77,976)
(411,502)
Share-based payment
10
-
Tax consequences of
share issue costs
35,848
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
42,593
(42,484)
109
3,616,206
(77,976)
-
(411,502)
226,235
226,235
-
35,848
At 31 December 2022
31,598,393
(28,450,382)
3,087,512
262,036
6,497,559
At 1 January 2021
26,684,884
(27,891,364)
3,129,996
-
1,923,516
Net loss for the year
Total comprehensive
income for the period
Shares issued
Transaction costs on
share issues
Share-based payment
10
-
Tax consequences of
share issue costs
12,538
-
(601,611)
-
(601,611)
1,850,321
(111,926)
-
-
-
-
-
-
-
-
-
-
-
(601,611)
-
(601,611)
-
1,850,321
-
(111,926)
35,801
35,801
-
12,538
At 31 December 2021
28,435,817
(28,492,975)
3,129,996
35,801
3,108,639
The above statement of equity should be read in conjunction with the accompanying notes
Bass Oil Limited Annual Report December 2022
29
CONSOLIDATED STATEMENT OF CASH FLOWS
For the financial year ended 31 December 2022
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
Deposit into restricted cash
Purchase plant and equipment
Oil properties expenditure
Net cash (used in) investing activities
Cash flows from financing activities
Proceeds from issue of shares and equity
options
Payment share issue costs
Payment unmarketable parcel share buy-back
Principal elements of lease payments
Net cash provided by financing activities
Net increase in cash and cash equivalents
Foreign exchange
Cash and cash equivalents at the beginning of
the year
Consolidated
Note
2022
$
2021
$
5,362,170
(4,581,198)
8,750
(9,319)
(548,516)
3,221,899
(3,212,095)
1,984
(7,029)
(174,815)
31
231,887
(170,056)
(1,543,197)
(7,043)
(1,989,930)
(3,540,170)
-
-
(84,748)
(84,748)
3,616,206
1,833,676
(156,927)
(77,976)
(41,872)
3,339,431
31,148
(46,720)
1,492,646
(95,281)
-
(86,587)
1,651,808
1,397,004
-
95,642
Cash and cash equivalents at the end of the
year
12
1,477,074
1,492,646
Some administration and corporate costs included in the 31 December 2022 ASX Quarterly Appendix
5B have been re-classified to payments for property, plant & equipment. Additionally, the deposit into
restricted cash has been reclassified as used in investing activities and not included in the closing cash
on hand.
The above statement of cash flows should be read in conjunction with the accompanying notes
Bass Oil Limited Annual Report December 2022
30
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
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 2022 was authorised for issue in accordance with a resolution of the directors on
31 March 2023.
Bass Oil Limited is a company limited by shares incorporated in Australia whose shares are publicly
traded on the Australian Securities 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.
Functional and presentation currency
These consolidated financial statements are presented in United States dollars ($). The functional
currency of the parent company and Bass Oil Sukananti Ltd, a subsidiary company, is United States
dollars. The functional currency of Bass Oil Cooper Basin Pty Ltd, a subsidiary company, is Australian
dollars (AUD).
These currencies represent the currency of the primary economic environment of the parent and the
subsidiary, respectively.
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 2022 the Group earned a profit after tax of $42,593 (31 December
2021: made a loss after tax of $601,611), had a net cash inflow from operating activities of $231,887
(31 December 2021: outflows of $170,056), had a net cash outflow from investing activities of
$3,540,170 (31 December 2021: $84,748) and a net cash inflow from financing activities of $3,339,431
(31 December 2021: $1,651,808).
The Directors have prepared a cash flow forecast through to March 2024 which indicates that the Group
has sufficient funds to remit the second and final instalment of the performance bond for the
rehabilitation of the Cooper Basin properties in favour of the SA Department for Energy and Mining and
invest in further projects to maintain/increase production levels.
The Group may be required to secure additional funding (which may be sourced as debt or equity) in
the event of unforeseen issues arising including but not limited to a weakness in the price of oil, field
production performance or projected cash returns from the Company’s Indonesian subsidiary or to fund
drilling and non-drilling projects beyond March 2024.
Bass Oil Limited Annual Report December 2022
31
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 2. Summary of Significant Accounting Policies (cont’d)
Based on the Group’s cash flow forecast, achieving the funding referred to above and achieving
successful results from drilling and non-drilling projects, the Directors believe that the Group will be
able to continue as a going concern.
Should the Group be unsuccessful in achieving the projected levels of cashflow from 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.
(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 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 2022.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not
been early adopted and will not have a material impact on the 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 2022
32
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
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 2022 was AUD/USD 1:0.6775 (31 December 2021:
1:0.7256).
(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
Financial assets 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.
Financial assets 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 2022
33
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
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 financial asset 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 financial asset, or, where appropriate, a shorter period, to
the gross carrying amount of the financial asset 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 financial
asset 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 financial assets 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 2022
34
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
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 financial
assets 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. Plant and equipment acquired through an asset acquisition is recognised at fair value at the date
of acquisition.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Plant and equipment – over 3 to 10 years
•
• Motor Vehicles – over 5 years
Camp facilities – 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 2022
35
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
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 2022
36
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
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 indicators exist, 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.
Any changes in the estimate of the provision for restoration arising from changes in the amount
required to be paid 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.
Bass Oil Limited Annual Report December 2022
37
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 2. Summary of Significant Accounting Policies (cont’d)
(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 from contracts with customers
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.
Sale of oil and gas
Revenue from the sale of oil is recognised at the point in time when the customer obtains control of the
oil.
Australia
Sales revenue is recognised when the physical product and associated risks and rewards of ownership
pass to the purchaser, which is at the outlet flange of the Sellers truck loading facilities at the Padulla
or Worrior oil field.
Indonesia
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.
Rendering of services
Revenue from a contract to provide services is recognised over time as the services are rendered based
on either a fixed price or an hourly rate.
Operator fees
Operator fees are recognised when the right to receive payment is established.
Bass Oil Limited Annual Report December 2022
38
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 2. Summary of Significant Accounting Policies (cont’d)
(q) Other income
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method
of calculating the amortised cost of a financial asset and allocating the interest income over the
relevant period using the effective interest rate, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to the net carrying amount of the
financial asset.
(r) 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.
Share-based payments
Equity-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to
employees in exchange for the rendering of services.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is
independently determined using either the Monte Carlo, Binomial, or Black-Scholes option pricing model
that takes into account the exercise price, the term of the option, the impact of dilution, the share price
at grant date and expected price volatility of the underlying share, the expected dividend yield and the
risk free interest rate for the term of the option, together with non-vesting conditions that do not
determine whether the consolidated entity receives the services that entitle the employees to receive
payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in
equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant
date fair value of the award, the best estimate of the number of awards that are likely to vest and the
expired portion of the vesting period. The amount recognised in profit or loss for the period is the
cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject
to market conditions are considered to vest irrespective of whether or not that market condition has
been met, provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has
not been made. An additional expense is recognised, over the remaining vesting period, for any
modification that increases the total fair value of the share-based compensation benefit as at the date
of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to
satisfy the condition is treated as a cancellation. If the condition is not within the control of the
consolidated entity or employee and is not satisfied during the vesting period, any remaining expense
for the award is recognised over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and
any remaining expense is recognised immediately. If a new replacement award is substituted for the
cancelled award, the cancelled and new award is treated as if they were a modification.
Bass Oil Limited Annual Report December 2022
39
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 2. Summary of Significant Accounting Policies (cont’d)
(s)
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.
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.
Bass Oil Limited Annual Report December 2022
40
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 2. Summary of Significant Accounting Policies (cont’d)
(t)
Income tax and other taxes (cont’d)
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.
(u)
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.
(v)
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.
(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.
Bass Oil Limited Annual Report December 2022
41
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 2. Summary of Significant Accounting Policies (cont’d)
(v) Critical accounting estimates and judgements (cont’d)
(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. The
estimated reserve quantities are used in the assessment of fair value of the oil properties.
(iv)
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.
(v)
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.
(vi) Cooper Basin acquisition
The Group has recognised the Cooper Basin acquisition as an asset acquisition based upon
management’s assessment that the transaction meets the concentration test under AASB 3
Business Combinations and that substantially all of the fair value of the gross assets acquired are
concentrated in a group of similar identifiable assets. Management have assessed fair values for
the property, plant and equipment based on the cost of comparable assets on market and the fair
value of oil properties based on the NPV of 1P Reserves and Resources at 1 August 2022.
Bass Oil Limited Annual Report December 2022
42
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 3. Financial Risk Management Objectives and Policies
The Group’s principal financial instruments comprise receivables, payables, cash, and deposits.
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
2022 are cash and cash equivalents $1,477,074, trade and other receivables $1,531,519, other
financial assets $1,574,392, trade and other payables $980,126.
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.
The sensitivity analyses in the following sections relate to the position as at 31 December 2022.
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 2022
43
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
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
Other financial assets
Financial liabilities:
Trade and other payables
31 December 2022
AUD
$
767,063
49,477
1,543,197
IDR
$
28,598
587,508
-
427,359
407,516
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 2022
AUD
$
193,238
(193,238)
193,238
(193,238)
IDR
$
20,859
(20,859)
20,859
(20,859)
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 2022
$
572,194
(572,194)
572,194
(572,194)
Bass Oil Limited Annual Report December 2022
44
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
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 2022
$
30,203
(30,203)
30,203
(30,203)
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. At 31 December 2022, the Group had $980,126
(2021: $923,821) 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 2022, the Group had $1,477,074 (2021: $1,492,646) in cash and cash
equivalents, $1,531,519 (2021: $1,519,400) in trade and other receivables, and $1,574,392 (2021:
$31,460) 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 2022
45
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
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
%
$
$
$
$
-
980,126
-
-
980,126
9.50%
33,096
33,096
4,713
70,905
-
923,821
10.95%
20,629
-
-
-
-
923,821
20,629
31 December 2022
Trade and other
payables
Lease liabilities
31 December 2021
Trade and other
payables
Lease liabilities
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.
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 Cooper Basin and Tangai-Sukananti field.
The Group is not subject to any externally imposed capital requirements.
Bass Oil Limited Annual Report December 2022
46
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 4. Other Income
Jobkeeper receipts
Foreign exchange gains
Note 5. Administrative Expenses
Auditors Remuneration
Consultants’ fees other
Corporate related costs
Directors’ remuneration
Employee benefits expense
Exploration permit fees
Foreign exchange losses
Insurance
Legal expenses
Rent
Share-based payment
Travel
Bad debt expenses
Other administrative expenses
Consolidated
Note
2022
$
-
4,752
4,752
2021
$
12,186
-
12,186
Consolidated
Note
2022
$
2021
$
9
7
10
76,053
299,355
162,932
137,924
812,792
74,012
-
10,580
74,587
36,457
16,348
49,971
229,957
195,101
2,176,069
59,263
96,833
83,923
146,764
783,332
-
12,289
14,610
59,021
40,685
35,801
4,031
-
150,674
1,487,226
2021
$
407
59,535
224,676
284,618
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
17
18
19
2022
$
-
29,011
702,628
731,639
Bass Oil Limited Annual Report December 2022
47
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 7. Employee Benefits Expense
Wages and salaries
Superannuation
Provision for annual leave
Provision for long service leave
Medical expense
Termination benefits
Workers’ compensation
Other
Note 8. Finance Costs
Interest on leases
Interest
Note 9. Auditor’s Remuneration
Amounts received or due and receivable by Grant
Thornton for:
An audit or review of the financial report of the entity
paid to:
Grant Thornton Australia
Grant Thornton Indonesia
Total
Note
Consolidated
2022
$
639,289
31,625
6,085
19,745
14,197
40,538
6,293
55,020
812,792
Consolidated
Note
2022
$
3,133
6,186
9,319
2021
$
582,022
27,686
18,773
-
7,456
102,356
1,752
43,287
783,332
2021
$
7,029
-
7,029
Consolidated
Note
2022
$
2021
$
62,553
13,500
76,053
46,263
13,000
59,263
Bass Oil Limited Annual Report December 2022
48
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 10.
Share-based payments
Fair value of employee share rights
16,348
35,801
Fair value of listed options issued to the Lead Manager
Consolidated
Note
2022
$
2021
$
of capital raise
Total
Listed options
209,887
226,235
-
35,801
On 13 October 2021 and 11 April 2022, the Company granted 4,166,667 and 1,333,333 (post
consolidation) BASO listed options to Peak Asset Management, Lead Manager of the Placement. The
listed options are $0.12 cents (post consolidation) expiring 30 September 2024.
The share-based payment expenses of $86,536 and $16,379 were estimated using the Black-Scholes
Option Pricing model assuming a risk- free rate of 0.18% and 2.51%, a volatility of 100%, an expected
dividend rate of nil and an expected life of 2.97 and 2.47 years. The shares in the Company traded at
AUD$0.06 and AUD$0.045 (post consolidation) on the grant dates.
On 30 November 2022 the Company granted 7,500,000 BASO listed options to Peak Asset
Management, Lead Manager of the Capital Raising as a success fee. The listed options are $0.12 cents
expiring 30 September 2024.
The share-based payment expense of $106,972 was estimated using the Black-Scholes Option Pricing
model assuming a risk- free rate of 3.17%, a volatility of 100%, an expected dividend rate of nil and an
expected life of 1.8 years. The shares in the Company traded at AUD$0.061 on the grant date.
The share-based payment for the Lead Manager options has been included in Share Issue costs.
Bass Oil Limited Annual Report December 2022
49
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 11. Income Tax
Consolidated
Note
2022
$
2021
$
(a) Income tax recognised in profit or loss
Current tax
In respect of the current financial year
516,354
201,729
Deferred tax
In respect of the current financial year
35,848
12,538
Total income tax expenses recognised in profit
or loss
552,202
214,267
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% (2021: 30%)
Difference in tax rates
Cost recovery profit that is taxable in Indonesia
Current financial year temporary differences not
recognised
Current year revenue tax losses not recognised
Income tax expense recognised in the profit or
loss
Income tax expense - Australia
Income tax expense - Indonesia
Total
(b) Recognised deferred tax assets and
(liabilities)
Deferred tax assets and (liabilities) are
attributable to the following:
Other assets
Oil Properties Cooper Basin
Plant and equipment
Trade and other payables
Provisions
Share issue costs
Tax losses recognised to offset net deferred tax
liability
Net deferred tax assets not recognised
Net deferred tax assets and (liabilities)
594,795
178,438
129,088
(99,274)
8,262
335,688
(387,344)
(116,203)
50,432
72,582
58,728
148,728
552,202
214,267
35,848
516,354
12,538
201,729
552,202
214,267
(89,086)
(1,113,589)
(38,066)
9,959
918,799
123,350
(188,633)
188,633
-
-
(6,611)
-
-
44,972
4,144
35,748
78,253
-
(78,253)
-
Bass Oil Limited Annual Report December 2022
50
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 11. Income Tax (cont’d)
(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
Consolidated
Note
2022
$
2021
$
-
5,938,197
157,316
6,095,513
78,253
5,436,655
162,679
5,677,587
Deferred tax assets have not been recognised in respect to these items as it is not probable 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
2022
$
2021
$
-
(35,848)
35,848
-
615,937
516,354
(548,516)
583,775
-
(12,538)
12,538
-
589,023
201,729
(174,815)
615,937
Income tax payable is for income tax payable in Indonesia. Current year income tax only becomes
payable when there are no cost recoveries available to be carried forward at the end of the tax year (31
December). The tax balance includes $559,197 of deferred tax from tax years ended between 2011 and
2017 when cost recoveries were available to be carried forward, so no current tax was payable. The
timing of when and if this tax is due for payment is uncertain.
Unrecognised tax losses are related to Australian operations.
Note 12. Cash and Cash Equivalents
Cash at bank and in hand
Note
Consolidated
2022
$
1,477,074
1,477,074
2021
$
1,492,646
1,492,646
Bass Oil Limited Annual Report December 2022
51
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 13. Trade and Other Receivables
Current
Trade debtors (1)
Other receivables
Goods and services tax
Value-added tax
Non-current
Other receivables
Consolidated
Note
2022
$
2021
$
876,888
54,202
12,921
587,508
513,953
110,903
5,156
591,193
1,531,519
1,221,205
-
-
298,195
298,195
(i)
Trade receivables are initially recognised at fair value and subsequently measured at
amortised cost using the effective interest method. Trade receivables are generally due for
settlement within 60 days. There are no trade receivables which are impaired and
therefore no expected credit loss has been recognised.
Note 14. Other Current Assets
Prepayments
Accrued revenue
Note 15. Inventories
Oil inventories in tank (at cost)
Maintenance spares (at cost)
Note
Note
Consolidated
2022
$
215,937
101,094
317,031
Consolidated
2022
$
107,999
137,664
245,663
2021
$
29,008
4,039
33,047
2021
$
6,490
134,997
141,487
Bass Oil Limited Annual Report December 2022
52
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 16. Other Financial Assets
Current
Security deposit
Non-current
Rehabilitation bond
Security deposit
Consolidated
Note
2022
$
2021
$
3,726
3,726
3,991
3,991
1,543,197
27,469
1,570,666
-
27,469
27,469
The rehabilitation bond is restricted cash held in an interest-bearing account for the purposes of
rehabilitating the land after wells, oil facilities, flowlines and roading/tracks have been abandoned. The
establishment of this deposit was a requirement of the Department for Energy & Mining, before title in
the production licenses and exploration permits in the Cooper Basin could be transferred to the Group.
Note 17. Property, Plant and Equipment
Consolidated
Note
Equipment
Camp facilities
Motor vehicles
Equipment
Opening balance, net of accumulated
depreciation
Purchases
Cooper basin acquisition
Foreign exchange movement
Depreciation charge for the year
6
Closing balance, net of accumulated depreciation
Cost
Accumulated depreciation
Net carrying amount
Camp facilities
Opening balance, net of accumulated
depreciation
Cooper basin acquisition
Depreciation charge for the year
6
Closing balance, net of accumulated depreciation
Bass Oil Limited Annual Report December 2022
2022
$
40,333
39,947
46,605
126,885
-
7,043
33,290
-
-
40,333
40,333
-
40,333
-
39,947
-
39,947
2021
$
-
-
-
-
423
-
-
(16)
(407)
-
33,144
(33,144)
-
-
-
-
-
53
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 17. Property, Plant and Equipment (cont’d)
Consolidated
Note
2022
$
2021
$
Camp facilities (cont’d)
Cost
Accumulated depreciation
Net carrying amount
Motor vehicles
Opening balance, net of accumulated
depreciation
Cooper basin acquisition
Depreciation charge for the year
6
Closing balance, net of accumulated depreciation
39,947
-
39,947
-
46,605
-
46,605
46,605
-
46,605
Cost
Accumulated depreciation
Net carrying amount
Note 18. Leases
(a)
Right of Use Assets
31 December 2022
$
Opening balance
Additions
Depreciation
Foreign exchange
movement
Closing balance, net of
accumulated depreciation
31 December 2021
$
Opening balance
Depreciation
Foreign exchange
movement
Closing balance, net of
accumulated depreciation
Office Premises
Computers
Motor Vehicles
19,671
57,904
(20,943)
(1,829)
54,803
-
-
-
-
-
-
27,172
(8,068)
(1,825)
(3,654)
17,279
72,082
Office Premises
Computers
Motor Vehicles
40,818
(21,378)
231
19,671
411
(414)
3
-
37,744
Total
78,973
(37,743)
(59,535)
(1)
-
233
19,671
54
Bass Oil Limited Annual Report December 2022
-
-
-
-
-
-
-
-
-
-
Total
19,671
85,076
(29,011)
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 18. Leases (cont’d)
The Group leases several assets including office space, IT equipment and vehicles. The average lease
term is 3 years (2021: 3 years).
Amounts recognised in profit and loss:
Depreciation expense on right-of-use assets
Interest expense on lease liabilities
Consolidated
2022
$
2021
$
29,012
3,133
59,535
7,029
The total cash outflow for leases amounts to $86,587 (2021: $85,147).
(b)
Lease Liabilities
Current
Non-current
Maturity analysis:
Year 1
Year 2
Year 3
Year 4
Year 5
Onwards
Note
Consolidated
2022
$
27,936
34,954
62,890
33,096
33,096
4,713
-
-
-
2021
$
19,671
-
19,671
20,629
-
-
-
-
-
70,905
20,629
Bass Oil Limited Annual Report December 2022
55
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 19. Oil Properties
Tangai-Sukananti KSO, Indonesia
Cooper Basin, Australia
Tangai-Sukananti KSO
Note
Movement in the carrying value of oil properties
Balance at the beginning of year
Expenditure during the period
Depreciation, depletion and amortisation
6
Balance at the end of year
Cooper Basin
Movement in the carrying value of oil properties
Balance at the beginning of year
Acquisition
Expenditure during the period
Depreciation, depletion and amortisation
6
Balance at the end of year
Consolidated
2022
$
2,204,333
3,711,964
5,916,297
1,795,403
981,184
(572,254)
2,204,333
-
3,822,831
19,507
(130,374)
3,711,964
2021
$
1,795,403
-
1,795,403
1,935,331
84,748
(224,676)
1,795,403
-
-
-
-
-
The Group completed two transactions to acquire a portfolio of assets in the Cooper Basin, on 1 August
2022. The assets includes a 100% interest in the Worrior and Padulla oil producing fields, appraisal
wells and exploration acreage. Management assessed the transaction is to whether it is an asset
acquisition or business combination under AASB 3 and employed the optional concentration test and
concluded that substantially all of the fair value of the gross assets acquired are concentrated in a
group of similar identifiable assets and hence the transaction is not a business combination.
Bass Oil Limited Annual Report December 2022
56
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 20. Subsidiaries
Name of
Subsidiary
Principal activity
Place of
incorporation
and operation
Proportion of ownership interest and voting
power held by the Group
Bass Oil Cooper Basin
Pty Ltd(i)
Bass Oil Kalalili Pty
Ltd
Bass Oil Sukananti
Ltd
Oil Producer
Australia
Non-operating
Australia
31 Dec 22
31 Dec 21
100%
100%
100%
-
Oil Producer
British Virgin Islands
100%
100%
(i) Bass Oil Cooper Basin Pty Ltd changed its name during the year and was formerly BSOC Business
Services Pty Ltd.
Note 21. Joint Arrangements
Name of Joint
Arrangement
Principal
activity
Place of
incorporation
and operation
Proportion of ownership interest and voting
power held by the Group
Tangai-Sukananti KSO (i),(ii)
Oil Producer
Indonesia
55%
55%
31 Dec 22
31 Dec 21
(i) Joint arrangements in which Bass Oil Limited is the operator.
(ii) The accounting for the joint arrangement is in the proportion of 55% for all revenue, expenses,
assets and liabilities.
Note 22. Trade and Other Payables
Current
Trade payables(i)
Accruals and other payables
Consolidated
Note
2022
$
2021
$
463,725
516,401
980,126
235,371
688,450
923,821
(i) The Group settles trade payables on average within 30 days and no interest is charged.
Bass Oil Limited Annual Report December 2022
57
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 23. Provisions
Current
Employee benefits
Non-current
Employee benefits
Restoration
Rehabilitation
Make Good
Consolidated
Note
2022
$
2021
$
54,147
54,147
60,666
64,988
2,949,127
7,665
3,082,446
265,301
265,301
-
91,970
-
7,665
99,635
Movement in the carrying value of restoration provision
Balance at the beginning of year
Expenditure during the period
Balance at the end of year
Consolidated
Note
2022
$
2021
$
91,970
(26,982)
64,988
92,244
(274)
91,970
The restoration provision is calculated by Pertamina EP 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.
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 six-monthly
payments to Pertamina. The unwinding of the discount is recorded as an accretion charge within finance
costs.
Movement in the carrying value of rehabilitation provision
Consolidated
Note
2022
$
2021
$
Balance at the beginning of year
Rehabilitation provision assumed through
Cooper basin transaction
Balance at the end of year
-
2,949,127
2,949,127
-
-
-
The rehabilitation provision for the Cooper Basin assets is based on an agreed amount between Cooper
Basin operators and the Department for Energy and Mining from historical costs to abandon and
rehabilitate wells, oil facilities, flowlines and roading/tracks. The liability is recognised at acquisition and
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. The unwinding of the discount is recorded as an accretion
charge within finance costs. The provision will reduce as rehabilitation is completed.
Bass Oil Limited Annual Report December 2022
58
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 24. Contributed Equity
Issued and paid up capital
2022
Shares
2021
Shares
2022
$
2021
$
Ordinary share fully paid
267,917,271
3,342,140,096
31,598,393
28,435,817
Movements in ordinary shares
on issue
Ordinary shares on issue at
beginning of period
Issue of ordinary shares pre-
consolidation
Less unmarketable parcel share
buyback
4,612,681,458
3,342,140,096
28,435,817
26,684,884
800,000,000
1,270,541,362
878,567
1,850,322
Sub-total
5,358,137,404
4,612,681,458
(54,544,054)
-
(77,976)
Consolidation 30 to 1
(5,179,525,890)
Issue of ordinary shares post
consolidation
89,305,757
-
2,737,639
-
-
-
Less transaction costs
Tax consequences of share
issues costs
Ordinary shares on issue at end
of period
-
-
(411,502)
(111,927)
35,848
12,538
267,917,271
4,612,681,458
31,598,393
28,435,817
-
-
-
-
On 11 April 2022 the Company issued 800,000,000 ordinary shares in a private placement to
sophisticated and professional investors through the issue of New Shares at A$0.0015 per share. The
placement included a 1 for 3 free attaching option exercisable at A$0.004 on or before 30 September
2024. The placement raised $878,567 before costs.
On 28 April 2022 the Company completed the Unmarketable Parcel share buy-back. This resulted in
54,544,054 shares being bought back and cancelled, at A$0.002 per share. The share buy-back cost
$77,976.
On 11 May 2022 the Company completed a share consolidation at 30 to 1 after it was approved by
shareholders at a General Meeting on 8 April 2022. The consolidation resulted in a reduction of
5,179,525,890 shares on issue. The listed options were also consolidated and repriced accordingly to
A$0.12 per option.
On 29 June 2022 the Company issued 13,324,765 ordinary shares in a non-renounceable entitlement
offer of new shares on a 1 for 2 basis, at an issue price of A$0.045 per share. The entitlement offer
included a 1 for 1 free attaching option exercisable at A$0.12 on or before 30 September 2024. The
entitlement raised $413,824 before costs.
Between 21 July 2022 and 13 September 2022, the Company issued 75,980,992 ordinary shares after
placing the shortfall shares from the entitlement offer. The shortfall shares had an issue price of
A$0.045 per share and included a 1 for 1 free attaching option exercisable at A$0.12 on or before 30
September 2024. The placement of the shortfall shares raised $2,323,815 before costs.
Bass Oil Limited Annual Report December 2022
59
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 24. Contributed Equity (cont’d)
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 2022, the Company has 132,340,789 (2021: 759,390,150) share options on issue,
exercisable on a 1:1 basis for 132,340,789 (2021: 759,390,150) ordinary shares of the Company at an
exercise price of A$0.12 (2021: A$0.004) and an expiry date of 30 September 2024.
In addition to the options issued on a 1 for 2 basis as part of the capital raising above, 40,000,000
options were issued pre-consolidation and 7,500,000 options were issued post consolidation (2021:
125,000,000 options) to the Lead Manager for the Placement and capital raise.
On 31 July 2021, 1,761,120 options were exercised, and 366,225,208 options expired.
Movements in options on issue
Balance at the beginning of year
Options issued pre-consolidation
Options exercised
Options expired
Sub total
Consolidation 30 to 1
Options issued post consolidation
Balance at the end of year
Note 25. Reserves
Currency translation reserve
Share based payments reserve
Consolidated
Note
2022
Options
2021
Options
759,390,150
306,666,667
-
-
367,986,328
759,390,150
(1,761,120)
(366,225,208)
1,066,056,817
759,390,150
(1,030,521,785)
96,805,757
-
-
132,340,789
759,390,150
Note
Consolidated
2022
$
3,087,512
262,036
3,349,548
2021
$
3,129,996
35,801
3,165,797
Bass Oil Limited Annual Report December 2022
60
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 26. Earnings per Share
The following reflects the income used in the basic earnings per share computations.
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
Net profit/(loss) attributable to ordinary equity
shareholders of the parent
Post consolidation basis
Note
Issued ordinary shares at 1 January
Effect of shares issued April 2022
Effect of shares issued May 2022
Effect of shares issued June 2022
Effect of shares issued July 2022
Effect of shares issued September 2022
Effect of shares issued August 2021
Effect of shares issued October 2021
Weighted average number of ordinary shares at
31 December used in calculating basic earnings per
share
Adjustments for calculation of diluted earnings per
share:
Weighted average number or ordinary shares at 31
December used in calculating diluted earnings per
share
Consolidated
Note
2022
$
0.000
0.000
2021
$
0.000
0.000
42,593
(601,611)
2022
Shares
153,756,049
25,278,573
4,692
8,542,452
24,677,930
11,552,470
-
-
2021
Shares
111,404,670
-
-
-
-
-
6,907,858
7,637,795
223,812,166
125,950,323
132,340,789
25,313,005
356,152,955
151,263,328
The dilution is due to impact of options on issue as per Note 24.
Note 27. 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
Long-term benefits
Note
Consolidated
2022
$
414,754
34,168
17,800
466,722
2021
$
411,526
40,157
-
451,683
Bass Oil Limited Annual Report December 2022
61
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 28. Parent Entity Disclosures
Information relating to Bass Oil Limited
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Contributed equity
Foreign exchange reserve
Share-based payments reserve
Accumulated losses
Total shareholder’s equity
Parent
2022
$
3,809,484
6,016,693
(201,830)
(3,041,000)
2,975,693
31,598,393
3,087,512
262,036
2021
$
1,441,253
3,641,459
(274,143)
(3,093,443)
548,016
28,435,817
3,129,996
35,801
(31,972,248)
(31,053,598)
2,975,693
548,016
Loss of the parent entity
Total comprehensive (loss) of the parent entity
(918,650)
(918,650)
(662,264)
(662,264)
The commitments and contingencies of the parent entity are the same as disclosures in Note 32 and
Note 33 excluding the commitments relating to Tangai-Sukananti KSO.
Note 29. 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 $70,999 (31 December 2021: $44,041) and
capital raising success fees to Adelaide Equity Partners Limited of $36,468 (31 December 2021:
$20,483) (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 $5,589 (31
December 2021: $7,982).
The Group has a corporate advisory & investor relations mandate with Adelaide Equity Partners. The
mandate has a monthly retainer of AUD $7,500 per month and commenced on 16 July 2021. The
mandate can be terminated at any time by either party, by written notice to the other party.
The acquisition of Cooper Basin assets from Cooper Energy Limited (a shareholder and director related
entity of Mr H Gordon) was settled on 1 August 2022 with the payment of AU $650,000 cash.
Additionally, there was also a payment of $11,162 for opening inventory.
Bass Oil Limited Annual Report December 2022
62
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 30. Segment Information
For management purposes the group operated in two business segments (two geographical areas) –
exploration, development and production of oil and gas – Australia and Indonesia.
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 and development activities the Board managed each activity through review and
approval Authority for Expenditure (AFE’s) and other operational information. For oil production (from
both the Tangai–Sukananti KSO located in South Sumatra Basin in Indonesia and the Cooper Basin
assets located in South Australia) the Board manages the activities through review of production
details, internal reports and other operational information.
The consolidated assets and liabilities as at 31 December 2022 and 2021 relate to oil production.
31 December 2022
Revenue
Other revenue
Total revenue
Australia
Indonesia
Corporate
Total
646,660
5,075,278
-
5,721,938
-
-
646,660
5,075,278
83,613
83,613
83,613
5,805,551
Segment result
(12,343)
2,308,756
(969,979)
1,326,434
Depletion, depreciation &
amortisation
Profit/(loss) before income
tax
(130,374)
(601,265)
-
(731,639)
(142,717)
1,707,491
(969,979)
594,795
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
544,600
5,378,765
5,923,365
2,002,251
2,303,883
1,028,162
3,282
3,575,013
7,685,930
4,306,134
1,031,444
11,260,943
Non-current liabilities
(2,991,993)
(107,607)
(296,200)
(1,165,755)
(184,029)
(17,800)
(1,645,984)
(3,117,400)
Total liabilities
(3,288,193)
(1,273,362)
(201,829)
(4,763,384)
Bass Oil Limited Annual Report December 2022
63
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 30. Segment Information (cont’d)
Australia
Indonesia
Corporate
Total
31 December 2021
Revenue
Other revenue
Total revenue
Segment result
Depletion, depreciation &
amortisation
Profit/(loss) before income
tax
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
-
-
-
-
-
-
-
-
-
-
-
-
2,925,950
-
2,925,950
-
2,925,950
72,255
72,255
72,255
2,998,205
546,595
(649,321)
(102,726)
(284,211)
(407)
(284,618)
262,384
(649,728)
(387,344)
1,459,808
2,140,738
1,432,568
-
3,600,546
1,432,568
2,892,376
2,140,738
5,033,114
(1,550,697)
(274,143)
(1,824,840)
(99,635)
-
(99,635)
(1,650,332)
(274,143)
(1,924,475)
Bass Oil Limited Annual Report December 2022
64
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2022
Note 31. 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
Note
6
Net profit/(loss) after tax
Adjustments for:
Depreciation
Amortisation
Accretion interest
Non-cash expenses
Share-based payment
Foreign exchange adjustment
Changes in assets and liabilities
(Increase)/decrease in trade and other
receivables
(Increase)/decrease 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
Consolidated
2022
$
2021
$
42,593
(601,611)
29,011
702,628
3,133
229,956
16,348
-
59,942
224,676
6,916
-
35,801
1,085
1,023,669
(273,191)
(242,076)
(283,984)
(104,176)
(177,540)
12,308
(32,162)
35,848
51,934
(20,580)
35,099
64,152
(66,922)
26,914
12,538
231,887
(170,056)
Note 32. Contingent Liabilities
As at 31 December 2022 the Group had no contingent liabilities (2021: $Nil).
Note 33. Commitments
As at 31 December 2022 the Group has a commitment to the Department for Energy and Mining for
the second and final deposit of AUD $2,277,782 due in October 2023 as financial security for the
petroleum titles acquired in the Cooper Basin, in August 2022. The second deposit will be added to the
existing rehabilitation bond.
Note 34. 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.
Bass Oil Limited Annual Report December 2022
65
Grant Thornton Audit Pty Ltd
Level 22 Tower 5
Collins Square
727 Collins Street
Melbourne VIC 3008
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
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 2022, 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 2022 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.
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited 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 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
66
w
Material uncertainty related to going concern
We draw attention to Note 2 in the financial statements, which indicates that the Group incurred a net profit of
US$42,593 during the year ended 31 December 2022, and incurred net cash outflows from operating and
investing activities of US$3,308,283. As stated in Note 2, these events or conditions, along with other matters as
set forth in Note 2, indicate that a material uncertainty exists that may cast doubt on the Group’s ability to
continue as a going concern. Our opinion is not modified in respect of this matter.
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
Asset acquisition – Notes 2(v)(vi) & 19
On 1 August 2022, the Group completed a
transaction to purchase a portfolio of assets from
Beach Energy Ltd and Cooper Energy Ltd, for cash
consideration of AU$1.3 million and assumption of
future restoration liabilities.
In accordance with AASB 3 Business Combinations,
the Group must assess whether the assets acquired
and any liabilities assumed constitute a business.
The Group applied the optional concentration test
under AASB 3 and concluded that the test is met as
substantially all the fair value of the gross assets
acquired is concentrated in a group of similar
identifiable assets and therefore was not a business
combination.
Management’s assessment of the concentration test
and fair value estimation for the acquired assets and
liabilities requires significant judgement and
estimation. Therefore, we considered this a key audit
matter.
Our procedures included, amongst others:
• Reading and evaluating the transaction documents
to understand the key terms and conditions of the
acquisition;
•
•
•
•
•
•
Reviewing management’s assessment of the
application of the optional concentration test under
AASB 3 and evaluating their conclusions reached
for appropriateness;
Evaluating the competence, capabilities and
objectivity of management’s experts used in the
determination of the fair values;
Evaluating the valuation methodology used by the
Group to determine the fair value of assets and
liabilities acquired,
Comparing the inputs and assumptions used by the
independent valuation expert to supporting
evidence, underlying market data and industry
practice;
Challenging the key assumptions used by the Group
and their external experts in determining the fair
value of assets acquired; and
Assessing the appropriateness of the related
financial statement disclosures.
Grant Thornton Audit Pty Ltd
67
Key audit matter
How our audit addressed the key audit matter
Oil Properties – Notes 2(I), 2(v)(i) & 19
At 31 December 2022, the carrying value of oil
properties was $5,916,297.
In accordance with AASB 136 Impairment of Assets,
the Group must 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.
Management's assessment for impairment indicators
involves significant management judgment,
therefore, we considered this a key audit matter.
Our procedures included, amongst others:
• Obtaining and corroborating management’s
assessment of impairment indicators;
• Evaluating the competence, capabilities and
objectivity of management’s experts in the
evaluation of potential impairment indicators;
• Assessing whether any potential impairment
indicators exist;
• Reviewing internal reporting prepared by
management to assess the performance of oil
properties;
• Evaluating the key inputs and assumptions included
in management’s internal reporting; and
• Assessing 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 2022, 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 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.
Grant Thornton Audit Pty Ltd
68
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 pages 18 to 23 of the Directors’ report for the year
ended 31 December 2022.
In our opinion, the Remuneration Report of Bass Oil Limited, for the year ended 31 December 2022
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 2023
Grant Thornton Audit Pty Ltd
69
SHAREHOLDER AND OTHER INFORMATION
Compiled as at 24 March 2023
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
Unmarketable Parcels
116
231
392
1,130
371
2,240
34,344
797,908
3,194,505
42,090,286
221,800,228
267,917,271
In April 2022 the Company undertook an unmarketable parcel share buyback at $0.002 per share
resulting in 54,544,054 shares being bought back.
262 holders held less than a marketable parcel of ordinary shares.
Share consolidation
In May 2022 the Company completed a share consolidation of 30 to 1, reducing the number of shares
on issue from 5,358,137,404 to 178,611,514 shares. Accordingly, the issued share options were also
consolidated 30 to 1 from 1,066,056,817 to 35,535,032 and were repriced to $0.12, expiring 30
September 2024.
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
Miller Anderson Pty Ltd
15,881,523
5.93
VOTING RIGHTS
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 2022
70
SHAREHOLDER AND OTHER INFORMATION
Compiled as at 24 March 2023
THE 20 LARGEST SHAREHOLDERS OF ORDINARY SHARES
Holder
Ordinary shares
% of total issued
Miller Anderson Pty Ltd
Ant Nicholson Pty Ltd
Somerton Energy Ltd
Miss S Masalkovski
Warbont Nominees Pty Ltd
Victoria’s Basement Pty Ltd
Ms J G Newing
Mr M Saboundjian
M&M de Rosa Pty Ltd
Mr S H Bell & Mrs J K Berveling
Wingmont Pty Ltd
B & V McFarlane Nominees Pty Ltd
15,881,523
12,000,000
11,046,113
6,131,831
4,532,292
4,310,000
4,025,000
3,333,333
3,250,000
3,222,392
3,100,000
3,000,000
Mark Lindh & Belinda Lindh
2,975,400
L&E De Rosa Pty Ltd
Mr W C Wheelahan
Tattersfield Securities Ltd
Mr P Sciancalepore & Mrs P Sciancalepore
Chesser Nominees Pty Ltd
English Nugent Company Pty Ltd
Mr D G Cole
Emmett Enterprises Pty Ltd
Mr M J M Ditchfield
Mr F W T Chew
Mr B Liu
Mr A E Young
Mr A Winzer
Mr K M Sweet
Mr R Mukhail
Mr K I Shelton & Mr B L Shelton
Heraclitus Holdings Pty Ltd < Goose Is Out A/C>
Mr D B Totterdell
Mrs D Rani
Novena Pty Ltd < De Souza Super Fund A/C>
Mrs R Kahlon
Mr D M Said
Mr L Sammut
Mr R De Souza
Mr P J Flintoff
Tattersfield Limited
Mr L Cherloaba
5,827,174
5,460,000
5,205,000
3,856,781
3,597,110
3,500,000
3,249,019
3,200,000
3,154,533
3,000,000
3,000,000
2,751,900
2,350,000
2,104,167
2,000,000
1,727,962
1,700,000
1,600,000
1,500,000
1,500,000
4.40
4.13
3.93
2.91
2.72
2.64
2.46
2.42
2.38
2.27
2.27
2.08
1.78
1.59
1.51
1.31
1.28
1.21
1.13
1.13
The 20 largest option holders hold 60,283,646 options, representing 45.55% of the issued listed
options.
Bass Oil Limited Annual Report December 2022
72