(FORMERLY ANTARES ENERGY LIMITED)
2018 ANNUAL REPORT
BIG STAR ENERGY LIMITED AND CONTROLLED ENTITIES
ABN 75 009 230 835
ANNUAL REPORT
FOR THE YEAR ENDED
31 DECEMBER 2018
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
BIG STAR ENERGY LIMITED AND CONTROLLED ENTITIES
ABN 75 009 230 835
CONTENTS
Directors’ Report
Corporate Governance
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss & Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Audit Report
Shareholder Information
List of Interests
Page No.
1
8
9
10
11
12
13
14
31
32
35
37
i
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
COMPANY DIRECTORY
DIRECTORS:
Ross Warner
Joanne Kendrick
Michael Pollak
AUDITORS:
Stantons International Audit & Consulting Pty Ltd
Level 2, 22 Pitt Street
SYDNEY NSW 2000
BANKERS:
Westpac Banking Corporation
94 Church Street
Middle Brighton, VIC, 3186
SHARE REGISTRY:
Automic Pty Ltd
Level 5
126 Phillip Street
Sydney, NSW, 2000
Telephone: + 61 (0) 2 9698 5414
Facsimile: + 61 (0) 2 8583 3040
AUSTRALIAN COMPANY NUMBER:
ACN 009 230 835
AUSTRALIAN BUSINESS NUMBER:
ABN 75 009 230 835
COMPANY SECRETARY
Andrew Whitten
REGISTERED OFFICE:
Level 5, 126 Phillip Street
Sydney, NSW, 2000
Telephone: + 61 (02) 9698 5414
SOLICITORS:
Automic Pty Ltd
Level 5
126 Phillip Street
Sydney, NSW, 2000
Telephone: + 61 (02) 8072 1400
Email: info@bigstarenergy.com.au
Website: www.bigstarenergy.com.au
ASX CODE:
BNL
ii
DIRECTORS’ REPORT
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
The Directors of Big Star Energy Limited (Formerly Antares Energy Limited) (“the Company”) present the Directors’ report and the financial
report of Big Star Energy and the entities it controlled ("the Consolidated Entity") at the end of, or during the year ended 31 December
2018.
DIRECTORS AND COMPANY SECRETARY
The names and details of the Company's directors in office during the financial year and until the date of this report are as follows.
Name
Ross Warner
Joanne Kendrick
Michael Pollak
Andrew Whitten
Particulars
Executive Director & Chairman – Appointed 23 March 2018
Managing Director – Appointed 23 March 2018
Non Executive Director – Appointed 23 March 2018
Company Secretary – Appointed 23 March 2018
The above named directors were formally appointed as directors of the Company under the terms of DOCA on 23 March 2018, being
the date the DOCA effectuated.
James Andrew Cruickshank
Gregory David Shoemaker
Vicky Ann McAppion
Mark Gerard Clohessy
Chairman & Managing Director – Resigned 27 April 2016*
Director & Chief Scientist – Resigned 28 April 2016*
Director & Finance & Administration Manager – Resigned 28 April 2016*
Non Executive Director – Resigned 28 April 2016*
* These directors formally ceased to be directors of the Company under the terms of DOCA on 23 March 2018, being the date the
DOCA effectuated.
INFORMATION ON DIRECTORS AND COMPANY SECRETARY
Ross Warner
Executive Director & Chairman (Appointed 23 March 2018)
Ross is an experienced natural resources executive. He has held executive and non-executive director roles in several public
companies listed on AIM and ASX and a number of private companies. He has been involved in operated and non-operated oil and
gas assets in Texas, Louisiana and Oklahoma and gas to power Indonesia. He practiced as a corporate finance lawyer with
Mallesons Stephen Jaques in Perth and Melbourne and Clifford Chance in London. He has the following qualifications: B. Juris and
LLB (UWA); and LLM (Melb).
Other Current Directorships
Andalas Energy and Power plc
Former Directorships in the Last Three Years
Zarmadan Gold Ltd
Special Responsibilities
Chairman
Interests in Shares and Options
15,000,000 ordinary fully paid shares
16,875,000 unlisted options exercisable at $0.01 per option, expires on 30 June 2020
Joanne Kendrick
Managing Director (Appointed 23 March 2018)
Joanne holds a Bachelor of Chemical Engineering from the University of Adelaide and specialises in Petroleum/Reservoir Engineering
with over 20 years of upstream oil and gas experience in operational, technical and senior roles with Woodside Petroleum, Newfield
Exploration, Gulf Canada and Nido Petroleum. She has had management accountability for new venture activity, production
operations, development projects and exploration drilling for 15 years.
Other Current Directorships
None
2018 Annual Report
1
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
DIRECTORS’ REPORT (CONT.)
Former Directorships in the Last Three Years
None
Special Responsibilities
Managing Director
Interests in Shares and Options
15,000,000 ordinary fully paid shares
16,875,000 unlisted options exercisable at $0.01 per option, expires on 30 June 2020
Michael Pollak
Non Executive Director (Appointed 23 March 2018)
Michael Pollak holds a Bachelor of Commerce is a chartered accountant and has an MBA in strategy from the Australian Graduate
School of Management. Michael commenced his career at PriceWaterhouseCoopers over 20 years ago. Michael has gained valuable
experience in both Sydney and London in general management, audit, insolvency, corporate advisory and strategy across a wide
range of industries including financial services, professional services, retail, mining, technology and manufacturing.
Michael is currently a director of MOQ Limited and was previously a director of various ASX listed entities including UCW Limited,
Prospect Resources Limited, Metalicity Limited, Rhipe Limited, and Janison Education Group Limited, being companies that he
previously recapitalised. Michael was also involved in the recapitalisation of various other companies listed on the ASX (via a DOCA
and Creditors Trust).
Other Current Directorships
MOQ Limited (ASX: MOQ) (Non-executive director)
Former Directorships in the Last Three Years
Janison Education Group Limited (ASX: JAN) (Non-executive director)
UCW Limited (ASX: UCW) (Non-executive director)
Special Responsibilities
None
Interests in Shares and Options
26,000,000 ordinary fully paid shares
12,500,000 unlisted options exercisable at $0.01 per option, expires on 30 June 2020
COMPANY SECRETARY
Andrew Whitten (Appointed 23 March 2018)
Andrew is a Solicitor Director of Automic Legal, a division of the Automic Group, where he specialises in corporate finance and
securities law. Andrew has been involved in a comprehensive range of corporate and investment transactions including numerous initial
public offerings on the ASX and NSX, corporate reconstructions, reserve mergers and takeovers. At present, Andrew is company
secretary of a number of public listed companies.
The above named directors and company secretary held office during and since the financial year, except as otherwise indicated.
PRINCIPAL ACTIVITIES
The principal activities of the Consolidated Entity during the financial year were oil and gas production and exploration in the United
States of America.
OPERATING REVIEW
The handover and transition of the operations to the new management team at Big Star began in the April to June 2018 quarter.
Production Wells – Production and Operations
Operational efforts focused on a maintenance review of the production wells and operating cost reduction following the long period
of administration. Repairs and maintenance at the Stuart and Simmons wells were undertaken to the pump, production and H2S
treatment units. As at the end of the year, production continued from the Simmons well. Esmond and Stuart wells were shutin pending
evaluation of workover operations.
Production Wells – Bypassed Oil Study
During the year, Big Star completed a petrophysical study and identified bypassed oil pay in the Upper Spraberry Formation on the
well logs of all four of its wells in Dawson County, Texas. The Upper Spraberry has not been tested or produced previously in any of
the Big Star wells but is known to be productive in other wells in the region.
2018 Annual Report
2
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
DIRECTORS’ REPORT (CONT.)
Production Wells – Workover Operations
During the year, the Company undertook the Esmond #20-1 workover to test the bypassed oil pay in the Upper Spraberry
Formation. Unfortunately, the tubing and pump rods were found to have been severely corroded at approximately 4500feet depth
and parted at this same depth when removed from the wellbore. As a consequence, the remaining length of tubing and pump rods
remain in place in the wellbore preventing access to the Upper Spraberry Formation at approximately 7000 feet which precluded
testing of this zone. The well is currently suspended. The cost of the workover operations was less than US$65,000 (a saving over AFE
estimates of US$140,000).
Exploration Acreage and Portfolio Management
Petrophysical and analogue studies conducted during the year concluded that horizontal drilling opportunities within its acreage did
not meet its risk-reward and other financial hurdles. As a result, the exploration acreage was not renewed upon its expiry.
New Ventures
The Company is actively pursuing upstream opportunities in accordance with its stated strategy. A number of farmin and acquisition
opportunities in North America, Australia and elsewhere were identified and screened. Some of these opportunities remain under
review.
Separately, the Company has undertaken a ground-up review of areas of interest in the United States and Australia which meet its
prospectivity criteria. This review has identified areas with additional product streams of interest to the Company, including helium,
and is on-going.
Corporate
The Company was suspended from trading on the ASX on 11 September 2015 and placed into voluntary administration on 28 April
2016. On 2 December 2016, the Creditors of the Company resolved to place the Company into a Deed of Company Arrangement
(‘DOCA’).
The shareholders of the Company approved a recapitalisation proposal on 23 January 2018, with the capital of the Company
subsequently consolidated on 29 January 2018. The DOCA was effectuated on 23 March 2018, at which time the new Board was
appointed and the Company was released from any pre-administration creditor claims.
The Company completed placings on 9 April 2018 and 23 May 2018 which, in total, raised $2,026,875 (before costs of the DOCA
and recapitalisation) from the issue of 315,000,000 fully paid ordinary shares and 75,000,000 unlisted options.
The Company changed its name to Big Star Energy Limited on 4 June 2018 and its ASX ticker changed to BNL.
On 6 August 2018, Big Star changed its shareholder registry services provider from Security Transfer Australia Pty Limited to Automic
Registry Services.
The Company changed its registered address to Level 5, 126 Phillip St, Sydney NSW 2000 on 2 October 2018.
On 29 October 2018, the Company established a share sale facility for holders of less than a marketable parcel of the Company’s
shares which completed successfully. A total of 4,148,775 shares from 3,230 shareholders were sold under the facility substantially
reducing the ongoing administrative costs associated with maintaining a large number of small holdings.
SIGNIFICANT EVENTS AFTER BALANCE DATE
There have been no significant events after balance date.
SIGNIFICANT CHANGES TO STATE OF AFFAIRS
There have been no further significant changes to the Company’s state of affairs, other than those disclosed in the Operations Review
and Significant Events After Balance Date.
FINANCIAL RESULTS
Big Star Energy Limited (formerly Antares Energy Limited) has reported a total comprehensive profit for the year ended 31 December
2018 of $46,762,314 (2017: loss of $2,758,120). The profit was generated due to the transfer of $48,158,553 to the creditor’s trust
as a result of the effectuation of the DOCA on 23 March 2018. This amount being for the convertible notes and other creditors of the
Company caught under the DOCA.
DIVIDEND
No dividends have been paid or declared since the end of the previous financial period, or to the date of this report.
LIKELY DEVELOPMENTS AND RESULTS
The Company will continue to pursue oil and gas (including helium) opportunities.
2018 Annual Report
3
DIRECTORS’ REPORT (CONT.)
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Consolidated Entity is a party to various exploration and development licences or permits in the country in which it operates. In
most cases, these contracts and licences specify the environmental regulations applicable to oil and gas operations in the respective
jurisdictions. There have been no significant known breaches of the environmental obligations of the Consolidated Entity's licences.
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
DIRECTOR’S MEETINGS
During the financial year, the meeting of directors held were:
Directors Meetings
Name of directors
Meetings
Held
In
attendance
Ross Warner
Joanne Kendrick
Michael Pollak
7
7
7
7
7
7
All other business was conducted via circular resolution.
INCOMPLETE RECORDS
The management and affairs of the Company and all its controlled entities were not under the control of the Directors of the Group
from when it entered voluntary administration on 28 April 2016 until the date the DOCA effectuated on 23 March 2018.
The financial report was prepared by Directors who were not in office at the time the Group entered voluntary administration or for
the full periods presented in this report. The Directors who prepared this financial report were appointed on 23 March 2018.
To prepare the financial report, the Directors have reconstructed the financial records of the Group using data extracted from the
Group’s accounting systems and the record of receipts and payments made available by the Administrator of the Company and its
subsidiaries for the period from their appointment. As such, it has not been possible for the Directors to obtain all the books and records
of the Group for the period prior to their appointment and the effectuation of the DOCA on 23 March 2018.
Consequently, although the Directors have prepared this financial report to the best of their knowledge based on the information made
available to them, they are of the opinion that it is not possible to state that this financial report has been prepared in accordance with
Australian Accounting Standards including Australian Accounting Interpretations, other authoritative pronouncements of the Australian
Accounting Standards Board and the Corporations Act 2001.
AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES
The independence declaration as required under section 307C of the Corporations Act 2001 received from the auditor of Big Star
Energy Limited is set out on page 9 and forms part of this Directors’ report for the year ended 31 December 2018.
Total fees paid or payable to the Company’s auditors Stantons International Audit & Consulting Pty Ltd for non-audit services provided
to the Company during the year ended 31 December 2018 are $9,000 (2017:$8,000).
INDEMNIFICATION OF DIRECTORS, COMPANY SECRETARY AND AUDITORS
The Company has agreed to indemnify the current directors and company secretary of the Group against all liabilities that may arise
from their position as directors or officers of the Group.
INDEMNIFYING OFFICERS OR AUDITOR
During the year, the Company paid a premium to insure officers of the Group. The officers of the Group covered by the insurance
policy include all directors. The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that
may be brought against the officers in their capacity as officers of the Group, and any other payments arising from liabilities incurred
by the officers in connection with such proceedings, other than where such liabilities arise out of conduct involving a wilful breach of
duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone
else to cause detriment to the Group or other otherwise excluded by the policy.
2018 Annual Report
4
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
PROCEEDINGS ON BEHALF OF COMPANY
On 27 November 2017, ASIC lodged proceedings in the Federal Court of Australia against the Company and one of its directors, Mr
James Cruickshank. On 4 December 2017, the Court granted leave to ASIC to commence and maintain the proceedings against the
Company and Mr Cruickshank.
ASIC has alleged in the proceedings that the Company and Mr Cruickshank failed to comply with continuous disclosure obligations in
relation to statements made to the ASX prior to the Company entering into administration, about the proposed sale of its oil and gas
interests in the Permian Basin of Texas, United States to Wade Energy Corporation. Whilst against Mr Cruickshank ASIC seeks
declarations of contravention of his involvement the alleged failure to comply with continuous disclosure obligations (and of Mr
Cruickshank’s alleged failure to discharge his duties to the Company with the degree of care and diligence required), disqualification
orders and pecuniary penalties, ASIC only seeks a declaration of contravention against the Company.
The Administrators consented to the grant of leave being granted to ASIC to commence and maintain the proceedings against the
Company on and Mr Cruickshank on conditions that:
1. ASIC continues to seek only declaratory relief, but not pecuniary penalties, damages or an account of profits from the Company;
2. ASIC is not entitled to seek to enforce any judgment or order against the Company, without further leave of the Court;
3. ASIC will not require the Administrators or the Company to take any active step in the proceedings (including, but not limited to,
the filing of a defence); and
4. ASIC has agreed to cover the reasonable costs incurred by the Company in the proceedings as a result of steps requested or
required by ASIC itself in the proceeding (for example, in relation to providing discovery).
No other person has applied for leave of court to bring proceedings on behalf of the company or intervene in any proceedings to
which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.
2018 Annual Report
5
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
DIRECTORS’ REPORT (CONT.)
REMUNERATION REPORT (AUDITED)
The remuneration report below reflects the remuneration policies that were adopted by the directors of the Company who were
in office at the date of this report. These policies apply since the data of their appointment on 23 March 2018.
Prior to their appointment, the remuneration policies were the responsibility of the previous directors who were in office prior to
the Company entering voluntary administration on 28 April 2016. On entering administration, the Administrators were
responsible for the remuneration policies of the Company. These policies may or may not have been in place during the financial
period. Thus, the directors had no involvement in the adopting, implementing, or complying with the previous remuneration
policies.
The Remuneration Report is set out under the following main headings:
1. Principles used to determine the nature and amount of remuneration;
2. Details of remuneration;
3. Service agreements; and
4. Share-based compensation.
The information provided under headings 1 to 4 below in the Remuneration Report has been audited as required by Section 308(3C)
of the Corporations Act 2001.
1. Principles used to determine the nature and amount of remuneration (audited)
The Company’s Constitution specifies that subject to the initial fixed annual aggregate sum of $500,000, the aggregate remuneration
of non-executive directors shall not exceed the sum determined by the shareholders of the Company in general meeting.
The company may pay a performance based bonus based on key performance indicators of the Director and Company, set by the
Company from time to time, and any matter that it deems appropriate.
Fees and payments to directors:
1. are to reflect the demands which are made on, and the responsibilities of, the directors; and
2. are reviewed annually by the board to ensure that directors’ fees and payments are appropriate and in line with the market.
Retirement allowances and benefits for directors
There are no retirement allowances or other benefits paid to directors.
Directors’ fees
The amount of remuneration of the directors of the Company (as defined in AASB 124 Related Party Disclosures) are outlined in the
table below under the heading Key management personnel remuneration. The current Directors were formally appointed on 23 March
2018, being the date the DOCA effectuated. Consequently, there is not sufficient information to allow this level of disclosure with
regards to the former directors. There was no remuneration of any type paid to the current directors, other than as reported below for
the provision of director and professional services.
Key management personnel*
Ross Warner
Joanne Kendrick
Michael Pollak
Executive Director & Chairman – Appointed 23 March 2018
Managing Director – Appointed 23 March 2018
Non Executive Director – Appointed 23 March 2018
The above named directors were formally appointed as directors of the Company under the terms of DOCA on 23 March 2018, being
the date the DOCA effectuated.
Key management personnel remuneration
The following table sets out the remuneration of directors and executives of the Consolidated Entity during the reporting period.
Year to
31 Dec 2018
Directors
Ross Warner
Joanne Kendrick
Michael Pollack
Total
Salary
& Fees
$
42,422
46,452
42,422
131,296
Short-Term
Cash
Bonus
$
Non
Monetary
Benefits
$
Other
$
Long-
Term
Long-
Service
Leave
$
Post
Employ-
ment
Super-
annuation
$
Total
Total
Perform-
ance
Related
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,030
-
4,030
8,060
46,452
46,452
46,452
139,356
-
-
-
-
* Current Directors were formally appointed on 23 March 2018, being the date the DOCA effectuated. Remuneration was received
for the period 23 March 2018 to 31 December 2018.
No KMP received remuneration for the year ending 31 December 2017.
2018 Annual Report
6
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
REMUNERATION REPORT (AUDITED) (CONT.)
3. Service agreements (audited)
DIRECTOR’S REPORT (CONT.)
The directors serve until they resign, are removed, cease to be a director or are prohibited from being a director under the provisions
of the Corporations Law 2001, or are not re-elected to office. The directors are remunerated on a monthly basis with three months
termination payments payable. As at the date of this report there are no management personnel engaged by the Company other
than the directors.
4. Share-based compensation (audited)
There were no share-based or option based compensation paid to the directors during the financial year.
5. Shareholding and option holding of directors and other key management personnel (audited)
Share holdings of Key Management Personnel
Balance at
1 January
On exercise of
performance
rights
Other changes
during the year
(i)
On market
purchase
Balance at
31 December
2018
Ross Warner
Joanne Kendrick
Michael Pollak
Total
-
-
-
-
-
-
-
-
15,000,000
15,000,000
26,000,000
56,000,000
-
-
-
-
15,000,000
15,000,000
26,000,000
56,000,000
(i)
Shares and options acquired by directors under the placements on 9 April 2018 and 23 May 2018.
No shares were held by current directors for the year ending 31 December 2017.
* The Company was under external administration from 28 April 2016 until 23 March 2018, consequently the Company does not
have sufficient information to allow for the level of disclosure required in relation to the shareholdings for directors prior to 23 March
2018.
Details of options over the ordinary shares in the Company provided to each director and key management personnel of the Group is
set out below. When exercisable, each option is convertible into one ordinary share of the Company.
Options held by Key Management Personnel
Balance at
1 January
On exercise of
performance
rights
Other changes
during the year
(i)
On market
purchase
Balance at
31 December
2018
Ross Warner
Joanne Kendrick
Michael Pollak
Total
-
-
-
-
-
-
-
-
16,875,000
16,875,000
12,500,000
46,250,000
-
-
-
-
16,875,000
16,875,000
12,500,000
46,250,000
(i)
Shares and options acquired by directors under the placements on 9 April 2018 and 23 May 2018.
No options were held by current directors for the year ending 31 December 2017.
* The Company was under external administration from 28 April 2016 until 23 March 2018, consequently the Company does not
have sufficient information to allow for the level of disclosure required in relation to the option holdings for directors prior to 23
March 2018.
Each first placement option gives the option holder the right to subscribe to one share for every first placement option they own. The
first placement options will expire on 30 June 2020, exercisable at $0.01 per option.
End of Remuneration Report
Signed in accordance with a resolution of the Directors.
Ross Warner
Chairman
29 March 2019
2018 Annual Report
7
CORPORATE GOVERNANCE STATEMENT
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
Statement of Corporate Governance
The Company’s corporate governance statement reflects the corporate governance policies that were adopted by the directors of the
Company who were in office at the date of this report. These policies apply since the date of their appointment on 23 March 2018.
Prior to their appointment, the corporate governance policies were the responsibility of the previous directors who were in office prior
to the Company entering voluntary administration on 28 April 2016. On entering administration, the Administrators were responsible
for the corporate governance policies of the Company. These policies may or may not have been in place during the financial period.
Thus, the directors had no involvement in the adopting, implementing, or complying with the previous corporate governance policies.
The Company’s current Corporate Governance Statement is available on Big Star Energy Limited’s website at: www.bigstarenergy.com.au.
2018 Annual Report
8
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
29 March 2019
Big Star Energy Limited
Level 5, 126 Philip Street
Sydney, NSW, 2000
Dear Sirs
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
RE: BIG STAR ENERGY LIMITED (FORMERLY ANTARES ENERGY LIMITED)
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the
following declaration of independence to the directors of Big Star Energy Limited.
As Audit Director for the audit of the financial statements of Big Star Energy Limited for the year
ended 31 December 2018, I declare that to the best of my knowledge and belief, there have been
no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours faithfully,
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LIMITED
(Trading as Stantons International)
(An Authorised Audit Company)
Samir Tirodkar
Director
Liability limited by a scheme approved
under Professional Standards Legislation
Statement of Profit or Loss & Other Comprehensive Income
Big Star Energy Limited and its Controlled Entities
For the Year Ended 31 December 2018
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
Continuing operations
Revenue
Cost of sales
Gross loss
Other income
Other Expenses excluding finance costs
Impairment of oil & gas assets
Rehabilitation provisions
Employment expenses
Business development expenses
Administration expenses
Legal expenses
Loss before income tax
Income tax benefit
Loss from continuing operations
Discontinued operations
Profit from discontinued operations
Net profit/(loss) attributable to members of the company
Other comprehensive income
Exchange differences on translation of foreign entities
Other comprehensive profit/(loss) for the year net of tax
Total comprehensive profit/(loss) for the year
(Loss)/Earnings per share (cents per share)
Loss from continuing operations:
Basic loss per share for the year
Diluted loss per share for the year
Earnings/Loss from all operations:
Basic profit per share for the year
Diluted profit per share for the year
Notes
Consolidated
31 December
2018
$
31 December
2017
$
3
4(a)
4(b)
10
4(c)
4(b)
4(b)
4(b)
5
25
6
6
6
6
50,249
(422,851)
(372,602)
3,203
(517,927)
(249,762)
(66,854)
(139,356)
(52,043)
-
(65,918)
345,509
(486,834)
(141,325)
71,983
(953,138)
(86,133)
-
-
-
(829,797)
(434,997)
(1,461,259)
-
(1,461,259)
(2,373,407)
-
(2,373,407)
48,158,553
46,697,294
-
(2,373,407)
65,020
65,020
46,762,314
(384,713)
(384,713)
(2,758,120)
(0.61)
(0.61)
19.45
17.01
(0.99)
(0.99)
(0.99)
(0.99)
The above statement of profit or loss & other comprehensive income should be read in conjunction with the accompanying notes.
2018 Annual Report
10
Statement of Financial Position
Big Star Energy Limited and its Controlled Entities
As at 31 December 2018
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
NON-CURRENT ASSETS
Other assets
Oil and gas properties
Property, Plant & Equipment
Total non-current assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Interest-bearing loans and borrowings
Total current liabilities
NON-CURRENT LIABILITIES
Provisions
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS/(LIABILITIES)
EQUITY
Contributed equity
Reserves
Accumulated Losses
TOTAL SHAREHOLDERS FUNDS
Notes
Consolidated
31 December
2018
$
31 December
2017
$
7
8
9
9
10
11
12
13
14
15
16
510,308
18,326
17,873
546,507
35,421
51,006
3,078
89,505
636,012
238,645
-
238,645
283,367
283,367
522,012
114,000
254,183
-
-
254,183
-
295,916
-
295,916
550,099
1,096,617
47,500,000
48,596,617
160,256
160,256
48,756,873
(48,206,774)
1,882,418
66,895
(1,835,313)
114,000
84,436,358
32,475,521
(165,118,653)
(48,206,774)
The above statement of financial position should be read in conjunction with the accompanying notes.
2018 Annual Report
11
Statement of Changes in Equity
Big Star Energy Limited and its Controlled Entities
For the Year Ended 31 December 2018
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
CONSOLIDATED
Balance at 1
January 2018
Profit for the
year
Exchange
differences on
translation of
foreign
operations
Total
comprehensive
profit for the
year
Transactions
with owners in
their capacity as
owners:
Issue of Capital
and options
Costs of capital
Write back of
accumulated
losses
Balance at 31
December 2018
Balance at 1
January 2017
Loss for the year
Exchange
differences on
translation of
foreign
operations
Total
comprehensive
loss for the year
Transactions
with owners in
their capacity as
owners:
Balance at 31
December 2017
Ordinary
Share
Capital
$
Accumulated
Losses
$
Foreign
Currency
Reserve
$
Convertible
Note
Premium
Reserve
$
Share Option
Reserve
$
Total
$
84,436,358
(165,118,653)
22,671,063
3,921,020
5,883,438
(48,206,774)
-
-
-
46,697,294
-
-
65,020
46,697,294
65,020
2,025,000
(142,582)
-
-
-
-
-
-
-
-
-
46,697,294
65,020
-
46,762,314
1,875
2,026,875
(142,582)
(84,436,358)
116,586,046
(22,671,063)
(3,921,020)
(5,883,438)
(325,833)
1,882,418
(1,835,313)
65,020
-
1,875
114,000
84,436,358
(162,745,246)
23,055,776
3,921,020
5,883,438
(45,448,654)
(2,373,407)
-
(384,713)
(2,373,407)
(384,713)
-
-
(2,373,407)
(384,713)
(2,758,120)
-
-
-
-
84,436,358
(165,118,653)
22,671,063
3,921,020
5,883,438
(48,206,774)
The above statement of changes in equity should be read in conjunction with the accompanying notes.
2018 Annual Report
12
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
Statement of Cash Flows
Big Star Energy Limited and its Controlled Entities
For the Year Ended 31 December 2018
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
DOCA settlement
Net cash (outflows) from operating activities
Cash flows from investing activities
Proceeds from Northern Star
Payment for property, plant and equipment
Net cash (outflows)/inflows from investing activities
Cash flows from financing activities
Net Proceeds from share issue
Costs related to issue of shares
Proceeds from syndicate loan
Repayment of syndicate loan
Net cash inflows from financing activities
Net increase in cash and cash equivalents held
Cash and cash equivalents at the beginning of the year
Effects of exchange rate changes on cash
Cash and cash equivalents at the end of the year
Consolidated
Note
7
7
31 December
2018
$
46,301
(1,150,312)
3,203
(510,729)
(1,611,537)
-
(6,032)
(6,032)
1,841,654
(142,582)
498,021
(322,800)
1,874,293
256,724
254,183
(599)
510,308
31 December
2017
$
345,509
(2,614,534)
71,983
-
(2,197,042)
2,306,186
-
2,306,186
-
-
-
-
-
109,144
145,039
-
254,183
The above statement of cash flows should be read in conjunction with the accompanying notes.
2018 Annual Report
13
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 1
BASIS OF PREPARATION
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
Big Star Energy Limited (formerly Antares Energy Limited) is a company limited by shares incorporated and domiciled in Australia
whose shares are publicly traded on the Australian Securities Exchange and is a for profit entity. The address of the registered
office and principal place of business is Level 5, 126 Phillip Street, Sydney, NSW, 2000.
The principal activities of Big Star Energy Limited are oil and gas production and exploration in the United States of America.
(a)
Basis of preparation
Subject to note 1(b) below, the financial report is a general-purpose financial report, which has been prepared in accordance
with the requirements of the Corporations Act 2001, applicable Australian Accounting Standards and other mandatory
professional reporting requirements.
The financial report has been prepared in accordance with the historical cost convention.
Going Concern
The directors have prepared the financial report of the consolidated entity on a going concern basis.
For the year ended 31 December 2018 the consolidated entity produced a total comprehensive profit of $46,762,314 (31
December 2017: total comprehensive loss of $2,758,120) and had working capital of $307,862 (31 December 2017:
deficiency of $48,342,434). Based upon the Group’s existing cash resources of $510,308 (31 December 2017: $254,183),
and on the effectuation of the DOCA on 23 March 2018 and subsequent recapitalisation of the Company, and on the ability to
modify expenditure outlays if required and source additional funds, the Directors consider there are reasonable grounds to
believe that the Group will be able to pay its debts as and when they become due and payable, and therefore the going
concern basis of preparation is considered to be appropriate for the year ended 31 December 2018 financial report.
The Directors are aware, having prepared a cashflow forecast, of the Group’s working capital requirements and the need to
access additional equity funding or asset divestment if required within the next 12 months.
In the event that the Group is not able to continue as a going concern, it may be required to realise assets and extinguish
liabilities other than in the normal course of business and perhaps at amounts different to those stated in its financial report.
Statement of compliance
The financial report complies with Australian Accounting Standards and International Financial Standards (IFRS) as issued by the
International Accounting Standard Board except for the incomplete records noted below.
(b)
Incomplete records
The management and affairs of the Company and all its controlled entities were not under the control of the Directors of the
Group from when it entered into voluntary administration on 28 April 2016 until the date the DOCA effectuated on 23 March
2018.
The financial report was prepared by Directors who were not in office at the time the Group entered voluntary administration
or for the full periods presented in this report. The Directors who prepared this financial report were appointed on 23 March
2018.
To prepare the financial report, the Directors have reconstructed the financial records of the Group using data extracted from
the Group’s accounting systems and the record of receipts and payments made available by the Administrator of the Company
and its subsidiaries for the period from their appointment. As such, it has not been possible for the Directors to obtain all the
books and records of the Group for the period prior to their appointment and the effectuation of the DOCA on 23 March 2018.
Consequently, although the Directors have prepared this financial report to the best of their knowledge based on the information
made available to them, they are of the opinion that it is not possible to state that this financial report has been prepared in
accordance with Australian Accounting Standards including Australian Accounting Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
(c)
New and amended accounting standards and interpretations
The Company has considered the implications of new and amended accounting standards that became applicable for the
reporting periods commencing after 1 January 2018 but determined that their application to the financial statements is either
not relevant or not material. AASB15: Revenue from Contracts with Customers, which became applicable for reporting periods
commencing after 1 January 2018, was adopted by the Company. A number of new or amended standards became applicable
for the current reporting period. However, the Company did not have to change its accounting policies or make retrospective
adjustments as a result of adopting these standards.
2018 Annual Report
14
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 1 BASIS OF PREPARATION (CONT.)
(d)
Principles of consolidation
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
The consolidated financial statements comprise the financial statements of Big Star Energy Limited and its subsidiaries (formerly
Antares Energy Limited) during the year ended 31 December 2018 (“the Consolidated Entity").
The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent
accounting policies.
In preparing the consolidated financial statements, all inter-company 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 Consolidated Entity and cease to be
consolidated from the date on which control is transferred out of the Consolidated Entity.
(e)
Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
Oil and Gas Properties
Oil and gas properties include construction, installation or completion of infrastructure facilities such as pipelines and platforms,
capitalised borrowing costs, transferred exploration and evaluation costs, and the cost of development wells.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Consolidated Entity and the cost of the item can
be measured reliably. All other costs are charged to profit or loss during the financial period in which they are incurred.
Depreciation
Property, plant and equipment, other than freehold land, is depreciated to their residual values at rates based on the
expected useful lives of the assets concerned.
The remaining assets use the straight line approach. The major categories of assets are depreciated as follows:
Category
Method
Plant and equipment
Straight line at 50%
Impairment
The carrying values of property, plant and equipment are reviewed for impairment at each reporting date, with the
recoverable amount being estimated when events or changes in circumstances indicate the carrying value may be impaired.
The recoverable amount of property, plant and equipment is the greater of fair value less costs to sell and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset.
For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-
generating unit to which the asset belongs, unless the asset's value in use can be estimated to be close to its fair value.
Impairment exists when the carrying value of an asset or cash-generating unit exceeds its estimated recoverable amount. The
asset or cash-generating unit is then written down to its recoverable amount.
For property, plant and equipment, impairment losses are recognised in profit or loss.
Disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are
expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between
the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is
derecognised.
(f)
Exploration and evaluation
Expenditure on exploration and evaluation is accounted for in accordance with the "area of interest" method.
Exploration licence acquisition costs are capitalised and subject to half-yearly impairment testing.
All exploration and evaluation costs, including general permit activity, geological and geophysical costs and new venture activity
costs are expensed as incurred except where:
•
•
The expenditure relates to an exploration discovery where, at balance date, an assessment of the existence or otherwise
of economically recoverable reserves is not yet complete and significant operations in, or in relation to, the area of interest
are continuing; or
An assessment has been made and it is expected that the expenditure will be recouped through successful exploitation of
the area of interest, or alternatively, by its sale.
The costs of drilling exploration wells are initially capitalised pending the results of the well. Costs are expensed where the well
does not result in the successful discovery of economically recoverable hydrocarbons. Areas of interest may be recognised at
either the field or the well level, depending on the nature of the project. Subsequent to the recognition of an area of interest,
all further costs relating to the area of interest are capitalised.
2018 Annual Report
15
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 1 BASIS OF PREPARATION (CONT.)
(f)
Exploration and evaluation(cont)
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
Each potential or recognised area of interest is reviewed half-yearly to determine whether economic quantities of reserves have
been found or whether further exploration and evaluation work is underway or planned to support the continued carry forward
of capitalised costs.
Upon approval for the commercial development of an area of interest, accumulated expenditure for the area of interest is
transferred to oil and gas properties.
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful development and
commercial exploitation, or alternatively, sale of the respective areas of interest.
(g)
Impairment
Non-financial assets
At each reporting date, the Consolidated Entity assesses whether there is any indication that an asset may be impaired. If any
such indication of impairment exists, or when annual impairment testing for an asset is required, the Consolidated Entity makes a
formal estimate of the asset's recoverable amount.
An asset's recoverable amount is the higher of fair value less costs to sell and its value in use. It is determined for an individual
asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets
and the asset's value in use cannot be estimated to be close to its fair value. In such cases, the asset is tested for impairment as
part of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its
recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to
continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the
asset is carried at a revalued amount (in which case the impairment loss is treated as a revaluation decrease).
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the
revised estimate of recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit).
(h)
Provision for restoration
The Consolidated Entity records the present value of the estimated cost of legal and constructive obligations to restore operating
locations in the period in which the obligation arises. The nature of restoration activities includes the removal of facilities,
abandonment of wells and restoration of affected areas.
Typically, the obligation arises when the asset is installed at the production location. When the liability is initially recorded, the
estimated cost is capitalised by increasing the carrying amount of the related oil and gas properties.
Costs incurred that relate to an existing condition caused by past operations, and do not have future economic benefit, are
expensed.
(i)
Trade and other receivables
Trade receivables, which generally have 30-90 day terms, are recognised and carried at original invoice amount less an
allowance for any uncollectible amounts.
An estimate for doubtful debts is made when there is objective evidence that the Consolidated Entity will not be able to collect
the full debt. Bad debts are written off when identified. Financial difficulties of the debtor and default payments are likely to
be considered objective evidence of impairment.
(j)
Cash and cash equivalents
Cash and short term deposits in the statement of financial position comprise cash at bank and in hand and short-term deposits
with an original maturity of three months or less.
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined
above.
(k)
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services provided to
the Consolidated Entity prior to the end of the financial year that are unpaid and arise when the Consolidated Entity becomes
obliged to make future payments in respect of the purchase of these goods and services.
(l)
Provisions
Provisions are recognised when the Consolidated Entity has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are discounted using a pre-tax rate that reflects the risks specific
to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as finance costs.
2018 Annual Report
16
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 1
BASIS OF PREPARATION (CONT.)
(m)
Employee benefits
Short term benefits
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
Liabilities for wages and salaries, and other short term benefits expected to be settled within 12 months of the reporting date
are recognised in current provisions in respect of employees' services up to the reporting date. They are measured at the
amounts expected to be paid when the liabilities are settled.
(n)
Revenue recognition
The group has adopted the new standard AASB 115 Revenue from 1 July 2018. Revenue is recognised using the sales method
rather than the entitlement method.
Revenue is recognised and measured at the fair value of the consideration received or receivable to the extent that it is probable
that the economic benefits will flow to the Consolidated Entity and the revenue can be reliably measured. The following specific
recognition criteria must also be met before revenue is recognised:
Sales Revenue
Sales revenue is recognised when the significant risks and rewards of ownership have passed to the buyer and the costs incurred
or to be incurred in respect of the transaction can be measured reliably. Risks and rewards of ownership are considered passed
to the buyer at the time of "delivery of goods to the customer". Delivery of product is by pipeline and under well specific
contracts that define the place of transfer in ownership; the nominated transfer point has appropriate meter equipment installed.
Product pricing is dependent upon product quality and delivery volumes rates, and base price marked to an appropriate
commodity market benchmark.
Interest
Revenue is recognised as the 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.
Dividends
Revenue is recognised from dividends when the Company’s right to receive the dividend payment is established.
(o)
Income tax
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 balance date.
Deferred income tax is provided on all temporary differences at the balance 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 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 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
differences 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 assets 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 and interests in joint
ventures, in which case the deferred tax asset is only recognised to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and taxable profit will be available against which the temporary
differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance 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 balance 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 to the year when the asset
is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted at the
balance date.
Income taxes relating to terms recognised directly in equity are recognised in equity and not in profit or loss.
2018 Annual Report
17
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 1 BASIS OF PREPARATION (CONT.)
(p) Other taxes
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
Revenues, expenses and assets are recognised net of the amount of GST except:
• when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority in which case the
GST 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 included.
•
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in
the Statement of Financial Position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from
investing and financing activities, which is recoverable from, or payable to, the taxation authority, are classified as operating
cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
(q)
Contributed equity
Issued and paid up capital is recognised at the fair value of the consideration received by the Consolidated Entity. Any
transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the proceeds received.
(r)
Earnings per share ("EPS")
Basic EPS is calculated as net profit attributable to members of the parent, adjusted to exclude costs of servicing equity (other
than dividends), divided by the weighted average number of ordinary shares, adjusted for any bonus element.
Diluted EPS is calculated as the net profit attributed to members of the parent, adjusted for:
•
•
costs of servicing equity (other than dividends);
the after-tax effect of dividends and interest associated with the dilutive potential ordinary shares that have been recognised
as expenses; and
• other non-discretionary changes in revenue and expenses during the period that would result from the dilution of potential
ordinary shares;
divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus
element.
(s)
Inventories
Inventories are valued at the lower of cost and net realisable value. Spares and consumables are valued at purchase cost on a
first-in first-out basis. Surplus and obsolete items are identified and disposed of, or written down to realisable value pending
disposal.
(t)
Foreign currency translation
Both the functional and presentation currency of Big Star Energy Limited and its Australian subsidiaries is in Australian dollars ($).
Entities within the Consolidated Entity that are based and operate outside of Australia use the functional currency of the country
in which they operate, provided the local economy is not subject to hyperinflation. Each entity in the Consolidated Entity uses its
specific functional currency to measure the items included in the financial statements of that entity.
Transactions in foreign currency are initially recorded in the functional currency by applying the exchange ruling at the date of
the transaction or the average for the period when translating a large number of transactions. Monetary assets and liabilities
denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date.
Non-monetary items that are measured in terms of historic cost in a foreign currency are translated using the exchange rate as
at the date of the initial transaction. Non-monetary items are measured at fair value in a foreign currency are translated using
the exchange rate as at the date when fair value was determined.
The functional currency of the Consolidated Entity’s material foreign operation, Antares Energy Company, is United States dollars
(USD).
As at the reporting date the assets and liabilities of this subsidiary were translated into the presentation currency of Big Star
Energy Limited at the rate of exchange ruling at the balance date and their profit or loss is translated at the average exchange
for the period.
The exchange differences arising on the translation are taken directly to a separate component of equity. On disposal of a
foreign entity, the deferred cumulative amount recognised in equity relating to that particular foreign operation is recognised
in the statement of profit or loss and other comprehensive income.
(u)
Share-based payment transactions
The Consolidated Entity provides benefits to directors and employees of the Consolidated Entity in the form of equity, whereby
directors and employees render services in exchange for shares, options to acquire shares or rights over shares.
There is currently no share based remuneration in place.
2018 Annual Report
18
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 1
BASIS OF PREPARATION (CONT.)
(u)
Share-based payment transactions(cont.)
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
The cost of these equity-settled transactions with employees and directors is measured by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined using an appropriate model. In valuing equity-
settled transactions, account is taken of performance conditions where the conditions are linked to the price of the shares of Big
Star Energy Limited.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which
the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled
to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the extent
to which the vesting period has expired and (ii) for non-market based hurdles, the extent to which the hurdle has been satisfied.
Consolidated Entity’s best estimate of the number of equity instruments that will ultimately vest. No adjustment is made for
changes in the likelihood of market performance conditions being met as the effect of these conditions is included in the
determination of the fair value at grant date. The profit or loss charge or credit for a period represents the movement in
cumulative expense recognised as at the beginning and end of that period.
The dilutive effect, if any, of outstanding securities is reflected as additional share dilution in the computation of earnings per
share.
(v)
Critical accounting estimates, assumptions and judgements
Estimates and assumptions are periodically evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. Equally, the Consolidated Entity
continually employs judgement in the application of its accounting policies.
(i) Critical Accounting Estimates and Assumptions
The Consolidated Entity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
Impairment of oil and gas properties
The Consolidated Entity’s accounting policy for impairment is set out at Note 1(g).
Unless otherwise identified, the following discussion of impairment testing is applicable to the assessment of the recoverable
amount of all of the Consolidated Entity’s Oil and Gas Property assets.
As at 31 December 2018 the Group impaired the value in use of its oil and gas properties, writing their carrying values to
$51,006 (2017:$295,916).
The company has valued these assets at the fair value or market price for these assets.
Restoration obligations
Where a restoration obligation exists, the Consolidated Entity estimates the future removal costs of production facilities, wells
and pipelines at the time of installation of the assets. In most instances, removal of assets occurs many years into the future. This
requires judgemental assumptions regarding removal date, future environmental legislation, the extent of reclamation activities
required, the engineering methodology for estimating cost, future removal techniques in determining the removal cost and asset.
For more detail regarding this policy in respect of the provision for restoration refer to Note 1(i).
NOTE 2
SEGMENT REPORTING
For management purposes, the Company is organised into one main operating segment, which involves oil and gas exploration,
development and production in the USA. All the Consolidated Entity's activities are interrelated, and discrete financial information
is reported to the Directors as a single segment. Accordingly, all significant operating decisions are based upon analysis of the
Company as one segment. The financial results from this segment are equivalent to the financial statements of the Consolidated
Entity as a whole.
The Consolidated Entity derives its revenue primarily from the sale of oil and gas produced in the USA. During the years ended
31 December 2018 and 31 December 2017 external sales of oil and gas were made to customers solely located in the USA.
Analysis of revenue – Continued operations:
Oil
Gas
Consolidated
31 December
2018
$
31 December
2017
$
49,187
1,062
50,249
326,861
18,648
345,509
2018 Annual Report
19
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 2
SEGMENT REPORTING (CONT.)
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
Geographical split of non-current assets:
USA
Australia
NOTE 3
REVENUE & INCOME
Revenue
Sale of product
NOTE 4
EXPENSES AND LOSSES
Expenses
(a) Cost of sales:
Other production costs
Total cost of goods sold
(b) Other expenses:
General expenses
Depreciation
Administration expenses
Legal expenses
Business development expenses
(c) Employment expenses:
Wages and salaries
Superannuation
Total employment expenses
NOTE 5
INCOME TAX
Consolidated
31 December
2018
31 December
2017
51,006
3,078
54,084
295,916
-
295,916
Consolidated
31 December
2018
$
31 December
2017
$
50,249
50,249
345,509
345,509
Consolidated
31 December
2018
$
31 December
2017
$
422,851
422,851
486,834
486,834
514,973
2,954
-
65,918
52,043
635,888
131,296
8,060
139,356
953,138
-
829,797
434,996
-
2,217,931
-
-
-
The major components of income tax expense are
Income Statement
Current Income Tax
Current income tax benefit
Prior year adjustment
Deferred Income Tax
Relating to origination and reversal of timing differences
Income tax benefit is attributable to:
Loss from continuing operations
Profit from discontinued operations
Consolidated
31 December
2018
$
31 December
2017
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2018 Annual Report
20
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 5
INCOME TAX (CONT.)
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
A reconciliation between tax expense and the product of accounting loss before income tax
multiplied by the Group's applicable income tax rate is as follows:
Accounting profit/(loss) before income tax
46,697,294
(2,373,407)
At Group's statutory income tax rate of 27.5% (2017: 28%)
12,841,756
(664,554)
Adjustments in respect of current year income tax:
- Non deductible expense / assessable income
- Other
- Deferred tax asset not brought to account
- Prior year adjustments
Income tax benefit
(13,243,602)
-
401,846
-
-
*
*
664,554
*
-
* The Company was under external administration from 28 April 2016, consequently the Company does not
have sufficient information to allow for the level of disclosure required for the comparative year ended 31
December 2017.
Unrecognised deferred tax assets
The following deferred tax assets have not been brought to account as follows:
Tax losses - revenue (Australian)
Temporary difference – oil and gas assets
Temporary differences – financial assets
Temporary differences – provisions
31 December
2018
$
402,929
-
-
-
402,929
31 December
2017
$
664,554
*
*
*
*
The deferred tax assets will only be obtained if:
i) Future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised;
ii) The conditions for deductibility imposed by tax legislation continue to be complied with; and
iii) No changes in tax legislation adversely affect the consolidated entity in realising the benefit.
* The Company was under external administration from 28 April 2016, consequently the Company does not have sufficient
information to allow for the level of disclosure required for the comparative year ended 31 December 2017.
Big Star Energy Limited does not have any franking credits at 31 December 2018 (2017: NIL).
NOTE 6
PROFIT/(LOSS) PER SHARE
Basic profit/(loss) per share amounts are calculated by dividing net profit or loss for the period attributable to ordinary equity
holders of the parent by the weighted average number of ordinary shares outstanding during the period.
Diluted profit/(loss) per share amounts are calculated by dividing the net profit or loss attributable to ordinary equity holders of
the parent by the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential
ordinary shares into ordinary shares
The following reflects the income and share data used in the basic
and diluted earnings per share computations:
Net profit/(loss) attributable to ordinary equity holders of the parent
(used in calculating basic and diluted profit/(loss) per share)
Weighted average number of ordinary shares outstanding during the
year used in calculating basic and dilutive EPS
Consolidated
31 December
2018
$
46,697,294
31 December
2017
$
(2,373,407)
240,035,632
240,000,000
In order for convertible notes to be considered dilutive, they are required to be dilutive to the continuing operations
of the Consolidated Entity. There were 71,250,000 contingently issuable and anti-dilutive potential shares outstanding
at 31 December 2017 that have not been included in the calculation of diluted earnings per share. Convertible Notes
were compromised by the DOCA and extinguished against the Company (and transferred to the Antares Creditors
Trust).
NOTE 7 CASH AND CASH EQUIVALENTS
Cash at bank and on hand
Consolidated
31 December
2018
$
31 December
2017
$
510,308
254,183
Cash at bank earns interest at floating rates based on daily bank deposit rates.
2018 Annual Report
21
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 7
CASH AND CASH EQUIVALENTS (CONT.)
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
Reconciliation of net profit/(loss) after tax to net operating cash flows
Net profit/(loss) for the year
Non-cash Items and other adjustments:
Profit from discontinued operations
Impairment of oil & gas properties
Foreign exchange translation
DOCA settlement
Change in operating assets and liabilities:
(Increase)/Decrease in receivables and prepayments
Increase in creditors and payables
Increase/(Decrease) in provisions
Net cash (outflows) from operating activities
NOTE 8
TRADE AND OTHER RECEIVABLES
Current
Other receivables (i)
(i) Other receivables include BAS refunds.
NOTE 9
OTHER ASSETS
Current
Prepayment
Non Current
Bonds (i)
Consolidated
31 December
2018
$
31 December
2017
$
46,697,294
(2,373,407)
(48,158,553)
316,616
-
(510,729)
(18,326)
(60,950)
123,111
(1,611,537)
86,113
63,539
-
1,163
312,187
(286,637)
(2,197,042)
Consolidated
31 December
2018
$
31 December
2017
$
18,326
18,326
-
-
Consolidated
31 December
2018
$
31 December
2017
$
17,873
35,421
53,294
-
-
-
(i) Refundable deposits on completion of well abandonment at operated oil and gas properties.
NOTE 10
OIL AND GAS PROPERTIES
Oil and gas properties
- at cost
- accumulated amortisation & impairment
- exchange difference translation
Consolidated
31 December
2018
$
31 December
2017
$
411,183
(335,875)
(24,302)
51,006
411,183
(86,113)
(29,154)
295,916
Oil and gas properties are denominated in $US dollars
Reconciliation
Reconciliation of carrying amounts of oil and gas properties at the beginning and end of the current financial
year:
Balance at start of year
Additions
Impairment
Foreign exchange translation
Balance at end of year
295,916
-
(249,762)
4,852
51,006
411,183
-
(86,113)
(29,154)
295,916
2018 Annual Report
22
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 10
OIL AND GAS PROPERTIES (CONT.)
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
Oil and gas properties consist of the Big Star project. The value of the Group’s interest in oil and gas properties is dependent
upon the continuance of the Group’s rights to tenure of the areas of interest, the results of future exploration and the recoupment
of costs through successful development and exploitation of the areas of interest, or alternatively, by their sale.
The directors have impaired the value of the oil and gas assets due to the expiry of exploration leases resulting in the oil and gas
property value of $51,006 (US$36,000) at 31 December 2018.
NOTE 11
PROPERTY, PLANT & EQUIPMENT
Consolidated
EQUIPMENT
IT Equipment (i)
Accumulated Depreciation
(i)
IT equipment purchased in June 2018.
NOTE 12
TRADE AND OTHER PAYABLES (CURRENT)
Trade creditors and accruals
Creditors Claims under Administration
31 December
2018
$
31 December
2017
$
6,032
(2,954)
3,078
-
-
Consolidated
31 December
2018
$
31 December
2017
$
238,645
-
238,645
486,466
610,151
1,096,617
Trade creditors are non-interest bearing and generally payable within 30 – 60 days.
NOTE 13
INTEREST-BEARING LOANS AND BORROWINGS
Current
Convertible notes
Convertible Notes
Consolidated
31 December
2018
$
-
-
31 December
2017
$
47,500,000
47,500,000
As at 31 December 2017 there was a total of 23,750,000 notes on issue with a face value of $47,500,000.
As a result of the Company entering external administration on 28 April 2016, the Convertible Notes are immediately due and
payable. At the date of effectuation of the DOCA on the 23 March 2018, Convertible Notes were compromised by the DOCA
and extinguished against the Company (and transferred to the Antares Creditors Trust).
NOTE 14
PROVISIONS
Non-Current
Restoration
Consolidated
31 December
2018
$
31 December
2017
$
283,367
283,367
160,256
160,256
The Restoration provisions are denominated in $US dollars (US$200,000) (31 December 2017 (US
$125,000)
Reconciliation of the movements in the restoration
provision
Balance at start of year
Additions during the year
Foreign exchange movements
Balance at end of year
160,256
106,263
16,848
283,367
449,143
(286,637)
(2,250)
160,256
2018 Annual Report
23
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 14
PROVISIONS (Continued)
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
The restoration obligations are expected to be incurred over a period from 1 to 15 years.
The Company has recognised a provision for restoration related to the estimated cost of restoration work required at the end of
the useful life of the producing fields, including removal of facilities and equipment required or intended to be removed.
These provisions have been created based on the Company’s estimate. These estimates are reviewed regularly to take into
account any material changes to the assumptions. However actual decommissioning costs will ultimately depend upon future
market prices for the necessary decommissioning works required which will reflect market conditions at the relevant time.
Furthermore, the timing of the decommissioning is likely to depend on when the fields cease to produce at economically viable
rates. This, in turn, will depend upon future oil prices, which are inherently uncertain. These estimates of restoration are subject
to significant estimates and assumptions which are outlined in Note 1(o).
NOTE 15
CONTRIBUTED EQUITY
Issued and paid up capital:
Fully paid ordinary shares
31 December
2018
$
31 December
2017
$
1,882,418
84,436,358
Movement in ordinary shares on issue:
At 1 January 2018
Consolidation (1:15) (i)
Issue of shares (First Placement) (ii)
Issue of shares (Capital raising) (iii)
Less: Capital raising costs
Write back of accumulated losses*
At 31 December 2018
12 months to
31 December 2018
$
No. of shares
12 months to
31 December 2017
No. of shares
$
240,000,000
(223,999,983)
150,000,000
165,000,000
-
-
331,000,017
84,436,358
-
375,000
1,650,000
(142,582)
(84,436,358)
1,882,418
240,000,000
-
-
-
-
-
240,000,000
84,436,358
-
-
-
-
-
84,436,358
(i) On 29 January 2018 the existing capital of the Company was consolidated on a fifteen (15) to one (1) basis
(ii) 150,000,000 First placement shares were issued to Syndicate members on the 9 April 2018 at an issue price of $0.0025
cents per placement share.
(iii) 165,000,000 New shares were issued pursuant to the Public offer on 23 May 2018 at an issue price of $0.01 cents per
share.
* The directors of the Company elected to apply relief under section 258F of the Corporations Act 2001, as the Paid Up Share
Capital is considered cost or is not represented by available assets.
Capital management
The capital management note below reflects the capital management policies that were adopted by the directors of the
Company who were in office prior to the Company entering into administration. These policies applied until the Company
entered Voluntary Administration on 28 April 2016. On entering administration, the Administrators were responsible for
the capital management of the Company.
The current Directors had no involvement, until their appointment on 23 March 2018, in adopting, implementing or
complying with these capital management policies. These policies may or may not have been in place during the financial
period.
When managing capital, the Board’s objective is to ensure the Consolidated Entity continues as a going concern as well as to
maintain optimal returns to shareholders and benefits for other stakeholders. Management also aims to maintain a capital structure
that ensures the lowest cost of capital available to the entity.
Management monitor capital by reviewing the level of cash on hand, future revenue streams from oil and gas reserves and
assessing the impact of possible future commitments. At the date of effectuation of the DOCA on the 23 March 2018,
Convertible Notes were compromised by the DOCA and extinguished against the Company (and transferred across to the
Antares Creditors Trust).
Total borrowings
Less cash and cash equivalents
Net debt (minimum balance is nil)
Total shareholders’ funds
Total capital and debt
Consolidated
31 December
2018
$
-
(510,308)
(510,308)
114,000
(396,308)
31 December
2017
$
47,500,000
(254,183)
47,245,817
(48,206,774)
(960,957)
2018 Annual Report
24
Notes to the Financial Statements
For the Year Ended 31 December 2018
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
NOTE 16
RESERVES
Consolidated
Option reserve (i)
Convertible Note reserve
FX Translation reserve
31 December
2018
$
31 December
2017
$
1,875
-
65,020
66,895
5,883,438
3,921,020
22,671,063
32,475,521
(i) 75,000,000 options were issued to Syndicate members and their nominees on the 9 April 2018 at an issue price of $0.0025
cents per option.
Nature and purpose of reserves:
Option reserve
The option reserve is used to record the value of share based payments and other options purchased by/provided to Key
Management Personnel, as part of their remuneration. There were 75,000,000 options issued in 2018 (2017: NIL).
Convertible Note reserve
The convertible note reserve is used to record the equity portion of convertible notes issued by the Company.
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the conversion of the financial
statement of foreign subsidiaries.
Movement in Option reserve
Beginning of the year
Issue of options
Write back of accumulated losses
End of the year
Movement in Convertible Note reserve
Beginning of the year
Issue of convertible notes
Write back of accumulated losses
End of the year
Movement in FX Translation reserve
Beginning of the year
Translation of foreign currency
Write back of accumulated losses
End of the year
Number
31 December
2018
$
Consolidated
Number
31 December
2017
$
5,883,438
1,875
(5,883,438)
1,875
-
75,000,000
-
75,000,000
5,883,438
-
-
5,883,438
Number
23,750,000
-
(23,750,000)
-
31 December
2018
$
3,921,020
-
(3,921,020)
-
22,671,063
65,020
(22,671,063)
65,020
Consolidated
Number
23,750,000
-
-
23,750,000
31 December
2017
$
3,921,020
-
-
3,921,020
23,055,776
(384,713)
-
22,671,063
NOTE 17
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The financial risk note below reflects the financial risk management and policies that were adopted by the directors of the
Company who were in office prior to the Company entering into administration. These policies applied until the Company
entered Voluntary Administration on 28 April 2016. On entering administration, the Administrators were responsible for
the financial risk management of the Company.
The current directors had no involvement (until their appointment on 23 March 2018) in adopting, implementing or
complying with these financial risk management and policies. These policies may or may not have been in place during
the financial period.
2018 Annual Report
25
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 17
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)
Overview
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
The Company and the Consolidated Entity have exposure to the following risks from their use of financial instruments:
a) market risk;
b)
c)
liquidity risk; and
credit risk.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Board
is responsible for developing and monitoring risk management policies.
The Consolidate Entity’s principal financial instruments comprise cash at bank.
The main purpose of these financial instruments is to provide working capital for the Consolidated Entity’s operations.
The Consolidated Entity’s has various other financial instruments such as trade creditors, which arise directly from its operations.
Throughout the period under review, the Consolidated Entity’s policy is that no trading in financial instruments shall be undertaken.
The main risks arising from the Consolidated Entity’s financial instruments are market risk (which includes interest rate risk, foreign
currency risk and commodity risk), liquidity risk and credit risk. The Board reviews and agrees on policies for managing each of
these risks and they are summarised below:
(a) Market risk
Equity price risk
As at 31 December 2018 there is no material equity risk for the Company.
Interest rate risk
At balance date the Consolidated Entity’s exposure to market risk for changes in interest rates relates primarily to the Company’s
cash at bank. As at 31 December 2018 there is no material interest rate risk for the Company.
Foreign currency risk
As a result of oil and gas exploration, development and production operations in the USA being denominated in USD, the
Consolidated Entity’s Statement of Financial Position can be affected significantly by movements in the USD/AUD exchange rates.
The Company does not hedge this translational risk exposure.
The Consolidated Entity manages its foreign exchange risk by constantly reviewing its exposure to commitments payable in foreign
currency and ensuring appropriate cash balances are maintained in United States Dollars, to meet current operational
commitments.
At 31 December 2018 the Consolidated Entity had no forward foreign exchange contracts in place.
Commodity price risk
The Consolidated Entity is exposed to commodity price fluctuations through the sale of petroleum products denominated in US
dollars – specifically the natural gas, condensate and oil prices in the USA.
The Board manages the potential risk by monitoring and stress testing the Consolidated Entity’s forecast financial position to
sustained periods of low and high commodity prices. During the year to 31 December 2018 and 31 December 2017 no forward
contracts were entered into and there were no open positions at 31 December 2018 or 31 December 2017.
(b)
Liquidity risk
The Consolidated Entity’s objective is to maintain a balance between continuity of funding and flexibility through the use of its cash
and funding alternatives.
The Consolidated Entity manages liquidity risk by maintaining adequate funds through the monitoring of future rolling cash flow
forecasts of its operations, which reflect management’s expectations of the settlement of financial assets and liabilities.
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact
of any netting agreements.
0 – 6 months
6 – 12 months
1 – 5 years
Consolidated
31 December
2018
$
31 December
2017
$
(238,645)
-
-
(238,645)
(48,596,617)
-
-
(48,596,617)
2018 Annual Report
26
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 17 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)
(b)
Liquidity risk (cont.)
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
As a result of the Company entering external administration on 28 April 2016, the Convertible Notes are immediately due and payable.
At the date of effectuation of the DOCA on the 23 March 2018, Convertible Notes were compromised by the DOCA and extinguished against
the Company (and transferred across to the Antares Creditors Trust).
The following table discloses the contractual maturity analysis of financial assets and liabilities as at the end of the financial
year:
Consolidated
as at 31 December 2018
Financial Assets
Cash and cash equivalents
Trade and other receivables
Financial Liabilities
Payables
Convertible notes
Net (outflow)
Consolidated
as at 31 December 2017
Financial Assets
Cash and cash equivalents
Trade and other receivables
Financial Liabilities
Payables*
Convertible notes*
Net (outflow)
≤ 6 months
$
6 – 12 months
$
1 – 5 years
$
> 5 years
$
Total
$
510,308
18,326
528,634
(238,645)
-
(238,645)
289,989
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
510,308
18,326
528,634
(238,645)
-
(238,645)
289,989
≤ 6 months
$
6 – 12 months
$
1 – 5 years
$
> 5 years
$
Total
$
254,183
-
254,183
(1,096,617)
(47,500,000)
(48,596,617)
(48,342,434)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
254,183
-
254,183
(1,096,617)
(47,500,000)
(48,596,617)
(48,342,434)
* As a result of the Company entering external administration on 28 April 2016, the Convertible Notes are immediately due and payable. At
the date of effectuation of the DOCA on the 23 March 2018, Convertible Notes were compromised by the DOCA and extinguished against
the Company (and transferred across to the Antares Creditors Trust).
(c) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Consolidated Entity.
Credit risk arises from the financial assets of the Consolidated Entity, which comprise cash and cash equivalents, trade and other
receivables. The carrying amount of financial assets recorded in the financial statements, net of any provisions for losses,
represents the Consolidated Entity’s maximum exposure to credit risk without taking account of the value of any collateral or
other security obtained. Exposure at balance date is addressed in each applicable note.
The Consolidated Entity does not hold any credit derivatives to offset its credit exposure.
The Consolidated Entity trades only with recognised, creditworthy third parties and has adopted a policy of dealing with
creditworthy counterparts and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the
risk of financial loss from defaults.
Specific concentration of credit risk exists primarily within cash and cash equivalents and trade receivables in respect of
receivables due from joint venture operators for the Consolidated Entity’s share of proceeds from the sale of oil and gas by the
operator, as well as cash held by joint venture operations in advance of operations being performed.
(c) Credit risk (cont.)
As at 31 December 2018 the only trade receivables and other receivable are for GST receivable.
The consolidated entity does not have any significant credit risk exposure to any single counterparty or any group of
counterparties having similar characteristics. The carrying amount of financial assets recorded in the financial statements, net of
any allowance for impairment losses, represents the consolidated entity’s maximum exposure to credit risk.
(d) Fair Value
All assets and liabilities for which fair value is disclosed in the financial statements are categorised within the fair value
hierarchy, described below as follows, based on the lowest level input that is significant to the fair value measurement as a
whole:
2018 Annual Report
27
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 17
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)
(d) Fair Value(cont.)
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
-
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities
- Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable
- Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable
The Directors consider that the carrying amount of the financial assets and liabilities recorded in the financial statements
approximate their fair values.
NOTE 18
COMMITMENTS FOR EXPENDITURE AND CONTINGENCIES
There are no commitments or contingent liabilities pertaining to the Consolidated Entity as at 31 December 2018.
NOTE 19
INTEREST IN JOINT OPERATIONS
(i)
At 31 December 2018 the Consolidated Entity held the following interests in oil and gas production and
exploration joint operations:
Joint Operations
Working Interest
31 Dec 2018
31 Dec 2017
Big Star – Simmons Prospect – Texas
72.0%
72.0%
(ii)
Principal activities of joint operations
Petroleum exploration and production is the principal activity of all of the joint ventures that the Consolidated
Entity is a participant in at 31 December 2018. All joint operations are located onshore Texas, USA.
NOTE 20
RELATED PARTY DISCLOSURES
(i) ULTIMATE PARENT
Big Star Energy Limited is the ultimate parent company.
(ii) CONSOLIDATED ENTITY
At year end the Consolidated Entity consisted of the subsidiaries listed in the following table:
Controlled entities of Big Star Energy Limited:
Santa Energy Pty Ltd
Australia
Ord Shares
100%
100%
Country of
Incorporation
Class of
Share
Equity interest
31 December
2018
31 December
2017
Controlled entities of Santa Energy Pty Ltd:
Antares Energy Company
USA
Common
Stock
100%
100%
There are no restrictions on access to assets and liabilities of the subsidiaries
NOTE 21
EVENTS AFTER THE BALANCE SHEET DATE
There have been no significant events after balance date.
NOTE 22
AUDITOR’S REMUNERATION
The auditor of Big Star Energy Limited is Stantons International.
Amounts received or due and receivable in relation to the entity or any other
entity in the Consolidated Entity:
- an audit or review of the financial report
Current Year
Prior Years (2017 & prior)*
-
tax and compliance services
Consolidated
31 December
2018
$
31 December
2017
$
18,000
-
-
18,000
7,500
22,500
-
30,000
*’ Stanton’s international Audit and Consulting Pty Ltd are the Company’s current auditors and have provided non-audit services for
$9,000. In 2017, non-audit services of $8,000 were provided by Stanton’s associated entity – Stantons International Securities.
2018 Annual Report
28
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 23 DIRECTOR AND EXECUTIVE DISCLOSURES
(a)
Details of Key Management Personnel
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
Name
Ross Warner
Joanne Kendrick
Michael Pollak
Executive Director & Chairman – Appointed 23 March 2018
Managing Director – Appointed 23 March 2018
Non Executive Director – Appointed 23 March 2018
The above named directors were formally appointed as directors of the Company under the terms of DOCA on 23 March
2018, being the date the DOCA effectuated.
James Andrew Cruickshank
Gregory David Shoemaker
Vicky Ann McAppion
Mark Gerard Clohessy
Chairman & Managing Director – Resigned 27 April 2016*
Director & Chief Scientist – Resigned 28 April 2016*
Director & Finance & Administration Manager – Resigned 28 April 2016*
Non Executive Director – Resigned 28 April 2016*
* These directors formally ceased to be directors of the Company under the terms of DOCA on 23 March 2018, being the
date the DOCA effectuated.
(b)
Remuneration of Key Management Personnel
(i)
Compensation by Category: Key Management Personnel
Short-Term
Post Employment
Long-Term
Share-based Payments
(ii)
Loans to Key Management Personnel
Consolidated
2018
$
2017
$
131,296
8,060
-
-
139,356
-
-
-
-
-
During the year ended 31 December 2018 and the year ended 31 December 2017 there were no loans provided
to Key Management Personnel.
(iii) Other transactions and balances with Key Management Personnel
During the year ended 31 December 2018 there was a repayment of a syndicate loan $21,857 (2017:$Nil) to
United Equity Partners Pty Ltd ATF Polycorp Family Trust, an entity associated with Michael Pollak. There were no
transactions with Key Management Personnel other than those described above. At 31 December 2018 and 31
December 2017 there were no balances outstanding in relation to Key Management Personnel other than those
described above and in the Remuneration Report.
NOTE 24
PARENT ENTITY INFORMATION
The following information relates to the parent entity, Big Star Energy Limited at 31 December 2018. The
information presented here has been prepared using accounting policies consistent with those presented in
note 1.
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Contributed equity
Reserves
Accumulated losses
Total equity
(Loss) for the year
Write back of accumulated losses
Total comprehensive profit/(loss) for the year
31 December
2018
$
447,278
3,078
450,356
31 December
2017
$
81,816
-
81,816
99,230
-
99,230
(48,496,617)
-
(48,496,617)
351,126
(48,414,801)
1,882,418
1,875
(1,533,167)
351,126
84,436,358
10,650,184
(143,501,343)
(48,414,801)
(958,647)
141,968,177
141,968,177
(232,000)
-
(232,000)
2018 Annual Report
29
Notes to the Financial Statements
For the Year Ended 31 December 2018
NOTE 24
PARENT ENTITY INFORMATION (CONT.)
Guarantees entered into by the parent entity in relation to debts of its subsidiaries
There are no commitments or contingencies other than those disclosed in this report.
There are no guarantees.
NOTE 25
(a)
DISCONTINUED OPERATIONS
Details of operations disposed
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
On 28 April 2016 the Company was placed into voluntary administration and the Company operations were suspended under the
Administrators. The Administrators sought expressions of interest from third parties in either acquiring the assets of the Company or reconstructing
and recapitalising the Company.
The Company’s creditors subsequently agreed with a proposal presented by a syndicate headed by Pager Partners for the restructure and
recapitalisation of the Company at a creditors meeting on 2 December 2016. This proposal was approved by Shareholders of the Company
on 23 January 2018 and the DOCA was successfully effectuated on 23 March 2018.
The syndicate headed by Pager Partners loaned $500,000 to the Deed Administrator (on behalf of the Company) for distribution under the
DOCA to the Creditors Trust in return for secured and unsecured creditors releasing all claims against the Company and any charges over the
Company. Certain unencumbered assets were retained by the Company including the Company’s wholly owned subsidiary Antares Energy
Company (which owns the Big Star Project in the Permian Basin in Dawson Country, Texas, USA).
The syndicate loaned the Company the requisite funds to pay for the costs of settling the DOCA, drafting of the DOCA, Creditors Trust Deed,
Shareholder’s Meetings and Shareholder Notices, Prospectus, Independent Experts Report and preparing historical audited accounts.
The termination of the DOCA is treated as the discontinuation of operations.
(b)
Financial performance of operations disposed
Carrying value of Net Liabilities
Payment to Creditors Trust
Payment for expenses
Net gain on disposal of operations
(c)
Assets and liabilities of discontinued operations
Cash and cash equivalents
Trade and other payables
Other Liabilities
Net liabilities attributable to discontinued operations
(d)
Cash flows used in discontinued operations
31 December
2018
$
(48,666,553)
500,000
8,000
(48,158,553)
31 December
2018
$
69,407
(1,235,960)
(47,500,000)
(48,666,553)
Net cash used in operating activities
Net cash from investing activities
Net cash used in financing activities
Net cash outflows for the year
31 December
2018
$
31 December
2017
$
(69,407)
-
-
(69,407)
-
-
-
-
2018 Annual Report
30
BIG STAR ENERGY LIMITED
ABN 75 009 230 835
DIRECTORS’ DECLARATION
In accordance with a resolution of Directors of Big Star Energy Limited (formerly Antares Energy Limited), the Directors’ declare that:
(a)
(b)
(c)
As disclosed in Note 1 to the Consolidated financial statements, although the Directors have prepared the
Consolidated financial statements and Notes of Big Star Energy Limited (formerly Antares Energy Limited) to the best
of their knowledge based on the information available to them, they are of the opinion that it is not possible to state
that the Consolidated financial statements and Notes of Big Star Energy Limited, and the remuneration disclosures
contained in the Remuneration Report for the year ended 31 December 2018 are in accordance with the Corporations
Act 2001, including:
(i)
(ii)
giving a true and fair view of the financial position as at 31 December 2018 and the performance for the
year ended on that date of the consolidated entity; and
complying with Accounting Standards (including Australian Accounting Interpretations) and the Corporations
Regulations 2001; and
the financial statements and notes also comply with International Financial Reporting Standards as disclosed in note
1(a); and
As a result of the effectuation of the DOCA on 23 March 2018 and subsequent recapitalisation of the Company and
as noted in note 1(a), as at the date of this Report, the Directors have reasonable grounds to believe that the
Company will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the Directors.
Ross Warner
Chairman
29 March 2019
2018 Annual Report
31
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
QUALIFIED INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
BIG STAR ENERGY LIMITED (FORMERLY ANTARES ENERGY LIMITED)
Report on the Audit of the Financial Report
Disclaimer of Opinion
We were engaged to audit the financial report of Big Star Energy Limited (formerly Antares Energy Limited),
the Company and its subsidiaries, (“the Group”), which comprises the consolidated statement of financial
position as at 31 December 2018, the consolidated statement of comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies, and the directors’
declaration.
Because of the significance of the matters described in the Basis of Disclaimer of Opinion section of our
report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an Audit
Opinion on the financial report. Accordingly, we do not express an opinion on the financial report for the year
ended 31 December 2018.
Basis for Disclaimer of Opinion
The company was placed into voluntary administration on 28 April 2016 and the Deed of Company
Arrangement was effectuated on 23 March 2018. Consequently the collation of the financial information
relating to the period under audit was not subject to the same accounting and internal controls processes,
which includes the implementation and maintenance of internal controls that are relevant to the preparation
and fair presentation of the financial report. Whilst the books and records of the company have been
reconstructed to the maximum extent possible, we were unable to satisfy ourselves as to the completeness of
the general ledger and financial records as well as the relevant disclosures in the financial report.
As stated in Note 1(b), the directors are unable to state that the financial report is in accordance with all the
requirements of the Corporations Act 2001 and the Australian Accounting Standards.
Material Uncertainty Regarding Going Concern
We draw attention to Note 1(a) of the financial report, which describes the effects of the financial report being
prepared on a going concern basis. As at 31 December 2018, Big Star Energy Limited had working capital of
$307,862 and had incurred a loss from continuing operations for the year of $1,461,259.
The ability of Big Star Energy Limited to continue as a going concern is subject to the successful
recapitalisation of Big Star Energy Limited. In the event that the Board is not successful in recapitalising the
Company and in raising further funds, Big Star Energy Limited may not be able to pay its debts as and when
they become due and may be required to realise its assets and discharge its liabilities other than in the normal
course of business, and at amounts different to those stated in the financial report. Our conclusion is not
modified in respect of this matter
Key Audit Matters
Except for the matter described in the Basis for Disclaimer of Opinion section, we have determined that there
are no other key audit matters to communicate in our report.
Responsibilities of Management and Those Charged with Governance for the Financial Report
The Directors 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
Liability limited by a scheme approved
under Professional Standards Legislation
as the directors determine is necessary to enable the preparation of the financial report that gives a true and
fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial
report, the directors are responsible for assessing the ability of the Group to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative
but to do so.
Other Information
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 2018, 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 accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information; we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Directors for the Financial Report
The directors 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 note 1 (b), the directors also
state, in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements,
that, where possible, the financial statements have been reconstructed to comply with International Financial
Reporting Standards, though financial records are incomplete. Accordingly, the directors disclaim any
responsibility for the completeness of the Financial Statements, and do not provide any statement to such
effect in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements.
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.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and
fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial
report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures
in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that achieves
fair presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit
engagements. We also provide the Directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore key audit matters. We describe these
matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
Disclaimer of opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 6 to 7 of the directors’ report for the year ended
31 December 2018.
Because of the existence of the limitation on scope of our work, as described in the Basis of Disclaimer of
Auditor’s Opinion, and the effects of such adjustments, if any, as might have been determined to be necessary
had the limitation not existed, we are unable to, and do not express, an opinion on the remuneration report of
Big Star Energy Limited for the year ended 31 December 2018 and whether it 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.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Samir Tirodkar
Director
West Perth, Western Australia
29 March 2019
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
ABN 75 009 230 835
SHAREHOLDER INFORMATION
AS AT 13 MARCH 2019
(POST CONSOLIDATION)
Ordinary Shares
(a) Twenty Largest Shareholders
Position
Holder Name
Holding
% IC
1
2
3
3
4
4
4
5
6
7
7
7
7
7
7
7
7
7
8
9
10
11
12
13
14
14
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
28,662,128
8.66%
UNITED EQUITY PARTNERS PTY LTD
26,000,000
7.86%
ELLIOT HOLDINGS PTY LTD
20,000,000
6.04%
OCEANVIEW SUPER FUND PTY LTD
20,000,000
6.04%
MRS MICHELLE LINLEY HILBRANDS
15,000,000
4.53%
MR ROSS WARNER
15,000,000
4.53%
MS JOANNE KENDRICK
15,000,000
4.53%
MR MARK JOHN BAHEN &
MRS MARGARET PATRICIA BAHEN
10,000,000
3.02%
OCEAN VIEW WA PTY LTD
6,600,000
1.99%
RAVENHILL INVESTMENTS PTY LTD
5,000,000
1.51%
PAGER PARTNERS CORPORATE ADVISORY PTY LTD
5,000,000
TISIA NOMINEES PTY LTD
5,000,000
1.51%
1.51%
MR STEPHEN JOHN DOBSON
5,000,000
1.51%
TROCA ENTERPRISES PTY LTD
SYMORGH INVESTMENTS PTY LTD
5,000,000
5,000,000
1.51%
1.51%
FARR Q PTY LTD
5,000,000
1.51%
NINETY THREE PTY LTD
HAMMERHEAD HOLDINGS PTY LTD
MR HUGH DAVID WARNER &
MRS DIANE MICHELLE WARNER
BURLEY WA PTY LTD
MR CAMERON JAMES GILENKO
5,000,000
5,000,000
1.51%
1.51%
4,500,000
1.36%
4,050,000
3,350,000
1.22%
1.01%
SHELCO HOLDINGS PTY LTD
2,777,778
0.84%
MR GLEN ROBERT GURNEY &
MRS DERYN ANN GURNEY
SHELCO HOLDINGS PTY LTD
2,700,000
2,600,000
0.82%
0.79%
MR DUNCAN HUYSHE GREAVES
2,500,000
0.76%
MR BRETT MITCHELL &
MRS MICHELLE MITCHELL
2018 Annual Report
2,500,000
0.76%
35
14
15
16
17
17
18
19
20
20
MR WILLIAM MURRAY MITCHELL &
MRS DIANE JOAN MITCHELL
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
ABN 75 009 230 835
0.76%
2,500,000
PIPPIN DRYSDALE PTY LTD
2,483,775
0.75%
MR IAN WATSON &
MRS CATHERINE JANE WATSON
TALEX INVESTMENTS PTY LTD
LOKTOR HOLDINGS PTY LTD
2,149,188
0.65%
2,000,000
2,000,000
0.60%
0.60%
HOLLOWAY COVE PTY LTD
1,990,800
0.60%
BENITO TOSCANA PTY LTD
1,800,000
0.54%
MR THOMAS ALEXANDER BIRD
MR JAMES TIMOTHY BAHEN
1,500,000
1,500,000
0.45%
0.45%
Total
244,163,669
73.77%
TOTAL ON REGISTER
331,000,017
100.00%
(b) Distribution of Shareholdings
Spread of Holdings
Holders
Securities
% of Issued Capital
NIL holding
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 9,999,999
0
140
53
8
113
257
0
40,303
118,859
52,284
6,818,667
323,969,904
TOTAL ON REGISTER
571
331,000,017
0.00%
0.01%
0.04%
0.02%
2.06%
97.88%
100%
(c)
Substantial Shareholders
Number of Shares % of Issued Shares
HSBC Custody Nominees Aust Ltd
United Equity Partners Pty Ltd
Elliot Holdings Pty Ltd
Oceanview Super Fund
28,662,128
26,000,000
20,000,000
20,000,000
8.66%
7.86%
6.04%
6.04%
(d)
There were 278 members holding less than a marketable parcel of shares in the Company.
Unmarketable Parcels
Voting Rights
(e)
Voting rights of members are governed by the Company’s Constitution. In summary, on a show of hands, every member present in
person or by proxy shall have one vote and in the event of a poll every such member shall be entitled to one vote for each ordinary
fully paid share held.
(f)
Big Star Energy Limited is listed on the Australian Securities Exchange. Ordinary shares are listed under the BNL code.
Exchanges
2018 Annual Report
36
LIST OF INTERESTS - AS AT 13 MARCH 2019
Texas, USA
Big Star Project
BIG STAR ENERGY LIMITED
(FORMERLY ANTARES ENERGY LIMITED)
ABN 75 009 230 835
Well Name
Cline 46-1
Esmond 20-1
Simmons 27-2
Stuart 12-1
*NRI noted as 0% where mineral lease has expired and interest in the wellbore remains.
Area
Dawson County, TX
Dawson County, TX
Dawson County, TX
Dawson County, TX
Operator
Antares
Antares
Callon Petroleum
Antares
Working Interest
100%
100%
72%
100%
Net Revenue Interest*
0%
75%
54%
0%
Hawkville Overriding Royalty Interests
Area
Well Name
McMullen, TX
Donnell 457 1&2
McMullen, TX
Donnell C-1H
Donnell C-2H
McMullen, TX
Donnell-Mulholland Unit 1&2 McMullen, TX
Royalty Interest
0.125%
0.99345%
0.99345%
0.059553%
2018 Annual Report
37