2019 ANNUAL REPORT
BIG STAR ENERGY LIMITED AND CONTROLLED ENTITIES
ABN 75 009 230 835
ANNUAL REPORT
FOR THE YEAR ENDED
31 DECEMBER 2019
BIG STAR 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
9
10
11
12
13
14
15
33
34
36
38
i
BIG STAR ENERGY LIMITED
COMPANY DIRECTORY
DIRECTORS:
Ross Warner
Joanne Kendrick
Trent Spry
AUDITORS:
Stantons International Audit & Consulting Pty Ltd
6 Middlemiss Street
LAVENDER BAY, NSW,2060
COMPANY SECRETARY
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
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
BIG STAR ENERGY LIMITED
The Directors of Big Star Energy Limited (“the Company”) present the Directors’ report and the financial report of Big Star Energy and the
entities it controlled (“Consolidated Entity “or “Group”) at the end of, or during the year ended 31 December 2019.
DIRECTORS’ REPORT
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
Trent Spry
Andrew Whitten
Particulars
Executive Director & Chairman – Appointed 23 March 2018
Managing Director – Appointed 23 March 2018
Non-Executive Director – Appointed 23 March 2018 (Resigned 25 March 2020)
Executive Director – Appointed 29 April 2019
Company Secretary – Appointed 23 March 2018
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 the US, UK and 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
Advance Energy plc (formerly Andalas Energy and Power plc) (LON: ADV)
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 has over 20 years upstream oil and gas experience in executive, operational and technical roles with Woodside Petroleum,
Newfield Exploration, Gulf Canada and Nido Petroleum. She holds a Bachelor of Chemical Engineering from the University of
Adelaide and specialises in Petroleum/Reservoir Engineering. Joanne has successfully led projects in all phases of the upstream
lifecycle including exploration drilling programs, field developments, production operations as well as acquisitions and divestitures.
Other Current Directorships
None
2019 Annual Report
1
BIG STAR 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 and resigned 25 March 2020)
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
Trent Spry
Executive Director (Appointed 29 April 2019)
Trent brings to the Board significant ASX corporate experience, expertise in geoscience, exploration and project development as well
as significant recent experience in the USA. Trent has over twenty years of experience in the upstream oil and gas industry in
exploration, appraisal and development. He holds a Bachelor of Science (Hons) (National Centre for Petroleum Geology &
Geophysics, University of Adelaide) and is a graduate of the Australian Institute of Company Directors. He has originated numerous
projects from concept or acquisition through to discovery, appraisal, successful development and exit in Australia, SE Asia, the Gulf of
Mexico and the US onshore. Trent specializes in new ventures and project execution and has expertise in hydrocarbon and helium
systems analysis.
Other Current Directorships
None
Former Directorships in the Last Three Years
None
Special Responsibilities
Executive Director
Interests in Shares and Options
3,000,000 ordinary fully paid shares
16,875,000 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.
2019 Annual Report
2
BIG STAR ENERGY LIMITED
PRINCIPAL ACTIVITIES
DIRECTORS’ REPORT (CONT.)
The principal activities of the Consolidated Entity during the year ended 31 December 2019 were helium exploration and oil
exploration and production. The Company is headquartered in Australia and its strategy is to provide its shareholders with exposure
to multiple high-value helium projects in North America.
OPERATING REVIEW
Helium Strategy – Las Animas, Colorado, USA
Big Star’s helium strategy is to identify, acquire and develop helium opportunities in the USA. In the first half of 2019, the Company
developed a proprietary regional geological model to identify prospective structures by evaluating and integrating historical and new
data. This geological model identified 30 prospects and leads including Enterprise, Voyager, Millennium, Falcon and others.
In the June quarter (before the Company acquired any leases), the Company sought to refine its geological model by undertaking new,
proprietary regional work in Las Animas including reprocessing of aero-magnetics and gravity as well as a geochemical program
targeting helium anomalies at surface. Both programs subsequently concluded during the September quarter and the results were
integrated with the regional geologic and prospect specific studies. The Company mapped potential helium sources, reservoirs and
seals as well as prospective structures in order to refine the prospect ranking and focus its leasing program.
Elevated helium readings from soil gas samples collected from 18 locations (subsequently leased by the Company as at the report
date) confirm an active helium system in the area and at these locations. The elevated readings of helium (10-100% over normal
atmospheric concentrations) at these locations are consistent with soil gas results at Harley Dome in Utah which has reportedly produced
gas at 7% helium concentrations.
The Company’s first helium lease in Las Animas was secured on 22 August 2019 over part of the Enterprise prospect. The Company
leased aggressively through to the end of the year, by which time, a total of 92,443 gross (50,692 net) acres were leased from private
mineral owners and the State of Colorado over 11 prospects and several leads. Big Star now holds a dominant land position in Las
Animas County, Colorado over 11 prospects and several leads including some leases at Enterprise and Voyager within 6 miles of the
historical Model Dome helium field.
The Model Dome helium field was discovered in the 1920s and produced for a short period before being strategically acquired by
the US Government. It produced gas containing 8% helium and is included in the top 4 highest concentration helium fields produced in
the USA. Model Dome’s shallow, vertical wells initially produced between 500 and 1,000 mcf/day of raw gas per well. Geological
modelling indicates helium prospectivity analogous to Model Dome in similar nearby structures identified by Big Star including at
Enterprise, Voyager and Big Star’s other prospects.
Subsequent to year end, the Company announced on 25 February 2020 that it had leased a further 17,612 gross (12,912 net)
acres, and on 30 March 2020, that it had leased a further 11,981 net acres and completed due diligence in relation to certain prior
leases resulting in a lease holding as at 30 March 2020 of 121,086 gross (64,924 net) acres.
Big Star will continue to add to both its gross and net position over preferred prospects in Las Animas County whilst we complete the
technical and well location selection work necessary to prepare for a drilling program.
New Ventures – Helium
The Company continues to actively pursue upstream helium opportunities in accordance with its stated strategy.
Percy Creek Oil Exploration Project – Wyoming, USA
On 29 April 2019, Big Star entered into a farmin and drilling option agreement (“Agreement”) to acquire interests in the Percy Creek
oil exploration project. Under the Agreement terms, significant expenditure was to be applied to the acquisition of 2D and 3D seismic
to earn 20% working interest and an overriding royalty interest in the leases. Subject to the seismic results confirming the structure and
drilling location, and further funding, Big Star had a drilling option to secure 100% working interest by drilling a well in 2020.
During the December quarter, in order to concentrate its resources on the helium strategy, the Company withdrew from its Farmin and
Option Agreement by mutual agreement with the vendor.
Big Star Project – Texas, USA
Production continued from the non-operated Simmons well. As at the report date, this asset is held for sale. The Stuart, Cline and
Esmond wells have not produced in this period and remain shut-in.
New Ventures
The Company continues to actively pursue upstream oil, gas and helium opportunities in accordance with its stated strategy.
2019 Annual Report
3
BIG STAR ENERGY LIMITED
Corporate
DIRECTORS’ REPORT (CONT.)
On 29 April 2019, Mr Trent Spry was appointed to the Board as an Executive Director. Mr Spry brings to the Board substantial ASX
corporate experience, expertise in geoscience and exploration as well as significant recent experience in the USA. The Company
granted Mr Spry 16,875,000 options to subscribe for ordinary shares in the Company at an exercise price of 1 cent. The options
expire on 30 June 2020.
During the year, the Company raised $2,031,452 million (after brokerage costs) from the issue of 402,747,238 shares. Big Star’s
broker, Pamplona Capital Pty Ltd was granted 10,000,000 options to subscribe for ordinary shares in the Company at an exercise
price of 1 cent. The options expire on 30 June 2020.
Big Star’s cash at the end of the 2019 year was approximately $1.14 million.
SIGNIFICANT EVENTS AFTER BALANCE DATE
Subsequent to year end, on 25 March 2020, Mr Michael Pollak resigned from the Company’s Board for personal reasons.
Subsequent to year end, the Company announced on 25 February 2020 that it had leased a further 17,612 gross (12,912 net)
acres, and on 30 March 2020, that it had leased a further 11,981 net acres and completed due diligence in relation to certain prior
leases resulting in a lease holding as at 30 March 2020 of 121,086 gross (64,924 net) acres.
Subsequent to year end, the Coronavirus (COVID-19) has had a significant impact on global economies and many industries. To date
the restrictions arising from the global coronavirus pandemic have not materially affected the Company’s operations with staff and
consultants in Australia and the USA adapting to more isolated working conditions. The Company does not believe that its operations
including permitting and planning for field activity later in the year will be materially impacted since, based on discussions with the
Company’s permitting group, in the US oil and gas related operations are considered essential services and are excluded from many
of the imposed COVID-19 restrictions. The Company will actively monitor the situation as it develops including assessing any impact it
may have on the Company’s operations.
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 has reported a total comprehensive loss for the year ended 31 December 2019 of $914,315 (2018: profit of
$46,762,314). The profit for the year ended 31 December 2018 was generated due to the transfer of the convertible notes and other
creditors of the Company caught under the DOCA to the creditors’ trust of $48,158,553 as a result of the effectuation of the DOCA
on 23 March 2018.
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 continues to actively pursue upstream helium opportunities in accordance with its stated strategy.
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.
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
Trent Spry
12
12
12
8
12
12
12
8
All other business was conducted via circular resolution.
2019 Annual Report
4
BIG STAR ENERGY LIMITED
DIRECTORS’ REPORT (CONT.)
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
between 28 April 2016, when it entered into voluntary administration, and 23 March 2018, when the DOCA was effectuated.
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. However, 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 because of the possible effect of the incomplete records for the
comparative period 31 December 2018.
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 10 and forms part of this Directors’ report for the year ended 31 December 2019.
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 2019 are $Nil (2018: $9,000).
INDEMNIFICATION OF DIRECTORS & COMPANY SECRETARY
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 to the maximum extent permitted by law.
INDEMNIFYING OFFICERS
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 and the company secretary. 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.
OPTIONS
At the date of this report, the unissued ordinary shares of Big Star Energy Limited under option are as follows:
•
•
•
75,000,000 unlisted options approved by shareholders on 23 January 2018 and issued on 9 April 2018, exercisable at
$0.01 per option, expiring on 30 June 2020.
16,875,000 unlisted options issued on 29 April 2019 and ratified by shareholders on 29 July 2019, exercisable at $0.01
per option, expiring on 30 June 2020.
10,000,000 unlisted options approved by shareholders on 28 November 2019 and issued on 24 December 2019,
exercisable at $0.01 per option, expiring on 30 June 2020.
Option holders do not have any rights to participate in any issues of shares or other interests of the Company or any other entity. For
details of options issued to the directors, refer to the remuneration report.
.
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. The matter is currently listed as Part Heard.
The proceedings were initiated when the Company was in administration and 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).
The Company is engaged in a legal dispute with a US counterparty in relation to an alleged breach by the Company of a confidentiality
agreement. The board believes the dispute is unlikely to result in a material adverse outcome for the Company or its business.
2019 Annual Report
5
REMUNERATION REPORT (AUDITED)
DIRECTORS’ REPORT (CONT.)
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 have applied since 23 March 2018.
BIG STAR ENERGY LIMITED
The Remuneration Report is set out under the following main headings:
1. Principles used to determine the nature and amount of remuneration;
2. Key management personnel remuneration;
3. Service agreements; and
4. Shareholding and option holding of directors and other key management personnel.
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.
Key management personnel
Ross Warner
Joanne Kendrick
Michael Pollak
Trent Spry
Executive Director & Chairman – Appointed 23 March 2018
Managing Director – Appointed 23 March 2018
Non-Executive Director – Appointed 23 March 2018 (Resigned 25 March 2020)
Executive Director – Appointed 29 April 2019
2. Key management personnel remuneration
The following table sets out the remuneration of directors and executives of the Consolidated Entity during the reporting period.
Short-Term
Long-
Term
Salary
& Fees
$
Bonus
$
Non
Monetary
Benefits
$
Share
Based
Payment (i)
$
Long-
Service
Leave
$
Post
Employ-
ment
Super-
annuation
$
54,795
60,000
54,795
45,000
214,590
22,831
25,000
-
25,000
72,831
-
-
-
-
-
-
-
-
12,790
12,790
-
-
-
-
7,374
-
5,205
-
12,579
Total
Total
Perform-
ance
Related
$
$
85,000
85,000
60,000
82,790
312,790
25,000
25,000
-
25,000
75,000
Year to
31 Dec 2019
Directors
Ross Warner
Joanne Kendrick
Michael Pollak
Trent Spry(i)
Total
(i) 16,875,000 unlisted options exercisable at $0.01 per option, expiring on 30 June 2020 were issued upon Mr Spry’s
appointment as director on 29 April 2019 and ratified by shareholders on 29 July 2019
2019 Annual Report
6
BIG STAR ENERGY LIMITED
REMUNERATION REPORT (AUDITED) (CONT.)
DIRECTOR’S REPORT (CONT.)
Year to
31 Dec 2018
Directors*
Ross Warner
Joanne Kendrick
Michael Pollak
Total
Salary
& Fees
$
42,422
46,452
42,422
131,296
Short-Term
Long-
Term
Cash
Bonus
$
Non
Monetary
Benefits
$
Share
Based
Payments
$
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
-
-
-
-
* Directors listed 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.
3. Service agreements (audited)
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 Act 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.
The directors entered into service agreements on the following terms:
• Base salary (including director’s fees of $60,000 per annum (including superannuation or similar contributions).
•
of such a bonus, remains matters over which the Company exercises sole discretion.
The Company may also, in its absolute discretion, provide a bonus, the value of which, the conditions attached to and the frequency
4. 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
(ii)
On market
purchase
Balance at
31 December
2019
Ross Warner
Joanne Kendrick
Michael Pollak
Trent Spry
Total
15,000,000
15,000,000
26,000,000
-
56,000,000
-
-
-
-
-
-
-
-
3,000,000
3,000,000
-
-
-
-
-
15,000,000
15,000,000
26,000,000
3,000,000
59,000,000
(ii)
Shares acquired by director on 31 July 2019.
Balance at
1 January
On exercise of
performance
rights
Other changes
during the year
(iii)
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
(iii)
Shares acquired by directors on 9 April 2018 and 23 May 2018.
* 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.
2019 Annual Report
7
BIG STAR ENERGY LIMITED
REMUNERATION REPORT (AUDITED)
DIRECTORS’ REPORT (CONT.)
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
(iv)
On market
purchase
Balance at
31 December
2019
Ross Warner
Joanne Kendrick
Michael Pollak
Trent Spry
Total
16,875,000
16,875,000
12,500,000
-
46,250,000
-
-
-
-
-
-
-
-
16,875,000
16,875,000
-
-
-
-
-
16,875,000
16,875,000
12,500,000
16,875,000
63,125,000
Options acquired by director on appointment on 29 April 2019 and ratified by shareholders on 29 July 2019. Each
(iv)
option gives the option holder the right to subscribe to one share for every option they own. Options will expire on 30 June 2020,
exercisable at $0.01cents per option. The options are fully vested and were calculated at grant date using the Black Scholes
model with a share price at grant date of $0.006 cents per option. The fair value of the options was $0.0008 per option at
grant date.
Balance at
1 January
On exercise of
performance
rights
Other changes
during the year
(v)
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
(v)
First placement options acquired by directors on 9 April 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.
* 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.
End of Remuneration Report
Signed in accordance with a resolution of the Directors.
Ross Warner
Chairman
31 March 2020
2019 Annual Report
8
CORPORATE GOVERNANCE STATEMENT
BIG STAR ENERGY LIMITED
Statement of Corporate Governance
The Board is committed to achieving and demonstrating the highest standards of corporate governance. Big Star Energy Limited and its
subsidiaries have adopted the third edition of the Corporate Governance Principles and Recommendations released by the ASX
Corporate Governance Council.
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 have applied since 23 March 2018.
The Company’s current Corporate Governance Statement is available on Big Star Energy Limited’s website at: www.bigstarenergy.com.au.
2019 Annual Report
9
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
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
31 March 2020
Board of Directors
Big Star Energy Limited
Level 5,126 Philip Street
Sydney NSW 2000
Dear Directors
RE:
BIG STAR ENRGY 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 2019 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 sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(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 2019
BIG STAR ENERGY LIMITED
Continuing operations
Revenue
Cost of sales
Gross loss
Other income
Other Expenses excluding finance costs
Impairment of oil & gas assets
Impairment of exploration and evaluation assets
Rehabilitation provisions
Employment expenses
Share based payment expense
Business development expenses
Legal expenses
Loss before income tax
Income tax benefit
Loss from continuing operations
Discontinued operations
Profit from discontinued operations
Net (loss)/profit attributable to members of the company
Other comprehensive income
Exchange differences on translation of foreign entities
Other comprehensive (loss)/profit for the year net of tax
Total comprehensive/(loss) profit 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
Loss/Earnings from all operations:
Basic (loss)/ profit per share for the year
Diluted (loss)/profit per share for the year
Notes
3
4(a)
3
4(b)
(10)
(12)
4(c)
4(c),27
4(b)
4(b)
5
26
Consolidated
31
December
2019
$
31 December
2018
$
10,793
(45,568)
(34,775)
51,922
(396,512)
(35,124)
(149,498)
-
(226,387)
(12,790)
(98,044)
(5,747)
50,249
(422,851)
(372,602)
3,203
(517,927)
(249,762)
(66,854)
(139,356)
-
(52,043)
(65,918)
(906,955)
-
(906,955)
(1,461,259)
-
(1,461,259)
-
(906,955)
48,158,553
46,697,294
(7,360)
(7,360)
(914,315)
65,020
65,020
46,762,314
6
6
6
6
(0.21)
(0.21)
-
-
(0.61)
(0.61)
19.45
17.01
The above statement of profit or loss & other comprehensive income should be read in conjunction with the accompanying notes.
2019 Annual Report
11
Statement of Financial Position
Big Star Energy Limited and its Controlled Entities
As at 31 December 2019
BIG STAR ENERGY LIMITED
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
Held for sale asset -Oil & gas properties
Total current assets
NON-CURRENT ASSETS
Other assets
Property, Plant & Equipment
Exploration and evaluation assets
Oil & gas properties
Total non-current assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Total current liabilities
NON-CURRENT LIABILITIES
Provisions
Liabilities associated with held for sale
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated Losses
TOTAL SHAREHOLDERS FUNDS
Notes
Consolidated
31 December
2019
$
31 December
2018
$
7
8
9
14
9
11
12
10
13
15
14
16
17
1,138,089
31,269
55,684
17,128
1,242,170
35,684
1,456
778,559
-
815,699
2,057,869
516,872
516,872
214,102
71,368
285,470
802,342
1,255,527
510,308
18,326
17,873
-
546,507
35,421
3,078
-
51,006
89,505
636,012
238,645
238,645
283,367
-
283,367
522,012
114,000
3,913,870
83,925
(2,742,268)
1,255,527
1,882,418
66,895
(1,835,313)
114,000
The above statement of financial position should be read in conjunction with the accompanying notes.
2019 Annual Report
12
BIG STAR ENERGY LIMITED
Statement of Changes in Equity
Big Star Energy Limited and its Controlled Entities
For the Year Ended 31 December 2019
CONSOLIDATED
Ordinary
Share
Capital
$
Accumulated
Losses
$
Foreign
Currency
Reserve
$
Convertible
Note
Premium
Reserve
$
Share Option
Reserve
$
1,882,418
(1,835,313)
65,020
-
1,875
(906,955)
Total
$
114,000
(906,955)
(7,360)
(914,315)
-
-
-
24,390
2,184,876
-
(129,034)
26,265
1,255,527
-
-
-
(7,360)
(906,955)
(7,360)
2,160,486
(129,034)
-
-
-
-
3,913,870
(2,742,268)
57,660
-
-
-
-
-
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
Balance at 1
January 2019
Loss for the year
Other
comprehensive
income
Exchange
differences on
translation of
foreign
operations
Total
comprehensive
loss for the year
Transactions
with owners in
their capacity as
owners:
Issue of Capital
and options
Costs of capital
Balance at 31
December 2019
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
The above statement of changes in equity should be read in conjunction with the accompanying notes.
2019 Annual Report
13
BIG STAR ENERGY LIMITED
Statement of Cash Flows
Big Star Energy Limited and its Controlled Entities
For the Year Ended 31 December 2019
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
Payment for property, plant and equipment
Payment to acquire tenements
Payment for other non-current assets
Net cash (outflows) from investing activities
Cash flows from financing activities
Net Proceeds from share issue
Costs related to issue of shares
Overpaid monies to be refunded
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
31 December
2019
$
62,315
(918,351)
682
-
(855,354)
(2,495)
(512,769)
(37,043)
(552,307)
2,160,486
(126,027)
1,000
-
-
2,035,459
627,798
510,308
(17)
1,138,089
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
The above statement of cash flows should be read in conjunction with the accompanying notes.
2019 Annual Report
14
Notes to the Financial Statements
BIG STAR ENERGY LIMITED
For the Year Ended 31 December 2019
NOTE 1
BASIS OF PREPARATION
Big Star 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 is Level 5, 126
Phillip Street, Sydney, NSW, 2000 and the principal place of business is Unit 6, 245 Churchill Avenue, Subiaco, WA, 6008.
The principal activities of the Consolidated Entity during the year ended 31 December 2019 were helium exploration and oil
exploration and production. The Company is headquartered in Australia.
(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 2019 the consolidated entity produced a total comprehensive loss of $914,315 (31 December
2018: total comprehensive profit of $46,762,314) and had working capital of $725,298 (31 December 2018: working capital
of $307,862). The Directors considered the subsequent events, reviewed the cash flow forecasts and working capital
requirements of the group in view of the Group’s existing cash resources of $1,138,089 (31 December 2018: $510,308) and
capital monies raised. On this basis, and subject to the impact of COVID-19 pandemic on the economy and the Group, 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 2019 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 between 28 April 2016, when it entered into voluntary administration, and 23 March 2018, when the DOCA was
effectuated.
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. However, 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 because of the possible effect of
the incomplete records for the comparative period ended 31 December 2018.
(c)
New and amended accounting standards and interpretations
Apart from the adoption of new or revised accounting standards, the accounting policies and methods of computation are the
same as those adopted in the most recent annual financial report.
New and amended Standards and Interpretations did not result in any significant changes to the Group’s accounting policies.
The Group has not elected to early adopt any new standards or amendments that have been issued that are not yet effective.
New accounting standards include AASB 16 Leases which has become mandatory for the Company’s financial statements. This
standard results in operating leases being accounted for in the balance sheet and the reclassification of operating lease
expense into depreciation and finance expenses, and the reclassification of certain cash flows. This standard does not impact
the Company.
2019 Annual Report
15
Notes to the Financial Statements
BIG STAR ENERGY LIMITED
For the Year Ended 31 December 2019
NOTE 1 BASIS OF PREPARATION (CONT.)
(d)
Principles of consolidation
The consolidated financial statements comprise the financial statements of Big Star Energy Limited and its subsidiaries during the
year ended 31 December 2019 (“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.
2019 Annual Report
16
Notes to the Financial Statements
For the Year Ended 31 December 2019
NOTE 1 BASIS OF PREPARATION (CONT.)
(f)
Exploration and evaluation(cont)
BIG STAR 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, gas and helium 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.
(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.
2019 Annual Report
17
Notes to the Financial Statements
BIG STAR ENERGY LIMITED
For the Year Ended 31 December 2019
NOTE 1
BASIS OF PREPARATION (CONT.)
(m)
Employee benefits
Short term benefits
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
Revenue is recognised when the Group transfers control of goods to a customer at the amount to which the group expects to be
entitled. Where the consideration promised includes a variable amount, the Group estimates the amount of consideration to
which it will be entitled to at the time the revenue is recognised. The following specific recognition criteria must also be met
before revenue is recognised:
Sales Revenue – Oil sales
The Performance obligation for sales is satisfied when the physical possession of the oil is taken. Payment is generally received
80 to 100 days from delivery. Oil revenue is initially recognised in the revenue clearing account until the payment is received.
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.
2019 Annual Report
18
Notes to the Financial Statements
BIG STAR ENERGY LIMITED
For the Year Ended 31 December 2019
NOTE 1 BASIS OF PREPARATION (CONT.)
(p) Other taxes
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)
Issued and paid up capital
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)
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.
(t)
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.
2019 Annual Report
19
Notes to the Financial Statements
BIG STAR ENERGY LIMITED
For the Year Ended 31 December 2019
NOTE 1
BASIS OF PREPARATION (CONT.)
(t)
Share-based payment transactions(cont.)
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.
(u)
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 2019 the Group impaired the value in use of its oil and gas properties, writing their carrying values to
$17,128 (2018: $ $51,006).
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(h).
NOTE 2
SEGMENT REPORTING
For management purposes, the Company is organised into one main operating segment, which, during the period, involved helium
exploration and oil exploration and production in the USA. All the Company's activities are interrelated, and discrete financial
information is reported to the Chairman and the management team 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 Group as a whole.
The Group derives its revenue from the sale of oil and gas produced in the USA. During the years ended 31 December 2019
and 31 December 2018 external sales of oil and gas were made to customers solely located in the USA.
Analysis of revenue – Continued operations:
Oil
Gas
Other*
Consolidated
31 December
2019
$
31 December
2018
$
10,793
-
51,922
62,715
49,187
1,062
3,203
53,452
*monies received by Antares Energy Company from previously divested properties
2019 Annual Report
20
Notes to the Financial Statements
For the Year Ended 31 December 2019
NOTE 2
SEGMENT REPORTING (CONT.)
Geographical split of non-current assets:
USA
Australia
NOTE 3
REVENUE & INCOME
Revenue
Sale of product
Other Income
NOTE 4
EXPENSES AND LOSSES
Expenses
(a) Cost of sales:
Other production costs
Total cost of goods sold
(b) Other expenses:
General expenses
Depreciation
Legal expenses
Business development expenses
(c) Employment expenses:
Wages and salaries*
Superannuation
Share based payment
Total employment expenses
BIG STAR ENERGY LIMITED
Consolidated
31 December
2019
31 December
2018
814,243
1,456
815,699
86,427
3,078
89,505
Consolidated
31 December
2019
$
31 December
2018
$
10,793
51,922
62,715
50,249
3,203
53,452
Consolidated
31 December
2019
$
31 December
2018
$
45,568
45,568
422,851
422,851
392,394
4,118
5,747
98,044
500,303
213,808
12,579
12,790
239,177
514,973
2,954
65,918
52,043
635,888
131,296
8,060
-
139,356
*The company capitalised salary and wages totalling $73,612 (Refer Note 12).
NOTE 5
INCOME TAX
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
Consolidated
Consolidated
31 December
2019
$
31 December
2018
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2019 Annual Report
21
Consolidated
Notes to the Financial Statements
For the Year Ended 31 December 2019
NOTE 5
INCOME TAX (CONT.)
BIG STAR ENERGY LIMITED
A reconciliation between tax expense and the product of accounting (loss)/profit before income
tax multiplied by the Group's applicable income tax rate is as follows:
Accounting (loss)/profit before income tax
(906,955)
46,697,294
At Group's statutory income tax rate of 27.5% (2018: 27.5%)
(249,413)
12,841,756
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
-
-
249,413
-
-
(13,243,602)
-
401,846
-
-
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
2019
$
651,259
-
-
-
651,259
31 December
2018
$
401,846
-
-
-
401,846
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.
Big Star Energy Limited does not have any franking credits at 31 December 2019 (2018: NIL).
NOTE 6
(LOSS)/PROFIT 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 (loss)/profit 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 (loss)/profit attributable to ordinary equity holders of the parent
(used in calculating basic and diluted (loss)/profit per share)
Weighted average number of ordinary shares outstanding during the
year used in calculating basic and dilutive EPS
Consolidated
31 December
2019
$
(906,955)
31 December
2018
$
46,697,294
428,052,856
240,035,632
2019 Annual Report
22
Notes to the Financial Statements
For the Year Ended 31 December 2019
NOTE 7 CASH AND CASH EQUIVALENTS
BIG STAR ENERGY LIMITED
Consolidated
31 December
2019
$
31 December
2018
$
Cash at bank and on hand
1,138,089
510,308
Cash at bank earns interest at floating rates based on daily bank deposit rates.
Consolidated
31 December
2019
$
31 December
2018
$
Reconciliation of net profit/(loss) after tax to net operating cash flows
Net (loss)/profit for the year
(906,955)
46,697,294
Non-cash Items and other adjustments:
Profit from discontinued operations
Impairment of oil & gas properties
Depreciation
Share based payment
DOCA settlement
Change in operating assets and liabilities:
(Increase)/Decrease in receivables and prepayments
Increase/(Decrease) in creditors and payables
Increase/(Decrease) in provisions
Net cash (outflows) from operating activities
-
35,124
4,118
24,390
-
(12,943)
912
-
(855,354)
(48,158,553)
316,616
-
-
(510,729)
(18,326)
(60,950)
123,111
(1,611,537)
f
Non-cash financing and investing activities: during the year the
Company issued options with a value $11,600 for the provision of
services.
NOTE 8
TRADE AND OTHER RECEIVABLES
Current
Other receivables (i)
(i) Other receivables include BAS refunds.
None of the receivables are past due and/or impaired.
NOTE 9
OTHER ASSETS
Current
Prepayment
Deposit
Non-Current
Bonds (i)
Consolidated
31 December
2019
$
31 December
2018
$
31,269
31,269
18,326
18,326
Consolidated
31 December
2019
$
31 December
2018
$
20,000
35,684
55,684
35,684
91,368
17,873
-
17,873
35,421
53,294
(i) Refundable deposits on completion of well abandonment at operated oil and gas properties.
2019 Annual Report
23
Notes to the Financial Statements
For the Year Ended 31 December 2019
BIG STAR ENERGY LIMITED
NOTE 10
OIL AND GAS PROPERTIES
Oil and gas properties
- at cost
- accumulated amortisation & impairment
- exchange difference translation
- transfer to held for sale asset (see Note 14)
Oil and gas properties are denominated in $US dollars
Reconciliation of carrying amounts of oil and gas properties:
Balance at start of year
Impairment
Foreign exchange translation
Transfer to held for sale asset (see Note 14)
Balance at end of year
Consolidated
31 December
2019
$
31 December
2018
$
411,183
(370,999)
(23,056)
(17,128)
-
51,006
(35,124)
1,246
(17,128)
-
411,183
(335,875)
(24,302)
-
51,006
295,916
(249,762)
4,852
-
51,006
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 to $17,128 (US$12,000) as at December 2019 (2018: $51,006
(US$36,000) due to loss of leased acreage in Dawson County, Texas during the period.
NOTE 11
PROPERTY, PLANT & EQUIPMENT
Consolidated
EQUIPMENT
IT Equipment
Accumulated Depreciation
NOTE 12
EXPLORATION AND EVALUATION ASSETS
31 December
2019
$
31 December
2018
$
8,528
(7,072)
1,456
6,032
(2,954)
3,078
Consolidated
31 December
2019
$
31 December
2018
$
Current
Capitalised expenditure
- at cost
- accumulated amortisation and impairment
- exchange difference translation
Reconciliation of Carrying amounts of exploration
and evaluation assets:
Balance at start of the year
Additions
Impairment
Foreign exchange difference translation
Balance at end of the year
Capitalised Expenditure
928,057
(149,498)
-
778,559
-
928,057
(149,498)
-
778,559
-
-
-
-
-
-
-
-
-
-
Big Star Energy Limited has secured leases in Las Animas County, Colorado, USA over a number of prospects and leads to develop
and deliver its helium strategy. This leased acreage is intended to support a drilling programme in the subsequent year. Currently
Big Star Energy Limited has expended certain funds in connection with acquiring and exploring the lands for helium. As at 31
December 2019 there was a total of $778,559 of expenditure directly connected with this asset which has been capitalised from
1 October 2019 in accordance with AASB 6 Exploration and Evaluation of Mineral Resources.
Big Star Energy Limited’s wholly owned subsidiary BNL (Percy Creek) entered into a Farmin and option agreement with Percy
Creek Partners LLC. On 4 November 2019, the Company announced that the agreement was terminated by mutual agreement.
As at 31 December 2019 a total of $149,498 of expenditure directly connected with this Farmin which was previously capitalised
from 26 April 2019 (the date of execution date of the Farm-in agreement) has been written off in accordance with AASB 6
Exploration and Evaluation of Mineral Resources.
2019 Annual Report
24
Notes to the Financial Statements
For the Year Ended 31 December 2019
BIG STAR ENERGY LIMITED
NOTE 13
TRADE AND OTHER PAYABLES (CURRENT)
Trade creditors and accruals
Consolidated
31 December
2019
$
31 December
2018
$
516,872
516,872
238,645
238,645
Trade creditors are non-interest bearing and generally payable within 30 – 60 days.
NOTE 14
HELD FOR SALES ASSETS & LIABILITIES
ASSOCIATED WITH HELD FOR SALE
ASSETS
Held For Sale Assets at fair value
Oil and Gas Properties – AEC
Restoration Provisions
Balance 31 December
Held for sale assets
Consolidated
31 December
2019
$
31 December
2018
$
17,128
(71,368)
(54,240)
-
-
-
Held for sale financial assets comprise the one well bore Simmons and associated acreage in project in Dawson County, Texas
which is currently operated by Callon Petroleum. This asset has been written down to $17,128 with the current negotiations in
relation to its divestment.
Costs associated with the Simmons well bore such as the restoration/ plug costs of AUD $71,368 have been included.
NOTE 15
PROVISIONS
Non-Current
Restoration
Consolidated
31 December
2019
$
31 December
2018
$
214,102
214,102
283,367
283,367
The Restoration provisions are denominated in $US dollars (US$150,000) (31 December 2018 (US
$200,000)
Reconciliation of the movements in the restoration
provision
Balance at start of year
Additions during the year
Transfer to Held for sale assets
Foreign exchange movements
Balance at end of year
283,367
-
(71,368)
2,103
214,102
160,256
106,263
-
16,848
283,367
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 wellbores it owns in Dawson County, Texas, 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 consider 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. These estimates
of restoration are subject to significant estimates and assumptions which are outlined in Note 1(u).
NOTE 16
CONTRIBUTED EQUITY
Issued and paid up capital:
Fully paid ordinary shares
31 December
2019
$
31 December
2018
$
3,913,870
1,882,418
2019 Annual Report
25
Notes to the Financial Statements
BIG STAR ENERGY LIMITED
For the Year Ended 31 December 2019
NOTE 16
CONTRIBUTED EQUITY (CONT.)
Movement in ordinary shares on issue:
At 1 January 2019
Consolidation (1:15)
Issue of shares (Tranche 1) (i)
Issue of shares (Tranche 2) (ii)
Issue of shares (iii)
Issue of shares (iv)
Less: Capital raising costs
Write back of accumulated losses*
At 31 December 2019
12 months to
31 December 2019
$
No. of shares
12 months to
31 December 2018
No. of shares
$
331,000,017
-
65,875,000
72,723,228
117,399,560
146,749,450
-
-
733,747,255
1,882,418
-
329,375
363,616
586,998
880,497
(129,034)
-
3,913,870
240,000,000
(223,999,983)
150,000,000
165,000,000
84,436,358
-
375,000
1,650,000
-
-
331,000,017
(142,582)
(84,436,358)
1,882,418
(i) 65,875,000 new ordinary shares were issued via a capital raise to shareholders on the 13 June 2019 at an issue price of 0.5
cents ($0.005) per placement share. The shares were issued using the Company’s existing authorities under the ASX Listing Rules
7.1 (32,775,000 shares) and 7.1A (33,100,000 shares).
(ii) 72,723,228 Ordinary Shares were issued on 31 July 2019 at an issue price of 0.5 cents ($0.005) per share.
(iii) 117,399,560 Ordinary shares were issued pursuant to the placement to investors on 10 October 2019 at an issue price of
0.5 cents ($0.005) per share.
(iv) 146,749,450 Ordinary shares were issued pursuant to the placement to investors on 24 December 2019 at an issue price of
0.6 cents ($0.006) 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
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, cash flow forecasts and working capital requirements of
the group in view of the Group’s existing cash resources of $1,138,089 (31 December 2018: $510,308) and ability of the
Company to raise capital as needed.
Total borrowings
Less cash and cash equivalents
Net debt
Total shareholders’ funds
Total capital and debt
Consolidated
31 December
2019
$
-
(1,138,089)
(1,138,089)
1,255,527
117,438
31 December
2018
$
-
(510,308)
(510,308)
114,000
(396,308)
2019 Annual Report
26
Notes to the Financial Statements
For the Year Ended 31 December 2019
BIG STAR ENERGY LIMITED
NOTE 17
RESERVES
Consolidated
Option reserve
FX Translation reserve
31 December
2019
$
31 December
2018
$
26,265
57,660
83,925
1,875
65,020
66,895
16,875,000 unlisted options were issued to the executive director Trent Spry on 29 April 2019 and ratified by shareholders on
29 July 2019 exercisable at $0.01 per option, expiring on 30 June 2020 at a value of $12,790.
10,000,000 unlisted options were issued to Pamplona Capital Pty Ltd on 24 December 2019 at an issue price of $0.01 cents per
option, expiring on 30 June 2020 at a value of $11,600.
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, and other parties as part of their remuneration, or for the provision of services. There were 26,875,000
options issued for the year ended 31 December 2019 (2018: 75,000,000).
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
Issue of options
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
2019
$
Consolidated
Number
75,000,000
16,875,000
10,000,000
-
101,875,000
1,875
12,790
11,600
-
26,265
-
75,000,000
-
-
75,000,000
31 December
2019
$
65,020
(7,360)
-
57,660
31 December
2018
$
5,883,438
1,875
-
(5,883,438)
1,875
31 December
2018
$
22,671,063
65,020
(22,671,063)
65,020
2019 Annual Report
27
Notes to the Financial Statements
For the Year Ended 31 December 2019
NOTE 18
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
BIG STAR ENERGY LIMITED
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 at the date of this report. These policies have applied since 23 March 2018.
Overview
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 equity price risk, 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 2019 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 2019 there is no material interest rate risk for the Company.
Foreign currency risk
As a result of the Company’s 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 2019 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 helium, natural gas, condensate and oil prices in the USA.
(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
2019
$
31 December
2018
$
(516,872)
-
-
(516,872)
(238,645)
-
-
(238,645)
2019 Annual Report
28
Notes to the Financial Statements
For the Year Ended 31 December 2019
NOTE 18 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)
(b)
Liquidity risk (cont.)
BIG STAR ENERGY LIMITED
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 2019
Financial Assets
Cash and cash equivalents
Trade and other receivables
Deposits
Financial Liabilities
Payables
Net inflow/(outflow)
Consolidated
as at 31 December 2018
Financial Assets
Cash and cash equivalents
Trade and other receivables
Financial Liabilities
Payables
Convertible notes*
Net inflow/(outflow)
≤ 6 months
$
6 – 12 months
$
1 – 5 years
$
> 5 years
$
Total
$
1,138,089
31,269
71,368
1,240,726
(516,872)
(516,872)
723,854
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,138,089
31,269
71,368
1,240,726
(516,872)
(516,872)
723,854
≤ 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
* 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 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.
As at 31 December 2019 the only trade receivables and other receivable are for GST receivable and refundable deposits.
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:
2019 Annual Report
29
Notes to the Financial Statements
For the Year Ended 31 December 2019
NOTE 18
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)
(d)
Fair Value(cont.)
BIG STAR 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 19
COMMITMENTS FOR EXPENDITURE AND CONTINGENCIES
The Company is engaged in a legal dispute with a US counterparty in relation to an alleged breach by the Company of a
confidentiality agreement. The board believes the dispute is unlikely to result in a material adverse outcome for the Company
or its business. Aside from the foregoing, there are no commitments or contingent liabilities pertaining to the Consolidated
Entity as at 31 December 2019.
NOTE 20
INTEREST IN JOINT OPERATIONS
(i)
At 31 December 2019 the Consolidated Entity held the following interests in oil and gas production and
exploration joint operations:
Joint Operations
Big Star – Simmons Prospect – Texas
(ii)
Principal activities of joint operations
Working Interest
31 Dec 2019
31 Dec 2018
72.0%
72.0%
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 2019. All joint operations are located onshore
Texas, USA.
NOTE 21 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
Controlled entities of Santa Energy Pty Ltd:
Antares Energy Company
BNL (Percy Creek)
Country of
Incorporatio
n
Class of
Share
Equity interest
31 December
2019
31 December
2018
Australia
Ord
Shares
100%
100%
USA
USA
Commo
n Stock
Ord
Shares
100%
100%
100%
-
There are no restrictions on access to assets and liabilities of the subsidiaries
NOTE 22
EVENTS AFTER THE BALANCE SHEET DATE
Subsequent to year end, on 25 March 2020, Mr Michael Pollak resigned from the Company’s Board for personal reasons.
Subsequent to year end, the Company announced on 25 February 2020 that it had leased a further 17,612 gross (12,912 net)
acres, and on 30 March 2020, that it had leased a further 11,981 net acres and completed due diligence in relation to certain
prior leases resulting in a lease holding as at 30 March 2020 of 121,086 gross (64,924 net) acres.
Subsequent to year end, the Coronavirus (COVID-19) has had a significant impact on global economies and many industries. To
date the restrictions arising from the global coronavirus pandemic have not materially affected the Company’s operations with
staff and consultants in Australia and the USA adapting to more isolated working conditions. The Company does not believe that
its operations including permitting and planning for field activity later in the year will be materially impacted since, based on
discussions with the Company’s permitting group, in the US oil and gas related operations are considered essential services and
are excluded from many of the imposed COVID-19 restrictions. The Company will actively monitor the situation as it develops
including assessing any impact it may have on the Company’s operations.
2019 Annual Report
30
Notes to the Financial Statements
For the Year Ended 31 December 2019
NOTE 23
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
-
tax and compliance services
NOTE 24 DIRECTOR AND EXECUTIVE DISCLOSURES
(a)
Details of Key Management Personnel
BIG STAR ENERGY LIMITED
Consolidated
31 December
2019
$
31 December
2018
$
29,000
-
29,000
18,000
-
18,000
Name
Ross Warner
Joanne Kendrick
Michael Pollak
Trent Spry
Executive Director & Chairman – Appointed 23 March 2018
Managing Director – Appointed 23 March 2018
Non-Executive Director – Appointed 23 March 2018 (Resigned 25 March 2020)
Executive Director – 29 April 2019
(b)
Remuneration of Key Management Personnel
(i)
Compensation by Category: Key Management Personnel
Short-Term (including bonus)
Post-Employment
Long-Term
Share-based Payments
(ii)
Loans to Key Management Personnel
Consolidated
2019
$
2018
$
287,421
12,579
-
12,790
312,790
131,296
8,060
-
-
139,356
During the year ended 31 December 2019 and the year ended 31 December 2018 there were no loans provided
to Key Management Personnel.
(iii) Other transactions and balances with Key Management Personnel
There were no transactions with Key Management Personnel other than those described above. At 31 December
2019 and 31 December 2018 there were no balances outstanding in relation to Key Management Personnel other
than those described above and in the Remuneration Report.
2019 Annual Report
31
Notes to the Financial Statements
For the Year Ended 31 December 2019
NOTE 25
PARENT ENTITY INFORMATION
BIG STAR ENERGY LIMITED
The following information relates to the parent entity, Big Star Energy Limited at 31 December 2019. 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 (loss) for the year
31 December
2019
$
1,096,108
777,227
1,873,335
31 December
2018
$
447,278
3,078
450,356
488,842
-
488,842
99,230
-
99,230
1,384,493
351,126
3,913,870
26,265
(2,555,642)
1,384,493
1,882,418
1,875
(1,533,167)
351,126
(1,033,687)
-
(1,033,687)
(958,647)
-
(141,968,177)
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 26
(a)
DISCONTINUED OPERATIONS
Details of operations disposed
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
31 December
2018
$
(48,666,553)
500,000
8,000
(48,158,553)
2019 Annual Report
32
Notes to the Financial Statements
For the Year Ended 31 December 2019
(c)
Assets and liabilities of discontinued operations
BIG STAR ENERGY LIMITED
Cash and cash equivalents
Trade and other payables
Other Liabilities
Net liabilities attributable to discontinued operations
(d)
Cash flows used in discontinued operations
Net cash used in operating activities
Net cash from investing activities
Net cash used in financing activities
Net cash outflows for the year
NOTE 27
31 December
2018
$
69,407
(1,235,960)
(47,500,000)
(48,666,553)
31 December
2018
$
(69,407)
-
-
(69,407)
The assessed fair value of the 16,875,000 options granted during the year
was $12,790 as calculated at grant date using the Black-Scholes model –
Inputs include:
- Grant date
-
Exercise by
Exercise price per share
-
- Share price at grant date
-
Expected volatility
- Risk-free interest rate
Further details regarding share-based payments to key management personnel can be found in the audited remuneration
report set out in the Directors’ report.
29 July 2019
30 June 2020
$0.01cents
$0.006cents
75%
0.85%
The assessed fair value of the 10,000,000 options granted during the year
was $11,600 as calculated at grant date using the Black-Scholes model –
Inputs include:
- Grant date
Exercise by
-
-
Exercise price per share
- Share price at grant date
Expected volatility
-
- Risk-free interest rate
24 December 2019
30 June 2020
$0.01cents
$0.007cents
100%
0.43%
10,000,000 options were issued to Pamplona Capital Pty Ltd on 24 December 2019.
2019 Annual Report
33
BIG STAR ENERGY LIMITED
ABN 75 009 230 835
DIRECTORS’ DECLARATION
In accordance with a resolution of Directors of Big Star Energy Limited, the Directors’ declare that:
(a)
Subject to the uncertainty over the completeness of source documentation and its impact on prior year comparatives,
as disclosed in Note 1, they are of the opinion 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
2019 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 2019 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
(b)
(c)
the financial statements and notes also comply with International Financial Reporting Standards as disclosed in note
1(a); and
in the Directors’ opinion there are 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
31 March 2020
2019 Annual Report
34
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
QUALIFIED INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
BIG STAR ENERGY LIMITED
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
Report on the Audit of the Financial Report
Qualified Auditor’s Opinion
We were engaged to audit the financial report of Big Star Energy Limited , the Company and its subsidiaries,
(“the Group”), which comprises the consolidated statement of financial position as at 31 December 2019, 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.
In our opinion, the accompanying financial report of the Group ,except for the possible effects of the matter
described in the Basis for Qualified opinion paragraph, is in accordance with the Corporations Act 2001 ,
including:
(i)
giving a true and fair view of the Group’s financial position as at 31 December 2019 and of its
financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for qualified Auditor’s Opinion for the Comparative period
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 for the
year ended 31 December 2018 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 for the year ended 31
December 2018.
As stated in Note 1(b), the directors are unable to state that the comparative information in 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 1a) of the financial report, which describes the effects of the financial report being
prepared on a going concern basis. As at 31 December 2019, Big Star Energy Limited had working capital of
$725,298 and had incurred a loss from continuing operations for the year of $906,955.
The ability of Big Star Energy Limited to continue as a going concern is subject to the successful
recapitalisation of Big Star Energy Limited. Due to the recent market uncertainty arising from the spread of the
COVID-19 pandemic and its effects on the global business environment, the management is reviewing what
impact, if any, this will have on their business. 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
Liability limited by a scheme approved
under Professional Standards Legislation
Key Audit Matters
Except for the matter described in the qualified Auditor’s Opinion section and the material uncertainty
regarding Going Concern, 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
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 2019, 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
Qualified opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 6 to 8 of the directors’ report for the year ended
31 December 2019. Because of the existence of the limitation on scope of our work, as described in the
Qualified 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 comparative 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
31 March 2020
SHAREHOLDER INFORMATION
AS AT 27 MARCH 2020
BIG STAR ENERGY LIMITED
ABN 75 009 230 835
Ordinary Shares
(a) Twenty Largest Shareholder
Position
1
2
3
4
5
5
5
6
7
8
8
9
10
11
11
12
13
14
15
16
17
18
19
20
Holder Name
UNITED EQUITY PARTNERS PTY
LTD
MS CHUNYAN NIU
PAMPLONA OPPORTUNITIES LTD
BNP PARIBAS NOMINEES PTY
LTD HUB24 CUSTODIAL SERV
LTD DRP
OCEANVIEW SUPER FUND PTY
LTD
ELLIOT HOLDINGS PTY LTD
MR SEBASTIAN MARR
MR KOK KEEN CHONG &
MRS HUE NGHI CHONG
OPTIM8 PTY LTD
MR ROSS WARNER
MS JOANNE KENDRICK
MRS MICHELLE LINLEY
HILBRANDS
MR MARTIN SCIBERRAS
PAMPLONA CAPITAL PTY LTD
AEI AUSTRALIA PTY LTD
DASH INVESTMENT COMPANY
PTY LTD
MRS RUTH WINIFRED HARRIS
MR MICHAEL GLADWIN-GROVE
&
MRS JANE LOUISE GLADWIN-
GROVE
SHELCO HOLDINGS PTY LTD
TRDJS PTY LIMITED
MISS SHU-YUN CHANG
MR YU-CHIEH HSU
MR JEFFREY ALAN GRAY
MR ROBERT LESLIE DAHL &
MRS MERRIL ANNE DAHL
Total
Total issued capital - selected
security class(es)
Holding
26,000,000
22,334,514
21,500,000
20,683,333
% IC
3.54%
3.04%
2.93%
2.82%
20,000,000
2.73%
20,000,000
20,000,000
19,359,500
19,000,000
15,000,000
15,000,000
14,500,000
14,260,565
14,000,000
14,000,000
13,000,000
11,000,000
10,300,000
8,377,778
8,000,000
7,603,807
7,000,000
6,214,525
6,000,000
2.73%
2.73%
2.64%
2.59%
2.04%
2.04%
1.98%
1.94%
1.91%
1.91%
1.77%
1.50%
1.40%
1.14%
1.09%
1.04%
0.95%
0.85%
0.82%
353,134,022
733,747,255
48.13%
100.00%
2019 Annual Report
37
SHAREHOLDER INFORMATION
AS AT 27 MARCH 2020
BIG STAR ENERGY LIMITED
ABN 75 009 230 835
(b) Distribution of Shareholdings
Holding Ranges
above 0 up to and
including 1,000
above 1,000 up to and
including 5,000
above 5,000 up to and
including 10,000
above 10,000 up to and
including 100,000
above 100,000
Totals
Holders
141
46
7
191
446
831
Total Units % Issued Share Capital
0.01%
43,538
102,890
48,839
12,750,804
720,801,184
733,747,255
0.01%
0.01%
1.74%
98.24%
100.00%
(c)
Substantial Shareholders
Number of Shares % of Issued Shares
There are no substantial Shareholders with greater than 5% of issued shares.
Unmarketable Parcels
(d)
There were 411 members holding less than a marketable parcel of shares in the Company with total 15,747,951, amounting to
2.15% of Issued Capital.
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
2019 Annual Report
38
BIG STAR ENERGY LIMITED
ABN 75 009 230 835
LIST OF INTERESTS - AS AT 31 MARCH 2019
Helium Project, Colorado, USA
Counterparty
Location
Operator
Total Net Acres Working Interest Net Revenue
Fee Mineral Owners
Colorado State
BLM*
Las Animas, CO
Las Animas, CO
Las Animas, CO
Big Star
Big Star
Big Star
*Bureau of Land Management
24,405
32,953
7,566
100%
100%
100%
Interest*
87.5%
80%
87.5%
Texas, USA
Big Star Project
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%
0%
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%
2019 Annual Report
39