ENEGEX LIMITED
ABN 28 160 818 986
ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2018
CONTENTS
Chairman’s Review ............................................... 1
Directors’ Report .................................................. 2
Remuneration Report ............................................ 4
Corporate Governance .......................................... 6
Directors’ Declaration ........................................... 7
Statement of Profit or Loss and
Other Comprehensive Income .............................. 8
Statement of Financial Position ............................ 9
Statement of Changes in Equity .......................... 10
Statement of Cash Flows .................................... 11
Notes to the Financial Statements ....................... 12
Audit Report ...................................................... 23
Auditor’s Independence Declaration................... 26
Shareholder and Other Information .................... 27
ENEGEX LIMITED
ABN 28 160 818 986
CORPORATE DIRECTORY
E.G Albers (Chairman)
R.L. Clark
A.P. Armitage
COMPANY SECRETARY
R.J. Wright
Registered Office
and Principal Administration Office
Level 21, 500 Collins Street
Melbourne, Victoria 3000, Australia
Telephone:
Facsimile:
Email:
admin@enegex.com.au
+61 (0)3 8610 4713
+61 (0)3 8610 4799
Auditor
Grant Thornton Audit Pty Ltd
GPO Box 4736
Melbourne, Victoria 3001 Australia
Website:
www.enegex.com.au
Share Registry
Automic Pty Ltd
Level 3
50 Holt Street
Surry Hills, NSW 2010, Australia
Telephone: 1300 288 664 (within Australia)
Telephone: +61 (2) 9698 5414 (outside Australia)
Website: www.automic.com.au
Stock Exchange Listing
ASX Limited
Level 4, North Tower, Rialto
525 Collins Street
Melbourne, Victoria 3000 Australia
ASX Code:
ENX
Ordinary Shares
Incorporated in the State of Victoria
17 October 2012
ENEGEX LIMITED
ABN 28 160 818 986
C
HAIRMAN
Dear Shareholders
’
S
R
EVIEW
Enegex is a natural resources company, incorporated in Australia, with its securities listed on the
ASX. Its focus is on natural resources, with a particular focus on all forms of energy minerals
and substances.
Enegex holds a 14.875% participating Interest in the Cornea Retention Lease WA-54-R in
which the Cornea oilfield is situated.
The Cornea Retention Lease was granted following the significant new information gained from
the Cornea–3 well in which Enegex’s predecessor company actively participated. The Cornea
Retention Lease work program was formulated to address the technical challenges to
development of Cornea; with the ability to achieve threshold production identified as the key
barrier to commercialisation of Cornea. and a production test well, designed to achieve such
economic production as a key means of moving Cornea towards development.
The parameters of a Cornea production test well have changed considerably since the Retention
Lease was granted as a result of the reduced oil price environment and the Cornea Joint Venture
has accordingly applied to the authorities to vary the conditions of WA-54-R to enable the work
programme.
The Cornea JV is pursuing potential alliances to assist in the development of Cornea.
Enegex maintained extreme fiscal discipline during the year. Directors continue to forgo
directors’ fees and all other forms of corporate expenditure have been limited or reduced.
Enegex is open to other natural resource opportunities that may present. Enegex is seeking to
become involved in innovations that are transforming the storage of energy. Our initial
initiatives include corporate investment in the following areas:
•
•
•
Strategic energy storage minerals
Energy storage technologies
Alternative and renewable energy sources
I thank my co-directors for their support during the year.
E.G. Albers
Chairman
26 September 2018
1
the company
or
Enegex
) for
ENEGEX LIMITED
ABN 28 160 818 986
DIRECTORS’ REPORT
The directors present their report on the results and state of affairs of Enegex Limited (
the year ended 30 June 2018.
PRINCIPAL ACTIVITY
The principal activity of the company during the financial year ended 30 June 2018 was the exploration for natural
resources, unchanged since the incorporation of the Company.
FINANCIAL RESULTS FOR THE YEAR
The company recorded an operating loss after income tax for the year ended 30 June 2018 of $83,503 (2017:
$91,307).
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There have been no significant changes in the state of affairs during the financial year and to the date of this report.
DIVIDENDS
No dividend has been paid, provided or recommended during the financial year and to the date of this report.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The likely developments in the company’s operations in future years and the expected result from those
operations are highly dependent on success in the permit area in which the company holds an interest.
REVIEW OF FINANCIAL POSITION
At 30 June 2018, the company had a working capital (current assets less current liabilities) surplus of $255,733 (2017:
$402,564).
REVIEW OF OPERATIONS
Interest in WA-54-R Greater Cornea Fields
The company holds a 14.875% working interest in the Cornea Joint Venture. The Cornea Joint Venture ownership is
as follows:
Enegex Limited
Octanex Group
(ASX Code: OXX)
Cornea Resources Pty Ltd
(Operator)
Others
14.875%
18.750%
13.100%
53.275%
the
The Greater Cornea Fields (being
Cornea, Focus and Sparkle Oil Fields and
the Cornea North (Tear) Gas Field) are
located in the Browse Basin, offshore from
Western Australia and held via a Retention
Lease (WA-54-R).
Figure 1 Greater Cornea Field Retention Lease Location Map
2
ENEGEX LIMITED
ABN 28 160 818 986
The Greater Cornea Fields present a large in-place oil resource contained in a challenging reservoir. At the time the
Retention Lease was applied for and granted, production uncertainty was identified as the primary constraint to
development. A successful production test well designed to demonstrate threshold productivity for development
initiation is required to commercialise Cornea.
Given the favourable prevailing oil price when the Retention Lease was applied for (October 2013), numerous `
concepts were then considered to be potentially economic (subject to achieving threshold production volumes) and
assuming sufficient recoveries.
However, the current oil price environment present a significant challenge to the Cornea field’s commerciality,
having rendered as non-viable the field development concepts previously considered as potentially viable.
Reflecting our markedly reduced oil price expectations, new development concept screening was undertaken with
the objective of identifying a development concept with the potential to be commercial at current oil prices.
Following this screening, a development concept predicated on the use of a Mobile Offshore Production Unit
(MOPU) with a subsea holding tank and single point mooring has been selected for further investigation. This
concept is significantly different to earlier concepts, with potential for significant cost reductions.
Integrated reservoir modelling and facilities work continued during the year to support design of a production test
well capable of delivering threshold productivity using this development concept. The Cornea Joint Venture has
applied to vary the conditions of WA-54-R to facilitate this work.
DIRECTORS
The directors in office during the entire financial year and to the date of this report were:
EG Albers
LLB, FAICD
Chairman since 12/4/17
Director since 1/10/15
Mr Albers has over 35 years’ experience as a director and administrator in corporate law, petroleum exploration and
resource sector investment. Mr Albers became involved in oil exploration in 1977 and has a track record of
developing significant oil and gas assets.
Mr Albers has held interests in a number of companies active in the petroleum industry in Australia and Malaysia.
Mr Albers is also a director of the ASX listed companies Octanex Limited and Peako Limited.
B.Bus (dist), CA, MAICD, AGIA, ACIS
RL Clark
Executive Director
Director since 12/10/15
Mrs Clark has more than 15 years’ experience focussed primarily on the natural resources sector. Her experience
includes business development, financial modelling and analysis, capital raising and mergers and acquisitions, as well
as managing joint venture partners, government, regulator and investor relations.
Mrs Clark is also a director of the ASX listed companies Octanex Limited and Peako Limited.
AP Armitage FCA FAICD
Non-Executive Director
Director since 11/4/17
Mr Armitage began his professional career with an international accounting firm. After qualification he was invited
into partnership of a national firm. Since the early 1980s he has been a director of a number of listed exploration
companies in both Australia and New Zealand. He is currently a Non-Executive director of ASX listed company
Peako Limited.
3
ENEGEX LIMITED
ABN 28 160 818 986
COMPANY SECRETARY
B Bus, CPA –
appointed 17 October 2012
RJ Wright
Mr Wright is a senior financial professional with over 25 years commercial experience in the resource, energy and
manufacturing industries gained at various companies and locations, including 14 years at BHP. As well as carrying
out his secretarial duties for Enegex, he is the company’s Chief Financial Officer and the Company Secretary and
CFO of the ASX listed companies Octanex Limited and Peako Limited. Mr Wright is a member of CPA Australia.
BOARD AND COMMITTEE MEETINGS
The following table sets out the number of formal meetings held during the year and the number of meetings
attended by each director.
written circular resolutions. In addition, the directors met and corresponded at numerous times
throughout the financial year to discuss the Group’s affairs.
All other matters that required formal Board resolutions were dealt with via
Board of Directors
Held
2
2
2
Attended
Held
2
2
2
Audit Committee
Attended
2
2
2
2
2
2
EG Albers
RL Clark
AP Armitage
The board undertakes all audit committee functions.
SHARE CAPITAL
ORDINARY SHARES
No shares were issued during the year and to the date of this report.
OPTIONS
No options were issued during the year and to the date of this report.
REMUNERATION REPORT
This report is audited.
Directors / Executives
EG Albers
RL Clark
AP Armitage
Position Held
Non-Executive Chairman
Executive Director
Non-Executive Director
During the year there were no employees or consultants to the company that meet the definition of key management
personnel, other than the directors.
Remuneration levels are reviewed annually.
Director Remuneration
During the year under review, directors were remunerated a total of $Nil (2017: $Nil).
There is no performance related remuneration for directors. Directors’ remuneration paid covers all board activities
including serving on committees.
The directors do not receive employee benefits, including annual leave and long service leave, but remuneration may
4
ENEGEX LIMITED
ABN 28 160 818 986
include the grant of options (share based payments) over shares of the company so as to align directors’ interests with
that of the shareholders.
There is no direct relationship between remuneration of directors and the company’s performance since incorporation.
Components of directors’ compensation are disclosed below.
Short Term
Post Employment
Equity Settled
Total
Year
Directors
Fees
-
-
-
-
-
EG Albers
RL Clark
AP Armitage
TOTAL
2018
2018
2017
2018
2017
2018
2017
2017
Other
Fees
-
-
-
$
-
-
-
-
$
-
-
-
-
Super
annuation
Options
-
-
-
$
-
-
-
-
-
$
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
-
Options as
percentage of
Total
-
-
-
-
-
-
-
-
There were no shares or options issues to directors as part of compensation during the year ended 30 June 2018.
Directors’ interests in shares
The number of shares in the company held during by each director, including their related parties, is set out below:
Held at
1 July 2017
32,639,070
75,000
-
__________
32,714,070
=========
Net
Change
Other
265,779
-
-
__________
265,779
=========
Held
At 30 June 2018
32,904,849
75,000
-
__________
32,979,849
=========
Directors
EG Albers
RL Clark
AP Armitage
End of Remuneration Report
INDEMNIFICATION OF OFFICERS AND AUDITORS
During the financial year and to the date of this report, the company did not pay premiums in respect of contracts
insuring officers or auditors of the company against liabilities arising from their position of officers or auditor of the
company.
ENVIRONMENT, HEALTH AND SAFETY
The company has adopted an environmental, health and safety policy and conducts its operations in accordance with the
APPEA Code of Practice.
The company’s petroleum exploration activities are subject to environmental conditions specified in the Offshore
Petroleum and Greenhouse Gas Storage Act 2006, associated Regulations and Directions, as well as the Environment
Protection and Biodiversity Conservation Act 1999. There were no known contraventions of any relevant environmental
regulations by the company, its subsidiary or by the operator of any of the permits in which an interest is held.
5
ENEGEX LIMITED
ABN 28 160 818 986
The company believes all injuries are avoidable and has policies and procedures to ensure employees and contractors
manage safety accordingly. The company monitors and evaluates its procedures. During the year there were no known
contraventions of health and safety by the company or reported health and safety incidents.
CORPORATE GOVERNANCE STATEMENT
A corporate governance statement reporting on Enegex’s governance framework, principles and practices is provided on
the Enegex website www.enegex.com.au.
WEBSITE
The company has a website that can be found at www.enegex.com.au where relevant company documents and
information are displayed.
EVENTS SINCE BALANCE DATE
There has been no significant after balance date event up to the date of signing this report.
PROCEEDINGS ON BEHALF OF THE COMPANY
There are no proceedings on behalf of the company.
AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES
A copy of the Auditor’s Independence Declaration, as required under Section 307C of the Corporations Act
2001, is attached on page 26 and forms part of this Directors’ Report for the year ended 30 June 2018.
No fees were paid to the auditor for non-audit services.
Signed in accordance with a resolution of the directors.
E.G. Albers
Director
Melbourne, 26 September 2018
6
ENEGEX LIMITED
ABN 28 160 818 986
DIRECTORS’ DECLARATION
The directors of the company declare that:
1.
The financial statements, comprising the statement of profit or loss and other comprehensive income, statement
of financial position, statement of cash flows, statement of changes in equity, and accompanying notes, are in
accordance with the Corporations Act 2001 and
(a)
(b)
(c)
comply with Accounting Standards and the Corporations Regulations 2001;
give a true and fair view of the company’s financial position as at 30 June 2018 and of its
performance for the year ended on that date; and
the financial statements and notes also comply with International Financial Reporting Standards as
disclosed in Note 1(a).
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.
The remuneration disclosures included in pages 4 to 5
Remuneration Report), for the year ended 30 June 2018, comply with section 300A of the Corporations Act
2001.
of the Directors’ Report, (as part of the audited
The directors have been given the declarations by the executive officer and the financial officer required by
section 295A of the Corporations Act.
2.
3.
4.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of
the directors by:
E.G. Albers
Director
Melbourne, 26 September 2018
7
ENEGEX LIMITED
ABN 28 160 818 986
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2018
Revenue
Expenses
- i
n
terest received
Loss before income tax expense
Income tax expense
Loss for the year
Other comprehensive income
In
crease in fair value of available
Total comprehensive income for the year
Basic loss per share (cent per share)
Diluted
loss
per share (cent per share)
-for
-sale financial asset
NOTE
2
2018
$
2017
$
4,626
9,783
(88,129)
(101,090)
(83,503)
(91,307)
________
________
3
(83,503)
-
________
(91,307)
________
4,814
________
________
________
________
(78,689)
________
________
-
1,970
(89,337)
cents
cents
(0.104)
(0.113)
(0.104)
(0.113)
15
15
The above Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with the
accompanying notes.
8
ENEGEX LIMITED
ABN 28 160 818 986
STATEMENT OF FINANCIAL POSITION
AT 30 JUNE 2018
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
NOTE
4
5
287,052
2,561
Available-for-sale financial assets
Exploration
and evaluation assets
6
27,917
7
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
2018
$
431,664
3,757
________
289,613
________
________
23,104
185,249
________
________
213,166
________
________
502,779
________
________
2017
$
________
435,421
121,920
145,024
580,445
Trade and other payables
8
33,880
32,857
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
________
________
33,880
________
________
32,857
468,899
========
547,588
=======
9
1,366,891
1,366,891
(904,776)
6,784
(821,273)
________
________
1,970
468,899
========
547,588
=======
The above Statement of Financial Position is to be read in conjunction with the accompanying notes.
9
ENEGEX LIMITED
ABN 28 160 818 986
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2018
At 1 July 2017
Loss for the year
Revaluation of financial asset (net of tax)
Total comprehensive income for the year
At 30 June 2018
At 1 July 2016
Cost of Issue (reversal)
Loss for the year
Revaluation of financial asset (net of tax)
Total comprehensive income for the year
At 30 June 2017
Issued
capital
$
Accumul’d
losses
AFS
Reserve
$
$
Total
Equity
$
1,366,891
( 821,273)
1,970
547,588
-
( 83,503)
-
( 83,503)
-
-
4,814
4,814
-
( 83,503)
4,814
( 78,689)
1,366,891
(904,776)
6,784
468,899
1,364,941
( 729,966)
-
634,975
1,950
-
-
1,950
-
( 91,307)
-
( 91,307)
-
-
1,970
1,970
-
( 91,307)
1,970
( 89,337)
1,366,891
( 821,273)
1,970
547,588
The above Statement of Changes in Equity is to be read in conjunction with the accompanying notes.
10
ENEGEX LIMITED
ABN 28 160 818 986
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers
Interest received
NOTE
2018
$
2017
$
(84,882)
(111,966)
3,599
________
10,293
________
Net cash outflow in operating activities
(i)
(81,283)
(101,673)
________
INVESTING ACTIVITIES
CASH FLOWS FROM
Payments to suppliers - exploration
Payments for investments
Net cash outflow from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Costs of share issue
Net cash outflow from financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the
beginning of the year
(63,329)
(32,340)
________
______
-
-
(22,200)
________
________
(144,612)
(177,347)
________
-
________
(21,134)
(63,329)
(53,474)
______
(22,200)
________
________
________
609,011
431,664
=======
431,664
________
287,052
=======
CASH AND CASH EQUIVALENTS AT YEAR END
4
(i) RECONCILIATION OF LOSS TO NET CASH OUTFLOW IN OPERATING ACTIVITIES
Loss after income tax
Changes in Assets and Liabilities:
Decrease in payables
Decrease in receivables
Net cash outflow from operating activities
(83,503)
(91,307)
1,023
(15,385)
1,197
________
________
5,019
(81,283)
(101,673)
=======
=======
The above Statement of Cash Flows is to be read in conjunction with the accompanying notes.
11
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2018
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES
Enegex Limited (“Enegex” or ‘the company”) is a for-profit company incorporated in Australia with its registered
office and principal place of business located at Level 21, 500 Collins Street, Melbourne, Victoria 3000. The financial
report of the company for the year ended 30 June 2018 comprises the company and its interest in joint operations.
The principal activity of the company during the year was natural resources exploration, evaluation and investment.
(a) Statement of compliance
The financial report is a general purpose financial report which has been prepared in accordance with Australian
Accounting Standards, including the Accounting Interpretations, issued by the Australian Accounting Standards
Board (‘AASB’) and the
Financial Reporting Standards and interpretations adopted by the International Accounting Standards Board.
Corporations Act 2001
. The financial report of the company complies with International
(b) Basis of preparation
The financial report is presented in Australian dollars which is the company’s functional currency and is prepared on
the accrual and historical cost basis.
The preparation of a financial report in conformity with Australian Accounting Standards requires management to
make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and
liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the
revision and future periods if the revision affects both current and future periods.
Judgements made by management in the application of Australian Accounting Standards that have a significant effect
on the financial report and estimates with a significant risk of material adjustment in the next year are discussed in
note 1(m).
The accounting policies set out below have been applied consistently to all periods presented in the financial report.
(c) Exploration and evaluation expenditure
Exploration and evaluation assets, including the costs of acquiring permits or licences, are capitalised as exploration
and evaluation assets on an area of interest basis. Exploration and evaluation assets are only recognised if the rights to
tenure of the area of interest are current and either:
i.
ii.
the expenditures are expected to be recouped through successful development and exploitation of the area of
interest, or alternatively, by its sale or partial sale: or
activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves and active and significant
operations in, or in relation to, the area of interest are continuing.
The tests contained in AASB6.20 are applied to determine whether exploration and evaluation assets are assessed for
impairment:
1)
2)
3)
4)
the exploration and evaluation tenure right has expired or are expected to expire in the near future, and is not
expected to be renewed.
substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is
neither budgeted nor planned.
exploration for and evaluation of mineral resources in the specific area have not led to the discovery of
commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in
the specific area.
sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying
amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or
by sale.
12
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2018
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (continued)
(c) Exploration and evaluation expenditure (continued)
Proceeds from the sale of exploration permits or recoupment of exploration costs from farmin arrangements are
credited against exploration costs previously capitalised. Any excess of the proceeds overs costs recouped are
accounted for as a gain on disposal.
Restoration, rehabilitation and environmental costs necessitated by exploration and evaluation activities are provided
for as part of the cost of those activities. Costs are estimated on the basis of current legal requirements, anticipated
technology and future costs that have been discounted to their present value. Estimates of future costs are reassessed
at each reporting date.
(d) Trade and other receivables
Trade receivables are recognised at original invoice amounts less an allowance for uncollectible amounts and have
repayment terms between 30 and 90 days. Collectability of trade receivables is assessed on an ongoing basis. Debts
which are known to be uncollectible are written off. An allowance is made for doubtful debts where there is objective
evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in
payment) that the company will not be able to collect all amounts due according to the original terms.
(e) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and at call bank deposits. Bank overdrafts that are repayable on
demand and form an integral part of the company’s cash management are included as a component of cash and cash
equivalents for the purpose of the statement of cash flows.
(f) Impairment of assets
The carrying amounts of the company’s assets are reviewed at each statement of financial position date to determine
whether there are indicators of impairment. At each reporting date the company assesses whether there is any
indication that individual assets are impaired. Where impairment indicators exist, recoverable amount is determined
and impairment losses are recognised in profit or loss where the asset's carrying value exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purpose of
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.
Where it is not possible to estimate recoverable amount for an individual asset, recoverable amount is determined for
the cash-generating unit to which the asset belongs.
(g) Share capital
Ordinary share capital is recognised at the fair value of the consideration received by the company. Transaction costs
arising on the issue of ordinary shares are recognised directly in equity as a reduction of the consideration received,
net of any related income tax benefit.
(h) Provisions
A provision is recognised in the statement of financial position when the company has a present legal or constructive
obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle
the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
(i) Trade and other payables
Trade, accruals and other payables are recorded initially at fair value and subsequently at amortised cost. Trade
payables are non-interest bearing and are normally settled on 60-day terms.
(j) Revenue
Revenue is recognised at the fair value of consideration received or receivable. Amounts disclosed as revenue are net
of returns, trade allowances and duties and taxes paid. The following specific recognition criteria must also be met
before revenue is recognised
13
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2018
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (continued)
(j) Revenue (continued)
Interest
Revenue is recognised as interest accrues using the effective interest method. The effective interest method uses the
effective interest rate which is the rate that exactly discounts the estimated future cash receipts over the expected life
of the financial asset.
(k) Income tax
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in profit or
loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively
enacted at the statement of financial position date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the statement of financial position liability method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes.
The initial recognition of assets or liabilities that do not affect accounting nor taxable profit is not provided for in
determining deferred tax amounts. The amount of deferred tax provided is based on the expected manner of
realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively
enacted at the statement of financial position date. A deferred tax asset is recognised only to the extent that it is
probable that future taxable profits will be available against which the asset can be applied. Deferred tax assets are
reduced to the extent that it is no longer probable that the related tax benefit will be realised.
The Company recognises deferred tax assets arising from unused tax losses of the company to the extent that is
probable that future taxable profits of the company will be available against which the asset can be utilised.
(l) Goods and services tax
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the
amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised
as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or
payable to, the ATO is included as a current asset or liability in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising
from investing and financing activities which are recoverable from, or payable to, the ATO 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.
(m) Accounting estimates and judgements
Management determine the development, selection and disclosure of the company’s critical accounting policies and
estimates and the application of these policies and estimates. Other than as disclosed in these notes there are no
estimates and judgements that are considered to have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year.
Work requirements achieved by farm-ins materially reduce the level of expenditure incurred by the company to
comply with work program commitments.
Management has determined that realisation of the estimated deferred tax asset arising from tax losses and temporary
differences is not probable and has not brought to account the asset at balance date (Note 3).
14
Any
ENEGEX LIMITED
ABN 28 160 818 986
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (continued)
30 June 2018
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (continued)
(m) Accounting estimates and judgements (continued)
Per Note 1(c) and 1(f) management exercise judgement as to the recoverability of exploration expenditure.
judgement may change as new information becomes available. If, after having capitalised exploration and evaluation
expenditure, management concludes that the capitalised expenditure is unlikely to be recovered by future sale or
exploitation, then the relevant capitalised amount will be written off through profit or loss and other comprehensive
income.
Management have considered whether there are impairment indicators for the capitalised exploration and evaluation
expenditure relating to WA-54-R (Note 7) applying the tests contained in AASB 6.20, in particular on the basis that
the Cornea Joint Venture continues to undertake work to address Cornea’s key barriers to commercialisation. The
objective of the current work activities is to support design of a production test well to achieve economic production.
The Joint Venture has applied to the regulator to vary the conditions of the Retention Lease to move the timing for a
production test well so that integrated reservoir modelling and facilities work can be completed in order to design a
production test well capable of delivering sufficient threshold productivity to demonstrate economic viability.
Management notes that the outcome of this application is significant to the Joint Venture’s future activities and tenure
of the Lease. A negative decision by the regulator may impact on the Joint Venture’s ability to renew the Lease and
result in a material adjustment to the carrying amount of capitalised exploration and evaluation expenditure.
(n) Joint Operations
Interest in joint operations is brought to account, by including in the respective classifications, the company’s share of
individual assets employed, liabilities, income and expenses incurred. Where the company is acquiring or disposing
of a joint operation interest the company’s share of joint operation assets is based on the contributions made to the
joint operation.
(o) Fair value
Fair values may be used for financial asset and liability measurement as well as for sundry disclosures. Fair values for
financial instruments traded in active markets are based on quoted market prices at statement of financial position
date. The quoted market price for financial assets is the current bid price and the quoted market price.
The fair value of financial instruments that are not traded in an active market are determined using valuation
techniques. Assumptions used are based on observable market prices and rates at balance date. Estimated discounted
cash flows are used to determine fair value of the remaining financial instruments.
The carrying value (less impairment provision of trade receivables and payables) are assumed to approximate their
fair values due to their short-term nature. The fair value of financial liabilities for disclosure purposes is estimated by
discounting the future contractual cash flows at the current market interest rate that is available to the company for
similar financial instruments
(p) Foreign Currency Translation
The functional and presentation currency of the company is Australian dollars (A$).
Foreign currency transactions are translated into the functional currency using the exchange rates ruling at the date of
the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of
exchange ruling at the statement of financial position date. Foreign exchange gains and losses resulting from settling
foreign currency transactions, as well as from restating foreign currency denominated monetary assets and liabilities,
are recognised in profit or loss, except when they are deferred in equity as qualifying cash flow hedges or where they
relate to differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date
when fair value was determined.
15
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2018
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (continued)
(q) Earnings per Share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to members of Enegex, adjusted for the after-
tax effect of preference dividends on preference shares, if any, classified as equity, by the weighted average number of
ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares during the year.
Diluted earnings per share
Earnings used to calculate diluted earnings per share are calculated by adjusting the basic earnings by the after-tax
effect of dividends and interest associated with dilutive potential ordinary shares. The weighted average number of
shares used is adjusted for the weighted average number of ordinary shares that would be issued on the conversion of
all the dilutive potential ordinary shares into ordinary shares.
(r) New and revised accounting standards issued not yet effective
The company has adopted all of the new and revised Accounting Standards issued by the Australian Accounting
Standards Board (AASB) that are relevant to its operations and effective for annual reporting periods beginning on 1
July 2017.
The Directors do not believe that new and revised standards issued by AASB (that are not as yet effective), AASB 15
Revenue from Contracts with Customers and AASB 16 Leases, will have any material financial impact on the
financial statements as the Group has no revenue or leases.
AASB 9 Financial Instruments
This standard is applicable to annual reporting periods beginning on or after 1 January 2018. The standard replaces all
previous versions of AASB 9 and completes the project to replace AASB139 'Financial Instruments: Recognition and
Measurement'. AASB 9 introduces new classification and measurement models for financial assets. A financial asset
shall be measured at amortised cost, if it is held within a business model whose objective is to hold assets in order to
collect contractual cash flows, which arise on specified dates and solely principal and interest. All other financial
instrument assets are to be classified and measured at fair value through profit or loss unless the entity makes an
irrevocable election on initial recognition to present gains and losses on equity instruments (that are not held-for-
trading) in other comprehensive income ('OCI'). For financial liabilities, the standard requires the portion of the
change in fair value that relates to the entity's own credit risk to be presented in OCI (unless it would create an
accounting mismatch). New simpler hedge accounting requirements are intended to more closely align the accounting
treatment with the risk management activities of the entity. New impairment requirements will use an 'expected credit
loss' ('ECL') model to recognise an allowance. Impairment will be measured under a 12-month ECL method unless the
credit risk on a financial instrument has increased significantly since initial recognition in which case the lifetime ECL
method is adopted. The standard introduces additional new disclosures. There will be no material impact on the
carrying values. Changes in fair value are expected to continue being recorded through OCI, with the one-time
election to record equity investments as such expected to be undertaken by the directors. Under AASB 9 the fair value
gains/losses in relation to equity are not recycled to the Statement of Profit and Loss (even on disposal of the
investment) and are not subject to impairment testing.
16
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2018
NOTE 2 EXPENSES
Audit and other related fees
Consultants fees
Office costs
Stock exchange and registry costs
Other expenses
NOTE 3 INCOME TAX BENEFIT
Components of income tax
Current tax benefit
Deferred tax asset not brought to account
Income tax benefit
Reconciliation between tax benefit and pre-tax loss
Loss before tax
Income tax using statutory income tax rate of 30% (2017:
30%)
Tax benefit
Deferred tax asset not brought to account
Income tax
benefit
Unrecognised deferred tax asset
The estimated deferred tax asset arising from tax losses and temporary differences
not brought to account at balance date as realisation of the benefit is not probable:
Tax losses carried forward
Temporary differences
benefi
t
NOTE
2018
2017
$
25,052
733
25,550
20,113
16,681
$
25,000
12,275
25,652
21,264
16,899
________
________
88,129
=======
101,090
=======
(25,051)
25,051
________
-
=======
________
(83,503)
=======
(25,051)
_______
(25,051)
________
25,051
________
-
=======
(27,392)
27,392
-
=======
(91,307)
=======
(27,392)
________
(27,392)
27,392
-
=======
1,104,913
(175,524)
________
________
929,389
=======
950,960
(110,563)
840,397
=======
17
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2018
NOTE 4 CASH AND CASH EQUIVALENTS
Cash at bank and on hand
Cash and cash equivalents are subject to interest rate risk as they earn floating rates.
The bank deposit is at call in 2018
NOTE 5 TRADE & OTHER RECEIVABLES
Other receivables
The carrying amount of all receivables is equal to their fair value as they are short term.
None of the receivables are impaired or past due. The maximum credit risk for the
company is the gross value of all receivables.
All receivables are non-interest bearing.
NOTE 6 AVAILABLE-FOR-SALE FINANCIAL ASSETS
Investments in listed equities
Balance at beginning of year
Purchase of listed equities
Net revaluation increment
Balance at end of year
NOTE 7 EXPLORATION AND EVALUATION ASSETS
Balance at beginning of year
Expenditure for the year
Balance at end of year
Exploration and evaluation assets relate to the areas of interest in the exploration
phase for petroleum retention lease WA-54-R. (2017: WA-54-R).
WA-54-R is held through joint operations and details of interests held in the
permits can be found in Note 10.
NOTE 8 TRADE AND OTHER PAYABLES
Other payables and accrued expenses
Director-related entities – other payables (Note 12)
Trade payables are current liabilities which result in their fair value being equal to the current carrying
amount. Information about the company’s exposure to foreign exchange risk in relation to other trade
payables and accrued expenses, including sensitivities to changes in foreign exchange rates, is provided in
Note 14.
18
2018
$
2017
$
287,052
431,664
________
________
287,052
431,664
======= =======
3,757
________
2,561
________
2,561
3,757
======= =======
23,104
-
4,813
-
21,134
1,970
________
________
27,917
23,104
======= =======
89,580
32,340
121,920
63,329
________
185,249
________
121,920
======= =======
14,746
18,111
17,981
15,899
________
33,880
________
32,857
======= =======
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2018
NOTE 9 ISSUED CAPITAL
Issued Capital
Ordinary shares fully paid
Ordinary Shares
Movements during the year
Balance at beginning of year
Shares issued:
Balance at end of year
2018
$
Shares
80,499,737
2018
Shares
2017
$
2017
1,364,941
80,499,737
1,364,941
costs of issue
80,499,737
1,364,941
80,499,737
1,364,941
80,499,737
1,364,941
80,499,737
1,364,941
Ordinary Shares
Ordinary shares entitle the holder to receive dividends as declared and, in the event of winding up the company, to
participate in the proceeds from the sale of all surplus assets in proportion to
shares held. Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the
company. The company does not have a limited authorised capital and issued shares have no par value.
Share Options
No options were on issue during the year and to the date of this report.
NOTE 10 INTEREST IN JOINT OPERATIONS
The company has an interest in the assets, liabilities and output of joint operations for the exploration and
development of petroleum in Australia. The company has taken up its share of joint operations
the company’s contributions to the joint operations. Expenditure commitments in respect of the joint
disclosed in Note 13. Details of the company’s interests in the joint operations are:
the number of and amounts paid up on
Interest
30/6/2018
Interest
Acquired
(Disposed)
transactions based on
operations are
Interest
30/6/2017
Cornea Joint Venture
– WA -54-R
14.875%
-
14.875%
Assets and liabilities of the joint operations are included in the financial statements as follows:
2018
$
3,551
1,372
390
3,941
2017
$
1,119
2,491
185,249
121,920
189,190
124,411
4,225
7,910
4,225
7,910
CURRENT ASSETS
Cash and cash equivalents
Trade
TOTAL CURRENT ASSETS
and other receivables
NON-CURRENT ASSETS
Exploration costs
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables – director related
TOTAL LIABILITIES
There are no contingent liabilities in any of the joint operations. Minimum work requirements in
exploration permit interests held in joint operations is estimated at reporting date and is shown at Note 13.
19
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2018
NOTE 11 KEY MANAGEMENT PERSONNEL
Non-executive Directors
EG Albers
AP Armitage
Executive Director
RL Clark
During the year the only persons that met the definition of key management personnel were the directors
company has no employees.
Fees paid to PA Armitage, EG Albers and RL Clark in their capacities as consultants or service providers to Enegex
disclosed below in the Related Party Note 12. Fees paid to directors
the Remuneration Report section of the Directors’ Report.
Individual compensation disclosures
Information regarding individual director’s compensation is provided in the Remuneration Report section of th
Directors’ Report. In summary form:
Short Term
Year
Directors
Other Fees
Fees
$
-
-
TOTAL
2018
-
2017
NOTE 12 RELATED PARTY TRANSACTIONS
During the year services were provided under normal commercial terms and conditions by director-related entities
as disclosed below together with amounts payable as at 30 June including in relation to joint operations*.
Entity
Related
director
Service
RL Clark
Consulting services
Office services
EG Albers
EG Albers
Samika Pty Ltd
Exoil Pty Ltd
Natural Resources
Group Pty Ltd
Octanex Limited
EG Albers
Accounting and
Management of exploration
tenements
administrative support
* As a participant of the Cornea Joint Venture Enegex holds an interest in a petroleum joint venture with director-
related entities: Cornea Petroleum Pty Ltd, Cornea Oil & Gas Pty Ltd, Coldron Pty Ltd, Octanex Cornea Pty Ltd,
Moby Oil & Gas Pty Ltd, Octanex Limited, Cornea Resources Pty Ltd and Auralandia Pty Ltd, all director-related
entities of EG Albers.
NOTE 13 EXPLORATION AND EVALUATION PERMIT COMMITMENTS
Estimated expenditure to satisfy contractual and permit work obligations:
Not later than 1 year
Later than 1 year but not later than 3 years – WA-54-R
- WA -54-R
The Cornea Joint Venture has applied to the regulator to vary the conditions of the WA-54-R Retention Lease to
move the production test well to the next term of the Lease (Note 1(m)).Estimated expenditure, arising from
retention lease work programme which, may, subject to negotiation and approval, be varied. They may also be
satisfied by farmout, sale, relinquishment or surrender.
20
are summarised in the table below and detailed in
. The
are
e
Post
Employment
Super-
annuation
$
-
-
$
-
-
Equity Settled
Total
Options
$
-
-
$
-
Amounts paid
2018
$
2,957
27,570
2,975
2017
$
14,274
28,020
10,064
Payable at
30/06/18
$
30/06/17
$
182
7,287
3,272
181
6,480
7,066
11,218
9,456
5,158
4,384
44,720
61,814
15,899
18,111
2018
$
2017
$
-
6,098,750
74,375
37,188
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE
2018
NOTE 14 FINANCIAL INSTRUMENTS
Purchases and sales of financial assets and financial liabilities are recognised on trade date; the date on which the
company commits to purchase or sell the financial assets or financial liabilities. Financial assets are derecognised
when the rights to receive cash flows from the financial assets have expired or have been transferred and the company
has transferred substantially all the risks and rewards of ownership.
Exposure to credit, interest rate, liquidity and currency risks arises in the normal course of the company’s business.
The company’s overall risk management approach is to identify the risks and implement safeguards which seek to
minimise potential adverse effects on the financial performance of the company.
Credit risk
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations. At balance date there were no significant concentrations of credit risk for the
company. The maximum exposure to credit risk of financial assets is represented by the carrying amounts of each
financial asset in the statement of financial position.
Interest rate risk
All financial liabilities and financial assets at floating rates expose the company to cash flow interest rate risk. The
company has no exposure to interest rate risk at balance date, other than in relation to cash and cash equivalents which
attract a floating interest rate. Details of cash and cash deposits can be found in Note 4. At balance date a 1% (100
basis point) increase/ decrease in the interest rate would improve / worsen the company’s post tax profit by $2,009
(2017: $3,022)
Liquidity risk
Liquidity risk is monitored to ensure sufficient monies are available to meet contractual obligations as and when they
fall due. All financial assets and liabilities have a maturity date of less than 12 months.
Capital Management
When managing capital, directors’ objective is to ensure the entity continues as a going concern as well as to maintain
optimal returns to shareholders and benefits for other stakeholders.
It is the company’s plan that capital will be raised by any one or a combination of the following manners: placement
of shares to excluded offerees, pro-rata issue to shareholders, the exercise of outstanding options, and/or a further
issue of shares. Should these methods not be considered to be viable, or in the best interests of shareholders, then it
would be the company’s intention to meet its exploration obligations by either partial sale of its interests or farmout,
the latter course of action being part of its overall strategy.
The company is not subject to any externally imposed capital requirements.
21
ENEGEX LIMITED
ABN 28 160 818 986
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2018
NOTE 15 SEGMENT INFORMATION
The company has adopted AASB 8 Operating Segments whereby segment information is presented using a
'management approach', i.e. segment information is provided on the same basis as information used for internal
reporting purposes by the board of directors
At regular intervals the board is provided management information at a company level for the company’s cash
position, the carrying values of exploration permits and a company cash forecast for the next twelve months of
operation.
On this basis, no segment information is included in these financial statements.
All interest received has been derived in Australia. All exploration and evaluation assets are held in Australia.
NOTE 16 LOSS PER SHARE
The following reflects the loss and share data used in the calculation of basic and diluted loss per share:
Net Loss
weighted average number of shares used for the purposes of calculating diluted earnings per share reconciles to
The
the number used to calculated basic earnings per share as follows:
2018
$
(83,503)
2017
$
(91,307)
Weighted Average
Number of Shares
Weighted Average
Number of Shares
Basic and diluted loss per share
80,499,737
80,499,737
NOTE 17 AUDITOR’S REMUNERATION
Amounts received or due and
auditor of the Company for:
Audit of the full year and review of the half year
financial reports
Other assurance services
receivable by the
NOTE 18 EVENTS SINCE BALANCE DATE
There are no significant after balance date events up to the signing of this report.
2018
$
2017
$
25,052
-
______
25,052
======
______
25,000
-
25,000
======
22
Collins Square, Tower 1
727 Collins Street
Melbourne Victoria 3008
Correspondence to:
GPO Box 4736
Melbourne Victoria 3001
T 61 3 8320 2222
F 61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Independent Auditor’s Report
To the Members of Enegex Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Enegex Limited (the Company), which comprises the statement of financial
position as at 30 June 2018, the statement of profit or loss and other comprehensive income, statement of changes in
equity and 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 Company is in accordance with the Corporations Act 2001,
including:
a giving a true and fair view of the Company’s financial position as at 30 June 2018 and of its performance for the year
ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
Emphasis of matter – Recoverability of Exploration and Evaluation Asset
We draw your attention to Note 7 of the financial statements and the exploration and evaluation asset of $185,249 relating to
petroleum retention lease WA-54-R. We note the Joint Venture has applied to vary certain conditions of the petroleum
retention lease. Whilst the Directors are involved in ongoing discussions with the Authority in respect to these variations, the
Authority has not currently agreed to make the requested variations. These circumstances give rise to uncertainty in respect
to the recoverability of the carrying value of the exploration and evaluation asset. Our opinion is not further modified in respect
of this matter.
Key Audit Matters
Except for the matter described in the Emphasis of Matter - Recoverability of Exploration and Evaluation Asset, we have
determined that there are no key audit matters to communicate in our report.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included in the
Company’s annual report for the year ended 30 June 2018, but does not include the financial report and our auditor’s report
thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Company’s/Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless the Directors either intend to liquidate the Company/Group or to cease operations, or have no realistic alternative but to
do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar2.pdf. This description forms part of our
auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 4 to 5 of the Directors’ report for the year ended 30 June
2018.
In our opinion, the Remuneration Report of Enegex Limited, for the year ended 30 June 2018 complies with section 300A
of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report,
based on our audit conducted in accordance with Australian Auditing Standards.
Grant Thornton Audit Pty Ltd
Chartered Accountants
B L Taylor
Partner – Audit & Assurance
Melbourne, 26 September 2018
Collins Square, Tower 1
727 Collins St
Melbourne Victoria 3008
Correspondence to:
GPO Box 4736
Melbourne Victoria 3001
T +61 3 8320 2222
F +61 3 8320 2200
E info.vic@au.gt.com
Auditor’s Independence Declaration
To the Directors of Enegex Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Enegex
Limited for the year ended 30 June 2018, I declare that, to the best of my knowledge and belief, there have been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
Chartered Accountants
B L Taylor
Partner – Audit & Assurance
Melbourne, 26 September 2018
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
ENEGEX LIMITED
ABN 28 160 818 986
SHAREHOLDER AND OTHER INFORMATION
VOTING RIGHTS
At meetings of members or classes of members:
(a)
(b)
each member entitled to vote may vote in person or by proxy, attorney or representative;
on a show of hands, every person present who is a member or a proxy, attorney or representative of a member
has one vote; and
(c)
on a poll, every person present who is a member or a proxy, attorney or representative of a member has:
(i)
(ii)
for each fully paid share held by him, or in respect of which he is appointed a proxy, attorney or
representative, one vote for the share;
for each partly paid share, only the fraction of one vote which the amount paid (not credited) on the
share bears to the total amounts paid and payable on the share (excluding amounts credited),
subject to any rights or restrictions attached to any shares or class or classes of shares.
No. of Holders
DISTRIBUTION OF ORDINARY SHARES
Numbers of members by size of holding and the total number of shares on issue:
Ordinary Shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
TOTAL ON ISSUE
988 holders held less than a marketable parcel of ordinary shares. There is no current on-market buy-back.
COMPILED AS AT 21 SEPTEMBER 2018
No. of Shares
204
298
197
403
66
1,168
66,230
900,209
1,544,656
13,244,949
64,743,693
80,499,737
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ENEGEX LIMITED
ABN 28 160 818 986
SHAREHOLDER AND OTHER INFORMATION (
SUBSTANTIAL SHAREHOLDERS
As disclosed in notices given to the Company.
continued
)
COMPILED AS AT 21 SEPTEMBER 2018
Name of Substantial Shareholder
Interest in Number of Shares
% of Shares
Beneficial and non-beneficial
Albers Group
Ross Di Bartolo
THE 20 LARGEST HOLDERS OF ORDINARY SHARE
Holder
Mr Ernest Geoffrey Albers
Mr Ross Di Bartolo
Auralandia Pty Ltd
Gascorp Australia Pty Ltd
Pillage Investments Pty Ltd
Mr Alfredo Varela
Sacrosanct Pty Ltd
Small Business Finance Pty Ltd
Australis Finance Pty Ltd
Strata Resources Pty Ltd
Mr Ianaki Semerdziev
TRE Pty Ltd
ICM Investments Pty Ltd
Mr Ernest Geoffrey Albers
Peppercorn Hill Pty Ltd
Mr Xing Wang Li
Albers Custodian Company Pty
Ltd
500 Custodian Pty Ltd
Relativity Pty Ltd
Natural Resources Group Pty Ltd
Ordinary
Shares
13,433,600
8,815,126
5,000,000
4,750,000
2,522,667
2,500,000
2,273,886
2,150,000
1,871,078
1,769,332
1,407,000
1,345,942
1,311,233
1,246,867
1,125,000
1,004,719
987,906
765,000
603,333
523,221
The 20 largest shareholders hold 55,415,910 shares representing 68.84% of the issued share capital.
32,639,070
8,815,126
40.55
10.95
% of Total
Issued
16.70%
10.95%
6.21%
5.90%
3.13%
3.11%
2.82%
2.67%
2.32%
2.20%
1.75%
1.67%
1.63%
1.55%
1.40%
1.25%
1.23%
0.95%
0.75%
0.65%
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