ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2015
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
CORPORATE INFORMATION
Jupiter Energy Limited
ABN 65 084 918 481
Directors
Geoffrey Gander (Executive Chairman/Chief Executive Officer)
Alastair Beardsall (Non-Executive Director)
Baltabek Kuandykov (Non-Executive Director)
Scott Mison (Executive Director)
Company Secretary
Scott Mison
Registered Office & Principal Place of Business
Ground Floor, 10 Outram Street
West Perth WA 6005
PO Box 1282
Western Australia 6872
Telephone
Facsimile
Email
Website
+61 8 9322 8222
+61 8 9322 8244
info@jupiterenergy.com
www.jupiterenergy.com
Solicitors
Steinepreis Paganin
Level 4,
16 Milligan Street
Perth WA 6000
Auditors
Ernst & Young
11 Mounts Bay Road
Perth WA 6000
Bankers
National Australia Bank Ltd
UB13.03, 100 St Georges Terrace
Perth WA 6000
Stock Exchange Listing
Nomad
finnCap Ltd
60 New Broad St
London, EC2M 1JJ
United Kingdom
Share Registry
Computershare Investor Services Pty Ltd
Level 2, 45 St George’s Terrace
Perth WA 6000
Telephone
Facsimile
Website
1300 557 010 (only within Australia)
+61 8 9323 2000
+61 8 9323 2033
www.computershare.com
Jupiter Energy Limited shares are listed on the Australian Securities Exchange under the code JPR, on the AIM Market
under the code JPRL and on the Kazakh Stock Exchange (KASE) under the code AU_JPRL.
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JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
Contents of Financial Report
Chairman’s Letter ................................................................................................................................................ 1
Directors' Report ................................................................................................................................................. 2
Remuneration Report ....................................................................................................................................... 11
Corporate Governance Statement .................................................................................................................... 22
Auditor Independence Declaration ................................................................................................................... 28
Consolidated Jupiter Energy Limited Financial Statements
Consolidated Statement of Comprehensive Income ...................................................................................... 30
Consolidated Statement of Financial Position ............................................................................................... 31
Consolidated Statement of Cash Flows ......................................................................................................... 32
Consolidated Statement of Changes in Equity ............................................................................................. 33
Notes to the Consolidated Financial Statements .............................................................................................. 34
Directors' Declaration ........................................................................................................................................ 72
Independent Audit Report to the members of Jupiter Energy Limited ............................................................... 73
ASX Additional Information ............................................................................................................................... 75
ii
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
CHAIRMAN’S LETTER
Dear Shareholder,
I am pleased to present the 2015 Annual Report for Jupiter Energy Limited (Jupiter Energy or the Company).
The past year can be best described as one of two halves.
The first six months of the year showed slow but steady progress with the development of the Block 31 licence area
supported by the ongoing trial production from the J-50, 51 and 52 wells and progress towards the granting of Trial
Production Licences for the J-58 and J-59 wells located on the West Zhetybai field.
Funding constraints meant that drilling on the permit was limited to Well 19, the Company’s eighth well that reached
target depth in February 2015 but was not fully completed and tested due to a lack of funding. That said, the
Company recovered three hydrocarbon samples from the well, with each container holding 300 litres. Independent
analysis of the recovered liquids showed that it was oil with a water cut of ~0.03% with the density and salt content in
line with oil produced from the J-51 and J-52 wells.
The second six months saw production halted in February 2015 when the falling world oil price meant that the sales
price being achieved for domestic oil in Kazakhstan fell to levels that made oil production from Block 31 uneconomic.
The Company took the opportunity during this shut down period to restructure its operations and overall monthly
operating costs have been reduced by ~40% providing an annual saving in running costs of over $US2 million. In
addition, the Company has reviewed its overall approach to Trial Production. Based on a cost structure that uses
purchased (vs rental) topside equipment, the Company believes that with the additional oil produced from the J-58
and J-59 wells (once Trial Production Licences for these wells have been approved) it should be possible to return to
selling into the domestic market on a cashflow positive basis. Ultimately the price of Kazakh domestic oil will be the
key determining factor in the timing of recommencing trial production.
The Company continues to be supported by its major shareholders with interim debt funding during the year via the
renewal of Convertible Notes and the issue of a new Promissory Note. The continued use of unsecured debt to fund
the Company is driven by the fact that the Company has been unable to secure the required permission from the
Kazakh Ministry of Energy to raise equity through the issue of new shares. Once permission is granted it is the
intention of the note holders to convert their unsecured debt to equity, subject to the necessary approvals being
granted, and for the provision of additional funding to come through the issue of new shares.
Looking forward, the Company plans to return to domestic oil production as soon as possible and, assuming funding
is in place, focus on both exploration and appraisal drilling as well as to start the building of the requisite
infrastructure to allow the Akkar East oilfield to move into its Full Field Development phase – a key step in the
Company achieving the first sale of export oil.
The Board remains confident in the prospectivity of the licence area and furthermore that the two oilfields that have
already been discovered on our permit area can be commercially developed into significant producers. Subject to
securing additional funding, the Company will also continue to progress applications for further land extensions of
the permit area, which could provide further exploration upside.
Finally, I would like to take this opportunity to thank all our employees and shareholders for their continued support
over the past twelve months.
Sincerely
Geoff Gander
Chairman/CEO
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JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
DIRECTORS’ REPORT
Your Directors submit their report for the year ended 30 June 2015.
DIRECTORS
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. Directors were in office for this entire period unless otherwise stated.
Names, qualifications experience and special responsibilities
Geoffrey Anthony Gander (52)
B.COM
Executive Chairman/CEO
Appointed 27 January 2005
Alastair Beardsall (61)
Non-Executive Director
Appointed 5 October 2010
Baltabek Kuandykov (67)
Non-Executive Director
Appointed 5 October 2010
Mr Gander graduated from the University of Western Australia in
1984 where he completed a Bachelor of Commerce Degree.
Mr Gander was involved in the identification and purchase of the
Block 31 licence in Kazakhstan and has driven the development of
the business there since 2007. He is currently responsible for the
overall Operational Leadership of the Company as well as Investor
Relations and Group Corporate Development.
Other Current Directorships of Listed Companies
None
Former Directorships of Listed Companies in last three years
None
Mr Beardsall has been involved in the oil industry for more than 30
years starting in 1980 with Schlumberger, the oil-field services
company. From 1992 he began working for independent oil
companies, with increasing responsibility for specific exploration,
development and production ventures. Between 2003 and 2009, he
was Executive Chairman of Emerald Energy plc; Emerald grew,
from a market capitalisation of less than £8 million, until in October
2009 Emerald was acquired by Sinochem Resources UK Limited, in
a transaction that valued Emerald at £532 million.
Other Current Directorships of Listed Companies
Sterling Energy Plc – (AIM)
Gulfsands Petroleum Plc (AIM)
Former Directorships of Listed Companies in last three years
None
Mr Kuandykov has considerable experience in the oil and gas
industry in the region, having served as President of Kazakhoil
(predecessor of the Kazakh State oil company KazMunaiGas). He
was also seconded by the Kazakh Government to work with
Chevron Overseas Petroleum on CIS projects. Mr Kuandykov also
has extensive government experience in Kazakhstan, having
served as Deputy Minister of Geology, Head of the Oil and Gas
Directorate at the Ministry of Geology, and was Deputy Minister of
Energy and Fuel Resources.
Other Current Directorships of Listed Companies
Caspian Energy Inc (TSX)
Former Directorships of Listed Companies in last three years
Chagala Group Limited (LSE)
2
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
DIRECTORS’ REPORT (continued)
Scott Adrian Mison (39)
B.Bus, CA, ACSA
Executive Director
Appointed 31 January 2011
Company Secretary
Appointed 29 May 2007
Mr Mison holds a Bachelor of Business degree, is a Member of the
Institute of Chartered Accountants in Australia and Chartered
Secretaries Australia.
Mr Mison has over 16 years' experience in finance and corporate
compliance within Australia, UK, Central Asia and USA.
He is currently a Director / CFO / Company Secretary of ASX listed
1-Page Limited, CFO / Company Secretary of Rift Valley Resources
Ltd and IDM International Limited. Mr Mison is also a board
member of Wheelchair Sports WA Inc. a not for profit organisation.
Other Current Directorships of Listed Companies:
1-Page Limited
Former Directorships of Listed Companies in last three years:
None
Interests in the shares and options of the company and related bodies corporate
At the date of this report, the interest of the Directors in the shares of Jupiter Energy Limited were:
Director
G Gander
A Beardsall
B Kuandykov
S Mison
Number of
ordinary shares
3,147,224
1,250,000
-
391,238
In compliance with Corporations Law, none of the Directors’ shareholdings in the Company is subject to hedging.
Each Director must disclose any changes via formal ASX, AIM and KASE announcement without delay. Any changes
in Directors’ shareholdings are also confirmed at each Board meeting.
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JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
DIRECTORS’ REPORT (continued)
CORPORATE STRUCTURE
Jupiter Energy Limited is a company limited by shares that is incorporated and domiciled in Australia. Jupiter Energy
Limited has prepared a consolidated financial report incorporating the entities that it controlled during the financial
year, which are outlined in note 28 of the financial statements.
PRINCIPLE ACTIVITIES
The principal activities of the consolidated entity during the course of the financial year included:
Exploration for oil and gas in Kazakhstan: and
Appraisal, development and production of oil and gas properties in Kazakhstan.
EMPLOYEES
The consolidated entity employed 21 employees as at 30 June 2015 (2014: 37 employees).
DIVIDENDS
No dividends in respect of the current or previous financial year have been paid, declared or recommended for
payment.
FINANCIAL REVIEW
Operating Results
The consolidated loss for the year after income tax was $10,982,261 (2014: $2,547,271).
Review of Financial Condition
At the end of the 2015 financial year, cash resources were $1,613,560 (2014: $1,285,358). These accounts have
been prepared on a going concern basis, predicated on the Company’s ability to raise additional cash in order to
finance its proposed work programme and general and administrative costs for the next 12 months. The Board is
currently progressing a number of financing options including seeking the requisite waivers for an equity raising
and/or the issue of debt finance.
Assets increased to $76,897,616 (2014: $59,218,198) and equity increased to $41,654,900 (2014: $39,830,138).
CAPITAL RAISING / CAPITAL STRUCTURE
The Company has on issue $US15.5m in Series B Convertible Notes made up of 12,400,000 Notes with a
conversion price of $US1.25 per Note; interest on the Notes is accrued at 12% per annum and will become payable
when the Notes are repaid or converted into shares. The Series B Convertible Notes were issued on 20 September
2013, have a three (3) year term and fall due for repayment (including accrued interest) on 20 September 2016
unless converted/repaid at an earlier date.
As announced on 17 November 2014, independent shareholders approved amendments to the terms of the Series B
Convertible Notes at the 2014 AGM such that in the event of a capital raising at a price lower than $US1.25 per
share, the Convertible Notes may be converted at this lower price.
On 7 October 2014 the Company announced it had received $US5m of funding from its largest shareholder,
Waterford Petroleum Limited.
The funding was by way of a Promissory Note with the following key terms:
Amount: $US5m.
Repayable in full on 30 June 2015 or when the Company raises a minimum of $US20m (whichever is
sooner). The raising may be via equity, debt or a combination of both.
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JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
DIRECTORS’ REPORT (continued)
Amount repayable may be set off against payment for future equity investment.
Coupon Rate: 12% with any interest being accrued to maturity and able to be offset against payment for
future equity investment.
On 30 April 2015 the Company signed a Framework Agreement with a substantial shareholder, Waterford Petroleum
Limited (Waterford), which will provide the Company with up to $US5m in additional working capital via the issuance
of promissory notes. The Company continues to seek a longer term funding package that will enable the
commencement of the 2015/16 drilling program.
The Framework Agreement has certain terms and conditions, the key ones being:
The issuance of new promissory notes repayable on 1 July 2016.
The October 2014 $US5m Promissory Note (October 2014 Note) held by Waterford were rolled into a
Series B Promissory Note along with the accrued interest outstanding on the October 2014 Note as at 30
April 2015 of $US346,849.
The issuance of further Series B Promissory Notes will provide up to $US5m for working capital purposes
which can be drawn down as required following agreement on the use of funds by Waterford.
The Series B Promissory Note has a coupon rate of 15% per annum, and the interest will accrue and be
payable at the time that the Series B Promissory Note is repaid.
Waterford may elect to offset the value of the Series B Promissory Note and any accrued interest against
participation in any future capital raising carried out by the Company prior to 30 June 2016.
Waterford may elect to roll the value of the Series B Promissory Note and any accrued interest into any
other debt funding facility that the Company may establish prior to 1 July 2016.
Summary of share options on issue
At the date of this report, there were no share options on issue.
OPERATING REVIEW
This section provides details on the operations of the past 12 months.
Ongoing trial production from the J-50, J-51 and J-52 wells took place for the first six months of the financial year. All
other wells were either shut in awaiting remedial work (J-53 and J-55) or shut in awaiting approval of Trial Production
Licences (J-58 and J-59). Details on all these wells are outlined below as are details of other work carried out over
the course of the year.
Well Operations
J-50, J-51 and J-52 Trial Production
During the first seven months of the financial year the Company achieved revenues of ~$US3.66 million from the
sale of approximately 108,500 barrels of oil at an average price of $US33.75 per barrel.
All oil sales were made into the Kazakhstan domestic market, as is required under Trial Production, and made
predominantly through three local traders. All sales were made on a pre-paid basis, with oil collected by the traders
from the well head.
The J-50, J-51 and J-52 wells all had Trial Production Licences (TPL) in place to 29 December 2014. Applications for
the extension of the J-50, J-51 and J-52 TPL’s for the period 1 January 2015 to 29 December 2016 were submitted
during the first half of the financial year and TPL extensions to December 2016 for the J-51 and J-52 wells were
received in December 2014.
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JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
DIRECTORS’ REPORT (continued)
The application for an extension to the J-50 TPL was not approved. The underlying issue delaying the J-50 TPL
renewal is the demand by the Kazakh Committee of Geology that Jupiter Energy reach agreement with its neighbour
MangistauMunaiGas (MMG) over the division of reserves associated with each companies’ share of the Akkar North
accumulation. Jupiter Energy had been in dialogue with MMG on this issue for some time prior to the December
2014 expiry date but was not able to reach formal agreement with MMG with respect to the division of Akkar North
reserves by 29 December 2014. The matter remains unresolved and as a result J-50 has been shut in since 29
December 2014. There has been no revenue from this well since that date.
Oil was produced from the J-51 and J-52 wells from 1 January 2015 to 10 February 2015 when the dramatic fall in
world oil prices resulted in sales contracts being offered by local traders for domestic oil in the Kazakh market at
levels that meant further production would be cashflow negative. A decision was made to shut in both wells and
there has been no revenue from the J-51 and J-52 wells since February 2015.
The J-53 well requires further remedial work and the Company does not, at present, have the requisite funding for
this work and as such the well has not been in production at any time during the financial period.
Overall, average daily production during the first half of the 2014/15 year when the J-50, 51 and 52 wells were all on
production was ~550 barrels of oil per day (2013/14: ~680 bopd). The reduction was due to a combination of the
downtime of the J-50 well during August (ESP maintenance) and the J-51 and J-52 wells in September (regulatory
well testing).
West Zhetybai Field (J-55, J-58 and J-59 wells)
The Kazakh authorities require companies that believe they have discovered a new oilfield to submit a Preliminary
Reserves Report for their review and approval. This report must be prepared under the approved Kazakh standards
which have been developed from the Russian reserves system; the standards are based on the analysis of
geological attributes.
Once Preliminary Reserves have been approved for a field, a company is then able to submit applications for various
environmental and emission approvals to complete the Trial Production Licence (TPL) application process for the
relevant wells on that field. Once these TPL’s have been received the wells can be put on Trial Production and oil
from those wells (and subsequent ones that are drilled on the same field) can be sold into the domestic market.
Jupiter Energy has drilled three wells on the West Zhetybai field (J-55, J-58 and J-59) and after being allowed to
carry out a maximum of 90 days testing on each well, the wells were shut in awaiting the preparation, review and
ultimate approval of the West Zhetybai Preliminary Reserves Report. The State Approval for the West Zhetybai
Preliminary Reserves was received in July 2014.
In summary the West Zhetybai accumulation covers the area delineated by the J-55, J-58 and J-59 wells and
reserves were evaluated for the T31, T32, T2A and T2B reservoir horizons. The State approved quantity of Oil in
Place (OIP) for this area has been estimated at ~173.5 million barrels of oil (mmbbls) from all horizons with
preliminary recoverable reserves (C1 + C2) estimated at ~27.0 mmbbls with the approved C1 reserves estimated at
~4.0 mmbbls and C2 reserves at ~23.0 mmbbls. The proportion of approved C1 to C1+C2 reserves indicates the
need for (i) further testing of the J-55 and J-59 wells and (ii) drilling of additional appraisal wells on the field.
The approval of the Preliminary Reserves Report for West Zhetybai enabled the TPL application process to begin for
the J-58 and J-59 wells and during the year this approval process continued. As at the date of this report, the
Company has all the requisite approvals from the State Authorities to commence trial production from J-58 and J-59.
Funding to install the topside infrastructure for these wells is now required before trial production can commence.
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JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
DIRECTORS’ REPORT (continued)
The J-55 well requires remedial work before it is ready for trial production. Like the J-53 well, until funding for this
work is in place, the well remains shut in.
Well 19
During the year the Company drilled one well. Well 19 is located on the Akkar East field and was drilled in an area of
already proven C1 reserves between the J-51 and J-52 wells and as such was the Company’s first ‘production’ well.
The well was drilled on time and on budget. The limited completion and testing of well 19 included perforating the
well underbalanced with tubing conveyed perforating guns, monitoring fluid levels and running pressure gages.
Testing of the well indicated severe skin damage which will require an acid treatment to stimulate the well and assist
oil flow into the well bore. This is consistent with other wells in the area.
Further work, including an acid stimulation, will not take place until the requisite funding for the work is in place and
the Company is ready to return to trial production operations.
Forward Plan for Drilling Activity
The Company is currently reviewing the funding plan for the coming twelve months. Assuming the funding is in
place, it is expected that there will be a combination of exploration, appraisal and early development wells drilled.
In the North, the Company expects to drill at least two new wells; one well (J-57) on Akkar East will be drilled in an
area of C2 reserves and should be the final well required before the State Authorities approve the Final Reserves
Report for the Akkar East field. The obtaining of a Final Reserves Report is a critical step in moving the Akkar East
field towards Full Field Development and export oil.
The second well in the North is expected to be the J-54 well. The J-54 prospect is a large structural closure mapped
using 3D seismic to the north of the producing Akkar East field. The Company believes the prospect is a separate
field and the prognosis is that it is structurally up dip of Akkar East.
The Company considers that the main risk associated with the J-54 well is the presence of an adequate top seal to
trap oil. Assuming success, the Company believes that the reservoir quality and flow rates should be similar to that
found in the Akkar East field.
In the South, the J-58 and J-59 wells are both currently suspended awaiting completion of the requisite infrastructure
to begin trail production from these wells. When ready, J-58 will be put on production from the T2B horizon, and the
J-59 well will be used to test the potential of the shallow Jurassic horizon before being completed for production from
the T2B horizon.
Further remedial work will be carried out on J-55 to determine if commercial production can be established and this
work may require separate approvals from the relevant bodies.
It is expected that, subject to the Company obtaining the requisite funding, two further appraisal wells will also be
drilled on the West Zhetybai field during 2016/17.
Details on the Exploration and Production Licences
The current Exploration Licence takes the exploration period through to December 2016. An application for a further
minimum 2 year extension to the Exploration Licence will be submitted to the relevant Kazakh authorities later this
calendar year. The further extension of the Exploration Licence is an integral part of the plan for the successful
completion of the exploration phase of the project and will provide the Company with the necessary time to make a
smooth transition into the 25 year Production Licence phase of the Block 31 contract.
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JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
DIRECTORS’ REPORT (continued)
Prospectivity
As outlined in the Forward Plan for Drilling Activity section of this report, the drilling of J-54 offers the potential,
assuming success, for an a further upgrade of Block 31 reserves. The Company’s understanding of the prospectivity
of Jupiter Energy’s Block 31 continues to improve and the Board is confident that further additions to the reserves
are achievable.
The Company is also progressing land extension applications in the North East and South East and if these are
successful there could be further exploration targets identified for drilling in 2016/2017.
Future Production
The J-51 and J-52 wells already have their respective TPL’s approved until December 2016 and it is expected that
wells J-58 and J-59 will be ready to go into Trial Production as soon as the requisite topside infrastructure is in place.
Well 19 needs further work, including an acid stimulation, and this work will not take place until the requisite funding
is in place and the Company is ready to return to trial production operations.
Board and Staffing
An integrated operating team that has proven in-country experience as well as the capacity to operate major assets
is a critical component to success in Kazakhstan. The building of such a team over the past few years has been a
majority priority. Unfortunately a number of staff were made redundant as a result of the shutdown of field operations
in February 2015 and others were offered part time roles at that time. Once the Company is ready to resume trial
production, these positions will again be filled with past employees given priority to apply for roles.
The Board is confident that the Company will be well prepared for continued growth over the coming years.
SIGNIFICANT EVENTS POST PERIOD END
Except as otherwise set out in this report, the Directors are unaware of any significant changes in the state of affairs
or principal activities of the consolidated entity that occurred during the period under review.
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JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
DIRECTORS’ REPORT (continued)
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Except as otherwise set out in this report, the Directors are unaware of any significant changes in the state of affairs
or principal activities of the consolidated entity that occurred during the period under review.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Directors will continue to pursue oil and gas exploration and production opportunities in the Republic of
Kazakhstan.
As Jupiter Energy Limited is listed on the Australian Stock Exchange, London’s AIM Market (AIM) and the Kazakh
Stock Exchange (KASE), it is subject to the continuous disclosure requirements of the ASX Listing Rules, the AIM
Rules and the KASE Rules for Companies which require immediate disclosure to the market of information that is
likely to have a material effect on the price or value of Jupiter Energy Limited’s securities.
ENVIRONMENTAL REGULATION
The consolidated entity is committed to achieving the highest standards of environmental performance. Standards
set by the Government of Kazakhstan are comprehensive and highly regulated. The consolidated entity strives to
comply not only with all Kazakh government regulations, but also maintain worldwide industry standards.
To maintain these high standards the Company is committed to a locally developed environmental monitoring
programme. This monitoring programme will continue to expand as and when new regulations are implemented and
adopted in Kazakhstan.
HEALTH & SAFETY
The Company has developed a comprehensive Health and Safety policy for its operations in Kazakhstan and has
the appropriate personnel in place to monitor the performance of the Company with compliance under this policy.
The Company outsources many of its key drilling functions and as part of any contract entered into with third parties,
a commitment to Health & Safety and a demonstrated track record of success in this area is a key performance
indicator in terms of deciding on which companies will be contracted.
9
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
DIRECTORS’ REPORT (continued)
MEETINGS OF DIRECTORS
The number of meetings of the Directors held during the year and the number of meetings attended by each Director
was as follows:
Board of Directors
Number
attended
Number
eligible to
attend
5
5
5
5
5
5
5
5
Current Directors
G Gander
A Beardsall
B Kuandykov
S Mison
Committee membership
Due to the small number and geographical spread of the Directors, it was determined that the Board would
undertake all of the duties of properly constituted Audit & Compliance and Remuneration Committees.
Competent Persons Statements
General
Keith Martens, BSc Geology and Geophysics, with over 35 years' oil & gas industry experience, is the qualified
person who has reviewed and approved the technical information contained in this report. Keith Martens has no
material interest in the Company.
Kazakh State Approved Reserves
The information in this report which relates to the C1 and C2 Block 31 reserve estimations is based on information
compiled by Reservoir Evaluation Services LLP (“RES”), a Kazakh based oil & gas consulting company that
specialises in oil & gas reserve estimations. RES has used the Kazakh Reserve classification system in determining
their estimations. RES has sufficient experience which is relevant to oil & gas reserve estimation and to the specific
permit in Kazakhstan to qualify as competent to verify the information pertaining to the C1 and C2 reserve
estimations. RES has given and not withdrawn its written consent to the inclusion of the C1 and C2 reserve
estimations in the form and context in which they appear in this report. RES has no financial interest in the
Company.
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JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
REMUNERATION REPORT (Audited)
This remuneration report outlines the Director and executive remuneration arrangements of the Company and the
Group in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purposes of
this report, key management personnel (KMP) of the Group are defined as those persons having authority and
responsibility for planning, directing and controlling the major activities of the Company and the Group, directly or
indirectly, including any Director (whether executive or otherwise) of the parent company, and includes the three
executives in the Company and the Group.
For the purposes of this report, the term 'executive' encompasses the chief executive, senior executives, general
managers and secretaries of the Company and the Group.
Details of key management personnel (including the three highest executives of the Company and the
Group)
(i) Directors
Geoff Gander
Alastair Beardsall
Baltabek Kuandykov
Scott Mison
Chairman / CEO (Executive)
Director (Non-Executive)
Director (Non-Executive)
Director / CFO / Company Secretary (Executive)
There were no other changes after reporting date and before the date the financial report was authorised for issue.
Remuneration Philosophy
The remuneration policy of the Group has been designed to align Directors and executives interests with the
shareholder and business objectives by providing a fixed remuneration component and offering long term incentives
based on a key performance area – with a focus to the material improvement in share price performance. The Board
of the Group believes the remuneration policy to be appropriate to attract and retain the best executives and
Directors to run and manage the Company, as well as create goal congruence between Directors, executives and
shareholders.
The Board's policy for determining the nature and amount of remuneration for Board members and senior executives
of the Company is as follows:
*
*
*
The remuneration policy, setting the terms and conditions for the executive directors and other senior
executives, was developed by the Board after a review of similar listed and unlisted companies with
activities in overseas jurisdictions and taking into account the experience and skill set required to
successfully develop operations in these jurisdictions from early stage development. The Company does
not have a remuneration committee. The Board is of the opinion that due to the size of the Company, the
functions performed by a Remuneration Committee can be adequately handled by the full Board.
All executives receive a base salary (which is based on factors such as length of service and experience),
superannuation, fringe benefits and performance incentives.
The Board reviews executive packages annually by reference to the Company's performance, executive
performance and comparable information from industry sectors and other listed companies in similar
industries.
Executives are eligible to participate in the Company’s long term Performance Rights plan.
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JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
REMUNERATION REPORT (Audited) (continued)
The executive Directors receive a superannuation guarantee contribution as required by the government which is
currently 9.5%, and do not receive any other retirement benefits.
The remuneration paid to Directors and executives is valued at the cost to the Company and expensed. Shares
given to Directors and executives are valued as the difference between the market price of those shares and the
amount paid by the Director or executive. Options are valued using the Black & Scholes methodology. Performance
Rights are valued using a hybrid employee share option model. The hybrid model incorporates a trinomial option
valuation and a Monte Carlo simulation.
Remuneration Structure
Non-Executive Director Remuneration
Objective
The Board seeks to set aggregate remuneration at a level which provides the Company with the ability to attract and
retain directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
Structure
The Board policy is to remunerate non-executive directors at market rates for comparable companies for time,
commitment and responsibilities. The Board determines payments to the non-executive Directors and reviews their
remuneration annually, based on market practice, duties and accountability. Independent external advice is sought
when required. The maximum aggregate amount of fees that can be paid to non-executive Directors is subject to
approval by shareholders at the Annual General Meeting. Total remuneration for all non-executive Directors, is not to
exceed $350,000 per annum as approved by shareholders at the Annual General Meeting held on 15 November
2010. Fees for non-executive Directors are not linked to performance of the Company. However, to align Directors'
interests with shareholder interests, the non-executive Directors have been issued Performance Rights which have
vesting conditions that are specifically linked to share price performance. Non-executive Directors are also
encouraged to hold shares in the company.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is
apportioned amongst Directors is reviewed annually. The Board considers the fees paid to non-executive directors of
comparable companies and the potential value provided via the allocation of Performance Rights when undertaking
the annual review process.
Each Director receives a fee for being a Director of the Company. Directors who are called upon to perform extra
services beyond the director’s ordinary duties may be paid additional fees for those services.
Executive Remuneration
Objective
The Group aims to reward executives with a level and mix of remuneration commensurate with their position and
responsibilities within the Group so as to:
-
-
-
-
reward executives for Company, business unit and individual performance;
align the interests of executives with those of shareholders;
link reward with the strategic goals and performance of the Company; and
ensure total remuneration is competitive by market standards.
12
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
REMUNERATION REPORT (Audited) (continued)
Structure
In determining the level and make-up of executive remuneration, the Board reviews remuneration packages
provided by similar listed and unlisted companies with activities in overseas jurisdictions and taking into account the
experience and skill set required to successfully develop operations in these jurisdictions from early stage
development as well as the salary levels of local workers in that jurisdiction. It is the Board’s policy that employment
contracts are entered into with the Chief Executive Officer and all key management personnel.
Fixed Remuneration
The fixed remuneration of executives is comprised of a base salary and superannuation. The fixed remuneration of
executives is reviewed annually.
Variable remuneration – Short Term Incentives (STI)
The Group operates a STI program for its Kazakh based employees, which is based on a cash bonus subject to the
attainment of clearly defined Branch and individual measures.
Actual STI payments awarded to each employee depends on the extent to which specific targets are met. The
targets consist of a number of key performance indicators (KPIs) covering financial and non-financial Branch and
individual measures of performance.
Directors are not eligible for participation in the STI program.
Variable Remuneration – Long Term Incentives (LTI)
Objective
The objectives of long term incentives are to:
-
-
-
-
align executives remuneration with the creation of shareholder wealth;
recognise the ability and efforts of the Directors, employees and consultants of the Company who have
contributed to the success of the Company and to provide them with rewards where deemed appropriate;
provide an incentive to the Directors, employees and consultants to achieve the long term objectives of the
Company and improve the performance of the Company; and
attract persons of experience and ability to employment with the Company and foster and promote loyalty
between the Company and its Directors, employees and consultants.
Structure
Long term incentives granted to Directors and senior executives are delivered in the form of Performance Rights,
issued under the Performance Rights Plan.
Company Performance
Due to the current embryonic stage of the Company’s growth it is not appropriate at this time to evaluate the
Company’s financial performance using generally accepted measures such as EBITDA and profitability; this
assessment will be developed over the next few years.
13
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
REMUNERATION REPORT (Audited) (continued)
The following information provides a summary of the Company’s financial performance for the last five years:
Revenue
Loss before income tax
Earnings per share (cents)*
Last share price at Balance Date*
Market capitalisation
2015
$
3,896,359
(10,982,261)
(7.16)
0.25
38.3m
2014
$
7,586,442
(2,547,271)
(1.66)
0.40
61.4m
2013
$
5,778,057
(4,885,829)
(3.25)
0.55
82.7m
2012
$
1,063,086
(4,295,102)
(3.70)
0.415
48.2m
2011*
$
-
(4,889,671)
(5.25)
0.72
83.4m
*The earnings per share and last share price have been adjusted for all periods to reflect the 15:1 share consolidation approved on 12 August 2011.
14
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
REMUNERATION REPORT (Audited) (continued)
Details of remuneration (Audited)
Remuneration of Directors and Executives
Table 1: Remuneration for the year ended 30 June 2015
Short-term benefits
Post-employment
benefits
Share-based
payment
Name
Non-executive director
A Beardsall
B Kuandykov (d)
Total non-executive directors
Executive directors
G Gander (a)
S Mison (b)
Total executives
Totals
Cash
salary and
Consulting fees
$
Cash
bonus (c)
$
Other
$
Super-
annuation
$
Performance
Rights
$
Total
$
40,000*
49,900*
89,900
332,350*
130,000*
462,350
552,250
-
-
-
-
17,000
17,000
17,000
-
-
-
151,682
-
151,682
151,682
-
-
-
48,333
1,900
50,233
50,233
21,107
21,107
42,214
21,107
4,855
25,962
68,176
61,107
71,007
132,114
553,472
153,755
707,227
839,341
Remuneration
consisting of
Performance
Rights
%
Performance
related
%
34.54%
29.73%
34.54%
29.73%
3.81%
3.16%
3.81%
14.21%
*Directors fees from February 2015 have been deferred until such time that at least $US5m in new equity is raised or alternatively the Company sells the Block
31 licence and receives the funds associated with that sale.
(a): Other relates to living expenses covering cost of apartment/office in London as per service agreement.
(b): Fees relate to CFO / Company Secretary ($90,000) and Director Fees ($40,000).
(c): The cash bonus to Mr Mison was for the period 1 July 2014 to 30 June 2015. Under his service agreement, he is entitled a cash bonus every six months to a
maximum of $15,000 per six months. The performance criteria were to ensure full compliance with ASX, AIM and KASE and sign off of debt funding package. The %
of bonus granted was 56%, with 44% being forfeited. This is determined at the board’s discretion.
(d): During the year, consulting fees of $144,096 (2014: $144,584) were accrued and paid under normal terms and conditions to Meridian Petroleum LLP, of which
Mr. Kuandykov is a director, for the provision of geological services at normal commercial rates.
Table 2: Remuneration for the year ended 30 June 2014
Short-term benefits
Post-employment
benefits
Share-based
payment
Name
Non-executive director
A Beardsall
B Kuandykov
Total non-executive directors
Executive directors
G Gander (a)
S Mison (b)
Other key management
personnel
K Martens
J Kroshus
Total executives
Totals
Cash
salary and
Consulting fees
$
Cash
bonus (c)
$
Other
$
Super-
annuation
$
Performance
Rights
$
Total
$
Remuneration
consisting of
Performance
Rights
%
Performance
related
%
40,000
42,810
82,810
321,577
130,000
67,000
47,998
566,575
649,385
-
-
-
-
-
-
-
-
-
-
11,250
138,728
-
30,000
-
143,200
143,200
286,400
143,200
32,063
183,200
186,010
369,210
633,505
173,313
78.17%
76.99%
78.17%
76.99%
22.60%
18.50%
22.60%
24.99%
-
-
-
-
-
-
-
(14,194)
67,000
33,804
-
-
-
-
11,250
11,250
138,728
138,728
30,000
30,000
161,069
447,469
907,622
1,276,831
(a): Other relates to living expenses covering cost of apartment/office in London as per service agreement.
(b): Fees relate to CFO / Company Secretary ($90,000) and Director Fees ($40,000).
(c): The cash bonus to Mr Mison was for the period 1 January 2014 to 30 June 2014. Under his service agreement, he is entitled a cash bonus every six months to a
maximum of $15,000 per six months. The performance criteria were to ensure full compliance with ASX, AIM and KASE and sign off of debt funding package. The %
of bonus granted was 75%, with 25% being forfeited.
15
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
REMUNERATION REPORT (Audited) (continued)
Details of remuneration (Audited)
Remuneration of Directors and Executives (continued)
Compensation Options: Granted and vested during the year ended 30 June 2015
During the 2015 and 2014 year, there were no options granted. No options, listed or unlisted, were exercised during
the year.
Share issued on Exercise of Compensation Options
There were no shares issued on the exercise of compensation options during the financial years ended 30 June
2015 or 30 June 2014.
Performance Rights
During the year, 8,075,000 performance rights expired unvested.
The conditions during the year were as follows:
The Performance Rights for each holder shall vest in proportion to the % increase in the Share price of the Company
above $0.735 subject to a minimum increase of 25%, i.e. Performance Rights will start vesting at $0.919. For 100%
of the Performance Rights to vest, the share price of the Company needs to reach $1.47 (Vesting Conditions). In
respect of the Vesting Conditions, the % increase in the Share price of the Company will be calculated by reference
to the volume weighted average price of Shares in the 20 consecutive trading days immediately prior to the Vesting
Date.
16
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
REMUNERATION REPORT (Audited) (continued)
Details of remuneration (Audited)
Remuneration of Directors and Executives (continued)
Table 3: Compensation Performance Rights: Granted and vested during the year ended 30 June 2015
During the year ended 30 June 2015, no performance rights vested and no additional performance rights were
granted.
Table 4: Compensation Performance Rights: Granted and vested during the year ended 30 June 2014
Granted
Number
333,333
333,333
333,333
75,000
Grant /
Modification
Date
7 Nov 2013
7 Nov 2013
7 Nov 2013
7 Nov 2013
New Grant
A Beardsall
B Kuandykov
G Gander
S Mison
Total
1,074,999
Fair Value
per right at
grant date
$
Terms & Conditions for each Grant
Exercise price
per right
$
Expiry
Date
First
Exercise
Date
Vested
Number
%
$0.0197
$0.0197
$0.0197
$0.0197
$0.00
$0.00
$0.00
$0.00
31 Dec 2014
31 Dec 2014
31 Dec 2014
31 Dec 2014
31 Dec 2014
31 Dec 2014
31 Dec 2014
31 Dec 2014
Modification *
A Beardsall
B Kuandykov
G Gander
S Mison
Total
Modification *
A Beardsall
B Kuandykov
G Gander
S Mison
-
-
-
-
-
-
-
-
-
7 Nov 2013
7 Nov 2013
7 Nov 2013
7 Nov 2013
$0.0197(i)
$0.0197(i)
$0.0197(i)
$0.0197(i)
$0.00
$0.00
$0.00
$0.00
31 Dec 2014
31 Dec 2014
31 Dec 2014
31 Dec 2014
31 Dec 2014
31 Dec 2014
31 Dec 2014
31 Dec 2014
14 May 2012
14 May 2012
14 May 2012
14 May 2012
$0.0197(i)
$0.0197(i)
$0.0197(i)
$0.0197(i)
$0.00
$0.00
$0.00
$0.00
31 Dec 2014
31 Dec 2014
31 Dec 2014
31 Dec 2014
31 Dec 2014
31 Dec 2014
31 Dec 2014
31 Dec 2014
Total
*The only modification was the expiry vesting date was extended from 7 November 2013 to 31 December 2014. All other terms and conditions
remained the same.
(i) Represents the incremental fair value, between the original and modified awards at modification date.
-
-
17
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
REMUNERATION REPORT (Audited) (continued)
Details of remuneration (Audited)
Remuneration of Directors and Executives (continued)
Shareholdings
The number of shares in the Company held by each Key Management Personnel of Jupiter Energy Limited during
the financial year, including their personally-related entities, is set out below:
2015
Directors
G Gander
A Beardsall
B Kuandykov
S Mison
2014
Directors
G Gander
A Beardsall
B Kuandykov
S Mison
Executives
K Martens
Balance
30 June 2014
Granted as
Remuneration
On Exercise of
Options
Net Change
Other
Balance
30 June 2015
3,147,224
1,250,000
-
391,238
-
-
-
-
-
-
-
-
Balance
30 June 2013
Granted as
Remuneration
On Exercise of
Options
Net Change
Other
3,147,224
1,250,000
-
391,238
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,147,224
1,250,000
-
391,238
Balance
30 June 2014
3,147,224
1,250,000
-
391,238
-
Performance Rights Holdings
The number of Performance Rights in the Company held by each Director of Jupiter Energy Limited and each of the
specified Executives of the consolidated entity during the financial year, including their personally-related entities, is
set out below:
2015
Directors
G Gander
A Beardsall
B Kuandykov
S Mison
Balance at
beg of
period
1 July 2014
Granted as
Remune-
ration
Rights
Exercised
Net Change
Other
Balance at
end of
period
30 June 2015
Not Vested &
Not
Exercisable
Vested &
Exercisable
2,500,000
2,500,000
2,500,000
575,000
-
-
-
-
-
-
-
-
(2,500,000)
(2,500,000)
(2,500,000)
(575,000)
-
-
-
-
-
-
-
-
-
-
-
-
18
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
REMUNERATION REPORT (Audited) (continued)
Details of remuneration (Audited)
Remuneration of Directors and Executives (continued)
Balance at
beg of period
1 July 2013
Granted
as
Remune-
ration
Rights
Exercised
Net
Change
Other
Not Vested
& Not
Exercisable
Vested &
Exercisable
Balance at
end of
period
30 June
2014
2,166,667
2,166,667
2,166,667
500,000
333,333
333,333
333,333
75,000
-
-
-
-
-
-
-
-
-
-
-
-
2,500,000
2,500,000
2,500,000
575,000
2,500,000
2,500,000
2,500,000
575,000
-
-
-
-
-
-
-
2014
Directors
G Gander
A Beardsall
B Kuandykov
S Mison
Executives
K Martens
Option Holdings
There were no options held by, granted to or exercised by Key Management Personnel during the financial years
ended 30 June 2015 or 30 June 2014.
19
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
REMUNERATION REPORT (Audited) (continued)
Details of remuneration (Audited)
Remuneration of Directors and Executives (continued)
Service agreements
Remuneration and other terms of employment for the Executive Chairman/CEO, Company Sec/CFO, and all other
key management positions held in Kazakhstan have been formalised in service agreements. The main provisions of
the agreements in relation to Directors holding management roles are set out below.
Geoff Gander, Executive Chairman (Effective – 1 July 2015)
Base Terms
This agreement was effective from 1 July 2015 and is for a term of 12 months (to 30 June 2016).
Base Salary of GBP200,000 ($417,000) including Director Fees and the current Superannuation Levy of
9.5%.
Living expenses of GBP 80,000 ($174,000) per year, covering the cost of an apartment/office in London.
Potential GBP 100,000 ($208,000) incentive bonus in the event a change of control occurs.
Director fees of $4,000 per month (included in Base Salary figure above) is deferred until such time that at
least $US5m in new equity is raised or alternatively the Company sells the Block 31 licence and receives
the funds associated with that sale.
The termination provisions are as follows:
Employer - initiated
termination with reason
Employer - initiated
termination without reason
Termination for serious
misconduct
Employee – initiated
termination
Notice period
1 or 3 months
Payment in lieu of
notice
1 or 3 months
3 months
3 months
None
1 or 3 months
None
None
Scott Mison, CFO / Company Secretary / Executive Director (Effective – 1 June 2015)
Base Terms
This agreement is effective from 1 June 2015. The term is on a rolling month basis.
CFO / Company Secretary Fees of $6,500 per month.
Director fees of $2,500 per month which is deferred until such time that at least $US5m in new equity is
raised or alternatively the Company sells the Block 31 licence and receives the funds associated with that
sale.
The termination provisions are as follows:
Employer - initiated
termination with reason
Employer - initiated
termination without reason
Termination for serious
misconduct
Employee – initiated
termination
Notice period
1 or 3 months
Payment in lieu of
notice
1 or 3 months
3 months
3 months
None
1 or 3 months
None
None
End of Remuneration Report (Audited)
20
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has entered into Deeds of Indemnity with the Directors, indemnifying them against certain liabilities
and costs to the extent permitted by law.
The Company has also agreed to pay a premium in respect of a contract insuring the Directors and Officers of the
Company against certain liabilities and costs to the extent permitted by law. Full details of the cover and premium
are not disclosed as the insurance policy prohibits the disclosure.
INDEMNIFICATION OF AUDITORS
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young Australia, as part
of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an
unspecified amount). No payment has been made to indemnify Ernst & Young during or since the financial year.
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of Jupiter
Energy Limited adhere to strict principles of corporate governance. The Company’s corporate governance statement
is included on page 22 of this annual report.
AUDITOR INDEPENDENCE
The Directors received the declaration included on page 28 of this annual report from the auditor of Jupiter Energy
Limited.
NON-AUDIT SERVICES
There were no non-audit services provided by the entity’s auditors, Ernst & Young during the year.
This report has been made in accordance with a resolution of the Directors.
G A Gander
Director
Perth, Western Australia
30 September 2015
21
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
CORPORATE GOVERNANCE STATEMENT
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of Jupiter
Energy adhere to strict principles of corporate governance.
The Board of Directors of Jupiter Energy Limited is responsible for the overall corporate governance of the
consolidated entity, guiding and monitoring the business and affairs of Jupiter Energy on behalf of the shareholders
by whom they are elected and to whom they are accountable.
The Company’s corporate governance principles and policies are structured with reference to the Corporate
Governance Councils best practice recommendations, which are as follows:
Principle 1. Lay solid foundations for management and oversight
Principle 2. Structure the Board to add value
Principle 3. Act ethically and responsibly
Principle 4. Safeguard integrity in corporate reporting
Principle 5. Make timely and balanced disclosure
Principle 6. Respect the rights of shareholders
Principle 7. Recognise and manage risk
Principle 8. Remunerate fairly and responsibly
The Board’s Corporate Governance Charter includes procedures for compliance with the ASX Listing Rules
continuous disclosure requirements, trading in the Company’s securities, the management of risk, and a Code of
Conduct. Jupiter Energy’scorporate governance practices were in place throughout the year ended 30 June 2015.
BOARD OF DIRECTORS
Role of the Board
In general, the Board is responsible for, and has the authority to determine, all matters relating to the policies,
practices, management and operations of the Company. It is required to do all things that may be necessary to be
done in order to carry out the objectives of the Company.
Without intending to limit this general role of the Board, the principal functions and responsibilities of the Board
include the following:
To set the strategic direction for the Company and monitor progress of those strategies;
Establish policies appropriate for the Company;
Monitor the performance of the Company, the Board and management;
Approve the business plan and work programmes and budgets;
Authorise and monitor investment and strategic commitments;
Review and ratify systems for health, safety and environmental management; risk and internal control;
codes of conduct and regulatory compliance;
Report to shareholders, including but not limited to, the Financial Statements of the Company; and
Take responsibility for corporate governance.
22
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
CORPORATE GOVERNANCE STATEMENT (continued)
Composition of the Board
To add value to the Company the Board has been formed so that it has effective composition, size and commitment
to adequately discharge its responsibilities and duties given its current size and scale of operations.
The names of Directors of the Company in office at the date of this statement are set out in the Directors’ Report.
Information regarding Directors’ experience and responsibilities are included in the Directors’ Report section of this
Annual Report.
The number of Directors is specified in the Constitution of the Company as a minimum of three up to a maximum of
ten.
The preferred skills and experiences for a Director of the Company include:
Exploration for oil and gas accumulations;
Development and production operations of hydrocarbon accumulations;
Financing of operations
Business Development; and
Public Company financial reporting and administration.
Chairman of the Board
The Chairman of the Board should be a Non-Executive Director and the Chairman will be elected by the Directors.
Mr. Geoff Gander, however is an Executive Chairman and is not independent. Given his skills, experience and
knowledge of the Company, the Board considers that it is appropriate for him to be Chairman.
Independent Directors
The Board considers that a Director is independent if that Director complies with the following criteria:
Apart from Director’s fees and shareholding, independent Directors should not have any business dealings
which could materially affect their independent judgment;
Must not have been in an Executive capacity in the Company in the last 3 years;
Must not have been in an advisory capacity to the Company in the last 3 years;
Must not be a significant customer or supplier for the Company;
Must not be appointed through a special relationship with a Board member;
Must not owe allegiance to a particular group of shareholders which gives rise to a potential conflict of
interest;
Must not hold conflicting cross Directorships; and
Must not be a substantial shareholder or a nominee of a substantial shareholder (as defined under section 9
of the Corporations Act).
Using the ASX Best Practice Recommendations on the assessment of the independence of Directors. The Board
considers that of a total of four Directors, only one is considered independent.
Mr. Geoff Gander is an Executive Chairman of the Company and is not considered to be independent. However, his
experience and knowledge of the Company makes his contribution to the Board such that it is appropriate for him to
remain on the Board.
Mr. Baltabek Kuandykov is an independent Non-Executive Director of the Company. His oil industry experience,
especially within Kazakhstan, makes his contribution to the Board important and significant.
Mr. Alastair Beardsall is a Non-Executive Director of the Company and is not considered to be independent as he
was a nominee Director by The Waterford Group, a substantial shareholder. However, his experience and
knowledge of the Company makes his contribution to the Board such that it is appropriate for him to remain on the
Board.
23
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
CORPORATE GOVERNANCE STATEMENT (continued)
Mr. Scott Mison is an executive director / CFO / Company Secretary of the Company and is not considered to be
independent. However, his experience and knowledge of the Company makes his contribution to the Board such that
it is appropriate for him to remain on the Board.
Retirement and Rotation of Directors
Retirement and rotation of Directors are governed by the Corporations Act 2001 and the Constitution of the
Company. Each year one third Directors must retire and offer themselves for re-election. Any casual vacancy filled
will be subject to shareholder vote at the next Annual General Meeting of the Company.
Independent Professional Advice
Each Director has the right to seek independent professional advice at the Company’s expense after consultation
with the Chairman. Once received the advice is to be made immediately available to all Board members.
Access to Employees
Directors have the right of access to any employee. Any employee shall report any breach of corporate governance
principles or Company policies to a Director and/or Company Secretary/CFO who shall remedy the breach. If the
breach is not rectified to the satisfaction of the employee, they shall have the right to report any breach to an
independent Director without further reference to senior managers of the Company.
Insurance
The Directors review the requirements for insurance cover for the associated risks for its field operations, including
drilling, production and storage of hydrocarbons and other activities and procures insurance cover at levels and
costs they feel are appropriate.
Directors and officers insurance for Directors will be arranged by the Company at Company expense.
Share Ownership
Directors are encouraged to own Company shares.
Board Meetings
The following points identify the frequency of Board Meetings and the extent of reporting from management at the
meetings:
A minimum of four meetings are to be held per year;
Other meetings will be held as required, meetings can be held by telephone link; and
Information provided to the Board includes all material information on: operations, budgets, cash flows,
funding requirements, shareholder movements, broker activity in the Company’s securities, assets and
liabilities, disposals, financial accounts, external audits, internal controls, risk assessment, new venture
proposals, and health, safety and environmental (HSE) reports.
The number of Directors’ meetings and the number of meetings attended by each of the Directors of the Company
during the financial year are set out in the Directors’ Report.
Board Performance Review
There was no evaluation conducted during the financial year.
24
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
CORPORATE GOVERNANCE STATEMENT (continued)
Other Areas for Board Review
Reporting to shareholders and the market to ensure trade in the Company’s securities takes place in an
efficient, competitive and informed market; and
Insurance, both corporate and joint venture related insurances.
Board Committees
Audit Committee
The Company does not have an audit committee. The Board is of the opinion that due to the size of the Company,
the functions performed by an audit committee can be adequately handled by the full Board.
The CEO and the CFO declare in writing to the Board that the Company’s financial statements for the year ended 30
June 2015 present a true and fair view, in all material aspects, of the Company’s financial condition and operational
results and are in accordance with relevant accounting standards. This representation is made by the CEO and the
CFO prior to the Director’s approval of the release of the annual and six monthly accounts. This representation is
made after enquiry of, and representation by, appropriate levels of management.
A non-executive Director meets with the Auditors without Executives present to go through the financial statements
prior to sign off on the accounts.
Jupiter Energy Limited has requested the external auditors to attend the annual general meeting to be available to
answer shareholders questions regarding the audit.
Nomination Committee
The Board of Directors of the Company does not have a nomination committee. The Board is of the opinion that due
to the size of the Company, the functions performed by a nomination committee can be adequately handled by the
full Board.
Remuneration Committee
The Company does not have a remuneration committee. The Board is of the opinion that due to the size of the
Company, the functions performed by a remuneration committee can be adequately handled by the full Board.
Remuneration levels for Directors, Secretaries, Senior Executives of the Company, and relevant group Executives of
the consolidated entity (“the Directors and Senior Executives”) are competitively set to attract and retain
appropriately qualified and experienced Directors and Senior Executives.
The remuneration structures explained below are designed to attract suitably qualified candidates, reward the
achievement of strategic objectives, and achieve the broader outcome of creation of value for shareholders. The
remuneration structures take into account:
the capability and experience of the Directors and Senior Executives
the Directors and Senior Executives ability to control the relevant segment/s’ performance
the consolidated entity’s performance including:
o
o
the consolidated entity’s earnings
the growth in share price and returns on shareholder wealth
the amount of incentives within each Directors and Senior Executives remuneration
For details of remuneration paid to Directors and officers for the financial year please refer to the Directors’ Report
on page 15.
25
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
CORPORATE GOVERNANCE STATEMENT (continued)
Risk Management
The risks involved in oil and gas exploration Company and the specific uncertainties for the Company continue to be
regularly monitored and the full Board of the Company meets on an annual basis to formally review such risks. All
proposals reviewed by the Board include a consideration of the issues and risks of the proposal.
The potential exposures, including financial, reputation, and HSE, with running the Company have been managed by
the Board and senior management in Kazakhstan who together have significant broad-ranging industry experience.
Additionally, it is the responsibility of the Board to assess the adequacy of the Company’s internal control systems
and that its financial affairs comply with applicable laws and regulations and professional practices. The CEO and
the CFO declare in writing to the Board that the financial reporting risk management and associated compliance
controls have been assessed and found to be operating efficiently and effectively. This representation is made by the
CEO and CFO prior to the Director’s approval of the release of the annual and six monthly accounts. This
representation is made after enquiry of, and representation by, appropriate levels of management.
PROMOTION OF ETHICAL AND RESPONSIBLE DECISION-MAKING
Code of Conduct
The goal of establishing the Company as a significant Australian-based petroleum exploration and production
Company is underpinned by its core values of honesty, integrity, common sense and respect for people. The
Company desires to remain a good corporate citizen and appropriately balance, protect and preserve all
stakeholders’ interests.
The Board has adopted a Code of Conduct for Directors and employees of the Company. The Company’s goal of
achieving above average wealth creation for our shareholders should be enhanced by complying with this Code of
Conduct which provides principles to which Directors and employees should be familiar and to which they are
expected to adhere and advocate.
It is the responsibility of the Board to ensure the Company performs under this Code and for its regular review.
Diversity
The Board has not adopted a separate diversity policy, however is committed to workplace diversity and recognizes
the benefits arising from recruitment, development and retention of talented, diverse and motivated workforce. The
Company is not of a sufficient size to justify measurable objectives at this stage. As at 30 June 2015, there were
twelve women in the Groups workforce, two of which held key executive positions.
Trading in Company Securities by Directors, officers and employees
Trading of shares is covered by, amongst other things, the Corporations Act, the ASX Listing Rules, the AIM Listing
Rules and the KASE Listing Rules. The Board has established a Securities Trading Policy that establishes strict
guidelines as to when a Director, officer or an employee can deal in Company shares. The policy prohibits trading in
the Company’s securities whilst the Directors, officer or employee is in the possession of price sensitive information.
For details of shares held by Directors and Officers please refer to the Directors’ Report on page 3.
26
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
CORPORATE GOVERNANCE STATEMENT (continued)
SHAREHOLDER COMMUNICATION
The Board aims to ensure that shareholders and the general investing community have equal access to the
Company’s information.
The Company has policies and procedures that are designed to ensure compliance with ASX, AIM and KASE Listing
Rules disclosure requirements and to ensure accountability at a senior management level for that compliance. This
disclosure policy includes processes for the identification of matters that may have material effect on the price of the
Company’s securities, notifying them to the ASX and posting them on the Company’s website.
The Company also has a strategy to promote effective communication with shareholders and encourage effective
participation at general meetings through a policy of open disclosure to shareholders, regulatory authorities and the
broader community of all material information with respect to the Company’s affairs including, but not limited to:
Company’s activities
Conflicts of interest and related party transactions;
Executive remuneration;
The grant of options and details of Share Option and Performance Rights Plans;
The process for performance evaluation of the Board, its committees, individual Directors and key
managers;
The link between remuneration paid to Directors and Executives and corporate performance; and
The use of clear and concise text in all communications.
following
The
(www.jupiterenergy.com):
information
is communicated
to shareholders and available on
the Company web site
The Annual Report and notices of meetings of shareholders;
Quarterly reports reviewing the operations, activities and financial position of the Company;
All documents that are released to the ASX, AIM and KASE are made available on the Company’s website;
and
All other information on the Company’s website is updated on an ongoing basis.
27
Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au
Auditor’s Independence Declaration to the Directors of Jupiter Energy
Limited
In relation to our audit of the financial report of Jupiter Energy Limited for the financial year ended 30
June 2015, to the best of my knowledge and belief, there have been no contraventions of the auditor
independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.
Ernst & Young
R J Curtin
Partner
30 September 2015
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
RC:JH:JUPITER:067
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
Financial Statements
FOR THE YEAR ENDED 30 JUNE 2015
29
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2015
Revenue
Cost of sales
Gross profit
FX (loss) / gain
Loss on extinguishment of convertible notes
(Loss) / Gain on derivative financial instrument
General and administrative costs
Impairment
Operating loss
Finance income
Finance costs
Loss before tax
Income tax expense
Loss after income tax
Note
Consolidated
2015
$
2014
$
3,896,359
(3,478,951)
417,408
(4,468,778)
-
227,788
(3,238,047)
(787,046)
(7,848,675)
28,198
(3,161,784)
(10,982,261)
7,586,442
(5,540,935)
2,045,507
809,868
(295,194)
614,301
(3,790,286)
-
(615,804)
23,910
(1,955,377)
(2,547,271)
-
-
(10,982,261)
(2,547,271)
4
5
Other comprehensive income to be reclassified to
profit or loss in subsequent periods net of tax
Foreign currency translation
12,738,847
(12,643,204)
Total comprehensive profit / (loss) for the period
1,756,586
(15,190,475)
Earnings per share for loss attributable to the
ordinary equity holders of the Company:
Basic loss per share (cents)
Diluted loss per share (cents)
24
24
(7.16)
(7.16)
(1.66)
(1.66)
The consolidated statement of comprehensive income is to be read in conjunction with the notes of the financial statements
30
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2015
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Inventories
Total Current Assets
Non-Current Assets
Trade and other receivables
Oil and gas properties
Plant and equipment
Exploration and evaluation expenditure
Other financial assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Deferred revenue
Derivative liability
Provisions
Total Current Liabilities
Non-current Liabilities
Provisions
Other financial liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Share based payment reserve
Foreign currency translation reserve
Accumulated losses
Total Equity
Note
Consolidated
2015
$
2014
$
6
7
8
9
7
10
11
12
13
14
15
17
16
16
17
18
19
19
1,613,560
78,051
122,110
68,535
1,882,256
1,285,358
1,296,631
268,880
49,606
2,900,475
4,842,743
24,399,029
967,247
44,166,103
640,238
75,015,360
76,897,616
2,522,291
20,283,793
1,042,508
31,986,316
482,815
56,317,723
59,218,198
1,280,749
60,111
1,612
-
1,342,472
1,030,222
844,773
229,400
58,061
2,162,456
527,827
33,372,417
33,900,244
35,242,716
294,538
16,931,066
17,225,604
19,388,060
41,654,900
39,830,138
85,633,935
5,764,014
1,165,133
(50,908,182)
41,654,900
85,633,935
5,695,838
(11,573,714)
(39,925,921)
39,830,138
The consolidated statement of financial position is to be read in conjunction with the notes of the financial statements.
31
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2015
Cash flow from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Net cash flows (used in) operating activities
Cash flows from investing activities
Payments for exploration and evaluation expenditure
Payments for plant and equipment
Net Cash flows (used in) investing activities
Cash flows from financing activities
(Repayment) / Proceeds from unsecured loan
Proceeds from convertible notes
Fee on issue of convertible note
Net cash flows from financing activities
Net increase / (decrease) in cash held
Effects of exchange rate changes
Cash at beginning of the year
Cash at end of the year
Note
Consolidated
2015
$
2014
$
3,952,759
(7,870,285)
28,198
(3,889,328)
8,565,902
(10,580,704)
23,910
(1,990,892)
26
(5,519,880)
-
(5,519,880)
(3,954,596)
(20,461)
(3,975,057)
9,141,370
-
-
9,141,370
(3,190,500)
6,916,800
(208,065)
3,518,235
(267,838)
596,040
1,285,358
1,613,560
(2,447,714)
(398,659)
4,131,731
1,285,358
6
The statement of cash flows is to be read in conjunction with the notes of the financial statements.
32
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2015
Share Based
Payment
Reserve
$
Foreign
Currency
Translation
Reserve
$
Contributed
Equity
$
Accumulated
Losses
$
Total
$
85,633,935
-
-
-
5,248,370
-
-
-
1,069,490
-
(12,643,204)
(12,643,204)
(37,378,650)
(2,547,271)
-
(2,547,271)
54,573,144
(2,547,271)
(12,643,204)
(15,190,475)
CONSOLIDATED
As at 1 July 2013
Loss for the period
Other comprehensive income
Total comprehensive income
Transactions by owners recorded
directly in equity:
Share based payments
At 30 June 2014
-
85,633,935
447,468
5,695,838
-
(11,573,714)
-
(39,925,921)
447,468
39,830,138
As at 1 July 2014
Loss for the period
Other comprehensive income
Total comprehensive income
Transactions by owners recorded
directly in equity:
85,633,935
-
-
-
5,695,838
-
-
-
(11,573,714)
-
12,738,847
12,738,847
(39,925,921)
(10,982,261)
-
(10,982,261)
39,830,138
(10,982,261)
12,738,847
1,756,586
Share based payments
At 30 June 2015
-
85,633,935
68,176
5,764,014
-
1,165,133
-
(50,908,182)
68,176
41,654,900
The statements of changes in equity are to be read in conjunction with the notes of the financial statements.
33
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
1
CORPORATE INFORMATION
The financial report of Jupiter Energy Limited for the year ended 30 June 2015 was authorised for issue in accordance
with a resolution of the directors on 30 September 2015.
Jupiter Energy Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the
Australian Stock Exchange, on London’s AIM Market (as CDI’s) and on the Kazakh Stock Exchange. Jupiter Energy
Limited is a for profit entity.
The nature of the operations and principal activities of the Group are described in the Directors Report on pages 2 to 10
of this report.
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation
The financial report is a general purpose financial report, which has been prepared in accordance with the requirements
of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the
Australian Accounting Standards Board. The financial report has also been prepared on a historical cost basis except for
certain financial instruments measured at fair value. The financial report is presented in Australian dollars.
The amounts contained within this report have been rounded to nearest $1 (where rounding is applicable) under the
option available to the Company under ASIC Class Order 98/100.
Going Concern
The consolidated financial statements have been prepared on a going concern basis with the Directors of the opinion
that the Group can meet its obligations as and when they fall due.
At 30 June 2015, the Group has total assets of $76.9 million and a net current asset position of $0.5 million (30 June
2014: current asset position of $0.7 million). The Group’s Promissory Notes and Convertible Notes, described in Note
17, become payable within 12 months from the date of release of this report and the Group’s cash-flow forecast reflects
that additional capital will need to be raised within the short term. In addition, oil production has been shut-in and will
remain so until such time that domestic oil pricing becomes cash flow positive.
The Directors are currently reviewing a range of financing options which may include an asset sale, further issue of new
equity, reserve based debt, convertible debt or a combination of these and other funding instruments. As part of the
financing options being considered the Group’s existing Promissory Notes and Convertible Notes will either be repaid,
rolled into a new facility or converted into Jupiter shares, subject to certain approvals. Whilst the financing is expected
to be finalised within the short term, which will also allow the Group to further the development of the East Akkar field
during 2015 – 2016, there is no certainty that financing will be completed as anticipated.
The Directors are confident of being able to achieve the matters set out above. Should these not be achieved, there is
uncertainty whether the Group would continue as a going concern and therefore whether it would realise its assets and
extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. The financial
report does not include adjustments relating to the recoverability or classification of the recorded assets amounts nor to
the amounts or classification of liabilities that might be necessary should the Group not be able to continue as a going
concern.
34
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
(b) Statement of compliance
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards
Board and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards
Board.
From 1 July 2014, the Group has adopted the following Standards and Interpretations, mandatory for annual periods
beginning on 1 July 2014. Adoption of these standards and interpretations did not have any significant effect on the
financial position or performance of the Group:
AASB 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets
AASB 2013-5 Amendments to Australian Accounting Standards – Investment Entities
[AASB 1, AASB 3, AASB 7, AASB 10, AASB 12, AASB 107, AASB 112, AASB 124, AASB 127, AASB 132, AASB
134 & AASB 139]
AASB 2012-3 Amendments to Australian Accounting Standards - Disclosures - Offsetting Financial Assets
and Financial Liabilities
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have
not been adopted by the Group for the annual reporting period ending 30 June 2015. These are outlined in the following table.
Application
date for
Group
1 July 2018
Application
date of
standard
1 January
2018
Impact on
Group
financial
report
The group has
not yet
determined
the financial
impact of the
change.
Reference
Title
Summary
AASB 9
Financial Instruments
AASB 9 (December 2014) is a new standard which replaces
AASB 139. This new version supersedes AASB 9 issued in
December 2009 (as amended) and AASB 9 (issued in
December 2010) and includes a model for classification and
measurement, a single,
loss’
impairment model and a substantially-reformed approach to
hedge accounting.
forward-looking
‘expected
AASB 9 is effective for annual periods beginning on or after 1
January 2018. However, the Standard is available for early
adoption. The own credit changes can be early adopted in
isolation without otherwise changing
for
financial instruments.
the accounting
Classification and measurement
AASB 9 includes requirements for a simpler approach for
classification and measurement of financial assets compared
with the requirements of AASB 139. There are also some
changes made in relation to financial liabilities.
The main changes are described below.
35
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
Application
date for
Group
1 July 2018
Application
date of
standard
1 January
2018
Impact on
Group
financial
report
The group has
not yet
determined
the financial
impact of the
change.
Reference
Title
Summary
AASB 9
Financial Instruments
Financial assets
a.
b.
c.
Financial assets that are debt instruments will be
classified based on (1) the objective of the entity's
business model for managing the financial assets; (2)
the characteristics of the contractual cash flows.
Allows an irrevocable election on initial recognition to
present gains and losses on investments in equity
instruments that are not held for trading in other
comprehensive income. Dividends in respect of these
investments that are a return on investment can be
recognised in profit or loss and there is no impairment or
recycling on disposal of the instrument.
Financial assets can be designated and measured at fair
value through profit or loss at initial recognition if doing
so eliminates or significantly reduces a measurement or
from
recognition
measuring assets or liabilities, or recognising the gains
and losses on them, on different bases.
that would arise
inconsistency
Financial liabilities
Changes introduced by AASB 9 in respect of financial liabilities
are limited to the measurement of liabilities designated at fair
value through profit or loss (FVPL) using the fair value option.
Where the fair value option is used for financial liabilities, the
change in fair value is to be accounted for as follows:
►
The change attributable to changes in credit risk
are presented in other comprehensive income
(OCI)
►
The remaining change is presented in profit or loss
AASB 9 also removes the volatility in profit or loss that was
caused by changes in the credit risk of liabilities elected to be
measured at fair value. This change in accounting means that
gains or losses attributable to changes in the entity’s own
credit risk would be recognised in OCI. These amounts
recognised in OCI are not recycled to profit or loss if the
liability is ever repurchased at a discount.
Impairment
The final version of AASB 9 introduces a new expected-loss
impairment model that will require more timely recognition of
expected credit losses. Specifically, the new Standard requires
entities to account for expected credit losses from when
financial instruments are first recognised and to recognise full
lifetime expected losses on a more timely basis.
Hedge accounting
Amendments to AASB 9 (December 2009 & 2010 editions
and AASB 2013-9) issued in December 2013 included the
new hedge accounting requirements, including changes to
hedge effectiveness testing, treatment of hedging costs, risk
components that can be hedged and disclosures.
Consequential amendments were also made
to other
standards as a result of AASB 9, introduced by AASB 2009-
11 and superseded by AASB 2010-7, AASB 2010-10 and
AASB 2014-1 – Part E.
AASB 2014-7 incorporates the consequential amendments
arising from the issuance of AASB 9 in Dec 2014.
AASB 2014-8 limits the application of the existing versions of
AASB 9 (AASB 9 (December 2009) and AASB 9 (December
2010)) from 1 February 2015 and applies to annual reporting
periods beginning on after 1 January 2015.
36
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
Reference
Title
Summary
AASB 9
Financial Instruments
AASB 9 includes requirements for the classification and
measurement of financial assets. It was further amended by
AASB 2010-7 to reflect amendments to the accounting for
financial liabilities.
These requirements improve and simplify the approach for
classification and measurement of financial assets compared
with the requirements of AASB 139. The main changes are
described below.
Application
date for
Group
1 July 2018
Application
date of
standard
1 January
2018
Impact on
Group
financial
report
The group has
not yet
determined
the financial
impact of the
change.
d.
e.
f.
Financial assets that are debt instruments will be
classified based on (1) the objective of the entity's
business model for managing the financial assets; (2)
the characteristics of the contractual cash flows.
Allows an irrevocable election on initial recognition to
present gains and losses on investments in equity
instruments that are not held for trading in other
comprehensive income. Dividends in respect of these
investments that are a return on investment can be
recognised in profit or loss and there is no impairment or
recycling on disposal of the instrument.
Financial assets can be designated and measured at fair
value through profit or loss at initial recognition if doing
so eliminates or significantly reduces a measurement or
recognition
from
measuring assets or liabilities, or recognising the gains
and losses on them, on different bases.
that would arise
inconsistency
g. Where the fair value option is used for financial liabilities
the change in fair value is to be accounted for as
follows:
►
The change attributable to changes in credit risk
are presented in other comprehensive income
(OCI)
►
The remaining change is presented in profit or loss
If
this approach creates or enlarges an accounting
mismatch in the profit or loss, the effect of the changes in
credit risk are also presented in profit or loss.
Consequential amendments were also made
to other
standards as a result of AASB 9, introduced by AASB 2009-
11 and superseded by AASB 2010-7 and 2010-10.
The AASB issued a revised version of AASB 9 (AASB 2013-9)
during December 2013. The revised standard incorporates
three primary changes:
1.
2.
3.
New hedge accounting requirements including changes
to hedge effectiveness testing, treatment of hedging
that can be hedged and
costs, risk components
disclosures
Entities may elect to apply only the accounting for gains
and losses from own credit risk without applying the
other requirements of AASB 9 at the same time
In February 2014, the IASB tentatively decided that the
mandatory effective date for AASB 9 will be 1 January
2018
37
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
Reference
Title
Summary
Application
date of
standard
AASB 2014-4
Clarification of Acceptable
Methods of Depreciation
and Amortisation
(Amendments to
AASB 116 and AASB 138)
AASB 116 Property Plant and Equipment and AASB 138
Intangible Assets both establish the principle for the basis of
depreciation and amortisation as being the expected pattern of
consumption of the future economic benefits of an asset.
1 January
2016
The IASB has clarified that the use of revenue-based methods
to calculate the depreciation of an asset is not appropriate
because revenue generated by an activity that includes the
use of an asset generally reflects factors other than the
consumption of the economic benefits embodied in the asset.
The amendment also clarified that revenue is generally
presumed to be an inappropriate basis for measuring the
consumption of
in an
intangible asset. This presumption, however, can be rebutted
in certain limited circumstances.
the economic benefits embodied
Application
date for
Group
1 July 2016
Impact on
Group
financial
report
The group has
not yet
determined
the financial
impact of the
change.
AASB 15
Revenue from Contracts
with Customers
1 January
2017
1 July 2017
The group has
not yet
determined
the financial
impact of the
change.
revenue
Interpretation
(Interpretation
13 Customer
15 Agreements
AASB 15 Revenue from Contracts with Customers replaces
the existing
recognition standards AASB 111
Construction Contracts, AASB 118 Revenue and related
Loyalty
Interpretations
Programmes,
the
Construction of Real Estate, Interpretation 18 Transfers of
Assets from Customers, Interpretation 131 Revenue—Barter
Transactions Involving Advertising Services and Interpretation
1042 Subscriber Acquisition Costs in the Telecommunications
Industry). AASB 15 incorporates the requirements of IFRS 15
Revenue from Contracts with Customers issued by the
International Accounting Standards Board
(IASB) and
developed jointly with the US Financial Accounting Standards
Board (FASB).
for
AASB 15 specifies the accounting treatment for revenue
arising from contracts with customers (except for contracts
within the scope of other accounting standards such as leases
or financial instruments).The core principle of AASB 15 is that
an entity recognises revenue to depict the transfer of promised
goods or services to customers in an amount that reflects the
consideration to which the entity expects to be entitled in
exchange for those goods or services. An entity recognises
revenue in accordance with that core principle by applying the
following steps:
(a)
Step 1: Identify the contract(s) with a customer
(b)
contract
Step 2: Identify the performance obligations in the
(c)
Step 3: Determine the transaction price
(d)
performance obligations in the contract
Step 4: Allocate the transaction price to the
(e)
satisfies a performance obligation
Step 5: Recognise revenue when (or as) the entity
Currently, AASB 15 is effective for annual reporting periods
commencing on or after 1 January 2017. Early application is
permitted.
AASB 2014-5 incorporates the consequential amendments to
a number Australian Accounting Standards
(including
Interpretations) arising from the issuance of AASB 15.
38
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
Reference
Title
Summary
AASB 2014-9
Amendments to Australian
Accounting Standards –
Equity Method in Separate
Financial Statements
AASB 2014-9 amends AASB 127 Separate Financial
Statements, and consequentially amends AASB 1 First-time
Adoption of Australian Accounting Standards and AASB 128
Investments in Associates and Joint Ventures, to allow entities
to use the equity method of accounting for investments in
subsidiaries, joint ventures and associates in their separate
statements.
financial
AASB 2014-9 also makes editorial corrections to AASB 127.
AASB 2014-9 applies to annual reporting periods beginning on
or after 1 January 2016. Early adoption permitted.
Application
date for
Group
1 July 2016
Application
date of
standard
1 January
2016
Impact on
Group
financial
report
The group has
not yet
determined
the financial
impact of the
change.
AASB 2014-10
Amendments to Australian
Accounting Standards –
Sale or Contribution of
Assets between an
Investor and its Associate
or Joint Venture
AASB 2014-10 amends AASB 10 Consolidated Financial
Statements and AASB 128 to address an inconsistency
between the requirements in AASB 10 and those in AASB 128
(August 2011), in dealing with the sale or contribution of assets
between an investor and its associate or joint venture. The
amendments require:
1 January
2016
The group has
not yet
determined
the financial
impact of the
change.
1 July 2016
(a)
(b)
a full gain or loss to be recognised when a transaction
involves a business (whether it is housed in a subsidiary
or not); and
a partial gain or loss to be recognised when a
transaction involves assets that do not constitute a
business, even if these assets are housed in a
subsidiary.
AASB 2014-10 also makes an editorial correction to AASB 10.
AASB 2014-10 applies to annual reporting periods beginning
on or after 1 January 2016. Early adoption permitted.
39
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
Reference
Title
Summary
Application
date of
standard
AASB 2015-1
Amendments to Australian
Accounting Standards –
Annual Improvements to
Australian Accounting
Standards 2012–2014
Cycle
The subjects of the principal amendments to the Standards are
set out below:
1 January
2016
AASB 5 Non-current Assets Held for Sale and Discontinued
Operations:
• Changes in methods of disposal – where an entity
reclassifies an asset (or disposal group) directly
from being held for distribution to being held for
sale (or visa versa), an entity shall not follow the
guidance in paragraphs 27–29 to account for this
change.
AASB 7 Financial Instruments: Disclosures:
Application
date for
Group
1 July 2016
Impact on
Group
financial
report
The group has
not yet
determined
the financial
impact of the
change.
• Servicing contracts - clarifies how an entity should
apply the guidance in paragraph 42C of AASB 7
to a servicing contract to decide whether a
servicing contract is ‘continuing involvement’ for
the purposes of applying
the disclosure
requirements in paragraphs 42E–42H of AASB 7.
• Applicability of the amendments to AASB 7 to
condensed interim financial statements - clarify
that the additional disclosure required by the
amendments to AASB 7 Disclosure–Offsetting
Financial Assets and Financial Liabilities is not
specifically
interim periods.
However, the additional disclosure is required to
be given
financial
condensed
statements that are prepared in accordance with
AASB 134 Interim Financial Reporting when its
inclusion would be required by the requirements of
AASB 134.
required
for all
interim
in
AASB 119 Employee Benefits:
• Discount rate: regional market issue - clarifies that
the high quality corporate bonds used to estimate
the discount rate for post-employment benefit
obligations should be denominated in the same
currency as the liability. Further it clarifies that the
depth of the market for high quality corporate
bonds should be assessed at the currency level.
AASB 134 Interim Financial Reporting:
• Disclosure of information ‘elsewhere in the interim
financial report’ - amends AASB 134 to clarify the
meaning of disclosure of information ‘elsewhere in
the interim financial report’ and to require the
inclusion of a cross-reference from the interim
financial statements
this
to
information.
location of
the
AASB 2015-2
Amendments to Australian
Accounting Standards –
Disclosure Initiative:
Amendments to AASB 101
The Standard makes amendments to AASB 101 Presentation
of Financial Statements arising from the IASB’s Disclosure
Initiative project. The amendments are designed to further
encourage companies to apply professional judgment in
determining what information to disclose in the financial
statements. For example, the amendments make clear that
materiality applies to the whole of financial statements and that
the inclusion of immaterial information can inhibit the
usefulness of financial disclosures. The amendments also
clarify that companies should use professional judgment in
determining where and in what order information is presented
in the financial disclosures.
1 January
2016
1 July 2016
The group has
not yet
determined
the financial
impact of the
change.
40
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
Reference
Title
Summary
Application
date of
standard
AASB 2015-3
AASB 2015-4
Amendments to Australian
Accounting Standards
arising from the
Withdrawal of AASB 1031
Materiality
Amendments to Australian
Accounting Standards –
Financial Reporting
Requirements for
Australian Groups with a
Foreign Parent
The Standard completes the AASB’s project to remove
Australian guidance on materiality from Australian Accounting
Standards.
1 July 2015
The amendment aligns the relief available in AASB 10
Consolidated Financial Statements and AASB 128
Investments in Associates and Joint Ventures in respect of the
financial reporting requirements for Australian groups with a
foreign parent
1 July 2015
Application
date for
Group
1 July 2015
1 July 2015
Impact on
Group
financial
report
The group has
not yet
determined
the financial
impact of the
change.
The group has
not yet
determined
the financial
impact of the
change.
41
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(c) Basis of consolidation
The consolidated financial statements comprise the financial statements of Jupiter Energy Limited and its subsidiaries
(as outlined in Note 28). Control is achieved when the Group is exposed, or has rights, to variable returns from its
involvement with the investee and has the ability to affect those returns through its power over the investee.
Specifically, the Group controls an investee if and only if the Group has:
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
investee);
Exposure, or rights, to variable returns from its involvement with the investee; and
The ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant
facts and circumstances in assessing whether it has power over an investee, including:
The contractual arrangement with the other vote holders of the investee;
Rights arising from other contractual arrangements; and
The Group’s voting rights and potential voting rights.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group
obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities,
income and expenses of a subsidiary acquired or disposed of during the year are included in the statement of
comprehensive income from the date the Group gains control until the date the Group ceases to control the
subsidiary.
Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the
parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a
deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies into line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income,
expenses and cash flows relating to transactions between members of the Group are eliminated on consolidation.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
If the Group loses control over a subsidiary, it:
De-recognises the assets (including goodwill) and liabilities of the subsidiary;
De-recognises the carrying amount of any non-controlling interests;
De-recognises the cumulative translation differences recorded in equity;
Recognises the fair value of the consideration received;
Recognises the fair value of any investment retained;
Recognises any surplus or deficit in profit or loss; and
Reclassifies the parent’s share of components previously recognised in OCI to profit or loss or retained earnings, as
appropriate, as would be required if the Group had directly disposed of the related assets or liabilities.
42
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(d) Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of
future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the
carrying amounts of certain assets and liabilities within the next annual reporting period are:
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined using a Black and Scholes model,
trinomial and Monte Carlo using the assumptions detailed in note 21.
Exploration and evaluation
The Group's accounting policy for exploration and evaluation is set out in note 2(f). The application of this policy
necessarily requires management to make certain estimates and assumptions as to future events and circumstances,
in particular the assessment of whether economic quantities of reserves may be found. Any such, estimates and
assumptions may change as new information becomes available. If, after having capitalised expenditure under the
Group’s policy, management concludes that the Group is unlikely to recover the expenditure by future exploitation or
sale, then the relevant capitalised amount will be written off to the income statement.
Impairment of assets
In determining the recoverable amount of assets in the absence of quoted markets, estimations and judgements are
made in determining the future cash flows and discounting them using asset specific discount rates. Value in use
calculations incorporate a number of key assumptions.
In the case of the Group’s primary asset, Block 31, the over-riding assumption is that Block 31 reaches the point of
export production by January 2018. For this to occur the following matters need to be resolved:
Financing for construction of processing facilities and drilling of development wells
-
- Approval from the Government for construction of processing facilities and drilling of development wells and
ultimately approving of export status.
- Contracts signed for the engineering, procurement, installation and commissioning of the processing
facilities and for the drilling of development wells.
- Extension of the current trial production licenses to 2018. It is anticipated that an application for a further
minimum 2 year extension to the Exploration Licence will be submitted to the relevant Kazakh authorities
later this calendar year
- An agreement is reached with MangistauMunaiGas(MMG) over the division of reserves associated with the
Akkar North accumulation
43
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Provision for restoration
Costs of site restoration are provided over the life of the facility from when exploration commences and are included in
the costs of that stage. Site restoration costs include the dismantling and removal of plant, equipment and building
structures, waste removal, and rehabilitation of the site in accordance with clauses of the permits. Such costs have
been determined using estimates of future costs, current legal requirements and technology on an undiscounted
basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site
restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and
future legislation. Accordingly the costs have been determined on the basis that the restoration will be completed
within one year of abandoning the site.
Units of production depreciation of oil and gas properties
Oil and gas properties are depreciated using the units of production (UOP) method over total proved and probable
developed hydrocarbon reserves. This results in a depreciation/amortisation charge proportional to the depletion of
the anticipated remaining production from the field.
Each items’ life, which is assessed annually, has regard to both its physical life limitations and to present
assessments of economically recoverable reserves of the field at which the asset is located. These calculations
require the use of estimates and assumptions, including the amount of recoverable reserves. The calculation of the
UOP rate of depreciation could be impacted to the extent that actual production in the future is different from current
forecast production based on total proved reserves. Changes to proved reserves could arise due to changes in the
factors or assumptions used in estimating reserves, including:
The effect on proved reserves of differences between actual commodity prices and commodity price
assumptions; or
Unforeseen operational issues.
Changes are accounted for prospectively.
Recoverability of oil and gas properties
The Group assesses each asset or cash generating unit (CGU) (excluding goodwill, which is assessed annually
regardless of indicators) every reporting period to determine whether any indication of impairment exists. Where an
indicator of impairment exists, a formal estimate of the recoverable amount is made, which is considered to be the
higher of the fair value less costs to sell and value in use. These assessments require the use of estimates and
assumptions such as long-term oil prices (considering current and historical prices, price trends and related factors),
discount rates, operating costs, future capital requirements, decommissioning costs, exploration potential, reserves
operating performance (which includes production and sales volumes). These estimates and assumptions are subject
to risk and uncertainty. Therefore, there is a possibility that changes in circumstances will impact these projections,
which may impact the recoverable amount of assets and/or CGUs.
Production start date
The group assesses each well to determine when the well moves into the production stage. This is when the well is
substantially completed and ready for intended use. The group considers various criteria in determining the production
start date, including but not limited to, results of well testing, the ability of the well to sustain ongoing production,
installation of the relevant well infrastructure and receiving the relevant regulatory approvals.
When the well moves into the production stage the capitalisation of certain development costs ceases and costs
incurred are expensed as a production cost. It also at this point when that the well commences depreciation. Any
proceeds received from oil sales prior to the production start date as part of any well testing, are capitalised to the
asset.
44
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Production start date (continued)
Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length
transaction between knowledgeable and willing parties. Fair value for oil and gas assets is generally determined as
the present value of estimated future cash flows arising from the continued use of the assets, which includes
estimates such as the cost of future expansion plans and eventual disposal, using assumptions that an independent
market participant may take into account. Cash flows are discounted to their present value using a discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. Management has
assessed its CGUs as being an individual field, which is the lowest level for which cash inflows are largely
independent of those of other assets.
(e) Plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment
losses. Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing the
part is incurred. Similarly, when each major inspection is performed, its cost is recognised in the carrying amount of
the plant and equipment as a replacement only if it is eligible for capitalisation. All other repairs and maintenance are
recognised in profit or loss as incurred.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Plant and equipment – over 3 to 10 years
The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each
financial year end.
Disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits
are expected to be derived from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in the income statement in the year the asset is derecognised.
(f) Exploration and Evaluation Expenditure
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These
costs are only carried forward to the extent that they are expected to be recouped through the successful
development of the area or where activities in the area have not yet reached a stage that permits reasonable
assessment of the existence of economically recoverable reserves. A regular review is undertaken of each area of
interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.
Costs of evaluation, seismic and unsuccessful exploration in the area of interest are expensed as incurred even if
activities in this area of interest are continuing. Accumulated costs in relation to an abandoned area are written off in
full against profit in the year in which the decision to abandon the area is made.
When a discovered oil or gas field enters the development phase the accumulated exploration and evaluation
expenditure is transferred to oil and gas assets – assets in development.
45
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(g) Oil and Gas Properties
Oil and gas properties are usually single oil or gas fields being developed for future production or which are in the
production phase. Where several individual oil fields are to be produced through common facilities, the individual oil
field and the associated production facilities are managed and reported as a single oil and gas asset.
Assets in development
When the technical and commercial feasibility of an undeveloped oil or gas field has been demonstrated, the field
enters its development phase. The costs of oil and gas assets in the development phase are separately accounted for
as tangible assets and include past exploration and evaluation costs, development drilling and plant and equipment
and any associated land and buildings. When commercial operation commences the accumulated costs are
transferred to oil and gas assets – producing assets.
Producing assets
The costs of oil and gas assets in production are separately accounted for as tangible assets and include past
exploration and evaluation costs, pre-production development costs and the ongoing costs of continuing to develop
reserves for production and to expand or replace plant and equipment and any associated land and buildings.
Producing assets are depreciated over proved reserves on a unit of production basis.
(h)
Impairment of assets
At each reporting date, the company reviews the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable
amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the
asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the
income statement.
(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 collection of the full amount is no longer probable. Bad debts are written
off when identified.
(j) Cash and cash equivalents
Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term deposits with
an original maturity of three months or less.
For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as
defined above, net of outstanding bank overdrafts.
(k)
Inventories
Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price
in the ordinary course of business less any estimated selling costs.
Cost includes those costs incurred in bringing each component of inventory to its present location and condition.
46
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(l)
Trade and other payables
Trade payables and other payables are carried at amortised costs and due to their short-term nature are not
discounted. They represent liabilities for goods and services provided to the Group prior to the end of the financial
year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase
of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.
(m) Financial liabilities
Financial liabilities within the scope of AASB 139 are classified as financial liabilities at fair value through profit or
loss, loans and borrowings, or as derivatives designated, as appropriate. The Group determines the classification of
its financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value and in the case of loans and borrowings, plus directly
attributable transaction costs. The Group’s financial liabilities include trade and other payables, loans and borrowings
and derivative financial instruments.
Derivative Financial Instruments
Derivatives are fair valued using appropriate valuation techniques. Such techniques may include using recent arm’s
length market transactions; reference to the current fair value of another instrument that is substantially the same; a
discounted cash flow analysis or other valuation techniques.
(n) Share-based payment transactions
Share-based compensation benefits are provided to directors and executives.
Options
The fair value of options granted to directors and executives is recognised as an employee benefit expense with a
corresponding increase in contributed equity. The fair value is measured at grant date and recognised over the
vesting period during which the directors and/or executives becomes entitled to the options.
The fair value at grant date is determined using an option pricing model that takes into account the exercise price, the
term of the option, the vesting and performance criteria, the impact of dilution, the non-tradeable nature of the option,
the share price at grant date and expected price volatility of the underlying share, the expected divided yield and the
risk-free interest rate for the term of the option.
Performance Rights
The cost of Performance Rights are measured by reference to the fair value at the date at which they are granted.
The fair value is determined using a Monte Carlo methodology, which considers the incorporation of market based
hurdles. Non-market conditions are not factored into the fair value of the performance rights at grant. Probability
factors are assigned to the vesting expense as to whether non market conditions will be met.
47
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2
(o) Revenue recognition
Sales revenue
Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
and can be measured reliably. Incidental revenue generated during the development stage of an asset, is offset
against the carrying value of the asset, rather than recognised in the statement of comprehensive income.
Interest
Revenue is recognised as the interest accrues (using the effective interest method, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying
amount of the financial asset.
(p) Convertible Note
A Convertible Note is split into two components: a debt component and a component representing the embedded
derivatives in the Convertible Note. The debt component represents the Group’s liability for future interest coupon
payments and the redemption amount. The embedded derivatives represent the value of the option that note holders
have to convert into ordinary shares in the Company.
(q)
Income tax
The consolidated entity adopts the liability method of tax-effect accounting whereby the income tax expense is based
on the profit adjusted for any non-assessable or disallowed items.
Deferred tax is accounted for using the liability method in respect of temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be
recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no
effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or
liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be
credited directly to equity, in which case the deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available
against which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the assumption that no
adverse change will occur in income taxation legislation and the anticipation that the consolidated entity will derive
sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility
imposed by the law.
48
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(r) Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
where 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 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 balance sheet.
Cash flows are included in the Cash Flow Statement 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.
(s) Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.
49
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
2
(t)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Earnings per share
Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any
costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average
number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for:
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have
been recognised as expenses; and
other non-discretionary changes in revenues or 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.
(u)
Provisions
Provisions are recognised when the Group 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.
Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the income statement net of any reimbursement.
If the effect of the time value of money is material, 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.
Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
Employee leave benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave
expected to be settled within 12 months of the reporting date are recognised in 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. Liabilities for non-accumulating sick leave are recognised when the leave is taken and are measured at the
rates paid or payable.
Restoration
Costs of site restoration are provided over the life of the facility from when exploration commences and are included
in the costs of that stage. Site restoration costs include the dismantling and removal of plant, equipment and building
structures, waste removal, and rehabilitation of the site in accordance with clauses of the permits. Such costs have
been determined using estimates of future costs, current legal requirements and technology on an undiscounted
basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site
restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations
and future legislation. Accordingly the costs have been determined on the basis that the restoration will be completed
within one year of abandoning the site.
50
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(v)
Foreign Currency Transactions and Balances
(i) Functional and presentation currency
Both the functional and presentation currency of Jupiter Energy Limited and its Australian subsidiaries are Australian
dollars ($). The Singapore subsidiaries' functional currency is United States Dollars which is translated to the
presentation currency. The functional currency of the Branch of the Singapore subsidiary is Tenge (see below for
consolidated reporting).
(ii) Transactions and balances
Transactions in foreign currencies are initially recorded in the functional currency by applying 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 reporting date.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value was determined.
(iii) Translation of Group Companies’ functional currency to presentation currency
The results of the Singapore subsidiaries are translated into Australian Dollars (presentation currency) as at the date
of each transaction. Assets and liabilities are translated at exchange rates prevailing at reporting date.
Exchange variations resulting from the translation are recognised in the foreign currency translation reserve in equity.
On consolidation, exchange differences arising from the translation of the net investment in the Singapore
subsidiaries and its Branch are taken to the foreign currency translation reserve. If a Singapore subsidiary was sold,
the proportionate share of exchange differences would be transferred out of equity and recognised in the statement of
comprehensive income.
(w) Segments
An operating segment is a component of an entity that engages in business activities from which it may earn revenue
and incur expenses (including revenues and expenses relating to transactions with other components of the same
entity), whose operating results are regularly reviewed by the Board of Directors (the chief operating decision makers)
to make decisions about resources to be allocated to the segment and assess its performance and for which discrete
financial information is available. Management will also consider other factors in determining operating segments
such as the existence of a line manager and the level of segment information presented to the executive
management team.
Operating segments are identified based on the information provided to the chief operating decision makers, being
the Board of Directors. Currently the Group has only one operating segment, being the Group.
51
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(x) Borrowing costs
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
Where funds are borrowed specifically to finance a project, the amount capitalised represents the actual borrowing
costs incurred. Where surplus funds are available for a short term out of money borrowed specifically to finance a
project, the income generated from the temporary investment of amounts is also capitalised and deducted from the
total capitalised borrowing cost. Where the funds used to finance a project form part of general borrowings, the
amount capitalised is calculated using a weighted average of rates applicable to relevant general borrowings of the
Group during the period.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Even though exploration and evaluation assets can be qualifying assets, they generally do not meet the ―probable
economic benefits test and also are rarely debt funded. Any related borrowing costs are therefore generally
recognised in profit or loss in the period they are incurred.
3
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group's principal financial instruments comprise receivables, borrowings, payables, cash and short-term deposits.
Risk Exposures and Responses
The main purpose of these financial instruments is to provide finance for the Group’s operations. The Group has various other
financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations. The main
risks arising from the Group’s financial instruments are cash flow interest rate risk, liquidity risk, foreign currency risk and credit
risk.
Primary responsibility for identification and control of financial risks rests with the Board. The Board reviews the risks identified
below, including the setting of limits for trading in derivatives, hedging cover of foreign currency and interest rate risk, credit
allowances, and future cash flow forecast projections.
Interest rate risk
The Group’s exposure to market risk for changes in interest rates is only on short term deposits and cash and cash
equivalents.
At balance date, the Group had the following mix of financial assets and liabilities exposed to interest rate risk:
Financial Assets
Cash and cash equivalents
Net exposure
Consolidated
2015
$
2014
$
1,613,560
1,613,560
1,285,358
1,285,358
52
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
3
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
The following table summarises the sensitivity of the fair value of the financial instruments held at balance date, if interest rates
had moved, with all other variables held constant, post tax profit would have been affected as follows:
Post – tax gain / (loss)
+1%
-1%
Foreign currency risk
Consolidated
2015
$
2014
$
16,136
(16,136)
12,854
(12,854)
The Group has transactional currency exposures. Such exposure arises from sales or purchases by an operating entity in
currencies other than the functional currency.
At balance date, the Group had the following exposure to United States Dollars (USD), Great Britain Pound (GBP) and
Singapore Dollars (SGD) foreign currency that is not designated in cash flow hedges:
Financial Assets
Cash and cash equivalents
-
-
-
Liquidation Fund
USD
SGD
GBP
Financial Liabilities
Other financial liabilities
Derivative
Net exposure
Consolidated
2015
$
2014
$
1,583,211
1,859
17,164
630,874
2,233,108
(33,372,417)
(1,612)
(33,374,029)
(31,140,921)
1,072,868
1,859
21,706
468,155
1,564,588
(16,931,066)
(229,400)
(17,160,466)
(15,595,878)
53
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
3
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
The following table summarises the sensitivity of financial instruments held at balance date to movement in the exchange rate
of the Australian dollar to the United States Dollar, Singapore Dollar and Great Britain Pound (GBP), with all other variables
held constant. The 5% sensitivity is based on reasonably possible changes, over a financial year, using the observed range of
actual historical rates for the preceding 5 periods.
Post – tax gain / (loss)
+5%
-5%
Credit risk
Consolidated
2015
$
2014
$
(1,557,046)
1,557,046
(779,794)
779,794
Credit risk represents the loss that would be recognised if counterparties fail to perform as contracted.
Part of the Group's receivables balances are represented by GST input tax credits, which are received on a quarterly basis,
and deposits held in trust in respect of leases for office premises.
With respect to credit risk arising from the financial assets of the Group, which comprise cash and cash equivalents and trade
receivables, the Group’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the
carrying amount of these instruments.
There are no significant concentrations of credit risk within the Group.
Liquidity Risk
The Group’s objective is to maintain a balance between continuity of funding and flexibility through use of bank overdrafts,
bank loans, finance leases and hire purchase contracts.
The contractual maturities of the Group’s financial liabilities are shown in the table below. Undiscounted cash flows for the
respective years are presented.
Financial Assets
Within one year
After one year but not more
than five years
More than five years
Financial Liabilities
Within one year
After one year to two years
More than two years
Net Exposure
Consolidated
2015
$
2014
$
-
-
630,874
630,874
(1,612)
(11,234,458)
(27,968,013)
(39,204,083)
(38,573,209)
-
-
468,155
468,155
(229,400)
-
(16,931,066)
(17,160,466)
(16,692,311)
54
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
3
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Management and the Board monitor the Group’s liquidity on the basis of expected cash flow. The information that is prepared
by senior management and reviewed by the Board includes monthly and annual cash flow budgets.
Fair value
The Group uses various methods in estimating the fair value of a financial instrument. The methods comprise:
Level 1 – the fair value is calculated using quoted prices in active markets.
Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly (as prices) or indirectly (derived from prices).
Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable market data.
All of the Group’s other financial liabilities are carried at amortised cost, where the carrying value approximates the fair value.
The fair value of the derivative was determined using the level 3 method.
Equity Price Risk
The Group has exposure in equity risk through the convertible notes, which is susceptible to market price risk arising from
uncertainties about future values of the Company’s share price.
At the reporting date, the exposure to market price risk at fair value was $1,612. A decrease in the company’s share price by
10% could have an impact of approximately $161 on profit and loss or equity attributable to the Group, depending on whether
the decline is significant or prolonged. An increase in the company’s share price by 10% could have an impact of
approximately $161 on profit and loss or equity attributable to the Group, depending on whether the decline is significant or
prolonged.
4.
GENERAL AND ADMINISTRATIVE EXPENSES
Administration and compliance expenses
Employee benefits
Superannuation
Consulting fees
Depreciation and amortisation expenses
Directors fees
Legal fees
Occupancy expenses
Share based payments
Total expenses
Consolidated
2015
$
1,296,936
951,064
50,233
186,015
33,333
285,502
104,546
262,242
68,176
3,238,047
2014
$
1,626,079
899,240
30,000
178,189
2,582
239,862
108,642
258,224
447,468
3,790,286
During the year, travel expenses were $221,984. This is included in administration and compliance expenses.
The increase in Directors fees is due to the allocation between Directors fees and Consulting fees for Mr Geoff Gander.
From February 2015 Directors fees have been deferred until such time that at least $US5m in new equity is raised or
alternatively the Company sells the Block 31 licence and receives the funds associated with that sale.
55
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
5.
TAXATION
Prima facie income tax on operating (loss) is reconciled to the income tax benefit provided in the financial statements as
follows:
Prima facie income tax benefit on operating (loss) at the Australian tax rate
of 30% (2014: 30%)
Non-deductible expenditure:
- Effect of tax rates in foreign jurisdictions
- Share Based payments
Temporary differences and tax losses not
bought to account as a deferred tax asset
Income tax expense
Deferred Income Tax
Deferred income tax at 30 June relates to the following:
Consolidated
Deferred tax liabilities
Deferred tax assets
Unrealised FX (gain) / loss
Unrealised derivative (gain) / loss
Share issue costs
Revenue tax losses – Australia
E&E assets
Provision for impairment
Interest expense
Deferred tax assets not recognised
Deferred tax (income)/expense
Net deferred tax recognised in Balance Sheet
Consolidated
2015
$
2014
$
(3,294,678)
(764,181)
322,384
20,453
2,951,841
1,101,686
134,240
(471,745)
-
-
-
-
-
-
(1,028,376)
(252,627)
7,519
7,383,121
4,503,790
2,163,087
1,875,275
(14,651,789)
-
-
(242,961)
184,290
20,139
6,945,693
3,859,022
-
933,763
(11,699,946)
-
-
The Consolidated Group has tax losses of $7,383,121 (2014: $6,945,693) that are available indefinitely for offset against future
taxable profits of the companies in which the losses arose.
The potential deferred tax asset will only be realised if:
(a) The relevant Company derives future assessable income of a nature and an amount sufficient to enable the asset to
be realised, or the asset can be utilised by another Company in the consolidated entity in accordance with Division
170 of the Income Tax Assessment Act 1997;
(b) The relevant Company and/or consolidated entity continues to comply with the conditions for deductibility imposed by
the Law; and
(c) No changes in tax legislation adversely affect the relevant Company and/or consolidated entity in realising the asset.
56
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
6.
CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Consolidated
2015
$
1,613,560
1,613,560
2014
$
1,285,358
1,285,358
The bank accounts are at call and pay interest at a weighted average interest rate of 0.04% at 30 June 2015 (2014: 0.88%)
7.
TRADE AND OTHER RECEIVABLES
Current
Trade receivables
VAT receivable
Other debtors
Non-current
VAT receivable
Consolidated
2015
$
66,715
-
11,336
78,051
2014
$
159,083
1,126,212
11,336
1,296,631
4,842,743
2,522,291
The Group’s exposure to credit and currency risks is disclosed in Note 3. The majority of the non-current other debtor balance
is VAT receivable which will be offset against future taxes payable on oil revenue.
At 30 June 2015, the aging analysis of receivables is as follows:
2015
2014
Total
4,920,794
3,818,922
0 – 30
Days
78,051
159,083
31 – 60
days
61 - 90
days
-
-
90+
days
4,842,743
3,659,839
-
-
There are no receivables as at 30 June 2015 that are impaired.
8.
OTHER CURRENT ASSETS
Prepayment
Other
9.
INVENTORIES
Raw Material
Crude oil
Provision of obsolete items
Consolidated
2015
$
122,110
-
122,110
82,351
3,103
(16,919)
68,535
2014
$
106,396
162,484
268,880
49,514
13,952
(13,860)
49,606
57
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
10.
OIL AND GAS PROPERTIES
Cost as at 30 June 2013
Net exchange differences
Cost as at 30 June 2014
Depletion and impairment as at 30 June 2013
Charge for the year
Depletion and impairment as at 30 June 2014
Net book value as at 30 June 2014
Cost as at 30 June 2014
Net exchange differences
Cost as at 30 June 2015
Depletion and impairment as at 30 June 2014
Charge for the year
Depletion and impairment as at 30 June 2015
Net book value as at 30 June 2015
11.
PLANT AND EQUIPMENT
Year ended 30 June 2015
At 1 July 2014 net of accumulated depreciation
Additions
Disposals
Depreciation charge for the year
Net exchange differences
At 30 June 2015 net of accumulated depreciation
At 30 June 2015
Cost
Accumulated depreciation
Net carrying amount
Year ended 30 June 2014
At 1 July 2013 net of accumulated depreciation
Additions
Depreciation charge for the year
Net exchange differences
At 30 June 2014 net of accumulated depreciation
At 30 June 2014
Cost
Accumulated depreciation
Net carrying amount
58
Consolidated
$
26,599,737
(4,850,662)
21,749,075
(690,760)
(774,522)
(1,465,282)
20,283,793
21,749,075
4,478,843
26,227,918
(1,465,282)
(363,607)
(1,828,889)
24,399,029
1,042,507
-
(23,098)
(101,224)
49,062
967,247
2,055,094
(1,087,847)
967,247
1,617,096
20,461
(293,531)
(301,519)
1,042,507
1,819,160
(776,653)
1,042,507
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
12.
EXPLORATION AND EVALUATION EXPENDITURE
Exploration expenditure carried forward:
Exploration and evaluation expenditure at cost
Movements during the year
Balance at beginning of year
Expenditure incurred during the year
Impairment
Foreign exchange translation
Balance at end of year
Consolidated
2015
$
2014
$
44,166,103
31,986,316
31,986,316
5,519,880
(787,046)
7,446,953
44,166,103
34,710,757
3,954,596
-
(6,679,037)
31,986,316
Oil sales revenue capitalised into exploration and evaluation expenditure for the year was $nil (2014: $nil).
During the year Management decided to write-off well NZW 2. No further work had been planned for this particular well.
13.
OTHER FINANCIAL ASSETS
Liquidation fund
Other
630,874
9,364
640,238
468,155
14,660
482,815
The Group has a deposit for the purpose of a Liquidation fund in the amount of $630,874. The deposit is to be used for land
restoration when required. Under the laws of Kazakhstan, the deposit must be replenished in the amount of 1% of the annual
investments. The fair value approximates the carrying value.
14.
TRADE AND OTHER PAYABLES
Trade creditors
Accrued expenses
Other payables
15.
DEFERRED REVENUE
As at 1 July
Deferred during the year
Released during the year
Foreign exchange translation
At 30 June
1,253,357
27,392
-
1,280,749
844,773
-
(892,988)
108,326
60,111
474,226
73,417
482,579
1,030,222
1,642,837
868,776
(1,340,499)
(326,341)
844,773
The deferred revenue refers to an amount received in advance for oil sales. As at 30 June 2015, there is 0 tonnes of oil to be
delivered under contracts. The amount outstanding is for prepaid oil sales that related when the company stopped production
in February 2015. This amount has subsequently been paid.
59
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
16.
PROVISIONS
Current
Annual leave
Non - current
Provision for rehabilitation
Consolidated
2015
$
2014
$
-
-
527,827
527,827
58,061
58,061
294,538
294,538
The Group accrues provisions for the forthcoming costs of rehabilitation of the territory. On the basis of forecasts the cost of
rehabilitation of the oilfield would be $527,827. The timing of rehabilitation is likely to depend on when the fields cease to
produce at economically viable rates. This, in turn, will depend upon future oil and gas prices, which are inherently
uncertain.
Movements in rehabilitation provision
Carrying amount at beginning of the year
Unwinding of discount rate
Foreign exchange translation
Provision for the year
Carrying amount at the end of year
294,538
24,952
65,025
143,312
527,827
452,942
(67,650)
(90,754)
-
294,538
60
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
17.
DERIVATIVES AND OTHER FINANCIAL LIABILITIES
Current
Derivative liability
Non-Current
Unsecured loans
Convertible note
Promissory Notes
Consolidated
2015
$
1,612
1,612
9,744,164
23,628,253
33,372,417
2014
$
229,400
229,400
-
16,931,066
16,931,066
On 3 October 2014, Jupiter entered into an unsecured loan agreement with Waterford Petroleum Limited. The Loan was for
$US5 million via a Promissory Note. The Loan is repayable on 30 June 2015 or at such time that the Company raised
additional funding of a minimum of $20 million via debt, equity or other funding. Interest shall accrue on the Principal Sum at
12% p.a. (twelve per cent per annum) and shall be added to the Outstanding Amount.
On 30 April 2015 the Company signed a Framework Agreement with a substantial shareholder, Waterford Petroleum Limited
(Waterford), which will provide the Company with up to $US5m in additional working capital via the issuance of promissory
notes. The Company continues to seek a longer term funding package that will enable the commencement of the 2015/16
drilling program. Under IFRS, Waterford is seen to have “significant influence” as a result of their shareholding of 29.5%
The Framework Agreement has certain terms and conditions, the key ones being:
The issuance of new promissory notes repayable on 1 July 2016.
The October 2014 $US5m Promissory Note (October 2014 Note) held by Waterford will be rolled into a Series B
Promissory Note along with the accrued interest outstanding on the October 2014 Note as at 30 April 2015 of
$US346,849.
The issuance of further Series B Promissory Notes will provide up to $US5m for working capital purposes which can
be drawn down as required following agreement on the use of funds by Waterford.
The Series B Promissory Note has a coupon rate of 15% per annum, and the interest will accrue and be payable at
the time that the Series B Promissory Note is repaid.
Waterford may elect to offset the value of the Series B Promissory Note and any accrued interest against participation
in any future capital raising carried out by the Company prior to 30 June 2016.
Waterford may elect to roll the value of the Series B Promissory Note and any accrued interest into any other debt
funding facility that the Company may establish prior to 1 July 2016.
As at 30 June 2015, US$7,346,849 has been drawn from the US$10,000,000 facility.
US$15.5m Convertible Notes (Series B):
The key terms of the Convertible Notes are as follows:
Term: 3 years
Conversion Price: $US1.25 per share or the price that the next equity raising is completed at (whichever is the lower)
Coupon Rate: 12% per annum, accrued and payable at conversion.
The issue of the Convertible Notes was carried out under Jupiter’s 15% capacity in accordance with ASX Listing Rule
7.1
61
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Valuation Techniques of Convertible Notes
The Notes have an embedded derivative in the form of a call option for the holder to convert the Notes at US$1.25 into Jupiter
ordinary shares.
The convertible equity feature of the Notes has been separated from the liability component of the Notes for financial reporting
purposes. The call option to convert the notes into shares does not meet the definition of an equity instrument, as the exercise
price is denominated in foreign currency to the company’s functional currency. The convertible call option is classified as a
Derivative liability and measured at fair value through the income statement.
The Derivative component of the Notes was valued using the Black Scholes option valuation methodology. The Black Scholes
option valuation methodology calculates the expected benefit from acquiring the shares outright less the present value of
paying the exercise price for the options at expected exercise date. An input into the Black Scholes option valuation is the
expected share price volatility over the remaining term of the options. The expected share price volatility used in the option
valuation at reporting date was 55% which was based on historical share price volatility.
The fair value of the embedded derivative is sensitive to changes in share price volatility. The table below outlines the impact a
change in the share price volatility input has on the fair value of the embedded derivative.
15% increase in volatility
15 % decrease in volatility
Fair value hierarchy
30 June 2015
$
313,077
(231,405)
30 June 2014
$
263,810
(194,990)
All financial instruments, such as the Series B Convertible Notes, for which fair value is recognised or disclosed are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:
Level 1 — Quoted market prices in an active market (that are unadjusted) 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)
For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether transfers have
occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to
the fair value measurement as a whole) at the end of each reporting period.
As at 30 June 2015, the Group held the following classes of financial instruments measured at fair value:
Derivative financial liabilities
Embedded derivative
30 June 2015
30 June 2014
Level 3
$
1,612
Level 3
$
229,400
There were no transfers between Level 1, Level 2 or Level 3 fair value measurements during the year ended 30 June 2015.
62
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
Reconciliation of recurring fair value measurements categorised within level 3 of the fair value hierarchy
Opening balance
Fair Value at inception
Net unrealised gain (loss) recognised in income statement during the period*
Closing balance
18.
CONTRIBUTED EQUITY
Shares issued and fully paid
Ordinary shares (a)
Share options (b)
(a) Movements in ordinary share capital:
Balance 30 June 2014
Balance 30 June 2015
(b) Movements in options
Balance 30 June 2014
Balance 30 June 2015
30 June 2015
$
(229,400)
-
227,788
(1,612)
30 June 2014
$
-
(839,480)
610,080
(229,400)
Consolidated
2015
$
85,339,736
294,198
85,633,935
2014
$
85,339,736
294,198
85,633,935
Number
Number
153,377,693
153,377,693
153,377,693
153,377,693
-
-
866,669
866,669
Terms and conditions:
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share
at shareholders’ meetings.
(c) Movement in performance rights
Balance as at 30 June 2014
Lapsed during year
Granted during the year
Balance as at 30 June 2015
8,075,000
(8,075,000)
-
-
7,000,001
-
1,074,999
8,075,000
63
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
18.
CONTRIBUTED EQUITY (continued)
Capital risk management
When managing capital, management’s objective is to ensure the entity continues as a going concern as well as to
maintain optimal returns to shareholders and benefits for other stakeholders. Management also aims to maintain a capital
structure that ensures the lowest cost of capital available to the entity.
In order to maintain or adjust the capital structure, the entity may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares, enter into joint ventures or sell assets.
The entity does not have a defined share buy-back plan.
No dividends were paid in 2014 and nil are expected to be paid in 2015.
The Company is not subject to any externally imposed capital requirements.
19.
RESERVES
At 30 June 2014
Share based payment
Foreign currency translation
At 30 June 2015
Foreign currency
translation
reserve
$
(11,573,714)
-
12,738,847
1,165,133
CONSOLIDATED
Share based
payments reserve
Total
$
5,695,838
68,176
-
5,764,014
$
(5,877,876)
68,176
12,738,847
6,929,147
Nature and purpose of reserves
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial
statements of foreign subsidiaries.
Share based payments reserve
The share based payments plan reserve is used to record the value of equity benefits provided to eligible employees as
part of their remuneration. Refer to note 21 for further details of this plan.
64
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
20.
KEY MANAGEMENT PERSONNEL AND RELATED PARTY DISCLOSURE
This note is to be read in conjunction with the Remuneration Report, which is included in the Directors Report on pages 11
to 19.
(a) Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Other
Share-based payments
Consolidated
2015
$
2014
$
569,250
50,233
151,682
68,176
839,341
660,635
30,000
138,728
447,468
1,276,831
(b) Transactions between the Group and other related parties
Consultancy fees
During the year, consulting fees of $144,096 (2014: $144,584) were accrued and paid under normal terms and conditions to
Meridian Petroleum LLP, of which Mr. Kuandykov is a director, for the provision of geological services at normal commercial
rates.
21.
SHARE BASED PAYMENTS
Employee Share Option Plan (ESOP) and Performance Rights Plan
Included under expenses in the income statement is $68,176 (2014: $447,468), and relates, in full, to equity-settled share-
based payment transactions for employees.
Options
The fair value of the options is estimated at the date of grant using the Black -Scholes option pricing model.
No options were granted during the year ended 30 June 2015 (2014: Nil).
During the year ended 30 June 2015, no options were exercised over ordinary shares (2014: Nil).
65
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
21.
SHARE BASED PAYMENTS (continued)
Performance Rights
The Jupiter Energy Performance Rights Plan was established whereby Jupiter Energy Limited may, at the discretion of the
Jupiter Energy Limited Board, grant performance rights over unissued shares of Jupiter Energy Limited to directors,
executives, employees and consultants of the consolidated entity. The rights are issued for nil consideration, will not be quoted
on the ASX, cannot be transferred and are granted at the discretion of the Jupiter Energy Board subject to shareholder
approval.
The Performance Rights Plan was approved by shareholders at the November 2009 Annual General Meeting.
Summary of Conditions relating to the vesting of the Performance Rights:
The Performance Rights for each holder shall vest in proportion to the % increase in the Share price of the Company above
$0.735 subject to a minimum increase of 25%, i.e. Performance Rights will start vesting at $0.919. For 100% of the
Performance Rights to vest, the share price of the Company needs to reach $1.47 (Vesting Conditions). In respect of the
Vesting Conditions, the % increase in the Share price of the Company will be calculated by reference to the volume weighted
average price of Shares in the 20 consecutive trading days immediately prior to the Vesting Date.
The number of performance rights on issue as at 30 June 2015 was nil.
During the current period, 8,075,000 expired unvested.
66
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
22.
COMMITMENTS FOR EXPENDITURE
Exploration Work Program Commitments
The Group has entered into a subsoil utilisation rights for petroleum exploration and extraction in Areas 1 and 2 in
Mangistauskaya Oblast in accordance with Contract No. 2272 dated 29 December 2006 with the Ministry of Energy and
Mineral Resources of the Republic of Kazakhstan.
Exploration work program commitments contracted for (but not capitalised in the accounts) that are payable:
- not later than one year
- later than one year but not later than five years
23.
AUDITORS REMUNERATION
The auditor of Jupiter Energy Limited is Ernst & Young.
Amounts received or due and receivable by Ernst & Young (Australia) for:
-
auditing or reviewing the financial report
Amounts received or due and receivable by Ernst & Young (Kazakhstan) for:
-
auditing or reviewing the financial report
Amounts received or due and receivable by Ernst & Young (Singapore) for:
-
auditing or reviewing the financial report
2015
$
-
-
-
2014
$
5,118,377
-
5,118,377
80,000
80,000
78,315
78,315
12,085
12,085
89,615
89,615
56,907
56,907
6,254
6,254
Total paid to Ernst & Young
170,400
152,776
67
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
24.
EARNINGS PER SHARE
Basic earnings per share
Basic earnings per share are calculated by dividing the profit / (loss) attributable to equity holders of the Company by the
weighted average number of ordinary shares outstanding during the period.
The following reflects the income and data used in the basic and diluted earnings per share computations:
Net loss attributable to ordinary equity holders of the
Parent from continuing operations
Weighted average number of ordinary shares for basic
and diluted earnings per share
Consolidated
2015
2014
(10,982,261)
(2,547,271)
Number of
shares
Number of
shares
153,377,693
153,377,693
The convertible note was excluded from the calculation of diluted earnings per share. This could potentially dilute basic
earnings per share in the future.
There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and
the date of authorisation of these financial statements.
25.
SEGMENT REPORTING
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are used by the chief operating decision
makers in assessing performance and determining the allocation of resources.
The Group has identified that it has one operating segments being related to the activities in Kazakhstan, on the basis that the
operations in Australia relate to running the Corporate Head Office only.
Accounting policies and inter-segment transactions
The accounting policies used by the Group in reporting segments internally are the same as those contained in Note 1 to the
accounts.
Interest revenue is derived in Australia. Non-current assets relate to capitalised exploration and evaluation expenditure located
in Kazakhstan.
68
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
26.
STATEMENT OF CASHFLOWS RECONCILIATION
(a) Reconciliation of operating (loss) after income tax to net cash (used in) operating activities
Operating (loss) after income tax:
Add/(less) non-cash items:
Depreciation / Depletion
Share based payments
(Gain) / Loss on derivative
Finance costs
Effect of foreign exchange translation
Other
Changes in assets and liabilities:
Decrease/(increase) in receivables
Decrease/(increase in inventories
(Increase)/decrease in other current assets
Increase/ (decrease) in deferred revenue
Increase/ (decrease) in payables
Decrease/(increase) in provisions
Consolidated
2015
$
(10,982,261)
361,566
68,176
(227,788)
3,161,784
4,468,779
(430,233)
(18,929)
146,770
(784,662)
405,531
(58,061)
(3,889,328)
2014
$
(2,547,271)
1,108,685
447,467
(614,301)
(809,868)
1,955,377
1,118,965
9,481
(26,027)
798,064
1,648,420
(186,917)
(1,990,892)
For the purposes of the cash flow statement, cash includes cash on hand, at banks, and money market investments readily
convertible to cash on hand, net of outstanding bank overdrafts.
69
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
27.
EVENTS OCCURING AFTER THE BALANCE SHEET DATE
There have been no other significant events occurring subsequent to 30 June 2015.
28.
INFORMATION ON PARENT ENTITY
(a)
Information relating to Jupiter Energy Limited:
Current assets
Total assets
Current liabilities
Total liabilities
Issued capital
Retained earnings
Share based payment reserve
Total shareholders’ equity
Profit or (loss) of the parent entity
Total comprehensive income / (loss) of the parent entity
2015
$
1,385,083
75,227,570
(198,641)
2014
$
827,226
57,232,378
(241,774)
(33,572,670)
(17,402,240)
85,633,935
85,633,935
(49,743,049)
(51,499,634)
5,764,014
41,654,900
(1,756,586)
(1,756,586)
5,695,838
39,830,138
15,190,476
15,190,476
70
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
28.
INFORMATION ON PARENT ENTITY (continued)
Name of Entity
Jupiter Energy (Victoria) Pty Ltd
Jupiter Biofuels Pty Ltd
Jupiter Energy (Kazakhstan) Pty Ltd
Jupiter Energy Pte Ltd
Jupiter Energy (Services) Pte Ltd
Equity Holding
Country of
incorporation
Australia
Australia
Australia
Singapore
Singapore
2015
%
100
100
100
100
100
2014
%
100
100
100
100
100
(b) Details of any guarantees entered into by the parent entity in relation to the debts of its subsidiaries
There are no guarantees entered into by the parent entity.
(c) Details of any contingent liabilities of the parent entity
There are no contingent liabilities of the parent entity as at reporting date.
(d) Details of any contractual commitments by the parent entity
There are no contractual commitments by the parent entity
29.
CONTINGENT LIABILITIES
The Group has no contingent liabilities as at 30 June 2015 (30 June 2014: Nil)
71
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
Directors' Declaration
In accordance with a resolution of the directors of Jupiter Energy Limited, I state that:
1
In the opinion of the directors:
(a)
the financial statements and notes of Jupiter Energy Limited for the financial year ended 30 June 2015 are
in accordance with the Corporations Act 2001, including:
(i) Giving a true and fair view of its financial position as at 30 June 2015 and performance for the year
ended on that date.
(ii) Complying with Accounting Standards (including the Australian Accounting Interpretations) and the
Corporations Regulations 2011
The financial statements and notes also comply with International Financial Reporting Standards, as
disclosed in note 2(b)
Subject to the matter set out in Note 2(a) there are reasonable grounds to believe that the Company will be
able to pay its debts as and when they become due and payable.
(b)
(c)
3
This declaration has been made after receiving the declarations required to be made to the Directors in
accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2015.
On behalf of the Board
Geoff Gander
Executive Chairman
Perth, Western Australia
30 September 2015
72
Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au
Independent auditor's report to the members of Jupiter Energy Limited
Report on the financial report
We have audited the accompanying financial report of Jupiter Energy Limited, which comprises the
consolidated statement of financial position as at 30 June 2015, 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, notes comprising a summary of significant accounting policies and
other explanatory information, and the directors' declaration of the consolidated entity comprising the
company and the entities it controlled at the year's end or from time to time during the financial year.
Directors' responsibility 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 controls as the directors determine are necessary to enable the preparation of the financial
report that is free from material misstatement, whether due to fraud or error. In Note 2, the directors also
state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the
financial statements comply with International Financial Reporting Standards.
Auditor's responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our
audit in accordance with Australian Auditing Standards. Those standards require that we comply with
relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain
reasonable assurance about whether the financial report is free from material misstatement.
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 judgment, 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 controls relevant to the entity's preparation and fair
presentation of the financial report 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 controls. 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Independence
In conducting our audit we have complied with the independence requirements of the Corporations Act
2001. We have given to the directors of the company a written Auditor’s Independence Declaration, a
copy of which is included in the directors’ report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
RC:JH:JUPITER:066
Opinion
In our opinion:
a. the financial report of Jupiter Energy Limited is in accordance with the Corporations Act 2001,
including:
i. giving a true and fair view of the consolidated entity's financial position as at 30 June 2015
and of its performance for the year ended on that date; and
ii. complying with Australian Accounting Standards and the Corporations Regulations 2001; and
b. the financial report also complies with International Financial Reporting Standards as disclosed in
Note 2.
Emphasis of Matter
Without qualifying our opinion, we draw attention to Note 2(a) in the financial report. These conditions
indicate the existence of a material uncertainty that may cast significant doubt about the consolidated
entity’s ability to continue as a going concern and therefore, the consolidated entity may be unable to
realise its assets and discharge its liabilities in the normal course of business.
Report on the remuneration report
We have audited the Remuneration Report included in the directors' report for the year ended 30 June
2015. 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.
Opinion
In our opinion, the Remuneration Report of Jupiter Energy Limited for the year ended 30 June 2015,
complies with section 300A of the Corporations Act 2001.
Ernst & Young
R J Curtin
Partner
Perth
30 September 2015
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
RC:JH:JUPITER:066
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
ASX ADDITIONAL INFORMATION
Additional information required by the Australian Stock Exchange Ltd Listing Rules and not disclosed elsewhere in
this report is as follows.
SHAREHOLDINGS (as at 25 August 2015)
Substantial shareholders
Waterford Petroleum Limited
Arrow Business Limited
Central Asian Oil Holdings Ltd
Voting Rights
45,246,108
30,373,941
21,629,719
29.5%
19.8%
14.1%
Each shareholder is entitled to receive notice of and attend and vote at general meetings of the Company. At a general
meeting, every shareholder present in person or by proxy, representative or attorney will have one vote on a show of hands
and on a poll, one vote for each share held.
DISTRIBUTION OF EQUITY SECURITY HOLDINGS
Category
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Total holders
449
588
252
291
39
1,619
Ordinary
Shares
181,368
1,561,092
1,820,446
7,958,762
141,856,025
153,377,693
The number of shareholders holding less than a marketable parcel of ordinary shares is 656.
On-market buy back
There is no current on-market buy back.
Securities on Issue
The number of shares issued by the Company are set out below:
Category
Ordinary Shares
Number
153,377,693
75
JUPITER ENERGY LIMITED – 2015 ANNUAL REPORT
TWENTY LARGEST SHAREHOLDERS
Name of Holder
No. of Ordinary
Shares
% of Issued capital
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
COMPUTERSHARE CLEARING PTY LTD
BNP PARIBAS NOMS PTY LTD
J P MORGAN NOMINEES AUSTRALIA LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
VITORIA PTY LTD
GLENNBROWN PTY LTD
MR GEOFFREY ANTHONY GANDER
MR ATHOL GEOFFREY JAMES
GLENNBROWN PTY LTD
JMAN (WA) PTY LTD
GAINSPELL PTY LTD
ASCENT CAPITAL HOLDINGS PTY LTD
SILVERLIGHT HOLDINGS PTY LTD
MR WARREN GILMOUR + MRS CATHERINE GILMOUR
16. MR ERKIN SVANBAYEV
17. MR SCOTT MISON
18.
19.
MR DAVID JOHN FLEMING + MRS COLLEEN JANET
FLEMING
SILVERLIGHT HOLDINGS PTY LTD
20. MR BARRY JOHN ASHWIN + DR DESIREE SILVA
95,873,335
23,736,506
4,615,080
4,164,007
2,760,503
2,377,779
1,333,334
769,445
608,148
465,000
435,541
333,334
308,334
306,450
282,753
240,000
207,038
200,000
200,000
184,758
TOTAL
139,401,345
62.51
15.48
3.01
2.71
1.80
1.55
0.87
0.50
0.40
0.30
0.28
0.22
0.20
0.20
0.18
0.16
0.13
0.13
0.13
0.12
90.88
76