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Jupiter Energy Limited

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FY2023 Annual Report · Jupiter Energy Limited
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ANNUAL REPORT FOR THE YEAR ENDED   

30 JUNE 2023 

ABN 65 084 918 481 

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
Jupiter Energy Limited 
Corporate directory 
30 June 2023 

Directors 

 Geoffrey Gander (Executive Chairman/Chief Executive Officer) 
 Baltabek Kuandykov (Non-Executive Director) 
 Alexey Kruzhkov (Non-Executive Director) 
 Alexander Kuzev (Non-Executive Director) 
 Keith Martens (Non-Executive Director – appointed 5 July 2023) 
 Mark Ewing (Non-Executive Director – resigned 5 July 2023) 

Company secretary 

 James Barrie 

Registered office 

 Suite 2 
 Level 14, 333 Collins Street 
 Melbourne VIC 3000 

Principal place of business 

 Microdistrict 12, Building 79, BC Zhastar 
 Aktau, Kazakhstan, 130000 

Share register 

 Computershare Investor Services Pty Ltd 
 Level 17, 221 St George’s Terrace 
 Perth WA 6000 

Auditor 

Solicitors 

Bankers 

 Ernst & Young 
 11 Mounts Bay Road 
 Perth WA 6000 

 Steinepreis Paganin 
 Level 4, 
 16 Milligan Street 
 Perth WA 6000 

 National Australia Bank Ltd 
 UB13.03, 100 St Georges Terrace 
 Perth WA 6000 

Stock exchange listing 

 Jupiter Energy Limited shares are listed on the Australian Securities Exchange (ASX 
code: "JPR") 

Website 

 www.jupiterenergy.com 

Corporate Governance Statement 

 www.jupiterenergy.com 

1 

 
Jupiter Energy Limited 
Chairman's letter 
30 June 2023 

Dear Shareholder, 

I am pleased to present the 2023 Annual Report for Jupiter Energy Limited (“Jupiter Energy”, “the Company” or “the Group”). 

The operating environment in Kazakhstan has seen some improvement over the past 12 months but continues to be 
impacted by the geopolitical tension that exists between Russia and Ukraine.   

Despite this unfortunate situation, with the focus and dedication of our Aktau based team and the ongoing support of our major 
shareholder and four Noteholders, the Company is now producing oil at optimal levels and is free to sell its oil into both the 
Kazakh domestic and certain overseas oil markets.  

The Group produced 132,800 barrels of oil during the year (an increase of 46% year on year) and generated revenues of 
US$3.8 million - approximately $US32 per barrel for oil. Production increased markedly in the last quarter of the year as the 
Company installed the requisite infrastructure to achieve 100% gas utilisation and was thereby granted approval to return its 
production wells to optimal levels.  

Achieving 100% gas utilisation has been a significant milestone for the Company. From March 2023, production increased to 
~85  tonnes  (640  barrels)  per  day  and  with  the  various  workovers  being  carried  out  on  existing  wells  during  the  next  few 
months, production should increase to over ~100 tonnes (750 barrels) per day.  

The Company is now subject to monthly quotas set by the Kazakh Ministry of Energy in terms of what quantity of its oil must 
be sold into the Kazakh domestic market and what quantity the Company is free to sell via alternative channels. From April 
2023, these alternative channels include sales into the export market.  

Unfortunately, the pricing of export oil has been impacted by routing restrictions linked to the ongoing situation in Ukraine. 
As a result, export sales are currently not achieving the best net price for oil. It is hoped that the environment for selling 
export oil will improve over the coming twelve months.  

Another significant milestone achieved during the past year occurred at the December 2022 Annual General Meeting when 
shareholders approved a significant debt restructure plan. This plan saw Balance Sheet debt reduced from ~$US75m 
(~$AU106.2m) to ~$US16.5m (~$AU24.4m). The carrying value of the debt at 30 June 2023 is ~$US13.9m (~$AU20.8m).  
As part of this restructuring, our 4 Noteholders agreed to write off a proportion of their outstanding balance and convert 
proportion to shares in the company. The restructured Balance Sheet ensures the Company is now in a far better position to 
seek new investors, if and when seeking new funds is deemed appropriate. 

I would like to thank the four Noteholders, our shareholders and all employees for working together to get Jupiter Energy into 
this much improved operational position and I look forward to the Company continuing to make good progress over the next 
twelve months. 

Sincerely 

Geoff Gander 
Chairman/CEO 

2 

 
Jupiter Energy Limited 
Directors' report 
30 June 2023 

The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as 
the 'consolidated entity' or ‘the Group’) consisting of Jupiter Energy Limited (referred to hereafter as the 'company' or 'parent 
entity') and the entities it controlled at the end of, or during, the year ended 30 June 2023. 

Directors 
The following persons were directors of Jupiter Energy Limited during the whole of the financial year and up to the date of 
this report, unless otherwise stated: 

Geoffrey Gander (Executive Chairman/Chief Executive Officer) 
Baltabek Kuandykov (Non-Executive Director) 
Alexey Kruzhkov (Non-Executive Director) 
Alexander Kuzev (Non-Executive Director) 
Keith Martens (Non-Executive Director - appointed 5 July 2023) 
Mark Ewing (Non-Executive Director - resigned 5 July 2023) 

Principal activities 
During the financial year the principal continuing activities of the consolidated entity consisted of: 
●
●

Exploration for oil and gas in Kazakhstan; and
Appraisal, development and production of oil and gas properties in Kazakhstan.

Dividends 
There were no dividends paid, recommended or declared during the current or previous financial year. 

Review of operations 
The  profit  for  the  consolidated  entity  after  providing  for  income  tax  amounted  to  $44,192,282  (30  June  2022:  loss  of 
$11,511,006). 

The profit for year included a gain of $52,726,436 from a restructure of the company's debt. 

Review of financial condition 

At  the  end  of  the  2023  financial  year,  cash  resources  were  $860,795  (2022:  $1,330,334).  These  accounts  have  been 
prepared on a going concern basis, predicated on the Group’s ability to raise additional cash. Refer to note 1 for additional 
information surrounding going concern. 

Total  assets  at  30  June  2023  were  $23,238,966  (2022:  $20,606,629)  and  the  consolidated  entity  had  net  liabilities  of 
$1,922,193 (2022: negative $81,563,998). 

Funding and capital management 

As at 30 June 2023, the Group had 1,229,850,121 (2022: 153,377,693) listed shares trading under the ASX ticker "JPR".  The 
increase in the number of listed shares reflected the debt for equity shares issued in December 2022 as part of the debt 
restructure plan approved by shareholders at the 2022 Annual General Meeting (AGM). 

Funding for operations during the year came entirely from prepaid oil sales. 

As at 30 June 2023 the Company had approximately $US16.57m ($AU25M) in debt, compared to ~$US73m ($AU105.9m) 
as at 30 June 2022. This remaining debt will be carried interest free until 31 December 2024 and the Company expects to 
repay the amount, using $US generated from oil sales, over the coming years. 

The Company announced on 03 July 2023 that it had agreed a new $US5m facility with major shareholder Waterford Finance 
& International Limited. This facility is provided interest fee, is unsecured and any funds drawn on the facility will be repayable 
on or before 31 December 2024, unless this date is extended by mutual agreement. No monies have been drawn down from 
this facility as at the date of this report.  Any amounts drawn down under this facility will be repaid prior to the company' 
existing noteholders. 

The Group is still reviewing its ongoing funding options to enable it to complete its committed work program for the 2023/2024 
financial year. 

Status of Production Licences 

3 

 
Jupiter Energy Limited 
Directors' report 
30 June 2023 

The Akkar North (East Block) oilfield currently operates under its Commercial Production Licence and this Licence runs until 
05 March 2046. The field is currently producing without restrictions. A workover of the J-50 well is scheduled to be carried 
out in the coming months. 

The Akkar East oilfield currently operates under its Commercial Production Licence that runs until 02 March 2045. The field 
is  also  currently  producing  without  restrictions,  although  the  J-51  has  been  shut  in  for  a  period  as  it  undergoes  a  major 
workover. A workover of the J-52 well is also scheduled to be carried out in the coming months. 

The West Zhetybai oilfield returned to production when its 100% gas utilisation infrastructure was installed, late in 1Q 2023. 

The West Zhetybai oilfield continues to operate under the “Preparatory Period” of its Commercial Production Licence and 
this is expected to continue until 01 September 2024. The field will then revert to its full Commercial Production Licence and 
this Licence will run until 01 September 2049. The field is currently producing without restrictions. A workover of the J-58 well 
is scheduled to be carried out in the coming months. 

As detailed in the summary of production table further below, achieving 100% gas utilisation in 1Q 2023 enabled production 
to increase from a daily cumulative rate of ~30 tonnes (~225 barrels) to ~85 tonnes (~640 barrels) and it is expected that the 
planned workovers will increase this daily cumulative rate to over ~100 tonnes (~750 barrels) in the coming months. 

Operating review 
Production Report 

Production – Akkar East (J-51, J-52, J-53 and Well 19): 

Oil was produced from the Akkar East J-51, J-52 and 19 wells under the Preparatory Period restrictions of its Commercial 
Licence until March 2023. These three wells are all located on the northern section of the permit area and are part of the 
Akkar East oilfield. 

Production rates from the wells for the first 8 months of the year were constrained to a cumulative total of ~22 tonnes (~160 
barrels) per day from the 3 wells. Once the 100% gas utilisation infrastructure was in place and approved to operate (during 
March 2023), the cumulative production level improved to ~42 tonnes (~315 barrels) per day. This production came from the 
J-52 and 19 wells. The J-51 well was shut in during March 2023 in order to carry out a major workover and is expected to
return to production during 4Q 2023.

The  J-53  well,  which  is  also  located  on  the  Akkar  East  oilfield,  was  shut  in  for  the  entire  financial  year,  awaiting  further 
remedial work before potentially coming back onto production.   

Production – Akkar North [East Block] (J-50 well): 

Oil was produced from the Akkar North (East Block) J-50 well under the Preparatory Period restrictions of its Commercial 
Licence until March 2023.  

The J-50 production rate for the first 8 months of the year was constrained to ~8 tonnes (~60 barrels) per day. Once the 
100% gas utilisation infrastructure was in place and approved to operate (during March 2023), the production level of the 
well improved to ~18 tonnes (~135 barrels) per day. 

The well is scheduled to undergo a workover in the coming months. 

Production- West Zhetybai (J-55, 58, 59 wells): 

Production recommenced from the J-58 well in January 2023. Flow rates were restricted in January and February 2023 as 
the  100%  gas  utilisation  infrastructure  was  installed  and  the  well  returned  to  optimal  production  in  March  2023.  Optimal 
production from this well is ~25 tonnes (~190 barrels) per day.  

The well is scheduled to undergo a workover in the coming months. 

The J-55 well and J-59 wells are also located on the West Zhetybai oilfield and were both shut in for the entire financial year, 
awaiting further remedial work before potentially coming back onto production.  

A summary of the oil produced from all production wells during the financial year, broken down by quarter, is as follows: 

4 

 
Jupiter Energy Limited 
Directors' report 
30 June 2023 

Well Number 

J-50
J-51
J-52
Well 19
J-58

Drilling Report 

Production 
(1Q) (bbls) 

Production 
(2Q) (bbls) 

Production 
(3Q) (bbls) 

Production 
(4Q) (bbls) 

TOTAL bbls 
for the 
2022/2023 
Financial 
Year 

5,600 
4,800 
4,800 
4,800 
- 

5,600 
4,800 
4,800 
4,800 
- 

5,300 
6,400 
6,400 
6,400 
10,300 

11,300 
-
14,500 
14,500 
17,700 

27,800 
16,000
30,500
30,500
28,000

20,000 

20,000 

34,800 

58,000 

132,800 

There was no new drilling during the financial year. 

The drilling of any other new wells in the 2023/2024 financial year will require access to additional working capital and/or 
agreement to deferred payment terms with a turnkey drilling operator. The current forward drilling plan is for no wells to be 
drilled during 2023, but this is always under review. 

Oil Production and Revenues 

There  were  approximately  132,800  barrels  of  oil  produced  during  the  year,  achieving  revenues  of  ~$5.6  million  This 
compared  with  approximately  91,000  barrels  produced  in  the  previous  reporting  period,  generating  revenues  of  ~$A4.1 
million. All oil produced during the first nine months of the year was sold into the domestic market to a local trader - as per 
the terms of both the Company’s Exploration Period Licence and “the Preparatory Period” restrictions of Jupiter Energy’s 
Commercial Licences. 

In March 2023, when 100% gas utilisation infrastructure had been installed and approved by the authorities, oil sales were 
permitted to be made to both domestic and export markets, subject to quotas that are advised by the Kazakh Ministry of 
Energy on a month by month basis. 

Due to the geopolitical tension in the region, the limited availability of routes for export oil meant that pricing for export oil 
was not particularly attractive and the Company only sold oil into the export market in April 2023. Since that time, all oil has 
been sold into the domestic markets to both government refineries and local mini refineries. 

Oil continues to be sold on a prepayment basis. 

Status of Exploration and Commercial Licences 

As detailed above, the Akkar North (East Block) and Akkar East field are currently operating under their 25 year Commercial 
Production  Licences.  The  West  Zhetybai  field  is  running  under  the  Preparatory  Period  of  its  Commercial  Licence  and  is 
expected to commence operating under its 25 year Full Commercial Production Licence from 1 September 2024. 

Creation of Joint Venture for the trading of Domestic Oil 

During the year, as a result of Kazakh legislation introduced in January 2023, the Company was required to create a Joint 
Venture (JV) vehicle with a trader (or traders) to enable it to continue selling oil into the Kazakh domestic market under its 
Full Commercial Licence. As part of this process, the Company took a 50% shareholding in the JV. 

Ongoing Funding 

During the year the Company continued to evaluate various opportunities for new sources of funding. Until recently one of 
the key impediments for attracting potential investors was the lack of 100% gas utilisation infrastructure on the three oilfields 
and the impact this had on daily oil production. 

The other key impediment for attracting further investment was the level of debt on the balance sheet. 

5 

 
Jupiter Energy Limited 
Directors' report 
30 June 2023 

With  both  of  these  areas  now  addressed,  the  Company  continues  to  work  with  its  partners  regarding  opportunities  for 
attracting new sources of funding. 

Debt restructure 

Shareholders approved a major debt restructure plan at the 2022 AGM. The four Noteholders agreed to write off a proportion 
of their outstanding balance and convert proportion to shares in the company. The remaining balance of their principal debts 
remains on the Balance Sheet – meaning that total debt has been reduced from over $US75m to ~$US16.5m. 

The ~$US16.5m debt is interest free until 31 December 2024 and the Company is focused on paying down this amount from 
oil sales as soon as is possible. 

Corporate structure 

The Company monitored its personnel numbers during the financial year and ended the year with 42 employees, an increase 
of 12 over the year. This increase of personnel in Kazakhstan reflected the return to optimal production levels during the year 
as well as the installation and running of the gas utilisation infrastructure on the three oilfields. 

Annual General Meeting 

The 2022 AGM was held virtually on 09 December 2022. The delay of the meeting into December was required to ensure 
that all documentation required to enable the Debt Restructure Plan to be put to shareholders was competed and dispatched 
as per regulatory requirements. 

The Company expects the 2023 AGM to be held during November 2023 – again virtually. 

A Notice of Meeting outlining business to be covered at the 2023 AGM will be dispatched to shareholders during October 
2023, and the Notice will include details on how to attend online. 

Shares for Fee Plan 

A General Meeting of shareholders was held on 29 June 2023. At this meeting, shareholders approved a “Shares for Fees” 
plan that saw ~$A560k of debt removed from the Balance Sheet as participating Directors agreed to accept rights to shares 
to cover all accrued fees outstanding and due to them.  The Directors agreed to this subsequent to year end and the terms 
and condition were signed off by the Directors in September 2023. 

In addition, participating Directors agreed to take rights to shares, instead of deferred cash, to cover Directors Fees from 1 
January 2023. 

Summary 

The 2022/23 Financial Year saw a ~46% increase in the number of barrels of oil produced with revenues increasing from 
~A$4.1 million to ~$A5.6 million, year on year. The increase in production was as a result of the installation and approval to 
operate the requisite infrastructure to achieve 100% gas utilisation on the three oilfields. 

The three oilfields were able to operate at optimal production levels from March 2023. 

Our team in Aktau did an excellent job in ensuring the gas utilisation infrastructure equipment was brought into the country, 
installed and approved within tight timelines and taking into account logistical disruptions created by the ongoing COVID 
lockdowns in China at the beginning of 2023. 

The four Noteholders continued their support for the Company during the year in agreeing to a significant Debt Restructure 
Plan that meant Balance Sheet debt has been reduced from ~$US75m to ~$US16.5m. 

Competent Persons Statement 

General 

6 

 
Jupiter Energy Limited 
Directors' report 
30 June 2023 

Alexey  Glebov, PhD, with  over 35  years'  oil  &  gas  industry  experience, is  the  qualified  person  who  has  reviewed  and 
approved the technical information contained in this report. Alexey PhD’s in technical science (1992) and geology science 
(2006), has an Honors Degree in Geology and Geophysics (1984) from Novosibirsk State University and a Gold Medal (1985) 
from USSR Academy of Sciences. He is a member since 2001 of the European Association of Geoscientists & Engineers 
(EAGE #M2001-097) and was made an Honorary Oilman in 2011 by the Ministry of Energy of the Russian Federation. Alexey 
Glebov is qualified in accordance with ASX Listing Rule 5.41. 

Kazakh State Approved Reserves 

Any information in this report which relates to the C1 and C2 Block 31 reserve estimations is based on information compiled 
by Kazakh Institutes, Reservoir Evaluation Services LLP (“RES”) and Nauchno Proizvodstvennyi Tsentr (“NPC”). Both are 
Kazakh based oil & gas consulting Groups that specialise in oil & gas reserve estimations. RES and NPC have used the 
Kazakh Reserve classification system in determining their estimations. RES and NPC have 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 and NPC have given and not withdrawn their 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 and 
NPC have no financial interest in the Group. 

Matters subsequent to the end of the financial year 
The Company announced on 03 July 2023 that it had agreed a new $US5m facility with major shareholder Waterford Finance 
& International Limited. This facility is provided interest fee, is unsecured and any funds drawn on the facility will be repayable 
on or before 31 December 2024, unless this date is extended by mutual agreement. No monies have been drawn down from 
this facility as at the date of this report. 

On 05 July 2023 Mark Ewing retired from the Board and Keith Martens was appointed as a Non-Executive Director. 

At the Company’s General Meeting held 29 June 2023, shareholders approved the adoption of a Securities for Fees Plan 
and associated issuance of securities to certain directors of the Company as consideration for accrued director and consulting 
fees for the period up to 30 June 2023 and such fees that would otherwise then accrue for the period 1 January 2023 through 
to 31 December 2024. This shareholder approval has resulted in a further improvement in the balance sheet and future cash 
expenditure of the Company. 

Following the finalisation of required documentation, on 18 September 2023 the company issued 18,646,800 remuneration 
share rights to certain directors as consideration for accrued fees totalling $559,404 for the period up to 30 June 2023. On 
18 September 2023, the company issued 27,980,134 fully paid ordinary shares to Jupiter Employee Securities Pty Ltd in 
relation to these accrued fees and associated share remuneration rights for the period out to 31 December 2024. These 
shares are held in trust by that entity until all vesting conditions relating to the remuneration share rights are met and the 
rights are exercised. 

No other matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the 
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial 
years. 

Likely developments and expected results of operations 
The Directors will continue to pursue oil and gas exploration and production opportunities in the Republic of Kazakhstan. 

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 financial year. 

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 Group is committed to a locally developed environmental monitoring program. This 
monitoring  program  will  continue  to  expand  as  and  when  new  regulations  are  implemented  and  adopted  in  Kazakhstan. 
There have been no known breaches of any environmental obligations.   

7 

 
Jupiter Energy Limited 
Directors' report 
30 June 2023 

Health and safety 
The Group 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 Group with compliance under this policy. The Group outsources many 
of its key drilling and operational functions and as part of any contract entered into with third parties, a commitment to Health 
& Safety and a demonstrated track record of success and this area is a key performance indicator in terms of deciding on 
which companies will be contracted. 

The Aktau operations team continues to exercise vigilance with respect to employee and contractor safety. 

Information on directors 
Name: 
Title: 
Qualifications: 

Experience and expertise: 

 Geoffrey Gander 
 Executive Chairman/CEO 
 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.  
 Nil 

Other current directorships: 
Former directorships (last 3 years):   Powerhouse Ventures Limited (ASX : PVL) – resigned 25 November 2021 
Interests in shares: 
Interests in rights: 

 Nil 
 5,176,700 remuneration share rights 

Name: 
Title: 
Experience and expertise: 

 Baltabek Kuandykov  
 Independent Non-Executive Director 
 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: 
 Nil 
Former directorships (last 3 years):   Nil 
 Nil 
Interests in shares: 

Name: 
Title: 
Experience and expertise: 

 Alexander Kuzev 
 Independent Non-Executive Director 
 Mr  Kuzev  is  an  oil  industry  professional  with  over  27  years  of  experience.  Most  of 
Alexander’s  career  has  been  spent  working  in  the  Former  Soviet  Union  (FSU)  with 
much  of  that  time  responsible  for  the  overall  management  of  field  operations  with  a 
focus on production sustainability, technology and field maintenance. He has worked 
with  a  range  of  oil  and  gas  companies  including  Schlumberger  and  Gazprom 
Drilling. Alexander brings an important technical skill set to the Jupiter Energy Board 
as well as in country experience, having been involved with various Kazakhstan based 
oil and gas operations since the late 1990’s. 
 Nil 
Other current directorships: 
Former directorships (last 3 years):   Nil 
 Nil 
Interests in shares: 

8 

 
Jupiter Energy Limited 
Directors' report 
30 June 2023 

Name: 
Title: 
Experience and expertise: 

 Alexey Kruzhkov  
 Non-Executive Director   
 Mr  Kruzhkov  holds  an  Engineering  Degree  and  an  MBA  and  has  over  10  years’ 
experience  working  in  the  investment  industry,  focusing  primarily  on  organisations 
involved  in  Oil  &  Gas,  Mining  and  Real  Estate.  He  has  served  as  a  Director  on  the 
Boards of companies listed in Canada and Norway. He is a board member and part of 
the  executive  team  of  Waterford  Investment  and  Finance  Limited  and  resides  in 
Cyprus. He holds British and Russian citizenships. 
Other current directorships: 
 Nil 
Former directorships (last 3 years):   Nil 
 Nil 
Interests in shares: 
 13,482,100 remuneration share rights 
Interests in rights: 

Name: 
Title: 
Qualifications: 
Experience and expertise: 

 Mark Ewing  
 Independent Non-Executive Director (resigned 5 July 2023) 
 Mark has had more than 40 years’ experience as a Chartered Accountant. 
 Mark  Ewing  is  an  experienced  company  director  and  member  of  the  Institute  of 
Company Directors. Mark has had more than 40 years’ working with private and public 
companies  in  Australia,  Asia,  UK  and  the  US.  He  specialises  in  the  provision  of 
corporate  advice  to  SME’s  and  small  ASX  listed  companies,  due  diligence,  capital 
raisings and business sales.  
Other current directorships: 
 N/A 
Former directorships (last 3 years):   N/A 
 N/A 
Interests in shares: 

Name: 
Title: 
Qualifications: 
Experience and expertise: 

Other current directorships: 
Former directorships (last 3 years):   Nil 
 Nil 
Interests in shares: 

 Keith Martens 
 Independent Non-Executive Director (appointed 5 July 2023) 
B.Sc (University of British Columbia)
Keith has over 40 years of experience as an oil finder and manager around the world.
Keith has served a technical advisor and consultant to a number of Australian oil and 
gas companies.
Grand Gulf Energy Limited (ASX: GGE)

'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all 
other types of entities, unless otherwise stated. 

'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes 
directorships of all other types of entities, unless otherwise stated. 

Company secretary 
James Barrie (GAICD, Dipl InvRel (AIRA), B. Business) is a professional director and company secretary. He provides the 
Jupiter Board independent advice and expertise, and is skilled in the areas of corporate governance, company secretary, 
share  registry,  employee  plans,  treasury,  capital  management,  accounting,  commercial  analysis,  strategy,  stakeholder 
relations, sales, business development, IPOs and mergers and acquisitions.  

Meetings of directors 
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2023, and 
the number of meetings attended by each director were: 

G Gander 
B Kuandykov 
A Kruzhkov 
A Kuzev 
M Ewing 

9 

Full Board 

Attended 

Held 

5 
5 
4 
5 
4 

5 
5 
5 
5 
5 

 
 
Jupiter Energy Limited 
Directors' report 
30 June 2023 

Held: represents the number of meetings held during the time the director held office. 

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. 

Remuneration report (audited) 
This  remuneration  report  outlines  the  Director  and  executive  remuneration  arrangements  of  the  consolidated  entity  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 consolidated entity are defined as those persons having authority and responsibility for 
planning, directing and controlling the major activities of the consolidated entity, directly or indirectly, including any Director 
(whether executive or otherwise) of the Company.  KMP comprise the company's directors which are listed above, 

For the purposes of this report, the term 'executive' encompasses the Executive Chairman/Chief Executive Officer. 

Principles used to determine the nature and amount of remuneration 
The remuneration policy of the consolidated entity 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 
consolidated entity believes the remuneration policy to be appropriate to attract and retain the best executives and Directors 
to  run  and  manage  the  consolidated  entity,  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 
consolidated entity 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 consolidated entity does not have a remuneration committee. The Board is of the 
opinion that due to the size of the consolidated entity, 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  consolidated  entity's  performance,  executive 
performance and comparable information from industry sectors and other listed companies in similar industries.

●

●

Remuneration Structure  

Non-Executive Director Remuneration 

Objective 
The Board seeks to set aggregate remuneration at a level which provides the consolidated entity 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 consolidated entity. Non-executive Directors are also encouraged to hold shares in the company. It should 
be noted that Directors Fees for all Directors, except Mark Ewing who resigned from the Board on 05 July 2023, are currently 
being deferred and a table summarising the outstanding fees due to Directors can be found on page 13 of this Report. 

As  approved at  a  General Meeting  of  shareholders held  on 29  June  2023,  as  of  1  January  2023,  participating  Directors 
(Gander  and  Kruzhkov)  are  being  issued  renumeration  share  rights  as  payment  for  fees  and  non  participating  Directors 
(Kuandykov and Kuzev) are continuing to defer their cash fees. Newly appointed Director (Martens) will be issued fully paid 
ordinary shares as payment for fees, subject to shareholder approval at the 2023 Annual General Meeting.  The Directors 
agreed to this subsequent to year end and the terms and condition were signed off by the directors in September 2023. 

Executive Remuneration 

10 

 
Jupiter Energy Limited 
Directors' report 
30 June 2023 

Objective 
The consolidated entity aims to reward executives with a level and mix of remuneration commensurate with their position 
and responsibilities within the consolidated entity so as to:  
●
●
●
●

reward executives for consolidated entity, business unit and individual performance;
align the interests of executives with those of shareholders;
link reward with the strategic goals and performance of the consolidated entity; and
ensure total remuneration is competitive by market standards

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 CEO may be awarded a one off annual bonus payment by mutual agreement and at the discretion of the Board. In the 
years ended 30 June 2023 and 30 June 2022, no cash bonuses were paid. 

Variable Remuneration – Long Term Incentives (LTI) 

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  consolidated  entity  who  have 
contributed to the success of the consolidated entity 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 consolidated 
entity and improve the performance of the consolidated entity; and
attract persons of experience and ability to employment with the consolidated entity and foster and promote loyalty 
between the consolidated entity and its Directors, employees and consultants.

Structure 
Long term incentives granted to Directors and senior executives are delivered either in the form of a defined bonus or via the 
issue of Performance Rights, issued under the Performance Rights Plan. There were no performance rights issued during 
the current financial year or prior financial year. There is a bonus that forms part of the CEO package which is linked to the 
sale of the permit area. Under the terms of the package, the CEO is entitled to $US350,000 or 0.5% (whichever is greater) 
of the value of the consideration received if Jupiter or Contract 2275 (pertaining to the main project) is assigned, transferred 
or sold to a third party during the term of the agreement. 

Use of remuneration consultants 
During the financial year ended 30 June 2023, the consolidated entity did not use remuneration consultants. 

Voting and comments made at the company's 9 December 2022 Annual General Meeting ('AGM') 
At the 9 December 2022 AGM, 99.70% of the votes received supported the adoption of the remuneration report for the year 
ended 30 June 2022. The company did not receive any specific feedback at the AGM regarding its remuneration practices. 

Details of remuneration 
Amounts of remuneration 
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables. 

11 

 
Jupiter Energy Limited 
Directors' report 
30 June 2023 

2023 

Non-Executive Directors: 
A Kruzhkov * 
B Kuandykov ** 
A Kuzev ** 
M Ewing  

Executive Directors: 
Geoff Gander * 

Short-term benefits 

Post-
employment 
benefits 

Long-term 
benefits 

Share-
based 
payments 

Directors  Consulting 

fees 
$ 

fees *** 
$ 

Non- 
monetary 
$ 

Super- 
annuation 
$ 

Long 
service 
leave 
$ 

Equity- 
settled 
$ 

Total 
$ 

59,396 
59,396 
44,550 
30,000 

- 
119,419 
104,927 
- 

-
193,342 

360,798
585,144 

- 
- 
- 
- 

- 
- 

- 
- 
- 
- 

- 
- 

- 
- 
- 
- 

- 
- 

-
- 
- 
-

- 
- 

59,396
178,815
149,477
30,000

360,798 
778,486 

*

** 

Directors fees from February 2015 have been deferred until such time that at least US$10,000,000 in new equity is 
raised or alternatively the consolidated entity sells the Block 31 licence and receives the funds associated with that sale. 
On 18 September 2023, remuneration share rights were issued to Mr Gander and Mr Kruzhkov settling accrued director 
fees, outstanding as at 30 June 2023. Ongoing Directors fees, from 1 January 2023, will be payable via remuneration 
share rights, issued on a 6 monthly in arrears basis.
 Director fees from February 2015 have been deferred until such time that at least US$10,000,000 in new equity is raised 
or alternatively the consolidated entity sells the Block 31 licence and receives the funds associated with that sale.

***   Consulting fees relate to specific fees paid in relation to the oil and gas industry consultations.

Short-term benefits 

Post-
employment 
benefits 

Long-term 
benefits 

Share-
based 
payments 

Directors  Consulting 

fees 
$ 

fees *** 
$ 

Non- 
monetary 
$ 

Super- 
annuation 
$ 

Long 
service 
leave 
$ 

Equity- 
settled 
$ 

Total 
$ 

55,109 
55,109 
41,331 
41,667 

- 
116,419 
87,192 
- 

-
193,216 

342,094
545,705 

- 
- 
- 
- 

- 
- 

- 
- 
- 
- 

- 
- 

- 
- 
- 
- 

- 
- 

-
- 
- 
-

- 
- 

55,109
171,528
128,523
41,667

342,094 
738,921 

2022 

Non-Executive Directors: 
A Kruzhkov * 
B Kuandykov ** 
A Kuzev ** 
M Ewing  

Executive Directors: 
Geoff Gander * 

*

** 

Directors fees from February 2015 have been deferred until such time that at least US$10,000,000 in new equity is 
raised or alternatively the consolidated entity sells the Block 31 licence and receives the funds associated with that sale. 
On 18 September 2023, remuneration share rights were issued to Mr Gander and Mr Kruzhkov settling accrued director 
fees, outstanding as at 30 June 2023.
 Director fees from February 2015 have been deferred until such time that at least US$10,000,000 in new equity is raised 
or alternatively the consolidated entity sells the Block 31 licence and receives the funds associated with that sale.

***   Consulting fees relate to specific fees paid in relation to the oil and gas industry consultations.

12 

 
 
 
 
 
 
 
 
 
 
 
Jupiter Energy Limited 
Directors' report 
30 June 2023 

The proportion of remuneration linked to performance and the fixed proportion are as follows: 

Name 

Non-Executive Directors: 
A Kruzhkov  
B Kuandykov  
A Kuzev  
M Ewing  

Executive Directors: 
Geoff Gander 

Fixed remuneration 
2022 
2023 

At risk - STI 

At risk - LTI 

2023 

2022 

2023 

2022 

100% 
100% 
100% 
100% 

100% 
100% 
100% 
100% 

100% 

100% 

- 
- 
- 
- 

- 

- 
- 
- 
- 

- 

- 
- 
- 
- 

- 

- 
- 
- 
- 

- 

The  total  deferred  fees  owing  to  each  related  party  are  included  within  Trade  and  Other  Payables  in  the  Statement  of 
Financial Position and have been detailed below:  

Geoff Gander 
Baltabek Kuandykov 
Alexey Kruzhkov 
Alexander Kuzev 

Consolidated 

2023 
$ 

2022 
$ 

148,274 
507,614 
412,571 
262,443 

104,941 
430,107 
338,713 
208,855 

1,330,902 

1,082,616 

On  18  September  2023,  after  receiving  approval  at  a  General  Meeting  of  shareholders  held  on  the  29  June  2023,  the 
company issued the below remuneration share rights: 

●
●

5,164,700 rights were issued Geoff Gander, valued at 3 cents per right settling accrued fees valued at $154,941; and
13,482,100 rights were issued Alexy Kruzhkov, valued at 3 cents per right settling accrued fees valued at $404,463.

Service agreements 
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details 
of these agreements are as follows: 

Name: 
Title: 
Agreement commenced: 
Term of agreement: 

 Geoffrey Gander 
 Executive Chairman/Chief Executive Officer 
 8 September 2017 
 Consulting fees of GBP200,000 (A$366,638) per annum, of which A$5,000 per month 
relates to directors fees. As from 1 January 2023 director fees will be paid via the rights 
to  future  shares.  On  18  September  2023,  Mr  Gander  was  issued  5,164,700  rights, 
valued at 3 cents per right, settling accrued fees dating from February 2015 to 30 June 
2023,  totalling  $154,941.  These  rights  will  vest  with  Mr  Gander  when  at  least 
US$10,000,000 in new equity is raised or alternatively the consolidated entity sells the 
Block 31 licence and receives the funds associated with that sale. Mr Gander is also 
entitled to a Bonus of $US350,000 or 0.5% (whichever is greater) of the value of the 
consideration received by the consolidated entity if the Company or Contract 2275 is 
assigned, transferred or sold to a third party during the term of the Agreement.  

13 

 
 
Jupiter Energy Limited 
Directors' report 
30 June 2023 

Name: 
Title: 
Agreement commenced: 
Term of agreement: 

Name: 
Title: 
Agreement commenced: 
Term of agreement: 

Name: 
Title: 
Agreement commenced: 
Term of agreement: 

Name: 
Title: 
Agreement commenced: 
Term of agreement: 

Name: 
Title: 
Agreement commenced: 
Term of agreement: 

 Baltabek Kuandykov 
 Non-Executive Director 
 5 October 2010 
 Mr Kuandykov is entitled to a base fee of US$ 40,000 per annum. Mr Kuandykov’s fees 
are  deferred  until  such  time  that  at  least  US$10,000,000  in  new  equity  is  raised  or 
alternatively the consolidated entity sells the Block 31 licence and receives the funds 
associated  with  that  sale.  Mr  Kuandykov  will  be  reimbursed  reasonable  expenses 
incurred in performing his duties, including the cost of attending Board Meetings, travel, 
accommodation and entertainment where agreed to by the Board. The appointment of 
Mr Kuandykov as a non-executive Director is otherwise on terms that are customary 
for  an  appointment  of  this  nature. In  addition,  he  is  entitled  to  consulting  fee  of 
$US60,000 per annum. 

 Alexey Kruzhkov 
 Non-Executive Director 
 18 June 2016 
 Mr Kruzhkov is entitled to a base fee of US$ 40,000 per annum and as from 1 January 
2023  this  fee  will  be  paid  via  the  rights  to  future  shares.  On  18  September  2023 
13,482,100  rights  were  issued  to  Mr  Kruzhkov,  valued  at  3  cents  per  right,  settling 
accrued fees dating from February 2015 to 30 June 2023, valued at $404,463. These 
rights will vest with Mr Kruzhkov when at least US$10,000,000 in new equity is raised 
or alternatively the consolidated entity sells the Block 31 licence and receives the funds 
associated  with  that  sale.  Mr  Kruzhkov  will  be  reimbursed  reasonable  expenses 
incurred in performing his duties, including the cost of attending Board Meetings, travel, 
accommodation and entertainment where agreed to by the Board. The appointment of 
Mr Kruzhkov as a non-executive Director is otherwise on terms that are customary for 
an appointment of this nature. 

 Alexander Kuzev 
 Non-Executive Director 
 12 September 2017 
 Mr  Kuzev  is  entitled  to  a  base  fee  of  US$  30,000  per  annum.  Mr  Kuzev’s  fees  are 
deferred  until  such  time  that  at  least  US$10,000,000  in  new  equity  is  raised  or 
alternatively the consolidated entity sells the Block 31 licence and receives the funds 
associated with that sale. Mr Kuzev will be reimbursed reasonable expenses incurred 
in  performing  his  duties,  including  the  cost  of  attending  Board  Meetings,  travel, 
accommodation and entertainment where agreed to by the Board. The appointment of 
Mr Kuzev as a non-executive Director is otherwise on terms that are customary for an 
appointment of this nature.  In addition, he is entitled to consulting fee of $US60,000 
per annum. 

 Mark Ewing 
 Non-Executive Director (resigned 5 July 2023) 
 24 November 2020 
 Mr Ewing is entitled to a base fee of $A30,000 per annum plus GST. 

 Keith Martens 
 Non-Executive Director 
 05 July 2023 
 Mr Martens is entitled to a base fee of $A50,000 per annum and this fee will be payable 
(subject to shareholder approval at the 2023 AGM) via the issue of fully paid ordinary 
shares. Mr Martens may also be entitled to consulting fees in relation to performing 
duties outside his role as a Non-Executive Director. These consulting fees may also be 
paid via the issue of fully paid ordinary shares, subject to shareholder approval. 

The termination provisions of Geoff Gander's contract are as follows: 

14 

 
Jupiter Energy Limited 
Directors' report 
30 June 2023 

Reason for termination 

initiated 

termination  with  reason  or 

Contractor    - 
incapacitation 
Company - initiated termination without reason 
Company – initiated termination for serious misconduct 
Contractor – initiated termination with reason 

Notice Period 

 Payment in lien of 
notice 

for  Contractor 

 1 month 

 12 months 

 12 months 
 None 
 30 days 

 12 months 
 None 
 12 months 

Share-based compensation 
A General Meeting of shareholders was held on 29 June 2023. At this meeting, shareholders approved a “Shares for Fees” 
plan were $559,404 accrued directors fees were to settled via the issue of rights to shares in the company. The rights to 
shares are subject to the same vesting conditions as the previously accrued directors fees. 

In addition, participating Directors have agreed to take rights to shares, instead of deferred cash, to cover Directors Fees 
from 1 January 2023. This arrangement was also approved at the General Meeting of shareholders held on 29 June 2023. 

Agreements were signed with the relevant directors in September 2023, and the related shares and rights to shares were 
only issued on 18 September 2023. For this reason, they have not been recognised in the current year's financial statements 
and remuneration report. 

Issue of shares 
There were no shares issued to directors and other key management personnel as part of compensation during the year 
ended 30 June 2023. 

Options 
There  were  no  options  over  ordinary  shares  issued  to  directors  and  other  key  management  personnel  as  part  of 
compensation that were outstanding as at 30 June 2023. 

There were no options over ordinary shares granted to or vested by directors and other key management personnel as part 
of compensation during the year ended 30 June 2023. 

Additional information 
The earnings of the consolidated entity for the five years to 30 June 2023 are summarised below: 

2023 
$ 

2022 
$ 

2021 
$ 

2020 
$ 

2019 
$ 

Sales revenue 
Profit /loss after income tax * 
Market capitalisation 

5,588,957 
44,192,282 
22,137,302 

4,126,946 
(11,511,006)  
3,060,000 

4,025,701 
61,655 
6,120,000 

5,634,059 
(42,352,138)  
2,300,000 

8,963,533 
(8,927,775) 
942,000 

*

The profit in current year includes a gain on debt restructure of $52,726,436.

The factors that are considered to affect total shareholders return ('TSR') are summarised below: 

2023 

2022 

2021 

2020 

2019 

Share price at financial year end (cents) 
Basic earnings/(loss) per share (cents per 
share) 

1.80 

6.17 

2.00 

(7.51) 

3.20 

0.04 

1.50 

1.10 

(27.61) 

(5.82) 

Additional disclosures relating to key management personnel 

Shareholding 
No director or other member of key management personnel of the consolidated entity held any shares in the company during 
the financial year. 

This concludes the remuneration report, which has been audited. 

15 

 
Jupiter Energy Limited 
Directors' report 
30 June 2023 

Shares under option 
There were no unissued ordinary shares of Jupiter Energy Limited under option outstanding at the date of this report. 

Shares issued on the exercise of options 
There were no ordinary shares of Jupiter Energy Limited issued on the exercise of options during the year ended 30 June 
2023 and up to the date of this report. 

Indemnity and insurance of officers 
The company indemnifies the directors and executives of the company for costs incurred, in their capacity as a director or 
executive, for which they may be held personally liable, except where there is a lack of good faith. 

During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the 
company  against  a  liability  to  the  extent  permitted  by  the  Corporations  Act  2001.  The  contract  of  insurance  prohibits 
disclosure of the nature of the liability and the amount of the premium. 

Indemnity and insurance of auditor 
To the extent permitted by law, the Group 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. 

Proceedings on behalf of the company 
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf 
of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility 
on behalf of the company for all or part of those proceedings. 

Non-audit services 
Details of the amounts paid or payable to the auditor for non-audit services provided during the prior financial year by the 
auditor are outlined in  note 21 to the financial statements.  There were no non-audit services provided during the current 
financial year. 

The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another 
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the 
Corporations Act 2001. 

The directors are of the opinion that the services as disclosed in note 21 to the financial statements do not compromise the 
external auditor's independence requirements of the Corporations Act 2001 for the following reasons: 

●

●

all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code 
of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including 
reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the company, 
acting as advocate for the company or jointly sharing economic risks and rewards.

Officers of the company who are former partners of Ernst & Young 
There are no officers of the company who are former partners of Ernst & Young. 

Auditor's independence declaration 
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out 
immediately after this directors' report. 

Auditor 
Ernst & Young continues in office in accordance with section 327 of the Corporations Act 2001. 

16 

 
Jupiter Energy Limited 
Directors' report 
30 June 2023 

This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001. 

On behalf of the directors 

___________________________ 
Geoffrey Gander  
Director 

29 September 2023 

17 

 
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 

As lead auditor for the audit of the financial report of Jupiter Energy Limited for the financial year 
ended 30 June 2023, I declare to the best of my knowledge and belief, there have been: 

a.  No contraventions of the auditor independence requirements of the Corporations Act 2001 in 

relation to the audit; 

b.  No contraventions of any applicable code of professional conduct in relation to the audit; and 

c.  No non-audit services provided that contravene any applicable code of professional conduct in 

relation to the audit. 

This declaration is in respect of Jupiter Energy Limited and the entities it controlled during the 
financial year. 

Ernst & Young 

Jared Jaworski 
Partner 
29 September 2023 

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jupiter Energy Limited 
Contents 
30 June 2023 

Consolidated statement of profit or loss and other comprehensive income 
Consolidated statement of financial position 
Consolidated statement of changes in equity 
Consolidated statement of cash flows 
Notes to the consolidated financial statements 
Directors' declaration 
Independent auditor's review report to the members of Jupiter Energy Limited 
Shareholder information 

General information 

20 
21 
22 
23 
24 
50 
51 
56 

The financial statements cover Jupiter Energy Limited as a consolidated entity consisting of Jupiter Energy Limited and the 
entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is 
Jupiter Energy Limited's functional and presentation currency. 

Jupiter Energy Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered 
office and principal place of business are: 

Registered office 

Level 14, 333 Collins Street 
Melbourne VIC 3000 

 Principal place of business 

 Microdistrict 12, Building 79, BC Zhastar 
 Aktau, Kazakhstan, 130000 

A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' 
report, which is not part of the financial statements. 

The financial statements were authorised for issue, in accordance with a resolution of directors, on 29 September 2023. The 
directors have the power to amend and reissue the financial statements. 

19 

 
  
  
 
  
  
  
 
  
  
  
  
Jupiter Energy Limited 
Consolidated statement of profit or loss and other comprehensive income 
For the year ended 30 June 2023 

Revenue 
Revenue from contracts with customers 
Cost of sales 
Gross profit 

Gain on debt restructure 

Other income 
Foreign exchange gains (losses) 
Finance income 
Gain on remeasurement of promissory notes 

Expenses 
General and administration expenses  
Impairment of exploration and evaluation assets 
Impairment of trade receivables 
Other expenses 
Finance costs 

Profit/(loss) before income tax expense 

Income tax expense 

  Note   

Consolidated 

2023 
$ 

2022 
$ 

5,588,957   
(3,959,682)  
1,629,275   

4,126,946  
(2,627,886) 
1,499,060  

  14 

  52,726,436   

-   

4 

  14 

299,426   
(1,865,082)  
83,953   
-    
(1,481,703)  

352,882  
(8,346,417) 
68,578  
4,988,472  
(2,936,485) 

(2,329,737)  
-    
(96,978)  
(19,321)  
(6,235,690)  

(1,992,148) 
(367,892) 
-   
(21,684) 
(7,691,857) 

  44,192,282   

(11,511,006) 

-    

-   

4 

4 

5 

Profit/(loss) after income tax expense for the year attributable to the owners of 
Jupiter Energy Limited 

44,192,282  

(11,511,006) 

Other comprehensive income 

Items that may be reclassified subsequently to profit or loss 
Foreign currency translation 

Other comprehensive income for the year, net of tax 

Total comprehensive income /(loss) for the year attributable to the owners of 
Jupiter Energy Limited 

1,042,317   

245,678  

1,042,317   

245,678  

45,234,599  

(11,265,328) 

Cents 

Cents 

Basic earnings / (loss) per share 
Diluted earnings / (loss) per share 

  31 
  31 

6.17  
6.17  

(7.51) 
(7.51) 

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the 
accompanying notes 
20 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Jupiter Energy Limited 
Consolidated statement of financial position 
As at 30 June 2023 

Assets 

Current assets 
Cash and cash equivalents 
Trade and other receivables 
Inventories 
Other current assets 
Total current assets 

Non-current assets 
Investments accounted for using the equity method 
Other financial assets 
Property, plant and equipment 
Exploration and evaluation assets 
Oil and gas properties 
Total non-current assets 

Total assets 

Liabilities 

Current liabilities 
Trade and other payables 
Contract liabilities 
Total current liabilities 

Non-current liabilities 
Provisions 
Other financial liabilities 
Total non-current liabilities 

Total liabilities 

Net liabilities 

Equity 
Issued capital 
Reserves 
Accumulated losses 

Total deficiency in equity 

  Note   

Consolidated 

2023 
$ 

2022 
$ 

6 

860,795   
551,283   
63,041   
100,259   
1,575,378   

1,330,334  
68,501  
29,920  
70,826  
1,499,581  

7 
8 
9 
  10 

-   
582   
253,124  
280,916   
337,336  
170,317   
1,389,210  
-    
  21,211,773    17,127,378  
  21,663,588    19,107,048  

  23,238,966    20,606,629  

  11 
  12 

2,467,221   
1,682,561   
4,149,782   

1,775,830  
3,847  
1,779,677  

  13 
  14 

207,200   

363,663  
  20,804,177    100,027,287  
  21,011,377    100,390,950  

  25,161,159    102,170,627  

(1,922,193)  

(81,563,998) 

  15 
  16 

  120,041,141    85,633,935  
(23,942,708)  
(24,985,025) 
(98,020,626)   (142,212,908) 

(1,922,193)  

(81,563,998) 

The above consolidated statement of financial position should be read in conjunction with the accompanying notes 
21 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
Jupiter Energy Limited 
Consolidated statement of changes in equity 
For the year ended 30 June 2023 

Consolidated 

Balance at 1 July 2021 

Issued 

capital 
$ 

 Accumulated  

Reserves 
$ 

losses 
$ 

Total 
deficiency in 
equity 
$ 

85,633,935 

(25,230,703)   (130,701,902)  

(70,298,670) 

Loss after income tax expense for the year 
Other comprehensive income for the year, net of tax 

Total comprehensive income /(loss) for the year 

-
-

-

- 
245,678

(11,511,006)  

(11,511,006) 

-

245,678

245,678  

(11,511,006)  

(11,265,328) 

Balance at 30 June 2022 

85,633,935 

(24,985,025)   (142,212,908)  

(81,563,998) 

Consolidated 

Balance at 1 July 2022 

Issued 

capital 
$ 

 Accumulated  

Reserves 
$ 

losses 
$ 

Total 
deficiency in 
equity 
$ 

85,633,935 

(24,985,025)   (142,212,908)  

(81,563,998) 

Profit after income tax expense for the year 
Other comprehensive income for the year, net of tax 

Total comprehensive income for the year 

- 
-

-

- 
1,042,317

44,192,282 
-

44,192,282 
1,042,317

1,042,317   44,192,282   45,234,599

Transactions with owners in their capacity as owners: 
Contributions of equity, net of transaction costs (note 15) 

34,407,206 

- 

- 

34,407,206 

Balance at 30 June 2023 

120,041,141 

(23,942,708)  

(98,020,626)  

(1,922,193) 

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes 
22 

 
 
 
Jupiter Energy Limited 
Consolidated statement of cash flows 
For the year ended 30 June 2023 

Cash flows from operating activities 
Receipts from customers  
Payments to suppliers and employees 
Interest received 
Other revenue 

  Note   

Consolidated 

2023 
$ 

2022 
$ 

7,352,713   
(5,833,273)  
83,953   
-    

3,938,073  
(4,130,330) 
68,578  
352,882  

Net cash from operating activities 

  29 

1,603,393   

229,203  

Cash flows from investing activities 
Payments for equity accounted investments 
Payments for property, plant and equipment 
Payments for exploration and evaluation assets 
Payments for oil and gas properties 

Net cash used in investing activities 

Cash flows from financing activities 
Proceeds from borrowings 
Share issue transaction costs 
Transactions costs related with debt restructure 

Net cash from/(used in) financing activities 

Net increase/(decrease) in cash and cash equivalents 
Cash and cash equivalents at the beginning of the financial year 
Effects of exchange rate changes on cash and cash equivalents 

Cash and cash equivalents at the end of the financial year 

(582)  
(15,893)  
-    
(1,992,538)  

-   
(7,685) 
(165,358) 
(112,349) 

(2,009,013)  

(285,392) 

-    
(39,911)  
(106,800)  

694,902  
-   
-   

(146,711)  

694,902  

(552,331)  
1,330,334   
82,792   

638,713  
690,949  
672  

860,795   

1,330,334  

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes 
23 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 1. Significant accounting policies 

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies 
have been consistently applied to all the years presented, unless otherwise stated. 

New or amended Accounting Standards and Interpretations adopted 
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the 
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. 

Going concern 
The consolidated financial statements have been prepared on a going concern basis with the Directors of the opinion that 
the consolidated entity can meet its obligations as and when they fall due. 

The consolidated financial statements have been prepared on the going concern basis, which contemplates continuity of 
normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. The 
consolidated entity had net cash inflows from operating activities of $1,603,393 during the year ended 30 June 2023 and as 
at 30 June 2023 had a net current liability and net liability position of $2,574,404 and $1,922,193 respectively. Net current 
liabilities, includes an amount of $1,390,056 in accrued director fees. Subsequent to the year-end, $559,404 of these fees 
have been settled through the issuance of share-based payment awards. The remaining balance of the accrued director fees 
has been deferred for future settlement. 

During the year the consolidated entity extended the repayment terms of its existing promissory note facilities to December 
2024. On 21 December 2022, the Company completed a major debt restructure which significantly improved the consolidated 
entity's net asset position, refer to note 14 for further details of the debt restructure. On 3 July 2023, a new $US5 million 
facility was agreed with major shareholder Waterford Finance & International Limited. As of the date of this report, no funds 
have been drawn down from this facility. The facility is provided interest-free, is unsecured, and any funds utilised must be 
repaid on or before 31 December 2024, unless mutually extended. 

For the consolidated entity to continue to carry out its intended activities and to have sufficient working capital to continue as 
a going concern the consolidated entity will be required to achieve the following:  
● 
● 

 Have access to the US$5 million facility referred to above; 
 Continue to produce oil from its three oilfields under the terms of either its Full Commercial Licence (Akkar North (East 
Block) and Akkar East) or its Preparatory Period Licence (West Zhetybai) on the basis that all three oilfields have the 
requisite 100% gas utilisation infrastructure in place and approved to operate; 
 Continue to sell its oil into either the Kazakh Domestic Market (state owned refineries and local mini refineries) and/or 
the international export market; and 
 Only carry out the drilling of new wells if it has the appropriate funding in place, whether that be via access to additional 
working capital and/or agreement to deferred payment terms with a turnkey drilling operator 

● 

● 

As at the date of this report, the directors are satisfied there is a reasonable basis to believe that the above matters can be 
achieved.  

Should  the  consolidated  entity  not  achieve  the  matters  set  out  above,  there  is  significant  uncertainty  as  to  whether  the 
consolidated entity 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 asset amounts 
nor to the amounts or classification of liabilities that might be necessary should the consolidated entity not be able to continue 
as a going concern.  

Basis of preparation 
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and 
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate 
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as 
issued by the International Accounting Standards Board ('IASB'). 

Historical cost convention 
The financial statements have been prepared under the historical cost convention. 

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Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 1. Significant accounting policies (continued) 

Critical accounting estimates 
The  preparation  of  the  financial  statements  requires  the  use  of  certain  critical  accounting  estimates.  It  also  requires 
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas 
involving  a  higher  degree  of  judgement  or  complexity,  or  areas  where  assumptions  and  estimates  are  significant  to  the 
financial statements, are disclosed in note 2. 

Parent entity information 
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. 
Supplementary information about the parent entity is disclosed in note 25. 

Principles of consolidation 
The  consolidated  financial  statements  incorporate  the  assets  and  liabilities  of  all  subsidiaries  of  Jupiter  Energy  Limited 
('company' or 'parent entity') as at 30 June 2023 and the results of all subsidiaries for the year then ended. Jupiter Energy 
Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'. 

Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity 
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the 
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from 
the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases. 

Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are 
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset 
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies 
adopted by the consolidated entity. 

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, 
without  the  loss  of  control,  is  accounted  for  as  an  equity  transaction,  where  the  difference  between  the  consideration 
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable 
to the parent. 

Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and 
non-controlling  interest  in  the  subsidiary  together  with  any  cumulative  translation  differences  recognised  in  equity.  The 
consolidated  entity  recognises  the  fair  value  of  the  consideration  received  and  the  fair  value  of  any  investment  retained 
together with any gain or loss in profit or loss. 

Operating 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. Currently the 
consolidated entity has only one operating segment, being the consolidate entity. 

Foreign currency translation 
The financial statements are presented in Australian dollars, which is Jupiter Energy Limited's functional and presentation 
currency. 

Functional and presentation currency 
Both the functional and presentation currency of Jupiter Energy Limited and each of its Australian subsidiaries are Australian 
dollars ($). The results and financial position of foreign subsidiaries whose functional currencies are not Australian dollars 
are translated to the presentation currency of the consolidated entity, being Australian dollars ($). 

25 

 
  
 
  
  
  
  
  
  
  
  
  
  
  
  
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 1. Significant accounting policies (continued) 

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. 

Translation of consolidated entity Companies’ functional currency to presentation currency 
The results of the foreign subsidiaries are translated into Australian Dollars (presentation currency of the consolidated entity) 
using weighted average rates. 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 assets in the foreign subsidiaries are taken to 
the foreign currency translation reserve. If a foreign subsidiary was disposed, the related cumulative amount of exchange 
differences would be reclassified to profit or loss. 

Revenue recognition 
The consolidated entity recognises revenue as follows: 

Sale of oil 
Revenue from the sale of oil is recognised at a point in time when the control of the product is transferred to the customer, 
this occurs at the well head for local sales to the mini refinery and at the time the oil enters the KTO pipeline for domestic 
sales.  Revenue is recognised at the amount to which the consolidated entity expects to be entitled. 

Interest 
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the 
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, 
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the 
net carrying amount of the financial asset. 

Other revenue and income  
Other revenue is recognised when it is received or when the right to receive payment is established. 

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.  No deferred income tax will be recognised in respect of taxable temporary differences associated with 
investments in subsidiaries, when the timing of the reversal of the temporary differences can be controlled by the company 
and it is probable that the temporary differences will not reverse in the foreseeable future. 

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 statement of profit or loss and other comprehensive income except where it relates to 
items that is credited directly to equity, in which case the deferred tax is adjusted directly against equity. 

Taxation receivables are considered statutory in nature and are measured at the tax rate when the transaction subject to tax 
occurred. 

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. 

26 

 
  
 
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 1. Significant accounting policies (continued) 

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. 

Current and non-current classification 
Assets and liabilities are presented in the statement of financial position based on current and non-current classification. 

An  asset  is  classified  as  current  when:  it  is  either  expected  to  be  realised  or  intended  to  be  sold  or  consumed  in  the 
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used 
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. 

A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; 
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no 
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities 
are classified as non-current. 

Deferred tax assets and liabilities are always classified as non-current. 

Cash and cash equivalents 
Cash and short-term deposits in the balance sheet comprise cash at bank. A deposit is defined as short-term, if it has a 
maturity of three months or less from the date of acquisition.  

For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined 
above, net of outstanding bank overdrafts. 

Trade and other receivables 
Trade receivables, which generally have 30-90 day terms, are recognised and carried at amortised cost amount less an 
allowance for expected credit losses. A receivable represents the consolidated entity's right to an amount of consideration 
that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). 

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 the estimated costs of completion and any estimated selling costs.   

Joint ventures 
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net 
assets of the arrangement. Investments in joint ventures are accounted for using the equity method. Under the equity method, 
the share of the profits or losses of the joint venture is recognised in profit or loss and the share of the movements in equity 
is recognised in other comprehensive income. Investments in joint ventures are carried in the statement of financial position 
at cost plus post-acquisition changes in the consolidated entity's share of net assets of the joint venture. Goodwill relating to 
the joint venture is included in the carrying amount of the investment and is neither amortised nor individually tested for 
impairment. Income earned from joint venture entities reduce the carrying amount of the investment. 

Financial assets and liabilities 
Financial assets are classified as measured at amortised cost, fair value through profit or loss, or fair value through other 
comprehensive income. The classification is based on two criteria: the consolidated entity’s business model for managing 
the assets; and whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on the 
principal amount outstanding. The assessment of whether contractual cash flows on debt instruments are solely comprised 
of principal and interest are made based on the facts and circumstances at initial recognition of the assets. 

Financial assets at amortised cost 
A financial asset is measured at amortised cost only if both of the following conditions are met: (i) it is held within a business 
model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial 
asset represent contractual cash flows that are solely payments of principal and interest. 

27 

 
  
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 1. Significant accounting policies (continued) 

Impairment  
Under AASB 9, impairments of financial assets classified as measured at amortised cost are recognised on an expected loss 
basis which incorporates forward-looking information when assessing credit risk. Movements in the expected loss reserve 
are recognised in profit or loss.  

For trade receivables, a simplified approach is used and for all other receivables, a general approach is used whereby the 
consolidated entity recognises lifetime expected credit losses when there has been a significant increase in credit risk since 
initial  recognition.  If  the  credit  risk  on  the  financial  instrument  has  not  increased  significantly  since  initial  recognition,  the 
consolidated entity measures the loss allowance for the financial instrument at an amount equal to expected credit losses 
within the next 12 months. Expected credit losses are a probability-weighted estimated of credit losses over the expected life 
of the financial instrument. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between 
the cash flows due to the entity in accordance with the contract and the cash flows that the consolidated entity expects to 
receive). Expected credit losses are discounted at the effective interest rate of the financial asset. 

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss (‘FVTPL’), loans 
and borrowings, or as derivatives, as appropriate. A financial liability is classified as at FVTPL if it is classified as held-for-
trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair 
value and net gains and losses, including any interest expense, are recognised in profit or loss.  

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings, net of directly attributable 
transaction costs.  After initial recognition, loans and borrowings are subsequently measured at amortised cost using the EIR 
method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the effective 
interest rate (“EIR") amortisation process. Amortised cost is calculated by taking into account any discount or premium on 
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the 
statement of profit or loss.   

The consolidated entity’s financial liabilities include trade and other payables and loans and borrowings. The consolidated 
entity did not recognise any financial liabilities as at FVTPL. 

Borrowings are classified as current liabilities unless the consolidated entity has an unconditional right to defer settlement of 
the liability for at least 12 months after the reporting period.  

Property, 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 to write off the net cost of each item of property, plant and equipment 
(excluding land) over their expected useful lives as follows: 

Plant and equipment 

 3-10 years 

The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial 
year end. 

An item of plant and equipment is derecognised upon disposal or when no further future economic benefits are expected to 
be derived from its use or disposal on a prospective basis.  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 profit or loss in 
the year the asset is derecognised. 

28 

 
  
 
  
  
  
  
  
  
  
  
  
  
  
  
 
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 1. Significant accounting policies (continued) 

Exploration and evaluation assets 
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. 

Unsuccessful exploration in the area of interest is 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 to profit or loss in the year in which the decision to 
abandon the area is made. 

When a discovered oil or gas field enters the development phase or an individual well is assessed as being in production 
(once a trial production licence is granted) the accumulated exploration and evaluation expenditure is transferred to oil and 
gas properties or property plant and equipment, depending on its nature.  Field costs that do not specifically relate to a well, 
are transferred to oil and gas properties once the well enters commercial production. 

Oil and gas properties  
Oil and gas properties usually comprise 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 accounted for as tangible assets and 
include past exploration and evaluation costs, development drilling and plant and equipment and any associated land and 
buildings.  

Producing assets 
The costs of oil and gas assets in production are 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 total 
proved and probable reserves on a unit of production basis. 
Impairment of assets 
At each reporting date, the consolidated entity reviews the carrying values of its tangible and intangible assets (excluding 
goodwill) 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 of disposal 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 profit 
or loss. 

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 consolidated entity prior to the end of the financial year that 
are unpaid and arise when the consolidated entity becomes obliged to make future payments in respect of the purchase of 
these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition. 

Contract liabilities 
A contract liability is the obligation to transfer goods or services to a customer for which the consolidated entity has received 
consideration  (or  an  amount  of  consideration  is  due)  from  the  customer.  If  a  customer  pays  consideration  before  the 
consolidated entity transfers goods or services to the customer, a contract liability is recognised when the payment is made 
or  the  payment  is  due  (whichever  is  earlier).  Contract  liabilities  are  recognised  as  revenue  when  the  consolidated  entity 
performs under the contract. The consolidated entity applies a practical expedient available under AASB 15 by which the 
consolidated entity does not adjust the promised amount of consideration for the effects of a significant financing component 
because the consolidated entity expects, at contract inception, that the period between when the consolidated entity transfers 
the goods or services to a customer and when the customer pays for those goods or services will be one year or less. 

Finance costs 
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in 
the period in which they are incurred. 

29 

 
  
 
  
  
  
  
  
  
  
  
  
  
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 1. Significant accounting policies (continued) 

Provisions 
Provisions are recognised when the consolidated entity has a present obligation (legal or constructive) as a result of a past 
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a 
reliable estimate can be made of the amount of the obligation.  

Where the consolidated entity  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 profit and loss 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.  

Restoration 
Costs of site restoration are provided over the life of the field or 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 based on current legal requirements and technology. In calculating the provision the future estimated costs are 
discounted to present value.   

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. 

Employee benefits 

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to 
be settled wholly 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 nominal amounts based on current wage and salary rates, and include related 
on-costs. Liabilities for non-accumulating sick leave are recognised when the leave is taken. 

Fair value measurement 
Assets  and  liabilities  measured  at  fair  value  are  classified  into  three  levels,  using  a  fair  value  hierarchy  that  reflects  the 
significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers 
between  levels  are  determined  based  on  a  reassessment  of  the  lowest  level  of  input  that  is  significant  to  the  fair  value 
measurement. 

For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not 
available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and 
reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is 
undertaken,  which  includes  a  verification  of  the  major  inputs  applied  in  the  latest  valuation  and  a  comparison,  where 
applicable, with external sources of data. 

Issued capital 
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. 

Earnings/loss per share 

Basic loss/earnings per share 
Basic earnings/loss per share is calculated as net profit/loss attributable to members of the parent, adjusted to exclude any 
preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element. 

Diluted loss/earnings per share 
Diluted earnings/loss per share is calculated as net profit attributable to members of the parent, adjusted for: 

30 

 
  
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 1. Significant accounting policies (continued) 

● 

● 

 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 income 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. 

Other taxes 
Revenues, expenses and assets are recognised net of the amount of GST or VAT except: 

● 

● 

 where the GST or VAT incurred on a purchase of goods and services is not recoverable from the taxation authority, in 
which case the GST or VAT is recognised as part of the cost of acquisition of the asset or as part of the expense item 
as applicable; and 
 receivables and payables are stated with the amount of GST or VAT included. 

The net amount of GST or VAT recoverable from, or payable to, the taxation authority is included as part of receivables or 
payables in the balance sheet. 

Cash flows are included in the Cash Flow Statement on a gross basis and the GST or VAT 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 or VAT recoverable from, or payable to, the taxation 
authority. 

New Accounting Standards and Interpretations not yet mandatory or early adopted 
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, 
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2023. The consolidated 
entity has reviewed the changes and believes that they will not have a material impact. 

Note 2. Critical accounting judgements, estimates and assumptions 

The  preparation  of  the  financial  statements  requires  management  to  make  judgements,  estimates  and  assumptions  that 
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in 
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and 
assumptions on historical experience and on other various factors, including expectations of future events, management 
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal 
the  related  actual  results.  The  judgements,  estimates  and  assumptions  that  have  a  significant  risk  of  causing  a  material 
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are 
discussed below. 

Production start date  
The consolidated entity 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 consolidated entity 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 is 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 deducted from the asset. 

Recovery of deferred tax assets 
Judgement  is  required  in  determining  whether  deferred  tax  assets  are  recognised  in  the  statement  of  financial  position. 
Deferred tax assets, including those arising from unutilised tax losses, require the consolidated entity to assess the likelihood 
that the consolidated entity will generate sufficient taxable earnings in future periods, in order to utilise recognised deferred 
tax assets. Judgment is also required in respect of the application of existing tax laws in each jurisdiction. 

31 

 
  
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 2. Critical accounting judgements, estimates and assumptions (continued) 

Assumptions about the generation of future taxable profits depend on management’s estimates of future cash flows. These 
estimates of future taxable income are based on forecast cash flows from operations (which are impacted by production and 
sales volumes oil prices, reserves, operating costs, closure and rehabilitation costs, capital expenditure, and other capital 
management transactions). To the extent that future cash flows and taxable income differ significantly from estimates, the 
ability of the consolidated entity to realise the deferred tax assets recorded at the reporting date could be impacted. 

In addition, future changes in tax laws in the jurisdictions in which the consolidated entity operates could limit the ability of 
the consolidated entity to obtain tax deductions in future periods. 

Exploration and evaluation assets  
The consolidated entity's accounting policy for exploration and evaluation assets is set out in note 1. The application of this 
policy necessarily requires management to make certain judgements, 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 
consolidated entity’s policy, management concludes that the consolidated entity is unlikely to recover the expenditure by 
future exploitation or sale, then the relevant capitalised amount will be written off to the profit and loss.  Management have 
reviewed  the  carrying  value  of  exploration  and  evaluation  assets  at  30  June  2023,  and  concluded  that  there  were  no 
indicators of impairment. 

Management reviewed the carrying value of exploration and evaluation assets at 30 June 2022. No further exploration and 
evaluation expenditure was budgeted for the J55 and J 59 wells, which represented an indicator of impairment. The carrying 
value of both assets was reviewed and written-off in full in the prior year, as the value in use was assessed to be nil with no 
future cash flows are currently expected to be recovered from further exploration and development. 

Provision for restoration 
Costs of site restoration are provided over the life of the field and related facilities 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. 

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 
hydrocarbon  reserves.  This  results  in  a  depreciation/amortisation  charge  proportional  to  the  depletion  of  the  anticipated 
remaining production from the field/well. 

Each item’s 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 
and probable reserves. Changes to proved and probable reserves could arise due to changes in the factors or assumptions 
used in estimating reserves, including: 

● 

● 

 The  effect  on  proved  and  probable  reserves  of  differences  between  actual  commodity  prices  and  commodity  price 
assumptions; or 
 Unforeseen operational issues. 

Changes are accounted for prospectively. 

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Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 2. Critical accounting judgements, estimates and assumptions (continued) 

Recoverability of oil and gas properties 
The consolidated entity 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 of disposal 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. Management 
has assessed Block 31 as being an individual CGU, which is the lowest level for which cash inflows are largely independent. 

In measuring the recoverable amount, future cashflows are sensitive to changes in the following key assumptions; 

● 
● 
● 
● 
● 

 Forecast commodity prices and exchange rates; 
 Production volumes, reserves and timing of export sales; 
 Recoverable reserves; 
 Cost assumptions; and 
 Discount rate 

Management have reviewed the carrying value of oil and gas properties at 30 June 2023 and are satisfied that there are no 
indicators of impairment. 

Debt restruture 
On 9 December 2022, the company entered into a debt restructure.  The fair value of the new debt was measured using a 
market rate of debt of 13%, refer to note 14 for further details. 

Note 3. Operating segments 

Identification of reportable operating segments 
Operating segments are identified based on the information provided to the chief operating decision makers. 

The consolidated entity has identified that it has one operating segment being related to the activities in Kazakhstan, on the 
basis that the operations in Australia relate to running the Corporate Head Office only. 

All oil sales are with one oil trader in Kazakhstan.  

Geographical information 

Sales to external customers 

Geographical non-current 
assets 

2023 
$ 

2022 
$ 

2023 
$ 

2022 
$ 

Kazakhstan 

5,588,957  

4,126,946   21,663,588   19,107,048 

All significant property, plant and equipment, oil and gas properties and exploration and evaluation assets are domiciled in 
Kazakhstan. 

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Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 4. Expenses 

Profit/(loss) before income tax includes the following specific expenses: 

Depreciation and amortisation 
Depreciation and amortisation (charged to cost of sales) 
Depreciation and amortisation (charged to general and administration expense) 

Total depreciation and amortisation 

Impairment 
Exploration and evaluation assets 
Trade receivables 

Total impairment 

Employee benefits included in are summarised below 
Expensed in cost of sales 
Expensed in general and administration 

Finance costs 
Interest and finance charges paid/payable on promissory note (prior to restructure) 
Unwinding of discount on promissory notes (post restructure) 
Unwinding of the discount on provisions 

Finance costs expensed 

Foreign exchange gains and (losses) 
Unrealised gains and losses on promissory notes 
Other foreign exchange differences 

Foreign exchange gains and (losses) 

Note 5. Income tax expense 

Numerical reconciliation of income tax expense and tax at the statutory rate 
Profit/(loss) before income tax expense 

Tax at the statutory tax rate of 25% 

Tax effect amounts which are not deductible/(taxable) in calculating taxable income: 

Effect of tax rates in foreign jurisdictions 
Interest expense 
Temporary differences and tax losses not brought to account as a deferred tax asset 
Gain on remeasurement of promissory notes 
Gain on debt restructure 
Unwinding of discount 

Income tax expense 

34 

Consolidated 

2023 
$ 

2022 
$ 

436,646   
8,438   

476,899  
9,137  

445,084   

486,036  

-    
96,978   

367,892  
-   

96,978   

367,892  

723,946   
422,017   

687,127  
49,917  

1,145,963   

737,044  

4,852,769   
1,350,942   
31,979   

7,684,021  
-   
7,836  

6,235,690   

7,691,857  

(1,853,532)  
(11,550)  

(8,264,740) 
(81,677) 

(1,865,082)  

(8,346,417) 

Consolidated 

2023 
$ 

2022 
$ 

  44,192,282   

(11,511,006) 

  11,048,071   

(2,877,752) 

53,984   
1,213,192   
528,627   
-    
(13,181,609)  
337,735   

41,368  
1,921,004  
2,162,498  
(1,247,118) 
-   
-   

-    

-   

 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
 
 
  
 
 
 
 
 
  
 
 
 
 
  
 
 
  
 
 
 
 
 
  
 
 
 
 
  
 
 
  
 
 
 
 
 
  
 
 
 
 
 
  
 
 
  
 
 
 
 
 
 
  
 
 
 
 
  
 
 
  
 
 
 
 
 
  
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 5. Income tax expense (continued) 

Deferred tax assets not recognised 
Deferred tax assets not recognised comprises temporary differences attributable to: 

Unrealised FX (gain) / loss 
Tax losses – Australia 
Tax losses – Foreign Subsidiaries 
Provisions 

Consolidated 

2023 
$ 

2022 
$ 

2,229,665   
9,153,748   
5,849,024   
41,440   

1,776,282  
8,967,822  
5,677,155  
72,733  

Total deferred tax assets not recognised 

  17,273,877    16,493,992  

The above potential tax benefit, which excludes tax losses, for deductible temporary differences has not been recognised in 
the statement of financial position as the recovery of this benefit is uncertain. 

Note 6. Trade and other receivables 

Current assets 
Trade receivables 
Less: Allowance for expected credit losses 

Other indirect taxes receivable 

Consolidated 

2023 
$ 

2022 
$ 

224,873   
(100,399)  
124,474   

10,489  
-   
10,489  

426,809   

58,012  

551,283   

68,501  

Allowance for expected credit losses 
The ageing of the receivables and allowance for expected credit losses provided for above are as follows: 

Consolidated 

Expected credit loss rate 

2023 
% 

2022 
% 

Carrying amount 
2022 
$ 

2023 
$ 

Allowance for expected 
credit losses 

2023 
$ 

2022 
$ 

0 to 3 months overdue 

50%   

- 

200,798  

-  

100,399  

- 

For trade receivables, a simplified approach is used and for all other receivables, a general approach is used whereby the 
consolidated entity recognises lifetime expected credit losses when there has been a significant increase in credit risk since 
initial recognition. 

Note 7. Other financial assets 

Non-current assets 
Liquidation fund 

Consolidated 

2023 
$ 

2022 
$ 

280,916   

253,124  

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Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 7. Other financial assets (continued) 

The consolidated entity has a deposit for the purpose of a liquidation fund. The deposit is to be used for land restoration 
when required. Under the laws of Kazakhstan, the deposit previously had to be replenished in the amount of 1% of the annual 
investments.  The amount required in the fund is now calculated on the basis of the field development project in proportion 
to the actual hydrocarbon production.  The carrying value approximates the fair value. 

Note 8. Property, plant and equipment 

Non-current assets 
Plant and equipment - at cost 
Less: Accumulated depreciation 

Consolidated 

2023 
$ 

2022 
$ 

2,445,884   
(2,275,567)  

2,038,160  
(1,700,824) 

170,317   

337,336  

Reconciliations 
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out 
below: 

Plant & 

  equipment 

$ 

541,261 
7,685 
5,412 
(217,022) 

337,336 
15,893 
34,538 
(217,450) 

170,317 

Consolidated 

2023 
$ 

2022 
$ 

-    

1,389,210  

Consolidated 

Balance at 1 July 2021 
Additions 
Exchange differences 
Depreciation expense 

Balance at 30 June 2022 
Additions 
Exchange differences 
Depreciation expense 

Balance at 30 June 2023 

Note 9. Exploration and evaluation assets 

Non-current assets 
Exploration and evaluation - at cost 

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Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 9. Exploration and evaluation assets (continued) 

Reconciliations 
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out 
below: 

Consolidated 

Balance at 1 July 2021 
Additions 
Exchange differences 
Impairment of assets 

Balance at 30 June 2022 
Change in estimate 
Exchange differences 
Transfers to oil and gas properties (note 10) 

Balance at 30 June 2023 

  Exploration & 
  evaluation 

$ 

1,558,934 
165,358 
32,810 
(367,892) 

1,389,210 
72,708 
89,365 
(1,551,283) 

- 

The consolidated entity assesses each asset or cash generating unit (CGU) 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  of  disposal  and  value  in  use.  Management  has 
assessed Block 31 as being an individual CGU, which is the lowest level for which cash inflows are largely independent. 

Impairment 
Management reviewed the carrying value of exploration and evaluation assets at 30 June 2022. No further expenditure has 
presently been budgeted for the J55 and J 59 wells, which represents an indicator of impairment. The carrying value of both 
assets was reviewed and written-off in full in the prior year as the value in use was assessed to be nil with no future cash 
flows are currently expected to be recovered from further exploration and development.   
Note 10. Oil and gas properties 

Non-current assets 
Oil and gas properties - at cost 
Less: Accumulated amortisation 

Consolidated 

2023 
$ 

2022 
$ 

  23,686,876    19,240,591  
(2,113,213) 

(2,475,103)  

  21,211,773    17,127,378  

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Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 10. Oil and gas properties (continued) 

Reconciliations 
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out 
below: 

Consolidated 

Balance at 1 July 2021 
Additions 
Change in estimate of restoration liability 
Exchange differences 
Amortisation expense 

Balance at 30 June 2022 
Additions 
Change in estimate of restoration liability 
Exchange differences 
Transfers from exploration and evaluation (note 9) 
Amortisation expense 

Balance at 30 June 2023 

Note 11. Trade and other payables 

Current liabilities 
Trade payables 
Accrued expenses and other payables 

Refer to note 18 for further information on financial instruments. 

Note 12. Contract liabilities 

Current liabilities 
Contract liabilities 

  Oil and gas 
  properties  
$ 

  16,757,259 
113,080 
(731) 
406,037 
(148,267) 

  17,127,378 
1,837,808 
(123,035) 
1,045,973 
1,551,283 
(227,634) 

  21,211,773 

Consolidated 

2023 
$ 

2022 
$ 

1,211,319   
1,255,902   

1,060,937  
714,893  

2,467,221   

1,775,830  

Consolidated 

2023 
$ 

2022 
$ 

1,682,561   

3,847  

Unsatisfied performance obligations 
The contract liability refers to amounts received in advance for oil sales. As at 30 June 2023, there is approximately 5,411 
tonnes of oil to be delivered under the contract (2022: 12 tonnes). This obligation is expected to be fulfilled within the quarter 
ending 30 September 2023 (2022 :30 September 2022). 

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Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 13. Provisions

Non-current liabilities
Rehabilitation 

Consolidated

2023 
$ 

2022
$

207,200   

363,663

Rehabilitation
The  consolidated  entity  accrues  provisions  for  the  forthcoming  costs  of  rehabilitation  of  the  territory. The  timing  of 
rehabilitation is likely to depend on when the field ceases to produce at economically viable rates which is currently estimated 
to be 2044 (2022: 2044). This will depend upon future oil and gas prices, which are inherently uncertain. The underlying 
rehabilitation costs are denominated in Tenge and in calculating the provision at 30 June 2023 a discount rate of 8.57% 
(2022: 5.05%)

Movements in provisions
Movements in each class of provision during the current financial year, other than employee benefits, are set out below:

Consolidated - 2023 

Carrying amount at the start of the year 
Change in estimates 
Exchange differences 
Accretion expense 

Carrying amount at the end of the year 

Note 14. Other financial liabilities

Non-current liabilities
Promissory notes 

  Rehabilitation

$

363,663
(205,058)
16,616
31,979

207,200

Consolidated

2023 
$ 

2022
$

  20,804,177    100,027,287

On 9 December 2022, the company entered into a debt restructure. A total of 1,076,472,428 fully paid ordinary shares valued 
at $34,447,117 were issued to note holders. The fair value of the shares were based on the market value of the company’s 
shares at the date of the shareholder approval. The new shares are subject to voluntary trading escrow with 25% under 
escrow for 6 months from the date of issue, 50% under escrow for 12 months from the date of issue and 25% under escrow 
for 18 months from the date of issue. The conditions of voluntary escrow may be amended, at the absolute discretion of the 
Jupiter Board of Directors.

In addition to the shares issued, a new unsecured interest free promissory note with a fair value of AU$18,963,074 was 
recognised that is due and payable on 31 December 2024. The fair value of the new debt was measured using a market rate 
of debt of 13%. Should management fail to pay the new debt, a penalty interest of 15% per annum will be charged against 
the company.  The debt is subsequently measured at amortised cost.

A gain on debt restructure of $52,726,436 (net of $106,800 of transaction costs) has been recognised for the difference 
between the carrying amount of the old promissory note and the consideration, which consists of the fair value of shares 
issued and new interest-free promissory note.

Reconciliation of the carrying values at the beginning and end of the current and previous financial year is set out below:

39 

 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 14. Other financial liabilities (continued) 

Opening balance at 1 July 2022 
Interest accrued 
Foreign exchange differences up to date of restructure 

Extinguishment of the old debt arising from the debt restructure 
Recognition of new financial liability 
Unwinding of discount 
Foreign exchange differences since date of restructure 

Note 15. Issued capital 

  100,027,287 
4,852,769 
1,363,371 
  106,243,427 

  (106,243,427) 
  18,963,074 
1,350,942 
490,161 

  20,804,177 

Consolidated 

2023 
Shares 

2022 
Shares 

2023 
$ 

2022 
$ 

Ordinary shares - fully paid 

  1,229,850,121  

153,377,693   120,041,141    85,633,935  

Movements in ordinary share capital 

Details 

 Date 

Shares 

$ 

Balance 
Issue of shares from debt restructure  
Less cost of capital raised  

 1 July 2022 
 21 December 2022 

153,377,693   85,633,935 
  1,076,472,428   34,447,117 
(39,911) 
-  

Balance 

 30 June 2023 

  1,229,850,121   120,041,141 

Ordinary shares 
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion 
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company 
does not have a limited amount of authorised capital. 

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each 
share shall have one vote. 

Share buy-back 
There is no current on-market share buy-back. 

Capital risk management 
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that 
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to 
reduce the cost of capital. 

Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated 
as total borrowings less cash and cash equivalents. 

In  order  to  maintain  or  adjust  the  capital  structure,  the  consolidated  entity  may  adjust  the  amount  of  dividends  paid  to 
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. 

The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as 
value adding relative to the current company's share price at the time of the investment. The consolidated entity is not actively 
pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to 
maximise synergies. 

40 

 
  
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
  
 
 
 
 
 
  
 
 
  
 
  
 
  
  
  
  
  
  
  
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 15. Issued capital (continued) 

The  consolidated  entity  is  not  subject  to  externally  imposed  capital  requirements.    The  capital  risk  management  policy 
remains unchanged from the 30 June 2022 Annual Report 

Note 16. Reserves 

Foreign currency reserve 
Share-based payments reserve 

Consolidated 

2023 
$ 

2022 
$ 

(29,706,722)  
5,764,014   

(30,749,039) 
5,764,014  

(23,942,708)  

(24,985,025) 

Foreign currency reserve 
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign 
operations to Australian dollars. 

Share-based payments reserve 
The  reserve  is  used  to  recognise  the  value  of  equity  benefits  provided  to  employees  and  directors  as  part  of  their 
remuneration, and other parties as part of their compensation for services. 

Movements in reserves 
Movements in each class of reserve during the current and previous financial year are set out below: 

Consolidated 

Balance at 1 July 2021 
Foreign currency translation 

Balance at 30 June 2022 
Foreign currency translation 

Balance at 30 June 2023 

Note 17. Dividends 

Foreign 
currency 
$ 

  Share-based  
  payments 

$ 

Total 
$ 

(30,994,717)  
245,678  

5,764,014  
-  

(25,230,703) 
245,678 

(30,749,039)  
1,042,317  

5,764,014  
-  

(24,985,025) 
1,042,317 

(29,706,722)  

5,764,014  

(23,942,708) 

There were no dividends paid, recommended or declared during the current or previous financial year. 

Note 18. Financial instruments 

Financial risk management objectives 
The  main  purpose  of  these  financial  instruments  is  to  provide  finance  for  the  consolidated  entity’s  operations. The 
consolidated entity 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 consolidated entity’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. 

41 

 
  
 
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
  
  
 
 
  
  
  
  
  
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 18. Financial instruments (continued) 

Market risk 

Foreign currency risk 
The consolidated entity 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 consolidated entity had the following exposure to United States Dollars that is not designated in cash 
flow hedges: 

The carrying amount of the consolidated entity's foreign currency denominated financial assets and financial liabilities at the 
reporting date were as follows: 

Consolidated 

US dollars 

Assets 

Liabilities 

2023 
$ 

2022 
$ 

2023 
$ 

2022 
$ 

1,128,571  

542,688   20,804,177   100,027,287 

The following tables summarise the sensitivity of financial instruments held at balance date to movement in the exchange 
rate of the Australian dollar to the United States Dollar, with all other variables held constant.  

Consolidated - 2023 

% change 

profit before 
tax 

Effect on 
equity 

% change 

profit before 
tax 

Effect on 
equity 

AUD strengthened 

  Effect on 

AUD weakened 
  Effect on 

US Dollars 

10%   

(1,967,560)  

(1,967,560)  

10%   

1,967,560  

1,967,560 

Consolidated - 2022 

% change 

profit before 
tax 

Effect on 
equity 

% change 

profit before 
tax 

Effect on 
equity 

AUD strengthened 

  Effect on 

AUD weakened 
  Effect on 

US Dollars 

10%   

(9,948,459)  

(9,948,459)  

10%   

9,948,459  

9,948,459 

Price risk 
The consolidated entity is not exposed to any significant price risk. 

Interest rate risk 
The consolidated entity’s exposure to market risk for changes in interest rates is only on cash and cash equivalents, which 
given the current level of cash and cash equivalents does not present a material risk.  Other financial liabilities in the form of 
Promissory notes are interest free and are therefore not subject to interest rate risk.  

Credit risk 
Credit risk represents the loss that would be recognised if counterparties fail to perform as contracted. 

With  respect  to  credit  risk  arising  from  the  financial  assets  of  the  consolidated  entity,  which  comprise  cash  and  cash 
equivalents, a liquidation fund and trade receivables, the consolidated entity’s exposure to credit risk arises from default of 
the counter party, with a maximum exposure equal to the carrying amount of these instruments. 

The consolidated entity continuously monitors the credit quality of counterparties. Where available, external credit ratings 
and/or reports on the counterparty are obtained and used. The consolidated entity’s policy is to deal only with credit worthy 
counterparties. Credit terms are subject to an internal approval process which considers the credit rating of the customer. 
The ongoing credit risk is managed through regular review of ageing analysis. 

42 

 
  
 
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 18. Financial instruments (continued) 

Liquidity risk 
Management and the Board monitor the consolidated entity’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. 

Remaining contractual maturities 
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The 
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which 
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining 
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position. 

Consolidated - 2023 

Non-derivatives 
Non-interest bearing 
Trade payables 
Promissory note 

Interest-bearing - fixed rate 
Promissory notes 
Total non-derivatives 

Consolidated - 2022 

Non-derivatives 
Non-interest bearing 
Trade payables 

Interest-bearing - fixed rate 
Promissory notes 
Total non-derivatives 

  Weighted 
average 
interest rate 
% 

1 year or less 
$ 

Between 1 
and 2 years 
$ 

Between 2 
and 5 years 
$ 

Over 5 years 
$ 

  Remaining 
contractual 
maturities 
$ 

- 
- 

- 

2,467,221  

-  
-   24,977,375  

-  
2,467,221   24,977,375  

-  

-  
-  

-  
-  

-  
2,467,221 
-   24,977,375 

-  
- 
-   27,444,596 

  Weighted 
average 
interest rate 
% 

1 year or less 
$ 

Between 1 
and 2 years 
$ 

Between 2 
and 5 years 
$ 

Over 5 years 
$ 

  Remaining 
contractual 
maturities 
$ 

- 

1,775,830  

-  

15.00%   

-   123,027,248  
1,775,830   123,027,248  

-  

-  
-  

-  

1,775,830 

-   123,027,248 
-   124,803,078 

The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed 
above. 

The Company announced on 03 July 2023 that it had agreed a new $US5m facility with major shareholder Waterford Finance 
& International Limited. This facility is provided interest free, is unsecured and any funds drawn on the facility will be repayable 
on or before 31 December 2024, unless this date is extended by mutual agreement. No monies have been drawn down from 
this facility as at the date of this report. 

43 

 
  
 
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
 
 
 
 
  
  
  
  
 
 
 
 
 
 
 
 
 
  
  
  
  
 
 
 
 
  
  
  
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
 
 
 
 
  
  
  
  
 
 
 
 
 
 
 
  
  
  
  
 
 
 
 
  
  
  
  
 
 
 
 
 
  
  
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 19. Fair value measurement 

Fair value hierarchy 
The following tables detail the consolidated entity's assets and liabilities, measured or disclosed at fair value, using a three 
level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: 
Level  1:  Quoted  prices  (unadjusted)  in  active  markets  for  identical  assets  or  liabilities  that  the  entity  can  access  at  the 
measurement date 
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or 
indirectly 
Level 3: Unobservable inputs for the asset or liability 

Consolidated - 2023 

Liabilities 
Promissory notes 
Total liabilities 

There were no transfers between levels during the financial year. 

Note 20. Key management personnel disclosures 

Level 1 
$ 

Level 2 
$ 

Level 3 
$ 

Total 
$ 

-   20,804,177  
-   20,804,177  

-   20,804,177 
-   20,804,177 

Compensation 
The aggregate compensation made to directors and other members of key management personnel of the consolidated entity 
is set out below: 

Short-term employee benefits 

Note 21. Remuneration of auditors 

Consolidated 

2023 
$ 

2022 
$ 

778,486   

738,921  

During the financial year the following fees were paid or payable for services provided by Ernst & Young, the auditor of the 
company, and its network firms: 

Audit services - Ernst & Young Australia 
Audit or review of the financial statements 

Audit services - overseas member firms 
Audit or review of the financial statements 

Note 22. Contingent liabilities 

The consolidated entity had no contingent liabilities as at 30 June 2023 and 30 June 2022. 

Consolidated 

2023 
$ 

2022 
$ 

126,990   

103,190  

49,399   

42,830  

44 

 
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
 
 
  
 
 
  
  
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 23. Commitments 

Drilling commitments 
Committed at the reporting date but not recognised as liabilities, payable: 
Within one year 

Drilling Commitments 

Consolidated 

2023 
$ 

2022 
$ 

5,742,081   

3,181,286  

As  at  30  June  2023,  the  consolidated  entity  has  commitments  to  drill  3  wells  under  one  sidetrack  under  it  licenses  in 
Kazakstan during the calendar year 2023. The estimated costs of meeting those commitments to be met by the end of the 
calendar year is disclosed above. In the event these commitments are not met by the end of the calendar year, penalties are 
expected to be applied and charged against the consolidated entity. 

Note 24. Related party transactions 

Parent entity 
Jupiter Energy Limited is the parent entity. 

Subsidiaries 
Interests in subsidiaries are set out in note 26. 

Joint ventures 
Interests in joint ventures are set out in note 27. 

Key management personnel 
Disclosures relating to key management personnel are set out in note 20. 

Transactions with related parties 
There were no transactions with related parties during the current and previous financial year. 

Receivable from and payable to related parties 
The following balances are outstanding at the reporting date in relation to transactions with related parties: 

Current payables: 
Total directors fees payable*  

Consolidated 

2023 
$ 

2022 
$ 

1,390,056   

1,148,897  

* 

 Of these fees a total $1,330,902 (2022:$1,082,616) has been deferred until such time that at least US$10,000,000 in 
new equity is raised or alternatively the consolidated entity sells the Block 31 licence and receives the funds associated 
with that sale. The deferred director fees will be paid in cash.  On 18 September 2023, the company issued remuneration 
share rights extinguishing $559,404 of this deferred amount. 

45 

 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 24. Related party transactions (continued) 

Loans to/from related parties 
The following transactions and balances are outstanding at the reporting date in relation to loans with related parties: 

Consolidated 

2023 
$ 

2022 
$ 

Non-current borrowings: 
Promissory note with Waterford Finance and Investment Ltd (an entity that significant 
influence over the company) 
Promissory note with the Blackbird Trust (an entity that significant influence over the 
company) 

14,733,370  

4,675,731  

-   

-   

Terms and conditions 
All transactions were made on normal commercial terms and conditions and at market rates. 

Note 25. Parent entity information 

Set out below is the supplementary information about the parent entity. 

Statement of profit or loss and other comprehensive income 

Profit/(loss) after income tax 

Total comprehensive income /(loss) 

Statement of financial position 

Total current assets 

Total assets 

Total current liabilities 

Total liabilities 

Equity 

Issued capital 
Share-based payments reserve 
Accumulated losses 

Total deficiency in equity 

Parent 

2023 
$ 

2022 
$ 

  43,254,131   

(12,281,551) 

  43,254,131   

(12,281,551) 

Parent 

2023 
$ 

2022 
$ 

112,042   

93,338  

  17,470,437    18,740,152  

1,585,154   

1,293,096  

  22,389,331    101,320,383  

  120,041,141    85,633,935  
5,764,014  
  (130,724,049)   (173,978,180) 

5,764,014   

(4,918,894)  

(82,580,231) 

Guarantees entered into by the parent entity in relation to the debts of its subsidiaries 
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2023 and 30 June 2022. 

Contingent liabilities 
The parent entity had no contingent liabilities as at 30 June 2023 and 30 June 2022. 

46 

 
  
 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
  
 
 
 
  
 
 
  
 
 
 
 
  
 
 
  
  
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 25. Parent entity information (continued) 

Commitments  
The parent entity had no commitments as at 30 June 2023 and 30 June 2022. 

Significant accounting policies 
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1, except 
for the following: 
● 

 Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity. 

Note 26. Interests in subsidiaries 

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance 
with the accounting policy described in note 1: 

Name 

Jupiter Energy (Victoria) Pty Ltd 
Jupiter Biofuels Pty Ltd 
Jupiter Energy (Kazakhstan) Pty Ltd 
Jupiter Energy Pte Ltd 
Jupiter Energy (Services) Pte Ltd 

Note 27. Interests in joint ventures 

 Principal place of business / 
 Country of incorporation 

 Australia 
 Australia 
 Australia 
 Singapore 
 Singapore 

Ownership interest 
2022 
2023 
% 
% 

100.00%   
100.00%   
100.00%   
100.00%   
100.00%   

100.00%  
100.00%  
100.00%  
100.00%  
100.00%  

Interests in joint ventures are accounted for using the equity method of accounting. Information relating to joint ventures that 
are material to the consolidated entity are set out below: 

Name 

 Principal place of business / 
 Country of incorporation 

Ownership interest 
2022 
2023 
% 
% 

Jupiter Refining Limited Liability Partnership 

 Kazakhstan 

50.00%   

- 

Note 28. Events after the reporting period 

The Company announced on 03 July 2023 that it had agreed a new $US5m facility with major shareholder Waterford Finance 
& International Limited. This facility is provided interest fee, is unsecured and any funds drawn on the facility will be repayable 
on or before 31 December 2024, unless this date is extended by mutual agreement. No monies have been drawn down from 
this facility as at the date of this report. 

On 05 July 2023 Mark Ewing retired from the Board and Keith Martens was appointed as a Non-Executive Director.  

At the Company’s General Meeting held 29 June 2023, shareholders approved the adoption of a Securities for Fees Plan 
and associated issuance of securities to certain directors of the Company as consideration for accrued director and consulting 
fees for the period up to 30 June 2023 and such fees that would otherwise then accrue for the period 1 January 2023 through 
to 31 December 2024. This shareholder approval has resulted in a further improvement in the balance sheet and future cash 
expenditure of the Company. 

Following the finalisation of required documentation, on 18 September 2023 the company issued 18,646,800 remuneration 
share rights to certain directors as consideration for accrued fees totalling $559,404 for the period up to 30 June 2023. On 
18 September 2023, the company issued 27,980,134 fully paid ordinary shares to Jupiter Employee Securities Pty Ltd in 
relation to these accrued fees and associated share remuneration rights for the period out to 31 December 2024. These 
shares are held in trust by that entity until all vesting conditions relating to the remuneration share rights are met and the 
rights are exercised. 

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Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 28. Events after the reporting period (continued) 

No other matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the 
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial 
years. 

Note 29. Reconciliation of profit/(loss) after income tax to net cash from operating activities 

Profit/(loss) after income tax expense for the year 

  44,192,282   

(11,511,006) 

Consolidated 

2023 
$ 

2022 
$ 

Adjustments for: 
Depreciation and amortisation 
Impairment of exploration and evaluation assets 
Write off of receivable 
Foreign exchange differences 
Non cash finance costs 
Gain on remeasurement of promissory notes 
Gain on debt restructure 

Change in operating assets and liabilities: 

Decrease/(increase) in trade and other receivables 
Decrease/(increase) in inventories 
Decrease/(increase) in other operating assets 
Increase in trade and other payables 
Increase/(decrease) in contract liabilities 
Increase in other provisions 

Net cash from operating activities 

Note 30. Changes in liabilities arising from financing activities 

Consolidated 

Balance at 1 July 2021 
Net cash from financing activities 
Gain on remeasurement 
Exchange differences 
Accrued interest 

Balance at 30 June 2022 
Accrued interest 
Extinguishment of debt upon restructure 
Recognition of new debt 
Exchange differences 
Unwinding of discount 

Balance at 30 June 2023 

48 

445,084   
-    
96,978   
1,853,532   
6,235,690   
-    
(52,726,436)  

365,289  
367,892  
-   
8,264,740  
7,691,857  
(4,988,472) 
-   

(583,181)  
(33,121)  
(29,433)  
473,284   
1,678,714   
-    

12,467  
7,206  
163,566  
10,838  
(201,340) 
46,166  

1,603,393   

229,203  

  Promissory  
notes  
$ 

  88,372,096 
694,902 
(4,988,472) 
8,264,740 
7,684,021 

  100,027,287 
4,852,769 
  (106,243,427) 
  18,963,074 
1,853,532 
1,350,942 

  20,804,177 

 
  
 
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Jupiter Energy Limited 
Notes to the consolidated financial statements 
30 June 2023 

Note 31. Earnings per share 

Consolidated 

2023 
$ 

2022 
$ 

Profit/(loss) after income tax attributable to the owners of Jupiter Energy Limited 

  44,192,282   

(11,511,006) 

Weighted average number of ordinary shares used in calculating basic earnings per share 

716,682,443  

153,377,693 

Weighted average number of ordinary shares used in calculating diluted earnings per share   

716,682,443  

153,377,693 

  Number 

  Number 

Basic earnings / (loss) per share 
Diluted earnings / (loss) per share 

Cents 

Cents 

6.17  
6.17  

(7.51) 
(7.51) 

49 

 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
  
Jupiter Energy Limited 
Directors' declaration 
30 June 2023 

In the directors' opinion: 

●

●

●

●

the  attached  financial  statements  and  notes  comply  with  the  Corporations  Act  2001,  the  Australian  Accounting 
Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements;

the attached financial statements and notes comply with International Financial Reporting Standards as issued by the 
International Accounting Standards Board as described in note 1 to the financial statements;

the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
30 June 2023 and of its performance for the financial year ended on that date; and

there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due 
and payable, subject to matters disclosed in note 1 Going Concern.

Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001. 

On behalf of the directors 

___________________________ 
Geoffrey Gander  
Director 

29 September 2023 

50 

 
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 audit of the financial report 

Opinion 

We have audited the financial report of Jupiter Energy Limited (the Company) and its subsidiaries 
(collectively the Group), which comprises the consolidated statement of financial position as at 30 
June 2023 the consolidated statement of profit or loss and other comprehensive income, 
consolidated statement of changes in equity and consolidated statement of cash flows for the year 
then ended, notes to the financial statements, including a summary of significant accounting policies, 
and the directors’ declaration. 

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations 
Act 2001, including: 

a.  Giving a true and fair view of the consolidated financial position of the Group as at 30 June 2023 

and of its consolidated financial performance for the year ended on that date; and 

b.  Complying with Australian Accounting Standards and the Corporations Regulations 2001. 

Basis for opinion 

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under 
those standards are further described in the Auditor’s responsibilities for the audit of the financial 
report section of our report. We are independent of the Group in accordance with the auditor 
independence requirements of the Corporations Act 2001 and the ethical requirements of the 
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional 
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the 
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with 
the Code.  

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis 
for our opinion. 

Material uncertainty related to going concern 

We draw attention to Note 1 of the financial report, which describes the principal conditions that raise 
doubt about the Group’s ability to continue as a going concern. These events or conditions indicate 
that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as 
a going concern.  Our opinion is not modified in respect of this matter. 

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

 
 
 
 
 
 2 

Key audit matters 

Key audit matters are those matters that, in our professional judgment, were of most significance in 
our audit of the financial report of the current year. These matters were addressed in the context of 
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide 
a separate opinion on these matters. In addition to the matter described in the Material uncertainty 
related to going concern section, we have determined the matter described below to be the key audit 
matter to be communicated in our report. For the matter below, our description of how our audit 
addressed the matter is provided in that context. 

We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the 
financial report section of our report, including in relation to these matters. Accordingly, our audit 
included the performance of procedures designed to respond to our assessment of the risks of 
material misstatement of the financial report. The results of our audit procedures, including the 
procedures performed to address the matter below, provide the basis for our audit opinion on the 
accompanying financial report. 

Gain on debt restructure 

Why significant 

How our audit addressed the key audit matter 

At 30 June 2023, the Group had a financial liability of 
$20,804,177 (2022: $100,027,287) relating to 
promissory note facilities as disclosed in Note 14. 

On 3 October 2022, the Group entered into a settlement 
deed with Promissory Note holders regarding promissory 
notes issued in prior-years. The agreement involved 
converting a portion of the debt into shares and new 
promissory notes, with the remaining balance written off.  

This transaction was accounted for as an extinguishment of 
the old promissory notes, resulting in the derecognition of 
their carrying value. A gain on debt restructure of 
$52,726,436 was recorded in the statement of profit or 
loss, representing the difference between the carrying 
value of the old promissory notes and the combined fair 
value of the shares and new promissory notes issued, 
determined at the date of obtaining shareholder approval 
on 9 December 2022. A total of 1,076,472,428 fully paid 
shares and US$16.6 million in new promissory notes were 
issued. 

Given the significance of the debt structure and the 
estimation involved in measuring the fair value of the new 
promissory notes, this matter was considered a key audit 
matter. 

We evaluated the appropriateness of the accounting for the 
settlement deed transaction, including the measurement of 
the Group’s new promissory note facilities.  In performing our 
procedures, we: 

•  Considered the key terms of the settlement agreements 
and assessed whether the Group’s accounting treatment 
for the transaction complied with the requirements of 
Australian Accounting Standards  

•  Assessed the methodology and inputs used to determine 

the market interest rate for calculating the fair value of 
the new promissory notes  

•  Recalculated the gain on debt restructure 

•  Confirmed the completeness and accuracy of the balance 
owing to the holders of the promissory notes at 30 June 
2023  

•  Assessed the adequacy of disclosure in Note 14 to the 

financial report.  

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

 
 
 
 
 
 
 3 

Information other than the financial report and auditor’s report thereon 

The directors are responsible for the other information. The other information comprises the 
information included in the Company’s 2023 annual report, but does not include the financial report 
and our auditor’s report thereon. 

Our opinion on the financial report does not cover the other information and accordingly we do not 
express any form of assurance conclusion thereon, with the exception of the Remuneration Report 
and our related assurance opinion. 

In connection with our audit of the financial report, our responsibility is to read the other information 
and, in doing so, consider whether the other information is materially inconsistent with the financial 
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.  

If, based on the work we have performed, we conclude that there is a material misstatement of this 
other information, we are required to report that fact. We have nothing to report in this regard. 

Responsibilities of the directors for the financial report 

The directors of the Company are responsible for the preparation of the financial report that gives a 
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 
and for such internal control as the directors determine is necessary to enable the preparation of the 
financial report that gives a true and fair view and is free from material misstatement, whether due to 
fraud or error. 

In preparing the financial report, the directors are responsible for assessing the Group’s ability to 
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the 
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease 
operations, or have no realistic alternative but to do so. 

Auditor’s responsibilities for the audit of the financial report 

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is 
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that 
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an 
audit conducted in accordance with the Australian Auditing Standards will always detect a material 
misstatement when it exists. Misstatements can arise from fraud or error and are considered material 
if, individually or in the aggregate, they could reasonably be expected to influence the economic 
decisions of users taken on the basis of this financial report. 

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

 
 
 
 
 
 4 

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional 
judgment and maintain professional scepticism throughout the audit. We also: 

► 

Identify and assess the risks of material misstatement of the financial report, whether due to 
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit 
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not 
detecting a material misstatement resulting from fraud is higher than for one resulting from 
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the 
override of internal control. 

►  Obtain an understanding of internal control relevant to the audit 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 Group’s internal control.  

►  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting 

estimates and related disclosures made by the directors. 

►  Conclude on the appropriateness of the directors’ use of the going concern basis of accounting 
and, based on the audit evidence obtained, whether a material uncertainty exists related to 
events or conditions that may cast significant doubt on the Group’s ability to continue as a going 
concern. If we conclude that a material uncertainty exists, we are required to draw attention in 
our auditor’s report to the related disclosures in the financial report or, if such disclosures are 
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up 
to the date of our auditor’s report. However, future events or conditions may cause the Group to 
cease to continue as a going concern.  

►  Evaluate the overall presentation, structure and content of the financial report, including the 

disclosures, and whether the financial report represents the underlying transactions and events 
in a manner that achieves fair presentation. 

►  Obtain sufficient appropriate audit evidence regarding the financial information of the entities or 

business activities within the Group to express an opinion on the financial report. We are 
responsible for the direction, supervision and performance of the Group audit. We remain solely 
responsible for our audit opinion. 

We communicate with the directors regarding, among other matters, the planned scope and timing of 
the audit and significant audit findings, including any significant deficiencies in internal control that we 
identify during our audit. 

We also provide the directors with a statement that we have complied with relevant ethical 
requirements regarding independence, and to communicate with them all relationships and other 
matters that may reasonably be thought to bear on our independence, and where applicable, actions 
taken to eliminate threats or safeguards applied. 

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

 
 
 
 
 
 5 

From the matters communicated to the directors, we determine those matters that were of most 
significance in the audit of the financial report of the current year and are therefore the key audit 
matters. We describe these matters in our auditor’s report unless law or regulation precludes public 
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter 
should not be communicated in our report because the adverse consequences of doing so would 
reasonably be expected to outweigh the public interest benefits of such communication.  

Report on the audit of the Remuneration Report 

Opinion on the Remuneration Report 

We have audited the Remuneration Report included in the Director’s report for the year ended  
30 June 2023. 

In our opinion, the Remuneration Report of Jupiter Energy Limited for the year ended 30 June 2023 
complies with section 300A of the Corporations Act 2001. 

Responsibilities 
The directors of the Company are responsible for the preparation and presentation of the 
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our 
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in 
accordance with Australian Auditing Standards. 

Ernst & Young 

Jared Jaworski  
Partner 
Perth 
29 September 2023  

A member firm of Ernst & Young Global Limited 
Liability limited by a scheme approved under Professional Standards Legislation 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jupiter Energy Limited 
Shareholder information 
30 June 2023 

The shareholder information set out below was applicable as at 20 September 2023. 

Distribution of equitable securities 
Analysis of number of equitable security holders by size of holding: 

1 to 1,000 
1,001 to 5,000 
5,001 to 10,000 
10,001 to 100,000 
100,001 and over 

Holding less than a marketable parcel 

Equity security holders 

Twenty largest quoted equity security holders 
The names of the twenty largest security holders of quoted equity securities are listed below: 

Ordinary shares 

Number 
of holders 

% of total 
shares 
issued 

416 
425 
198 
339 
66 

0.01 
0.09 
0.12 
0.99 
98.79 

1,444 

100.00 

1,222 

0.46 

Ordinary shares 

  Number held  

% of total 
shares 
issued 

1,091,041,821 
40,734,581 
27,980,134 
19,837,751 
14,007,536 
12,500,000 
11,068,130 
9,517,273 
4,539,905 
2,287,804 
2,000,000 
1,870,000 
1,497,445 
1,205,295 
946,021 
815,162 
633,754 
523,000 
506,450 
500,000 

1,244,012,062 

85.89 
3.21 
2.20 
1.56 
1.10 
0.98 
0.87 
0.75 
0.36 
0.18 
0.16 
0.15 
0.12 
0.09 
0.07 
0.06 
0.05 
0.04 
0.04 
0.04 

97.92 

FISKE NOMINEES LIMITED 
FISKE NOMINEES LIMITED (FISKPOOL A/C) 
JUPITER EMPLOYEE SECURITIES PTY LTD 
FISKE NOMINEES LIMITED 
CITICORP NOMINEES PTY LIMITED (580214-1 A/C) 
SLEIPNIR TECHNOLOGIES 
FISKE NOMINEES LIMITED 
CITICORP NOMINEES PTY LIMITED 
COLLEGE SEARCH PTY LTD 
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 
MR JOHN NORMAN ACKLAND 
MR GLENN WILLIAM TWOMEY + MRS KAREN LYNNE TWOMEY 
BNP PARIBAS NOMS PTY LTD (DRP) 
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM 
MR SOON JEUNG YUEN 
MR RICHARD DONALD MILLAR 
MR KULDEEP SINGH MALIK + MRS SUDESH MALIK (UDAY SINGH MALIK A/C) 
MR STEVY TRENT MAYALL + MS RACHELLE LEA WALTON 
ALDENHAM HOLDINGS LIMITED 
MR BARRY PAUL AHERNE 

Unquoted equity securities 
The company also has 18,646,800 remuneration share rights on issue 

56 

 
Jupiter Energy Limited 
Shareholder information 
30 June 2023 

Substantial holders 
Substantial holders in the company are set out below: 

WATERFORD FINANCE AND INVESTMENT LIMITED 
WEIGHBRIDGE TRUST LIMITED 

Voting rights 
The voting rights attached to ordinary shares are set out below: 

Ordinary shares 

  Number held  

% of total 
shares 
issued 

769,400,664 
268,485,779 

60.57 
21.14 

Ordinary shares 
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each 
share shall have one vote. 

Remuneration share rights 
Remuneration share rights do not have voting rights. 

There are no other classes of equity securities. 

57