2016 ANNUAL REPORT
CORPORATE DIRECTORY
NORWEST ENERGY NL
65 078 301 505
ABN
078 301 505
ACN
DIRECTORS
Mr Michael John Fry
(Non-Executive Chairman)
Mr Henry David Kennedy
(Non-Executive Director)
Mr Ronald Gordon Currie
(Non-Executive Director)
CHIEF EXECUTIVE OFFICER
Shelley Maree Robertson
COMPANY SECRETARY
Emma Jane Curnow
INTERNET ADDRESS
www.norwestenergy.com.au
EMAIL ENQUIRIES
info@norwestenergy.com.au
REGISTERED OFFICE
Level 2, 6 Thelma Street
West Perth WA 6005
Tel:
Fax:
+ 61 8 9227 3240
+ 61 8 9227 3211
SHARE REGISTER
Computershare Investor Services Pty Ltd
GPO Box D182
Perth WA 6840
Level 11, 172 St Georges Terrace
Perth WA 6000
Telephone: 1300 850 505
AUDITORS
Rothsay Chartered Accountants
Level 1, Lincoln House
4 Ventnor Avenue
West Perth WA 6005
AUSTRALIAN SECURITIES EXCHANGE
NWE
FRANKFURT STOCK EXCHANGE
NUX
CONTENTS
Chairman’s Letter
Chief Executive Officer’s Report
Permit Summary
Project Review
Directors’ Report
Lead Auditor’s Independence Declaration
Corporate Governance Statement
Statement of Profit and Loss and other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Audit Report
Additional ASX Information
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50
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53
2
CHAIRMAN’S LETTER
Dear Shareholders,
I am pleased to present the Norwest Energy NL Annual Report for the year ended 30 June 2016.
Norwest continued to retain a large footprint in the northern Perth Basin, with the net acreage position only
decreasing from 3,100km2 to 2,841km2 due to Empire Oil and Gas relinquishing the less prospective northern
graticular blocks within EP426. The net acreage contains seven permits with conventional and unconventional
oil and gas prospects.
In July 2016, the Company formed a strategic alliance with Transerv Energy Ltd (Transerv) to facilitate the
farmout and drilling of the 160 million barrel Xanadu Prospect located in TP/15, in addition to other onshore
permits Norwest has interests in within the Perth Basin.
In September 2016, it was announced that the Company had executed termsheets with Transerv and Triangle
Energy (Global) Limited (Triangle). These termsheets form the basis for both parties to farm-in on the drilling of
Xanadu-1 located within TP/15. Transerv will contribute 20% of the costs to earn a 15% interest, whilst Triangle
will contribute 40% of the costs to earn a 30% interest.
Three wells are planned for drilling in the next 12-18 months, subject to securing funding and regulatory
approvals. The status of each of these drill-ready permits are as follows:
TP/15: In addition to the termsheets signed with Transerv and Triangle, there are numerous other
prospective parties interested in participating in the Xanadu drilling program and Norwest anticipates the
proposed TP/15 Joint Venture being finalised by December 2016. Norwest is planning to retain operatorship
and a relevant percentage interest in the permit.
EP368: The Lockyer Deep-1 well, where operator Empire Oil and Gas identified a major gas prospect on trend
with AWE’s massive Waitsia gas discovery, situated nearby. During the year, significant upside potential in the
high case resource was reported. Lockyer Deep is a medium risk well.
EP413: Following completion of the Arrowsmith 3D data processing, interpretation is continuing, with further
work required regarding the planning of the next well due to additional conventional prospectivity discovered
at the southern end of the permit, with similarities to the Woodada Gas Field located further to the south.
Another pleasing development was the announcement in September 2016 that a Sale and Purchase Agreement,
Change of Title and Change of Operator documentation for Production Licence L14 had been submitted to the
Department of Mines and Petroleum for formal approval. L14 contains the Jingemia Oil Field, which has been in
care and maintenance under operator Origin Energy since December 2012. The Jingemia Oil Field is estimated
to have initially contained 12 million barrels of oil in place, with 4.6 million barrels produced to date. Subject to
DMP approval, Cyclone Energy and RCMA Australia will acquire equity in L14, with the intention to restart
production from Jingemia. Norwest shall retain its 6.278% interest in L14.
During and subsequent to the financial year end, there were a number of changes implemented at the
corporate level.
Mr Peter Munachen resigned as CEO and Executive Director, effective 31 March 2016 after taking extended
leave due to health issues earlier in the year. Under Peter’s leadership and guidance, the Company developed
an impressive project portfolio, including the northern Perth Basin discovery of the Arrowsmith Field in 2012,
and the exciting Xanadu Prospect in TP/15. On behalf of the Board, management, shareholders and staff, I
would like to thank Peter for his enormous commitment and contribution to the Company throughout his
tenure.
3
Mr Ronald (Ron) Currie was appointed to the Board as a Non-Executive Director of the Company effective 31
March 2016. Mr Currie has extensive operational experience in oil and gas operations through his long
association with Bonnie Rock Transport (now owned by ASCO Group), a company he co-founded in 1998 and
which provides transport and logistics solutions for the oil and gas industry. Mr Currie’s hands-on operating
experience, including providing drilling services to exploration activity within the Perth Basin where Norwest is
primarily focussed, is bringing a new perspective to the Board.
Subsequent to the financial year, Shelley Robertson was appointed CEO. Shelley has served as the Company’s
Asset Manager since joining Norwest in January 2011, and has over 25 years’ experience in the oil and gas
industry, with postgraduate qualifications in Petroleum Engineering and Business. Ms Robertson has over time
forged excellent relationships with other junior exploration companies, Norwest Joint Venture partners,
regulators, service providers, community stakeholders and industry groups, and is a well-respected member of
the onshore exploration industry in Western Australia. With Shelley leading the Norwest team, the Company
can look forward to an exciting couple of years which will include participation in three drilling opportunities.
Ms Emma Curnow was appointed Company Secretary in July 2016. Ms Curnow joined the Company in March
2015 as Financial Controller.
Fundraising during the financial year raised $1.32m (before costs) from a rights issue and a placement.
Subsequent to 30 June 2016, a placement from Transerv, sophisticated and professional investors and Directors
was completed which raised $0.83m (before costs). These raisings assist the Company to achieve its objectives,
however it is aware that in a tougher market for oil and gas it is important to implement corporate cost savings.
Significant cost savings were implemented during July 2016 and included sharing office space, expenses and
expertise with Transerv as well as a reduction in personnel expenses. These have resulted in increased
efficiencies and thus a better value proposition for shareholders.
I would like to thank my fellow directors for their time and support during the year as well as the management
team and staff of Norwest for their dedication and hard work in progressing the Company’s initiatives. I would
also like to thank the Company’s Joint Venture partners.
I would like to thank our shareholders for their continuing support of Norwest. The Company’s directors and
management are fully committed to participating in the drilling programs for Xanadu-1 in TP/15, Lockyer Deep-
1 in EP368 and Arrowsmith-3 in EP413, and we look forward to an exciting, successful exploration program over
the next 12-18 months.
Michael Fry
Non-Executive Chairman
4
CHIEF EXECUTIVE OFFICER’S REPORT
Dear Shareholders,
Welcome to Norwest Energy’s Annual Report for FY2016.
Despite challenging market conditions, the Norwest Energy FY2016 Annual Report reflects upon a year of
significant developments and renewed focus for the Company, as we continue to strive towards delivering on
long term operational goals, and creating opportunities to build shareholder wealth.
When I recently presented at an industry conference, I reinforced to the audience that now is not the time to be
sitting back and waiting for the market to change, but instead a time to be getting out, talking to people, and
making things happen. Due to the strength of our project portfolio, Norwest continues to be able to raise funds
as required, as demonstrated by our recent capital raising in July this year, which included the formation of a
Strategic Alliance with Transerv Energy Ltd. This Strategic Alliance was formed to assist with the funding and
farmout of the Xanadu drilling program and other key projects within our portfolio. It has also enabled Norwest
to greatly reduce corporate overheads by sharing office space, services and personnel. This allows Company
funds to be better directed towards delivery of our exploration program.
With three wells to participate in during the next 18 months, and two of them as operator, Norwest has a busy
schedule ahead. Norwest intends to capitalise on the current low-cost market to get these wells drilled, and to
be well on the way to commercialisation in time for the market turn-around. Western Australia is facing a gas
shortage in the domestic market by 2020, and Norwest has two potential gas discovery opportunities in
Lockyer-Deep and Arrowsmith. Additionally, with the Cliff Head onshore oil processing facility close to the
Xanadu well location, the ability to process and transport oil down to the Kwinana BP Oil Refinery creates a
cost-effective and efficient pathway to commercialisation, even in the current market.
Whilst we work hard as a junior exploration company to deliver our projects as efficiently and as cost effectively
as possible, we also focus on the safety of our workforce, the integrity of the environment, and the
relationships with the communities in which we operate.
As we look towards FY2017, our Company objectives remain unchanged. Preparation and planning has
commenced for the drilling of the greatly anticipated Xanadu well, to be followed by the drilling of the Lockyer-
Deep prospect and Arrowsmith-3.
This report is my first as CEO, and I would like to thank the Board for the opportunity. I have great belief in the
value of our Perth Basin assets, and am determined to ensure that despite requirements for funding and
farmouts, Norwest retains a worthwhile working interest in all permits. During the coming year, the Norwest
team will be working hard to ensure shareholder funds are directed towards exploration activities that have the
potential for successful commercial outcomes.
Thank you for your ongoing support of Norwest Energy.
Shelley Robertson
Chief Executive Officer
5
PERMIT SUMMARY
Permit
Location
Type of Permit
Area (100%) Norwest (%)
NORTHERN PERTH BASIN
EP368
EP426
EP413
L14
TP/15
EP492
SPA-016 AO
TIMOR SEA
AC/L6 (ROYALTY)
UNITED KINGDOM
P2265
Perth Basin, WA
Perth Basin, WA
Perth Basin, WA
Perth Basin, WA
Perth Basin, WA
Perth Basin, WA
Perth Basin, WA
Onshore
Onshore
Onshore
Onshore
Offshore
Onshore
Onshore
600.3 km2
1197.0 km2
508.3 km2
39.8 km2
645.8 km2
860.0 km2
805.0 km2
20%
22.22%
27.945%
6.278%
100%
100%
100%
TOTAL AREA NET TO NORWEST 2841.4 KM2 (702,318 ACRES)
Vulcan Sub-Basin, NT
Offshore
252.1 km2
1.25% ORRI
Wessex Basin, UK
Offshore
215.3 km2
65%
Table 1. Norwest Permit Schedule
interests
Norwest Energy is a junior exploration
in seven
company with
tenements
in the northern Perth
Basin, Western Australia, and one
permit in the offshore Wessex Basin,
United Kingdom.
Company Strategy
• Think smart – be innovative.
• Continue
to develop
technical
understanding of projects.
• Secure additional
funding and
partners for our upcoming 3 well
program. Think outside the square
with funding options.
• Continue to work closely with
other operators in the basin.
• Exhibit best practice operations.
• Develop positive relationships with
all stakeholders.
• Every dollar counts. Work hard to
keep costs down by capitalising on
current low cost environment.
• “Expose our shareholders to the
drillbit”
Key Objective: Increase Long-term
Shareholder Value
Figure 1. Norwest - Northern Perth Basin Acreage
6
PROJECT REVIEW
AUSTRALIA – NORTHERN PERTH BASIN
Norwest’s exploration focus continues to be on the northern Perth Basin, Western Australia.
The Company retains interests in seven key permits within the basin; four of them as operator. With a balanced
mix of oil and gas, conventional and unconventional plays, Norwest retains the ability to attract equity and
funding to mature these projects as required, even in this challenging market.
All projects are surrounded by discoveries and producing oil and gas fields, validating the geology in which the
projects are located. Additionally, the northern Perth Basin has excellent access to infrastructure providing
direct access to domestic markets and customers. This means that any exploration resulting in a commercial
discovery can be fast-tracked to development in a cost-effective manner.
Norwest will continue to mature this portfolio of assets whilst working towards the ultimate goal of
participating in three drilling programs during 2017/18.
EP413 (Norwest 27.945%, Operator)
EP413 is located approximately 300km north of Perth between the townships of Dongara and Eneabba. It
covers an area of 508 km2, extending from immediately north of L4/L5 which hosts the Woodada Gas Field, to
the southern boundary of L14 in which the Jingemia Oil Field is located. The Beharra Springs and Redback gas
fields are also located in adjacent permits to the east.
Norwest is operator of EP413, and is currently executing Year 3 of the 5 year work program, with this current
permit year dedicated to further Technical and commercial evaluation of the block.
The 3D seismic survey was completed in mid-2015, with evaluation of these results still driving the current
program. Processing of the results created a large volume of data, and the EP413 Joint Venture partners are
working on this dataset to optimise its value in defining the way forward.
Whilst the acquisition was completed in Q2 2015, the processed dataset was not received until Q4 2015, with
final results indicating a substantial improvement in structural definition, providing a greatly improved
understanding of the geology within the permit boundaries, and with confirmation that the geology supports
ongoing development plans for the permit.
An unexpected outcome from the 3D seismic survey was the discovery of additional prospectivity at the
southern end of the permit. On the basis of similarities in structural form and seismic character with that seen
further south over the Woodada Gas Field, there is also the potential for stratigraphically trapped conventional
gas. This new prospectivity in no way detracts from the reported shale gas potential of the permit, particularly
as the shale formations are continuous throughout the block, however it presents itself as an additional
opportunity to evaluate, particularly with reference to planning the optimal location for a well. The Joint
Venture is carefully evaluating this information, and is currently completing a detailed review and interpretation
of the entire 3D seismic survey area to determine the best location for the upcoming well.
Due to this new geological knowledge, in mid-December 2015, Norwest and the EP413 JV partners made a
request to the Department of Mines and Petroleum for a variation to the work program, to allow for additional
time to evaluate this area. Due to the evidence of this new geological knowledge, approval was granted in early
January 2016, such that Year 3 and Year 4 of the approved work program were swapped, with the drilling of a
well not required until Year 4 (commencing February 2017).
7
CSIRO, in collaboration with Norwest, several other operators and the DMP have established a Research
Program into methods of establishing baseline values of environmental indicators and of monitoring techniques
for these during development of tight gas resources in the northern Perth Basin. Areas of investigation have
included groundwater and groundwater monitoring, soil gas flux analysis, and a mobile methane survey across
the basin. A passive seismic survey array located on EP413 has been monitoring naturally occurring seismic
events over the past two years. The data generated will assist in creating baseline data in areas where shale gas
exploration is occurring.
Seismic Survey Acquisition Area Rehabilitation
At the completion of the 3D acquisition survey in May 2015, rehabilitation works and monitoring commenced
immediately, as detailed in the approved Environmental Management Plan.
Since June 2015, two botanical surveys have been conducted to measure the regrowth of native vegetation
within the survey area, and feral animal monitoring and dieback surveys have also been completed. The first
annual rehabilitation monitoring survey was undertaken in November 2015, with evidence of early regrowth on
survey lines an encouraging sign.
Additionally as a condition of the approval, Norwest (on behalf of the EP413 Joint Venture) was required to
contribute $145,000 to the Department of Parks and Wildlife to fund the purchase of 290 hectares of quality
Carnaby’s Black Cockatoo foraging or breeding habitat as an offset for the clearing required to complete the
survey. This payment was completed in February 2016.
The monitoring and rehabilitation will continue until the Office of the Environmental Protection Agency is
satisfied that the 3D seismic survey area is fully rehabilitated.
EP413 Joint Venture
Norwest Energy
AWE Limited
Bharat PetroResources Ltd
TP/15 (Norwest 100%)
27.945% (Operator)
44.252% (via subsidiaries)
27.803%
TP/15 is located in the offshore northern Perth Basin, approximately 250km north of Perth. The permit
occupies the 3 nautical mile wide state territorial waters of Western Australia, adjacent to the township of Port
Denison, and covering an area of 645km2. Xanadu is a conventional oil prospect located near the southern end
of the TP/15 permit.
During the year, Norwest carried out an extensive campaign both within Australia and overseas, to secure
funding for the drilling of the Xanadu well. As a result of this program, in recent months Norwest has secured
two partners to join in this exciting program. Transerv Energy will contribute 20% of the drilling costs to earn
15%, and Triangle Global Energy will contribute 40% of the drilling costs to earn 30%. Norwest is currently
working towards securing funding for the remaining 40% of the well, with the expectation to finalise the Joint
Venture by December 2016.
In preparation for the drilling program, Norwest retained botanists to complete the necessary environmental
surveys of the proposed drilling location. The application to drill documentation and the Environmental Plan
are currently being finalised, and will be submitted to the Department of Mines and Petroleum in due course.
Current planning is to align the drilling of Xanadu with other drilling activity within the basin in mid-2017.
8
Red Hill South-1 Rehabilitation
Since the drilling of Red Hill South-1 in February 2011, Norwest has been managing the rehabilitation of the well
location in accordance with the Environmental Management Plan developed to adhere to requirements in the
Petroleum Act.
In a pleasing outcome, following over four years of rehabilitation work and monitoring surveys, Norwest
received notification from the Department of Mines and Petroleum during the year that the rehabilitation of
the drilling location was deemed complete, and no further monitoring or rehabilitation work was required.
EP368
EP368 covers an area of 600 km2, and is situated at the northern end of the hydrocarbon fairway running
through the northern Perth Basin. The permit lies to the east of the Dongara township, and adjacent to AWE’s
massive Waitsia discovery that flowed an impressive 50 MMscf/day in 2015.
EP368 was reissued for a further five years on 30 June 2015. The main work completed during the year was
completion of seismic reprocessing, and the related re-interpretation of the Lockyer Deep and North Erregulla
Deep prospects. The quality of the reprocessed seismic data shows a significant improvement, facilitating
enhanced mapping of the key reservoir units.
Operator Empire Oil & Gas is proposing to drill the Lockyer Deep prospect in 2017 (subject to approvals and
drilling rig availability), with the well targeting the same formations as Waitsia; namely the Kingia and High Cliff
Sandstone intervals.
Already proven oil-bearing from historic wells North Erregulla-1 and Lockyer-1 at the Dongara Sandstone level,
the deeper Kingia and High Cliff Sandstone intervals were not tested in either of these wells. The extent of the
Waitsia play into EP368 remains to be confirmed, however results from AWE’s Irwin-1 well suggest that the
Kingia reservoir fairway increases in thickness to the east, and therefore into EP368.
The Lockyer Deep well is considered a medium risk well targeting between 25 and 134 BCF of gas, with a best
case estimate of 58 BCF1.
Should the Lockyer Deep well be successful, there is immediate follow up potential at the North Erregulla
prospect located to the southeast of Lockyer Deep, and straddling the border with EP426.
1Refer Empire Oil and Gas NL (ASX:EGO) Investor Presentation released to ASX on 02/02/2015.
The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to
undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration
appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
EP368 Joint Venture
Empire Oil and Gas
Norwest Energy
80% (Operator)
20%
EP426
EP426 lies adjacent and to the east of EP368, covering an area of 1197 km2. It is located on the north-eastern
flank of the Dandaragan Trough in the onshore northern Perth Basin.
EP426 was issued on 16 July 2004 under the Petroleum Act 1967 and expired on 31 March 2016. As per
petroleum legislation, 16 graticular blocks at the northern end of EP426 were relinquished prior to renewing the
permit for another 5 years (ending 20/06/2021).
9
The current permit year involved the acquisition, processing and interpretation of the 2800km Falcon AGG
airborne gravity gradiometry, magnetic and ADTM survey, reprocessing of 118km of existing 2D seismic lines,
and geological and geophysical studies. The structural interpretation has improved the understanding of key
structures within the blocks, assisting in identifying key targets.
EP426 Joint Venture
Empire Oil and Gas
Norwest Energy
77.78% (Operator)
22.22%
EP492 (Norwest 100%)
EP492 covers an area of 860 km2, and stretches for 120 km along the coast between Lancelin and Green Head,
at the southern end of the northern Perth Basin. The Indian Ocean Drive, linking Perth and Dongara, runs
through or close to the permit along its full length.
During 2011, Norwest conducted a Falcon airborne gravity gradiometry, magnetics and DTM survey over the
area. This data was subsequently modelled and interpreted with the purpose of providing both structural and
depth constraints to better define the architecture within this part of the northern Perth Basin. The results of
this interpretation were used with existing seismic and well data to define the hydrocarbon potential and
location of migration pathways, traps, and seals within the area. Since this survey was completed, Norwest has
successfully converted the area from a special prospecting authority (SPA) into an exploration permit.
Over the past twelve months, additional seismic interpretation of the southern portion of EP492 has been
carried out, providing a new structural framework in which to consider the prospectivity of the permit. The
current planned activity is to review the results from these studies, in order to better assess the prospectivity of
the permit.
SPA-16 AO (Norwest 100%)
SPA-16 AO (SPA) covers 805 km², and is located at the southern end of the northern Perth Basin, adjacent to
Norwest’s EP492. It also adjoins EP447 that contains the Walyering gas/condensate field, and EP432 that
contains the Cataby-1 oil discovery.
In November 2014, Norwest executed an agreement with Finder Exploration Pty Ltd to acquire its wholly owned
subsidiary, Finder No 5 Pty Ltd. This subsidiary holds rights to the SPA, and Norwest is currently involved in the
process of applying to the Western Australian Department of Mines to convert the SPA into a six-year
Exploration Permit.
The SPA, combined with Norwest’s EP492 represents a significant footprint of 1665 km2 at the under-explored
southern end of the northern Perth Basin.
The award of EP492 was the result of successful negotiations with the Traditional Owners, the Yued People with
whom Norwest has developed a solid working relationship. Norwest expects that the successful relationship
with the Yued People will assist with discussions relating to the SPA tenure, ultimately leading to the award of
an Exploration Permit over SPA-16 AO once negotiations are complete.
The first step of this process was to provide the Department of Mines and Petroleum (DMP) with a Stakeholder
Consultation Plan, to demonstrate the process to be applied in working with all stakeholders including the
Traditional Owners. This was submitted during the year, and is being reviewed by the DMP. The next steps,
once approval to proceed is granted by the DMP, will be to commence Native Title negotiations.
10
L14 - JINGEMIA OIL FIELD (Norwest 6.278%)
L14 contains the Jingemia Oil Field, which under current operator Origin Energy has been in care and
maintenance since December 2012. The Jingemia Oil Field is estimated to have initially contained 12 million
barrels of oil in place, with 4.6 million barrels produced to date. The area of L14 is 39.8 km2.
In September 2016, Norwest Energy announced that a Sale and Purchase Agreement (SPA), Change of Title and
Change of Operator documentation had been submitted to the Department of Mines and Petroleum for formal
approval.
The SPA is between Cyclone Energy Pty Ltd and existing L14 Joint Venture partners Origin Energy Developments
Pty Ltd, AWE Limited (via subsidiary), ROC Oil (WA) Pty Ltd and John Geary. Norwest has elected to retain its
6.278% interest in L14.
Subject to DMP approval, Cyclone Energy and RCMA Australia will acquire equity in L14, with the intention to
restart production from the Jingemia Oil Field.
Norwest’s contribution to necessary workovers and start-up costs leading to first production are forecast to be
approximately $200,000, and it is anticipated that production will recommence in the first half of 2017 subject
to the necessary approvals.
If the SPA is approved by the DMP, the new L14 Joint Venture participants shall have the following interests for
the existing Jingemia Oil Field operations:
Cyclone Energy 33.722% (Operator)
RCMA Australia 60%
Norwest Energy 6.278%
Current L14 Joint Venture
Origin Energy
AWE Limited
Norwest Energy NL
Roc Oil (WA) Pty Ltd
J Geary
UNITED KINGDOM
49.189% (Operator)
44.141% (via subsidiaries)
6.278%
0.250%
0.142%
P2265 (Blocks 98/7b, 98/8a and 98/12a) – Offshore Wessex Basin (Norwest 65%)
Permit P2265 lies to the east of the producing Wytch Farm oil field in Bournemouth Bay in southern England.
The Joint Venture holds a significant dataset over the area including 2D and 3D seismic, and reprocessing of the
historical 3D seismic dataset has now been completed, with a final interpretation report finalised in February
2016.
The Promote period of Bournemouth Bay licenses will expire on 30/11/16. By this date, a commitment must be
given to drill a well in the subsequent two years or relinquish the Licence.
Norwest and partner HALO are currently engaged in the process of deciding upon the next phase of activity on
the permit.
11
P2265 Joint Venture
NWE Mirrabooka (UK) Pty Ltd
Hague and London Oil (HALO)
65%
35% (Administrator)
TIMOR SEA - PUFFIN FIELD (Norwest 1.25% ORRI)
The Puffin Field, which is located within AC/P22 and governed by Production Licence AC/L6, covers a combined
area of approximately 900km2, and is situated in the Commonwealth waters of the southern Timor Sea. The
Puffin Field is operated by Chinese major Sinopec Limited (60% interest) with AED Oil Limited (Subject to Deed
of Company Arrangement) (AED - 40%).
Oil production from the Puffin Field ceased in 2009. Norwest still holds a 1.25% ORRI on any future production
generated by Sinopec and AED from the AC/P22 permit area however any future royalty payments are highly
unlikely given AC/P22 was surrendered by the operator in Q3 CY2014 and the AC/L6 petroleum production
licence ceased to be in force with effect from 21 April 2015.
12
Directors' Report
The Directors of Norwest Energy NL present their report consisting of Norwest Energy NL (“Norwest” or “the Company”), and its
subsidiaries (“Consolidated entity” or “Group”), for the financial year ended 30 June 2016.
1. DIRECTORS AND OFFICERS
The names and details of the Company's Directors in office during the financial year and until the date of this report are as follows.
Directors were in office for this entire period unless otherwise stated.
Names, qualifications, experience and special responsibilities
Mr Michael John Fry (Independent Non-Executive Chairman), BCom, FFin
Mr Fry, 59, became a Director of Norwest on 8 June 2009 and Chairman on 18 September 2009. Mr Fry has extensive experience in
capital markets and corporate treasury, specialising in risk management. During the three year period to the end of the financial year, Mr
Fry has held directorships in Brookside Energy Ltd (since April 2004) and Challenger Energy Limited (since January 2007).
Mr Henry David Kennedy (Non-Executive Director), MA (Geology), SEG
Mr Kennedy, 80, became a Director of Norwest on 14 April 1997. Mr Kennedy has had a long association with Australian and New
Zealand resource companies and as a technical director has been instrumental in the formation and/or development of a number of
successful listed companies including Pan Pacific Petroleum NL, New Zealand Oil and Gas Limited (NZOG), Mineral Resources (NZ)
Ltd and Otter Exploration NL. During his term as Executive Director of Otter, Pan Pacific and NZOG, these companies were involved in
the discovery of the Tubridgi and South Pepper gas fields in Western Australia, the North Herald and Chervil oil fields in Western
Australia and the Kupe South and Rua oil/gas condensate fields in New Zealand. During the three year period to the end of the financial
year, Mr Kennedy has held directorships in Pancontinental Oil & Gas NL (August 1999 to present) and East Africa Resources Limited
(March 2013 to April 2015).
Mr Ronald Gordon Currie (Non-Executive Director - from 31 March 2016)
Mr Currie, 40, became a Director of Norwest on 31 March 2016. Mr Currie has extensive operational experience in oil and gas
operations through his long association with Bonnie Rock Transport, a company he co-founded in 1998 (now owned by ASCO Group)
which provides transport and logistics solutions for the oil and gas industry. Bonnie Rock Transport specialises in the mobilisation of
large drilling rigs and associated equipment across Australia, as well as providing general haulage services. During the three year period
to the end of the financial year, Mr Currie has not held any other directorships in listed companies.
Mr Peter Lawson Munachen (Executive Director, CEO - to 31 March 2016), FCA, FAICD
Mr Munachen, 70, became a Director of Norwest on 26 November 2003 and CEO on 3 December 2008. He resigned as CEO and
Executive Director on 31 March 2016. Mr Munachen is a Chartered Accountant and former partner in an international accounting
practice and has considerable experience in the resources industry. During the three year period to the end of the financial year, Mr
Munachen held a directorship in East Africa Resources Limited (March 2010 to April 2015).
Mr John Douglas Annand, (Company Secretary - to 18 July 2016), B.Bus, CA, AGIA
Mr Annand was appointed to the position of Company Secretary on 30 June 2014. Mr Annand previously worked at Woodside Energy for
16 years, where he held a number of commercial and financial roles, most recently within the North West Shelf Venture. Mr Annand also
previously worked at PricewaterhouseCoopers, KPMG, and NAB, and is a qualified Chartered Accountant and a Company Secretary.
Miss Emma Curnow (Company Secretary - from 18 July 2016) B.Com, CA, AGIA
Miss Curnow was appointed to the position of Company Secretary on 18 July 2016. She commenced her career as a Senior Accountant
with Ernst & Young in 2003, and has since worked for a number of listed companies in the oil and gas sector both in Australia and the
United Kingdom. She is a qualified Chartered Accountant and a Company Secretary.
2. DIRECTORS INTERESTS
As at the date of this report, the Director’s interests in the securities of the Company are as follows:
Ordinary Shares
Options over Ordinary Shares
Mr Michael John Fry (Non-Executive Chairman)
Mr Ronald Currie (Non-Executive Director)
Mr Henry David Kennedy (Non-Executive Director)
(*): 140,000,000 shares held in the name of Kemprust Pty Ltd, a company of which Ronald Currie’s father is a director.
(*) 190,000,000
162,806,630
12,457,592
3. EARNINGS PER SHARE
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
4. CORPORATE INFORMATION
2016
(0.14)
(0.14)
Corporate Structure
Norwest Energy NL is a no liability Company that is incorporated and domiciled in Australia.
4,000,000
-
4,000,000
2015
(0.27)
(0.27)
Nature of Operations and Principal Activities
The principal activity of the Consolidated entity during the course of the financial year was exploration for hydrocarbon resources.
13
Directors' Report
Norwest is operator of the EP413 Joint Venture. There have been no significant changes in the nature of those activities during the year,
other than as disclosed above.
Objectives
Objectives of the Group include:
continued exploration on the Company’s current permits;
seek new ventures suitable for inclusion in the Group’s assets;
manage risks involved in the exploration industry; and
maintain liquidity.
The Group’s targets and strategies for meeting the above objectives include:
prepare work programmes best suited for exploration success;
consider strategic alliances through joint ventures to minimise risks to the Group;
focus on cost cutting in all non-essential areas; and
review appropriate fundraising proposals.
Employees
The Consolidated Entity had five employees as at 30 June 2016 (2015: five employees).
5. OPERATING AND FINANCIAL REVIEW
Operations Summary
Review of Operations
In Australia, the Norwest Group holds the following interests:
27.945% in EP 413 (as operator);
20% in EP 368;
22.22% in EP 426;
6.278% in L14 Jingemia Oilfield;
100% in TP/15;
100% in EP492; and
100% in Special Prospecting Authority SPA-16 AO.
EP 413
During the year, Norwest successfully completed the Arrowsmith 3D seismic acquisition survey and subsequently the processing of the
3D dataset including pre-stack migration and fracture analysis on behalf of the EP413 Joint Venture. Final results indicate a substantial
improvement in structural definition, providing a greatly improved understanding of the geology within the permit boundaries, and with
confirmation that the geology supports ongoing development plans for the permit. Further interpretation work is still required to
finalise the location and target formations for the next well on this permit, given the additional conventional prospectivity discovered at
the southern end of the permit, with similarities to the nearby Woodada Gas Field being identified. The EP413 work program contains a
well in Year 4 of the program, which commences in February 2017.
TP/15
Norwest intends to farm-out TP/15 by seeking a “carry” through the exploration drilling phase whilst retaining a material interest in the
permit. The Company has continued to progress discussions through its strategic alliance with Transerv Energy Ltd as well as other
prospective parties interested in participating in the Xanadu drilling program. This farm-out process is expected to be completed by
December 2016.
Norwest has commenced planning for the drilling of conventional oil well Xanadu-1, with the drilling application documentation
currently being finalised in preparation for formal submission to the Western Australian Department of Mines and Petroleum (“DMP”).
Xanadu-1 is planned to be drilled as a deviated well from an onshore location. Norwest is working with other operators to align
programs for drilling and associated services. At this time it is expected that Xanadu-1 will be drilled mid-2017.
EP 368 / EP 426
During the year, the reprocessing of the vintage 2D seismic data set and interpretation of the recent Black Swan Airborne geophysical
survey were completed. The Operator, Empire Oil and Gas NL reported significant upside potential for the Lockyer Deep and North
Erregulla Deep prospect trend, with its latest interpretation joining these two prospects into one large prospect for the high case
prospective resource estimate. Empire Oil and Gas NL reports that the Lockyer Deep well is expected to be drilled during 2017, subject
to approvals and finalising funding alternatives.
EP492
The DMP awarded Exploration Permit EP492 to Norwest in November 2014. It has a six year term, with year one of the work program
requiring geological studies, followed in year two with a 2D seismic survey. Planning for the survey is underway, however a request for
extension from DMP is currently being prepared. Data retrieval and interpretation of structural and depository history of the permit has
been undertaken to assist with the evaluation of hydrocarbon prospectivity. The preliminary geological review of a geological lead
suggests the potential for conventional oil.
14
Directors' Report
SPA-16 AO
Norwest has applied to the DMP to convert the SPA to an Exploration Permit and has submitted a proposed six year minimum work
program for consideration.
L14 Jingemia Oilfield
The L14 production licence contains the Jingemia Oil Field. The Jingemia Oil facility is currently under care and maintenance. Jingemia
is estimated to have initially contained 12 million barrels of oil in place, with approximately 4.6 million barrels produced to date. On 9th
September 2016, the Company announced that Change of Title and Change of Operator documentation is under review by the DMP. If
this documentation is approved, Perth-based private entity Cyclone Energy will assume operatorship with the intention to recommence
production during 2017. A new Joint Venture will then be formed with operator Cyclone Energy (33.722%), RCMA Australia (60%)
and Norwest Energy (6.278%). Norwest has elected to retain its 6.278% interest in L14.
United Kingdom
65% in P2265 (Promote Licence) – Offshore Wessex Basin
Norwest and Hague and London Oil Plc (“HALO”) have two years from November 2014 to reprocess the historical 3D seismic data,
select a drillable target and find a suitable farm-in partner. At the end of this two year period, a commitment must be given to drill a well
in the subsequent two years or relinquish the licence. During the year, reprocessing of the historical 3D seismic data was completed and a
final interpretation report on the reprocessing of the historical 3D seismic data set held over this area was also finalised during the year.
Norwest and partner HALO are in the process of agreeing on the next phase of activity on the permit which may include preparing a
farm-out package over P2265.
Performance Indicators
Management and the Board monitor the Group's overall performance by:
evaluating whether exploration activity and expenditure is adding value to the asset portfolio;
analysis of financial budgets versus actual results; and
the Company’s share price.
The underlying drivers which contribute to the Company’s performance and can be managed internally include a disciplined approach to
reducing the Group’s non-essential costs and allocating funds to those activities which will add shareholder value. The Company’s share
price is often influenced by factors outside the control of management and the Board, such as market conditions, however through
effective communication between the Company and all of its stakeholders the Company can provide assurance that there are regular
reviews in place to determine actions which should be implemented to increase Company performance.
Dynamics of the Business
The Board are focussed on Norwest developing its interests in existing acreage in Western Australia and the UK. Norwest seeks to farm
out its interests where appropriate to de-risk its exposures and facilitate successful exploration and development.
Results of Operations
The net loss of the Consolidated entity for the year ended 30 June 2016 of $1,859,351was lower than the loss of the prior year of
$3,157,781. The main contributing factors were;
exploration expenditure written off was substantially lower in the year ended 30 June 2016; $331,330 compared to $1,347,654
during the year ended 30 June 2015; and
the combined Directors’ remuneration and personnel expenses were lower in the year ended 2016 $1,143,312 compared to
$1,545,966.
Financial Position
At 30 June 2016, the Group had cash reserves of $0.3m (2015: $1.41m) and no debt. Fundraising during the financial year raised $1.32m
(before costs) from a rights issue and a placement. The proceeds were used to fund the Group’s exploration activities and also to
supplement working capital.
At 30 June 2016, the Group had net assets of $4.1m (2015: $4.8m) a decrease of $0.7m. This is largely attributable to:
a decrease in cash and cash equivalents from $1.4 million to $0.3m primarily due to funds used during the year in relation to
operating activities of $2.2m relating to exploration, evaluation, production, and administrative costs.
6. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
In the opinion of Directors there were no significant changes in the state of affairs of the Group that occurred during the financial year
under review.
7. SIGNIFICANT EVENTS AFTER THE BALANCE DATE
Other than the events outlined in note 30 of the financial statements, at the date of this report, there are no matters or circumstances,
which have arisen since 30 June 2016 that have significantly affected or may significantly affect the operations of the Group, the results
of those operations, or the state of affairs of the Group, in future financial years
8. LIKELY DEVELOPMENTS AND EXPECTED RESULTS
Likely developments in the operations of the Group that were not finalised at the date of this report included:
Farm-out process with interested parties by seeking a “carry” through the exploration drilling phase for the Xanadu-1 campaign
within TP/15.
15
Directors' Report
Approvals process in regards to change of title and operator by DMP and recommencement of production during 2017 for the
Jingemia Oilfield.
Further information on likely developments in the operations of the Consolidated entity and the expected results of operations have not
been included in this financial report because the Directors believe it would be likely to result in unreasonable prejudice to the
Consolidated entity.
9. ENVIRONMENTAL REGULATION AND PERFORMANCE
Norwest has as one of its central tenets, a policy of fully complying with and surpassing the requirements for environmental management
in whatever country/jurisdiction that it operates in. To this end Norwest has developed and implemented where appropriate the following:
•
•
corporate environment policies and procedures that are communicated to and adhered to by all employees;
environmental management systems and programs relevant to each level of organisation based on but surpassing the level of
standards applying in each jurisdiction;
annual budgets for environmental systems implementation;
plans for continuous monitoring and improvement;
•
•
• workforce training on environmental issues including assignment of management representatives and facilitators to monitor
environmental systems;
a set of quantitative objectives and targets aimed at continuous improvements which exceed legal compliance;
continuous reviews of performance at different levels in the organisation and projects hierarchy; and
a strategy for conducting impact-assessment surveys and periodic audits.
•
•
•
Native Title
There is the risk that native title, as established by the High Court of Australia’s decision in the Mabo case, exists over the land on which
the Consolidated entity holds exploration permits. It is impossible at this stage to quantify the impact (if any), which native title may
have on the operations of the Consolidated entity.
Past History
Norwest has historically met all environmental requirements through third parties and its partner companies. Accordingly, Norwest is
conversant with environmental requirements and has developed a corporate environmental policy based on:
•
•
•
government regulation and requirements;
experience from past projects; and
assistance from expert consulting groups.
10. INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Constitution of the Company requires the Company, to the extent permitted by law, to indemnify any person who has been an officer
of the Company or Group for any liability caused as such by an officer and any legal costs incurred in defending an action for any
liability. During or since the end of the financial year, no amounts have been paid by the Company or Group in relation to the above
indemnities. During the financial year, an annualised insurance premium was paid to provide adequate insurance cover for Directors and
officers against any potential liability and the associated legal expenses of a proceeding.
11. DIVIDENDS
No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has been made.
12. REMUNERATION REPORT - Audited
This Remuneration Report, which forms part of the Directors’ Report, outlines the remuneration of the Key Management Personnel
(“KMP”) of Norwest. For the purposes of this report, the KMP are the Directors and the Company Secretary.
Remuneration Policy
The Group’s remuneration policy for its KMP has been developed by taking into account the size of the management team for the Group,
the nature and stage of development of the current operations and market conditions and comparable salary levels for companies of a
similar size and operating in a similar sector.
In addition, the Board in determining the remuneration policy for KMP places emphasis on the following: the Group is currently only
undertaking exploration, appraisal and development activities, risks associated whilst undertaking these activities and other than profit
from asset sales, the Company does not expect any profitable operations until sometime in the future.
Executive Remuneration
The Group’s remuneration policy for its executive officers is to provide a fixed component and a performance based component (short
and long term incentives). The Company aims to:
reward executives with a level and mix of remuneration commensurate with their position and responsibilities within the
Company;
align the interests of executives with those of shareholders and business objectives; and
ensure total remuneration is competitive by market standards.
16
Directors' Report
Fixed remuneration is reviewed regularly by the Board. The process consists of a review of Company and individual performance,
relevant comparative remuneration externally and internally and, where appropriate external advice on policies and practices. It also
takes into account any change to the scope of the role performed by the executive and any other relevant factors of influence.
The Group has chosen to provide Incentive Options to KMP as part of their remuneration and incentive arrangements in order to attract
and retain their services and to provide incentive linked to performance of the Group. The Incentive Options have exercise prices at or
above market share price (at the time of agreement/grant). As such, the Incentive Options granted are generally only of benefit if the
KMP perform to the level whereby the value of the Group increases sufficiently to warrant exercising the Incentive Options granted.
The Company prohibits executives entering into arrangements to limit their exposure to Incentive Options granted as part of their
remuneration package.
Employment Contracts with Executives
Mr Munachen, was Chief Executive Officer until 31 March 2016, he had an employment agreement with the Group which specified the
duties and obligations to be fulfilled by Mr Munachen in his role as Chief Executive Officer. The contract could be terminated by either
party by giving six months’ notice, however 3 months’ notice was agreed to. Within the contract, Mr Munachen receives a fixed
remuneration component of $396,000 per annum. However from September 2015 Mr Munachen received a reduced remuneration of
$12,000 per month.
Mr Annand, was Commercial Manager, CFO and Company Secretary during the financial year and had an employment contract which
specified the duties and obligations to be fulfilled in his role. The contract could be terminated by either party by giving three months
‘notice. No amount is payable in the event of negligence or incompetence in regard to the performance of duties. Mr Annand receives a
fixed remuneration component of $340,000 including superannuation per annum. However, from January 2016, Mr Annand received a
reduced remuneration of $240,000 including superannuation per annum.
Non-Executive Director Remuneration
The Board’s policy is for fees to Non-Executive Directors to be no greater than market rates for comparable companies for time,
commitment and responsibilities and seeks to set remuneration at a level which provides the Company with the ability to attract and
retain directors of the highest calibre, whist incurring a cost which is acceptable to shareholders. 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 non-executive directors receive a fixed fee for their services. The maximum aggregate amount of fees that can be paid to
Non-Executive Directors is subject to approval by shareholders at a General Meeting (this is currently $400,000 per annum). Fees for
Non-Executive Directors are not linked to the performance of the Group. However to align Directors’ interests with shareholder
interests, the Directors are encouraged to hold shares in the Company and given the current size, nature and opportunities of the
Company, Non-Executive Directors may receive Incentive Options in order to secure their initial or ongoing holding and to retain their
services.
Fees for the Chairman are presently $36,000 per annum (2015: $60,000) and fees for Non-Executive Directors are presently set at
$30,000 per annum (2015: $50,000). These fees cover main board activities and Non-Executive Directors may receive additional
remuneration for other services provided to the Company, including but not limited to, membership of committees.
The Company prohibits Non-Executives entering into arrangements to limit their exposure to Incentive Options granted as part of their
remuneration package.
Relationship between Remuneration of KMP and Shareholder Wealth
During the Company’s exploration and development phases, the Board anticipates that the Company will retain earnings (if any) and
other cash resources for the exploration and development of its projects. Accordingly the Group does not have a policy with respect to
the payment of dividends and returns of capital and thus there was no relationship between the Board’s policy for determining the
nature and amount of remuneration of KMP and dividends paid and returns of capital by the Company.
The Board did not determine the nature and amount of remuneration of the KMP by reference to changes in the Company’s shares traded
between the beginning and end of the financial years. However, as noted above certain KMP are granted Incentive Options which
generally will be of greater value to KMP if the value of the Company’s share price increases.
Relationship between Remuneration of KMP and earnings
As discussed above, the Company is currently undertaking exploration and development activities, and does not expect to be
undertaking profitable operations until sometime in the future. Accordingly the Board does not consider earnings during the current and
previous financial years when determining, and in relation to, the nature and amount of remuneration of KMP.
17
Directors' Report
Emoluments of Directors and Other KMP
Short term Salary
& Fees
$
Post-Employment
Superannuation
$
Share-based Payments
Options
$
Directors
Michael J Fry
2016
2015
Peter L Munachen (1)
50,000
60,000
-
-
Total
$
50,000
60,000
-
-
-
-
-
41,667
50,000
186,000
396,000
2016
2015
Henry D Kennedy
2016
2015
Ronald G Currie (2)
2016
2015
Other KMP
John D Annand
2016
2015
TOTAL 2016
TOTAL 2015
(1): Mr Peter Munachen resigned on 31 March 2016. (2): Mr Currie was appointed on 31 March 2016
270,693
299,550
555,860
805,550
19,308
18,784
19,308
18,784
21,000
-
21,000
-
7,500
-
-
-
-
186,000
396,000
41,667
50,000
7,500
-
311,001
318,334
596,168
824,334
Performance
related
%
-
-
-
-
-
-
-
-
7
-
-
Options and rights granted to KMP
During the financial year ended 30 June 2016, the Company granted options for no consideration over unissued ordinary shares in the
Company to the following executives as part of their remuneration.
John D Annand
John D Annand
Annand
Number granted
Grant date
4,000,000
10 Jul 2015
6,000,000
16 Nov 2015
Fair value per
option at grant
date ($)
$0.006
$0.003
Exercise price
per option ($)
$0.006
$0.006
Expiry date
30 June 2020
30 June 2020
Number of
options
vested
during 2016
2,000,000
3,000,000
Details of the values of options granted, exercised or lapsed for each KMP of the Group during the past two financial years are as follows:
Value of Options
granted (A)
$
Value of Options
exercised (B)
$
Value of Options
lapsed (C)
$
Value of Options included
in remuneration report
$
Remuneration that
consists of Options
%
2016
John Annand
Peter L Munachen
2015
Michael J Fry
Peter L Munachen
Henry D Kennedy
21,000
(*) 20,000
(*)
-
-
-
-
-
-
20,000
21,000
-
7
-
-
-
-
(*): Mr Munachen resigned prior to the vesting of any options which were granted on 11 November 2015 (upon shareholder approval).
96,000
159,999
96,000
-
-
-
-
-
-
A. The value of options granted is the fair value of the options calculated at grant date using an appropriate option pricing model.
B. The value of options exercised during the year (if any) is calculated as the market price of the shares of the Company on the ASX at the
close of trading on the date the options were exercised after deducting the price paid to exercise the option.
C. The value of options that lapsed during the year (if any) represents the benefit forgone and is calculated at the date of option issue using
option pricing model.
For details on the valuation of the options, including models and assumptions used, please refer to Note 20 to the financial statements.
18
Directors' Report
Option holdings of Key Management Personnel
Held at 1 July
Granted as
Remuneration
Exercised
Net Other Change
Vested and exercisable
at 30 June
-
4,000,000
8,000,000
4,000,000
-
5,000,000
2016
Michael J Fry
Peter L Munachen
Henry D Kennedy
Ronald G Curie
John D Annand
2015
Michael J Fry
Peter L Munachen
Henry D Kennedy
John D Annand
(*): 5,000,000 options did not vest during the year ended 30 June 2016. (^): Mr Munachen resigned prior to the vesting of these options.
-
(^) (10,000,000)
-
-
-
4,000,000
8,000,000
4,000,000
-
10,000,000 (*)
-
10,000,000
-
-
10,000,000
(3,000,000)
(5,000,000)
(3,000,000)
-
7,000,000
13,000,000
7,000,000
5,000,000
4,000,000
8,000,000
4,000,000
5,000,000
-
-
-
-
-
-
-
-
-
-
-
Shareholdings of Key Management Personnel
(*): 90,000,000 shares held in the name of Kemprust Pty Ltd which is a company which Ronald Currie’s father is a Director.
Held at 1 July
Purchases
Sales
Net Other Change
Held at 30 June
2016
Michael J Fry
Peter L Munachen
Henry D Kennedy
Ronald G Currie
John D Annand
2015
Michael J Fry
Peter L Munachen
Henry D Kennedy
John D Annand
9,966,067
20,105,084
41,449,262
-
21,661,291
6,782,704
10,554,998
38,265,900
1,500,000
2,491,525
5,026,280
21,357,368
-
6,338,710
3,183,363
9,550,086
3,183,362
20,161,291
-
-
-
-
-
-
-
-
-
-
-
-
90,000,000 (*)
-
-
-
-
-
12,457,592
25,131,364
62,806,630
90,000,000
28,000,001
9,966,067
20,105,084
41,449,262
21,661,291
Loans with KMP
No loans were provided to or received from Key Management Personnel during the year ended 30 June 2016 (2015: nil).
Other Transactions with KMP
Resource Services International (Aust) Pty. Ltd (RSIA), a company of which Mr Munachen is a director and beneficial shareholder, was
paid $nil (2015: $20,148) for the provision of accounting, administration and office services which was fully paid as of the reporting
dates. The services provided by RSIA were terminated with effect from 1 July 2015 and instead were performed internally.
End of Remuneration Report.
19
Directors' Report
13. SHARE OPTIONS
At 30 June 2016 unissued ordinary shares under options were:
Expiry date
Exercise price
Number of options
28 November 2016
30 June 2020
Total outstanding as at 30 June 2016
$0.1155
$0.006
34,150,000
(*) 20,000,000
54,150,000
14. DIRECTORS’ MEETINGS
The number of meetings of Directors held during the year and the number of meetings attended by each Director was as follows:
Mr Michael John Fry (Non-Executive Chairman)
Mr Peter Lawson Munachen (Executive Director, CEO)
Mr Henry David Kennedy (Non-Executive Director)
Mr Ronald Gordon Currie (Non-Executive Director)
Board meetings
Number eligible to attend
4
2
4
2
Number attended
4
2
4
2
The Board also dealt with various matters by circular resolution, as such eight circular resolutions were signed.
Committee membership
As at the date of this report, the Company did not have any formal committees.
15. AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration is set out on the following page and forms part of the Directors’ Report for the year ended 30
June 2016.
16. NON-AUDIT SERVICES
The Company’s auditor, Rothsay Chartered Accountants, did not provide any non-audit services during the year (2015: nil).
Signed in accordance with a resolution of the Directors.
Mr Michael John Fry
Non-Executive Director and Chairman
Perth 21 September 2016
20
21
Corporate Governance Statement
This Corporate Governance Statement has been prepared on the basis of disclosure under the 3rd Edition of the ASX Corporate
Governance Council's Corporate Governance Principles and Recommendations (“ASX Principles and Recommendations”).
The Company has followed each recommendation where the Board has considered the recommendation to be an appropriate benchmark
for corporate governance practices, taking into account factors such as the size of the Company and the Board, resources available and
activities of the Company. Where, after due consideration, the Company's corporate governance practices depart from the ASX Principles
and Recommendations, the Board has offered full disclosure of the nature of and reason for the departure.
The Company's website www.norwestenergy.com.au contains a corporate governance section that includes copies of the Company’s
corporate governance policies and practices mentioned in this statement.
Recommendation
Principle 1 – Lay solid foundations for management and oversight
1.1
1.2
1.3
1.4
1.5
1.6
1.7
Disclose the respective roles and responsibilities of the Board and management and disclose those matters
expressly reserved to the Board and those delegated to management.
Undertake appropriate checks before appointing a Director or putting forward for their election and provide
security holders with all material information in its possession relevant to their election or re-election as a
director.
Written agreement with each director and senior executive setting out the terms of their appointment.
The Company Secretary should be accountable to the Board through the Chair, on all matters to do with the
proper functioning of the Board.
Have a diversity policy with the measurable objectives for achieving gender diversity and to assess annually
both the objectives and the entity's progress in achieving them. The proportion of men and woman on the Board,
Senior Management and the whole organisation should be disclosed.
Disclose a process for periodically evaluating the performance of the Board, its committees and individual
directors and disclose whether a performance evaluation was undertaken during the reporting period.
Disclose a process for periodically evaluating the performance of the senior executives and disclose in relation to
each reporting period whether an evaluation took place during the reporting period.
Principle 2 – Structure the Board to add value
2.1
2.2
2.3
2.4
2.5
2.6
If the entity does not have a Nomination Committee disclose that fact and the processes it employs to address
board succession issues and to ensure the Board has the correct mix of directors to enable it to discharge its
duties and responsibilities effectively.
Disclose a Board skills matrix setting out the mix of skills and diversity that the Board has or would like to
achieve.
Disclose the names of the independent Directors, along with the length of service of each director.
A majority of the Board should be independent.
The Chair of a Board should be an independent director, and should not be the same person as the CEO.
Have a program for inducting new directors and provide appropriate professional development opportunities for
directors to develop and maintain the skills and knowledge needed to perform their role as directors effectively.
Principle 3 – Act ethically and responsibly
3.1
Establish a code of conduct for its directors, senior executives and employees.
Principle 4 – Safeguard integrity in corporate reporting
4.1
4.2
4.3
If the entity does not have an Audit Committee disclose that fact and the processes it employs that independently
safeguard the integrity of its corporate reporting, including the processes for the appointment and removal of the
external auditor and the rotation of the audit engagement partner.
Before the Board approves its’ financial statements, it should receive from its CFO and CEO a declaration that
in their opinion the financial records have been maintained properly and that the financial records comply with
the appropriate accounting standards and the opinion has been formed on the basis of a sound system of risk
management and internal control.
Ensure that its external auditor attends its AGM and is able to answer questions from security holders relevant to
the audit.
Principle 5 – Make timely and balanced disclosure
5.1
The entity should have a written policy for complying with its continuous disclosure obligations under the
Listing Rules.
Comply
Yes/No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
22
Corporate Governance Statement
Principle 6 – Respect the rights of the shareholders
6.1
6.2
6.3
6.4
Provide information about the entity and its governance to investors via its website.
Design and implement an investor relations program to facilitate effective two-way communication.
Disclose the policies and processes to facilitate and encourage participation at meetings of shareholders.
Give shareholders the option to receive and send communications to the entity and it share registry
electronically.
Principle 7 – Recognise and manage risk
7.1
7.2
7.3
7.4
If the entity does not have a Risk Committee disclose that fact and the processes it employs for overseeing the
entity’s risk management framework.
The Board should review the entity's risk management framework at least annually to satisfy itself that it
continues to be sound and disclose when the review is undertaken.
If the entity does not have an internal audit function, disclose that fact and the processes it employs for
evaluating and improving the effectiveness of its risk management and internal control processes.
Disclose whether it has any material exposure to economic, environmental and social sustainability risks and if it
does, how it manages or intends to manage those risks.
Principle 8 – Remunerate fairly and responsibly
8.1
8.2
8.3
If the entity does not have a Remuneration Committee disclose that fact and the processes it employs for setting
the level and composition of remuneration for directors and senior management and ensuring that such
remuneration is appropriate.
Separately disclose its policies and practices regarding the remuneration of non-executive directors, executive
directors and other senior executives.
If the entity has an equity based remuneration scheme, it should have a policy on whether participants are
permitted to enter into derivative or other transactions to limit their risk.
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Further information required and non-compliance explanations
Recommendation 1. 5 - Diversity Policy with measurable objectives
The Company’s primary objectives with regard to diversity are as follows:
the Company’s composition of the Board, executive, management and employees to be as diverse as practicable; and
to provide equal opportunities for all positions within the Company and continue the Company’s commitment to employment
based on merit.
The measurable objectives set by the Company with regard to diversity have been met, as described below:
blend of skills – wide range of backgrounds; geology, engineering, finance and corporate experience;
cultural backgrounds – Australian, American and New Zealander;
gender – both male and female members; and
age – the age range spans over 25 years.
The above points relate to the composition of the Board and full time employees.
The Company’s annual reporting on the percentage of females in the organisation is as follows:
Full Time Employees
Executive Employees & Board Members
Recommendation 1.6 and 1.7 – Performance evaluation
2016
80%
20%
% Female
2015
80%
20%
During the year an evaluation of the Board and its individual directors was not carried out. The Board and management’s suitability,
overall structure and composition to carry out the Company's objectives is however, discussed and reviewed on an as-required basis.
Performance evaluation of the CEO, senior executives and employees is undertaken annually through a performance appraisal process
which involves reviewing and assessment of performance against agreed corporate, industry and individual key performance indicators.
23
Corporate Governance Statement
Recommendation 2.1 – Nomination Committee
The Board does not have a separate Nomination Committee, rather the full Board considers those matters that would usually be the
responsibility of a Nomination Committee. Given the size and composition of the Board, it is not practicable for a separate committee to
be formed.
To assist it in carrying out its function in relation to nomination matters, the Board has adopted a Nomination Committee Charter which
includes the following responsibilities:
- board succession planning;
- performance evaluation of the Board and individual directors;
- director induction and professional development; and
- appointment and re-election of directors.
Recommendation 2.2 – Board skills matrix – composition of the Board
The names of the Directors of the Company in office at the date of this statement and information regarding Director’s skills, experience
and expertise are set out in the Directors’ Report. The Company seeks to maintain a Board which brings together a diverse range of skills,
experience, and perspectives to support the strategic direction of the Company and enable effective management oversight and
governance.
The below is the preferred combination of capabilities, skills and experience for the Board:
technical disciplines of upstream oil and gas exploration, development and production;
-
finance, taxation, treasury and accounting;
-
company strategy and business planning;
-
risk and governance knowledge;
-
business growth and corporate development;
-
corporate social responsibility including sustainability and community stakeholder;
-
local and international experience; and
-
- ASX listed public company administration.
Each of these skills are currently represented on the Board and the Board considers that collectively it has the appropriate range of skills
and experience to direct the Company.
Recommendation 2.3– Name of independent Directors and length of service of each Director
In considering the independence of a director, the “Factors relevant to assessing the independence of a director” in Box 2.3 of the ASX
Principles and Recommendations ("Independence Criteria") have been applied. Mr Fry and Mr Currie have been considered independent
Director, whilst Mr Munachen during his time as a Director was employed in an executive capacity and Mr Kennedy is a substantial
shareholder and thus were/is not considered independent.
The length of service of Messrs Fry, Kennedy and Currie are seven, nineteen and one year(s) respectively.
Recommendation 2.4 – Majority of the Board should be independent
As at 30 June 2016, two of the three Directors are considered to be independent, however during the year only one of the three Directors
were considered to be an independent director due to the change to the Board.
Given the size and scope of the Company's operations the Board considers that it is appropriately structured to discharge its duties in a
manner that is in the best interests of the Company. Further, mechanisms are in place so that if a director considers it necessary, they may
obtain independent professional advice.
Recommendation 4.1 – Audit Committee
The Board does not have a separate Audit Committee, rather the full board fulfils the function of an audit committee and therefore no
separate audit committee has been formed in accordance with the compositional recommendation. Given the size and composition of the
Board, it is not practicable that a separate audit committee be formed.
To assist it in carrying out its function in relation to audit matters, the Company has adopted an Audit Committee Charter to assist it to
fulfil its role as the Audit Committee, which includes the following responsibilities:
- monitor and review the integrity of the financial reporting of the Company;
-
- monitor, review and oversee the external audit function including matters concerning appointment, remuneration, independence
review the Company’s internal financial control system; and
and non-audit services.
The Charter provides that independent directors may meet with the external auditor.
24
Corporate Governance Statement
Recommendation 7.1 – Risk Committee
The Company believes that it is crucial for all Board members to be a part of overseeing the risk management process, and as such the
Board has not established a separate committee to oversee risk. This along with the size and composition of the Board has meant that the
full Board fulfils the function of a risk committee. The Board is responsible for reviewing the Company’s policies on risk oversight and
management and satisfying itself that management has developed a sound system of risk management and internal control.
Recommendation 7.2 – Risk Management Framework review
The Company takes a proactive approach to risk management. The Board is responsible for ensuring that risks and opportunities are
identified on a timely basis and that the Company’s objectives and activities are aligned with the risks and opportunities identified by the
Board. The Company has a risk management policy in place.
The Board is ultimately responsible for risk management, however implementation of the risk management system and day-day
management of risk is the responsibility of the CEO, with the assistance of senior management. Management reports to the Board
annually, or more frequently as required, on the Company’s key risks and the extent to which it believes these risks are being managed.
During 2015, the Board reviewed the overall risk profile for the Company and received input from management on the effectiveness of the
Company’s management of its material business risks.
The Board has a number of active mechanisms in place to ensure that management's objectives and activities are aligned with the business
risks identified. These include the following:
Implementation of approved operating plans and cash flow forecasts and Board monitoring of progress against these plans and
forecasts;
Management reporting on specific business risks, including matters such as environmental issues and occupational health and
safety concerns.
The Company has advised each director, manager and employee that they must comply with a set of ethical standards
maintaining appropriate core company values and objectives. Such standards ensure shareholder value is maintained and
developed. Standards cover legal compliance, conflict resolution, employment best practices, privileged information and fair
dealing.
Recommendation 7.3 – Internal Audit function or process for reviewing internal controls
The Company does not have a dedicated internal audit function, however strong internal control policies and procedures are in place to
effectively manage potential risks and detect any control breakdowns. These are reviewed (and if necessary improved) on an annual basis,
as well as when any new risks are identified or changes occur in the business or industry.
The processes for the review are as follows:
-
External auditors independently evaluating the Company’s internal control environment and its compliance with the
International Financial Reporting Standards on an annual basis;
- Ongoing oversight of strategic matters by executive management and of operational matters ensuring that risks identified are
assessed and proactively managed;
- Written internal control assurance from the CEO and CFO prior to sign off of financial statements by the Board; and
- Monthly reporting and review of financial and budgetary information.
Recommendation 7.4 – Material exposure to economic, environmental and social sustainability risks
The Company has identified a series of business risks (economic, environmental and social sustainability risks) which the Group believes
to be inherent in the industry.
Economic risks
-
Ability to gain additional funding or a farm-out partner
The Company is not in production as yet and the development of its permits will require substantial additional financing. Failure to obtain
sufficient financing may result in delaying or indefinite postponement of exploration and any development or a loss of interest. However,
the Board is experienced in capital markets and financing resource projects as well as having an extensive reach for potential farm-in
partners.
There are various other economic risks including; commodity risk, exchange rate risk and market risk (these risks are examined in Note
23).
Environmental and social sustainability risks
-
Impact on the environment and community from Company activities
The Board and management are committed to developing and building a sustainable business, ensuring the Company is an active and
responsible member of the communities in which we operate. Corporate environmental policies and procedures are in place and
communicated to and adhered to by all employees.
External impact-assessment surveys and audits are conducted using third-party consultants who are specialists in their field.
-
Native title risk in relation to claims over the permits held by the Company
Norwest works closely with the respective parties associated with any claim to come to a mutually beneficial agreement.
25
Corporate Governance Statement
Recommendation 8.1 – Remuneration Committee
The Board does not have a separate Remuneration Committee, rather the full Board fulfils the function of a remuneration committee and
therefore no remuneration committee has been formed in accordance with the compositional recommendation. Given the size and
composition of the Board, it is not practicable that a separate remuneration committee be formed.
To assist it in carrying out its function in relation to remuneration matters, the Company has adopted a Remuneration Committee Charter
to assist it to fulfil its role as the Remuneration Committee, which states the function of the committee is to assist the Board in fulfilling its
corporate governance responsibilities with respect to remuneration by reviewing and making appropriate recommendations on:
-
-
Remuneration packages of directors and senior executives; and
Employee incentive and equity-based plans.
Recommendation 8.2 – Remuneration policies and practices
The Company’s remuneration policy has been developed by taking into account the size of the management team, the nature and stage of
development of the current operations and market conditions and comparable salary levels for companies of a similar size and operating in
a similar sector.
For details of the Company’s policies and practices regarding the remuneration of directors and senior executives refer to the
Remuneration Committee Charter on the Company’s website as well as the Remuneration Report included within the Directors’ Report
which includes the remuneration paid to Key Management Personnel and other relevant information.
Recommendation 8.3 – Transactions to limit exposure to economic risk from participating in equity-based remuneration schemes
The Company prohibits executives entering into arrangements to limit their exposure to Incentive Options granted as part of their
remuneration package.
26
Consolidated Statement of Profit or Loss and other Comprehensive
Income
FOR THE YEAR ENDED 30 JUNE 2016
Continuing operations
Financing income
Operating costs
Depletion expense
Joint venture management recharges
Research and development rebate
Directors’ remuneration
Personnel expenses
Personnel expenses recovery
Administrative expenses
Audit fees
Corporate advisory and promotion
Non administrative expenses
Depreciation expense
Exploration expenditure impairment
Share based payments expense
Net loss for the year
Other comprehensive income
Exchange differences on translation of foreign operations
Net change in fair value of available-for-sale financial assets
transferred to profit or loss
Total other comprehensive loss for the year, net of tax
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
Notes
4
11
5
5
22
10
11
20
21
21
2016
$
2015
$
6,478
(43,102)
-
7,787
110,463
(285,167)
(858,145)
85,645
(327,875)
(38,578)
(91,172)
(51,458)
(17,305)
(331,330)
(42,000)
(1,875,759)
28,038
(64,988)
(13,937)
149,588
426,462
(506,000)
(1,039,966)
216,563
(598,825)
(46,444)
(247,677)
(155,326)
(15,298)
(1,347,654)
-
(3,215,464)
15,408
60,016
1,000
(1,859,351)
(2,333)
(3,157,781)
(0.14)
(0.14)
(0.27)
(0.27)
The above Consolidated Statement of Profit or Loss and Comprehensive Income should be read in conjunction with the Notes to the
Financial Statements.
27
Consolidated Statement of Financial Position
AS AT 30 JUNE 2016
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Other financial assets
Investments
Property, plant and equipment
Deferred exploration, evaluation and development costs
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
Non-Current Liabilities
Provisions
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
Equity
Share capital
Reserves
Accumulated losses
TOTAL EQUITY
Notes
7
8
8
9
10
11, 12, 13
14
15
16
17
18
19
2016
$
2015
$
335,143
73,784
408,927
1,412,191
129,876
1,542,067
25,000
2,000
33,196
4,897,697
4,957,893
5,366,820
25,000
1,000
36,072
4,749,065
4,811,137
6,353,204
226,378
24,784
251,162
501,915
43,452
545,367
977,550
977,550
1,228,712
975,222
975,222
1,520,589
4,138,108
4,832,615
56,076,464
1,409,600
(53,347,956)
4,138,108
54,953,620
1,672,348
(51,793,353)
4,832,615
The above Consolidated Statement of Financial Position should be read in conjunction with the Notes to the Financial Statements.
28
Consolidated Statement of Changes in Equity
AS AT 30 JUNE 2016
Balance at 1 July 2015
Profit or loss
Other comprehensive loss for the year
Total comprehensive loss for the year
Shares issued (net of costs)
Share options expired / exercised
Share based payments expense
Balance at 30 June 2016
Balance at 1 July 2014
Profit or loss
Other comprehensive loss for the year
Total comprehensive loss for the year
Shares issued (net of costs)
Share options expired / exercised
Balance at 30 June 2015
Share
Capital
$
54,953,620
-
-
-
1,122,844
-
-
56,076,464
53,482,856
-
-
-
1,470,764
-
54,953,620
Option
Reserve
$
1,672,348
-
-
-
-
(304,748)
42,000
1,409,600
2,024,347
-
-
-
(351,999)
1,672,348
Accumulated
Losses
$
(51,793,353)
(1,875,759)
16,408
(1,859,351)
-
304,748
-
(53,347,956)
(48,987,571)
(3,215,464)
57,683
(3,157,781)
-
351,999
(51,793,353)
Total
Equity
$
4,832,615
(1,875,759)
16,408
(1,859,351)
1,122,844
-
42,000
4,138,108
6,519,632
(3,215,464)
57,683
(3,157,781)
1,470,764
-
4,832,615
The above Consolidated Statement of Changes in Equity should be read in conjunction with the Notes to the Financial Statements.
29
Consolidated Statement of Cash Flows
Notes
24
FOR THE YEAR ENDED 30 JUNE 2016
Cash Flows from Operating Activities
Payments to suppliers and employees
Interest received
Net Cash Flows from /(used in) Operating Activities
Cash Flows from Investing Activities
Purchase of property, plant and equipment
Expenditure on oil & gas interests
Payments for refundable deposits
Net Cash Flows from /(used in) Investing Activities
Cash Flows from Financing Activities
Proceeds from issues of ordinary shares
Payment of share issue costs
Net Cash Flows from /(used in) Financing Activities
Net Increase/(Decrease) in Cash and Cash Equivalents
Cash and cash equivalents at 1 July
Effects of exchange rate changes on cash held
CASH AND CASH EQUIVALENTS AT 30 JUNE
7
2016
$
2015
$
(1,711,979)
6,478
(1,705,501)
(1,090,375)
28,038
(1,062,337)
(14,429)
(505,370)
-
(519,799)
(26,249)
(2,370,810)
(25,000)
(2,422,059)
1,320,229
(187,385)
1,132,844
(1,092,456)
1,412,191
15,408
335,143
1,580,000
(123,087)
1,456,913
(2,027,483)
3,379,658
60,016
1,412,191
The Consolidated Statement of Cash Flows should be read in conjunction with the Notes to the Financial Statements.
30
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2016
1. Corporate Information
Norwest Energy NL (“Norwest” or the “Company”) is a Company incorporated and domiciled in Australia whose shares are publicly listed
on the Australian Securities Exchange (“ASX”). The Company’s registered address is Level 2, 6 Thelma Street, West Perth, WA 6005.
The Consolidated financial report for the financial year ended 30 June 2016 comprises the Company and its consolidated entities (together
referred to as the (“Consolidated entity” or “Group”).
2. Significant accounting policies
The significant accounting policies adopted in preparing the financial report of the Group are to assist in a general understanding of the
financial report. The policies have been applied consistently to all years presented in the consolidated financial report. Certain comparative
amounts may have been reclassified to conform to the current year’s presentation.
(a) (i) Basis of Preparation
The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards
(“AASBs”), including Australian interpretations adopted by the Australian Accounting Standards Board (‘AASB’) and the Corporations Act
2001. The financial report also complies with International Reporting Standards as issued by the International Accounting Standards Board.
The financial report has been prepared on the historical cost basis except for share based payments and available for sale investments which
have been measured at fair value. Share based payments are valued using appropriate option pricing formulas. Investments are valued based
on the quoted closing price of that security at balance date.
The financial report is presented in Australian dollars which is the Company’s functional currency.
The consolidated financial statements have been prepared on a going concern basis which assumes the continuity of normal business activity
and the realisation of assets and the settlement of liabilities in the ordinary course of business.
(a) (ii) Going concern
The ability of the Consolidated Entity to continue as a going concern is dependent on it being able to raise additional funds as required in
order for it to meet ongoing commitments in the Perth Basin and for working capital. These commitments are detailed in note 13.
The Directors believe that they will be able to raise additional capital through either one or a combination of capital raisings, a farm-in, or a
sale of assets. The Group has a history of being able to raise equity as required and as such the Directors believe that the Consolidated Entity
will continue as a going concern.
As a result the financial statements have been prepared on a going concern basis of accounting, which contemplates the continuity of normal
business activity and the Group being able to realise its assets and the settlement of its liabilities in the ordinary course of business. Should
the Group be unable to obtain sufficient funding, there is significant uncertainty whether the Group will continue as a going concern.
No adjustments have been made as to the recoverability and classification of recorded asset amounts or to the amounts and classification of
liabilities that might be necessary should the entity not continue as a going concern.
As at 30 June 2016, the Group had cash available of $0.3m, the Group incurred a loss of $1.86m and had a net cash outflow from operating
activities of $1.7m. Subsequent to 30 June 2016, an additional $0.83m (before costs) was received by the Group, being proceeds from a
placement which included issuing shares to Transerv Energy Ltd, Directors and a related party of a Director and professional and
sophisticated investors.
(b) Statement of Compliance
(i) New and amended standards adopted
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting
Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these Accounting Standards and
Interpretations did not have any significant impact on the financial performance or position of the Group.
The following Accounting Standards and Interpretations are most relevant to the Group:
AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments
The Group has applied AASB 2013-9 from 1 July 2015. The Standard contains three main parts and makes amendments to a number of
Standards and Interpretations. Part A of AASB 2013-9 makes consequential amendments arising from the issuance of AASB CF 2013-1. Part
B makes amendments to particular Australian Accounting Standards to delete references to AASB 1031 and also makes minor editorial
amendments to various other standards. Part C makes amendments to a number of Australian Accounting Standards, including incorporating
Chapter 6 Hedge Accounting into AASB 9 Financial Instruments.
31
AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality
The Group has applied AASB 2015-3 from 1 July 2015. The Standard completes the AASB’s project to remove Australian guidance on
materiality from Australian Accounting Standards.
(ii) Early adoption of standards
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
(iii) New accounting standards and interpretations
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2016 reporting periods. There
are no new standards and interpretations that are considered likely to impact on the financial reporting of the Group.
(c) Basis of Consolidation
(i) Subsidiaries
Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the
financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that
presently are exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the consolidated
financial statements from the date that control commences until the date that control ceases.
Investments in subsidiaries are carried at their cost of acquisition in the Company’s financial statements.
(ii) Joint ventures
Joint ventures are those entities over whose activities the consolidated entity has joint control, established by contractual agreement and
requiring majority consent for strategic financial and operating decisions.
Jointly controlled operations and assets
The interest of the Company and of the Consolidated entity in unincorporated joint ventures and jointly controlled assets are brought to
account by recognising in its financial statements if material the assets it controls, the liabilities that it incurs, the expenses it incurs and its
share of income that it earns from the sale of goods or services by the joint venture.
(iii) Transactions eliminated on consolidation
Intra-group balances and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eliminated in
preparing the consolidated financial statements.
Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. Gains
and losses are recognised as the contributed assets are consumed or sold by the associates and jointly controlled entities or, if not consumed
or sold by the associate or jointly controlled entity, when the consolidated entity’s interest in such entities is disposed of.
(d) Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies have been
included in the notes and accounting policies (2) section for the following:
Impairment of exploration and evaluation assets 2(h)(ii)
Site restoration provision 2(i)
Accounting for exploration and evaluation assets 2(r)(i)
Depletion of development assets 2(r)(ii)
Share based transactions 2(j)(iii)
(e) Foreign currencies
(i) Foreign currency translation
Transactions in foreign currencies are translated at the foreign exchange rate prevailing at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies at the balance sheet date are translated to Australian dollars at the foreign exchange rate
prevailing at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary assets and
liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the
transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to Australian
dollars at foreign exchange rates prevailing at the dates the fair value was determined.
(ii) Functional currency
These consolidated financial statements are presented in Australian dollars, which is the Company’s functional currency and the functional
currency of the majority of the Group.
32
(f) Financial instruments
(i) Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash
equivalents and other trade payables.
Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value through profit or loss, any
directly attributable transaction costs, except as described below. Subsequent to initial recognition non-derivative financial instruments are
measured as described below.
A financial instrument is recognised if the Consolidated entity becomes a party to the contractual provisions of the instrument. Financial
assets are derecognised if the Consolidated entity’s contractual rights to cash flows from the financial assets expire or if the Consolidated
entity transfers the financial assets to another party without retaining control or substantially all risks and rewards of the asset. Regular
purchases and sales of financial assets are accounted for at trade date, i.e., the date that the Consolidated entity commits itself to purchase or
sell the asset. Financial liabilities are derecognised if the Consolidated entity’s obligations specified in the contract expire or are discharged
or cancelled.
Cash and cash equivalents comprise of cash balances at bank and petty cash on hand.
Accounting for finance income and expense are discussed in the notes. Other non-derivative financial instruments are measured at amortised
cost using effective interest method, less any impairment costs.
(ii) Derivative Financial instruments
The Consolidated entity has not used derivative financial instruments to hedge its exposure to foreign exchange and interest rate risks.
(g) Property, plant and equipment
(i) Owned assets
Items of property, plant and equipment are stated at cost or deemed cost less accumulated depreciation (see below) and impairment losses
(see accounting policy (h)). Cost includes expenditures that are directly attributable to the acquisition of the asset. When parts of an item of
property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.
(ii) Depreciation
Depreciation is provided on a diminishing value basis on all property, plant and equipment.
Major depreciation rates are:
Plant and equipment
2016
30%
2015
30%
(h) Impairment
(i) Financial assets
A financial asset is considered to be impaired if objective evidence indicates that one or more events have a negative effect on the estimated
future cash flows of that asset.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and
the present value of the estimated future cash flows discounted at the original effective interest rate.
Individually significant financial assets are tested for impairment on an individual basis. All impairment losses are recognised in the income
statement. The remaining financial assets are assessed collectively in groups that share similar credit risk characteristics. All impairment
losses are recognised in the income statement.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised.
(ii) Non-financial assets
The carrying amounts of the Consolidated entity’s non-financial assets, other than deferred tax assets are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists then the asset’s recoverable amount is estimated.
An impairment loss is recognised if the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. A cash
generating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups.
Impairment losses recognised in respect of cash generating units are allocated first to reduce the carrying amount of any goodwill allocated to
the units and then to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis.
The recoverable amount of an asset or cash generating unit is the greater of its value in use and its fair value less costs to sell. In assessing
value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate which reflects current market
assessments of the time value of money and risks specific to the asset.
33
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer
exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment
loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss had been recognised.
The ultimate recoupment of the value of exploration and evaluation assets is dependent on successful development and commercial
exploitation, or alternately, sale, of the underlying mineral exploration properties. The Group undertakes at least on an annual basis, a
comprehensive review for indicators of impairment of these assets. Should an indicator of impairment exist, there is significant estimation
and judgement in determining the inputs and assumptions used in determining the recoverable amounts.
The key areas of estimation and judgement that are considered in this review include: (i) recent drilling results and reserves and resource
estimates; (ii) environmental issues that may impact the underlying tenements; (iii) the estimated market value of assets at the review date;
(iv) independent valuations of underlying assets that may be available; (v) fundamental economic factors such as commodity prices,
exchange rates and current and anticipated operating costs in the industry; and (vi) the Group’s market capitalisation compared to its net
assets.
(i) Share capital
Transaction costs
Transaction costs of an equity transaction are accounted for as a deduction from equity.
(j) Employee benefits
(i) Long-term service benefits
The Consolidated entity’s net obligation in respect of long-term service benefits is the amount of future benefit that employees have earned
in return for their service in the current and prior periods. The obligation is calculated using expected future increases in wage and salary
rates including related on-costs and expected settlement dates, and is discounted using the rates attached to the Commonwealth Government
bonds at the balance sheet date which have maturity dates approximating to the terms of the Consolidated entity’s obligations.
(ii) Wages, salaries, annual leave, sick leave and non-monetary benefits
Liabilities for employee benefits including wages, salaries, annual leave and sick leave that are expected to be settled within 12 months of the
reporting date represent present obligations resulting from employees’ services provided to reporting date, are calculated at undiscounted
amounts based on remuneration wage and salary rates that the Consolidated entity expects to pay as at reporting date including related on-
costs, such as workers compensation insurance and payroll tax. The Consolidated entity does not provide any non-accumulating non-
monetary benefits, such as medical care, housing, cars and free or subsidised goods and services.
(iii) Share-based payment transactions
The share option programme allows Consolidated entity directors, employees and key consultants to acquire shares of the Company through
exercising options granted. The fair value of options granted is recognised as an employee expense with a corresponding increase in equity.
The fair value is measured at grant date and spread over the period during which the employees or consultants become unconditionally
entitled to the options. The fair value of the options granted is measured based on an appropriate formula, taking into account the terms and
conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of share
options that vest except where forfeiture is only due to share prices not achieving the threshold for vesting. In addition, a probability factor of
vesting is taken into account when calculating their theoretical fair value using the option pricing model.
(k) Provisions
A provision is recognised in the balance sheet when the Consolidated entity has a present legal or constructive obligation that can be
estimated reliably as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time
value of money and, where appropriate, the risks specific to the liability.
(i) Site restoration
In accordance with the Consolidated entity’s published environmental policy and applicable legal requirements, a provision for restoration
costs in respect of well abandonment and restoring contaminated land are capitalised and amortised as an expense based on the expected date
of restoration.
The provision is the best estimate of the present value of the expenditure required to settle the restoration obligation at the reporting date,
based on current legal requirements and technology. Future restoration costs are reviewed annually and any changes are reflected in the
present value of the restoration provision at the end of the reporting period.
(l) Revenue
(i) Goods sold
Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade
discounts and volume rebates.
(ii) Royalty income
Royalty income is accounted for on an accrual basis based on the pattern in which the Consolidated entity’s right to future economic benefit
from its interests is accumulated and received.
34
(m) Income tax
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the income statement except to
the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance
sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not
provided for: initial recognition of goodwill, the initial recognition of assets or liabilities that affect neither accounting, nor taxable profit, and
differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of
deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax
rates enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can
be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
(n) Finance income and expense
Finance income comprises of interest income on funds invested, (including available-for-sale financial assets) and gains on the disposal of
available-for-sale financial assets. Interest income is recognised as it accrues, using the effective interest method.
Finance expenses comprise interest expense on borrowings, unwinding of the discount on provisions and impairment losses recognised on
financial assets. All borrowing costs are recognised using the effective interest method.
Foreign currency gains and losses are reported on a net basis.
(o) Segment reporting
A segment is a distinguishable component of the Consolidated entity that is engaged in providing products or services within a particular
economic environment (geographical segment), or in providing related products or services (business segments). Each segment is subject to
risks and rewards that are different from those of other segments.
(p) Goods and services tax
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is
not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as
part of the expense.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is
included as a current asset or liability in the balance sheet.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and
financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.
(q) Earnings per share
The Consolidated entity presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing
the profit and loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding
during the period. Diluted EPS is determined by adjusting the profit or loss attributable to the ordinary shareholders and the weighted
average number of ordinary shares outstanding for the effects of dilutive potential ordinary shares, which comprise convertible notes and
share options granted.
(r) Critical accounting estimates and judgements
(i) Exploration and evaluation assets
Exploration and evaluation costs, including the costs of acquiring licences, are capitalised as exploration and evaluation assets on an area of
interest basis. Costs incurred before the Consolidated entity has obtained the legal rights to explore an area are recognised in the income
statement.
Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either:
(i)
(ii)
the expenditures are expected to be recouped through successful development and exploitation of the area of interest; or
activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable assessment of the existence
of economically recoverable reserves and active and significant operations in, or in relation to, the area of interest continue.
Exploration and evaluation assets are assessed for impairment if (i) sufficient data exists to determine technical feasibility and commercial
viability, and (ii) facts and circumstances suggest that the carrying amount exceeds the recoverable amount (see impairment accounting
policy (h)). For the purposes of impairment testing, exploration and evaluation assets are allocated to cash-generating units to which the
exploration activity relates. The cash generating unit shall not be larger than the area of interest.
35
Once the technical feasibility and commercial viability of the extraction of oil and gas resources in an area of interest are demonstrable,
exploration and evaluation assets attributable to that area of interest are first tested for impairment and then reclassified from exploration and
evaluation phase assets to production phase assets within deferred exploration evaluation and development costs. Assessments of impairment
are covered in the notes to the financial statements.
(ii) Depletion of development assets
The Consolidated entity depletes development assets based on continual assessments of future economic benefit and estimated reserves
remaining taking into account quantity/units of commodity extracted in that reporting period. Rates of depletion of production phase assets
are not fixed and vary as estimated reserves figures are recalculated and more accurate information becomes available. Rates of depletion
reflect the rate at which future economic benefit has been extinguished from the asset over that reporting period.
(s) Determination of fair values
A number of the Consolidated entity’s accounting policies and disclosures require the determination of fair value, for both financial and non-
financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following
methods. Where applicable, further information about the assumptions made in determining fair values is disclosed in the notes to the
financial statements specific to that asset or liability.
(t) Trade and other receivables
The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest at
reporting date.
(u) Share based payment transactions
The fair value of employee stock and other options is measured using an appropriate option pricing model. Measurement inputs include share
price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility adjusted for
changes expected due to publicly available information), weighted average expected life of the instruments (based on historical experience
and general option holder behaviour), expected dividends, and the risk free interest rate (based on Government bonds).
Service and non-market performance conditions attached to the transactions are not taken into account in determining fair value.
3.
Segment reporting
The Group has adopted AASB 8 Operating Segments which requires operating segments to be identified on the basis of internal reports of
the Group that are reviewed by the chief operating decision-maker in order to allocate resources to the segment and to assess its
performance.
The Board of Norwest reviews internal reports prepared as Consolidated financial statements and strategic decisions of the Group are
determined upon analysis of these internal reports. During the period the Group operated predominately in one business segment, being the
oil and gas sector. Accordingly under the management approach outlined only one operating sector has been identified and no further
disclosures are required in the notes to the Consolidated financial statements.
4. Financing income
Interest
5. Expenses
Salary and wages
Superannuation
Payroll tax
Increase /(decrease) in liability for annual leave
Increase /(decrease) in liability for long service leave
2016
$
6,478
6,478
2016
$
(789,785)
(66,509)
(18,193)
18,670
(2,328)
2015
$
28,038
28,038
2015
$
(912,681)
(65,625)
(34,887)
(12,382)
(14,391)
The Company received recoveries of $85,645 (2015: $216,563) against the above salaries expense by way of joint venture recharges.
(858,145)
(1,039,966)
36
6.
Income tax expense
(a) The major components of income tax expense are:
Income statement
Current income tax:
Current income tax benefit
Deferred income tax:
Relating to origination and reversal of temporary differences
Unused tax losses not recognised as a DTA
Income tax (expense) /income reported in the income statement
2016
$
2015
$
603,454
1,219,156
(54,294)
(549,160)
-
(149,882)
(1,069,274)
-
The aggregate amount of income tax attributable to the financial period differs from the amount calculated on the operating loss.
The differences are recorded as follows:
Accounting loss
Prima facie tax payable at 28.5% (2015: 30%)
Add tax effect of items not brought to account:
Non-deductible and non-assessable permanent items
Tax losses not bought to account
Income tax expense
(b) Deferred income tax
Deferred income tax at 30 June relates to the following:
Deferred tax liabilities
Tax effect of exploration expenses
Set-off against carry forward tax losses
Deferred tax liability balance
Deferred tax assets
Tax value of carry forward losses
Set-off against deferred tax liability
Non-recognition of deferred tax assets
Deferred tax asset balance
(c) Tax losses
Deferred tax assets
Tax losses – revenue
Tax losses - capital
2016
$
(1,859,351)
(529,915)
(19,245)
549,160
-
2015
$
(3,157,781)
(947,334)
(121,939)
1,069,273
-
1,356,283
(1,356,283)
-
1,370,515
(1,370,515)
-
11,115,896
(1,356,283)
(9,759,613)
-
11,144,553
(1,370,515)
(9,774,038)
-
8,522,856
2,018,607
10,541,463
7,853,122
2,123,916
9,977,038
At 30 June 2016, the Consolidated entity has $39,003,144 (2015: $37,148,511) of tax losses that are available indefinitely for offset against
future taxable profits of the Company. With the exception of the amounts recognised above, a net deferred tax asset balance has not been
recognised on the Statement of Financial Position in respect of the amount of these losses.
The recognition and utilisation of losses is subject to the loss recoupment rules being satisfied. The potential deferred tax asset will only be
obtained if:
- assessable income is derived of a nature and of amount sufficient to enable the benefit from the deductions to be realised or the benefit
can be utilised by the Company and/or the Consolidated entity providing that;
- the conditions for deductibility imposed by the law are complied with; and
37
- no changes in tax legislation adversely affect the realisation of the benefit from the deductions.
(d) Tax consolidation legislation
The Company had not elected to consolidate for tax purposes at balance date.
7. Cash and cash equivalents
Bank balances
Cash on deposit
8. Trade and other receivables
Current
Trade and other receivables
Goods and services tax
Prepayments
Non-current
Security bond on leased premises
9.
Investments
Non-current
Available for sale investments held at fair value
2016
$
167,937
167,206
335,143
2016
$
68,182
5,602
-
73,784
25,000
25,000
2016
$
2,000
2,000
2015
$
653,901
758,290
1,412,191
2015
$
99,226
14,750
15,900
129,876
25,000
25,000
2015
$
1,000
1,000
At 30 June 2016, the Group held 333,333 fully paid ordinary shares in Oil Basins Ltd (ASX: OBL) (2015: 333,333).
38
10. Property, plant and equipment
Cost
Balance at 1 July 2015
Additions
Balance at 30 June 2016
Balance at 1 July 2014
Additions
Balance at 30 June 2015
Accumulated depreciation
Balance at 1 July 2015
Depreciation expense per P&L
Balance at 30 June 2016
Balance at 1 July 2014
Depreciation expense per P&L
Balance at 30 June 2015
Carrying amounts
At 30 June 2016
At 30 June 2015
11. Deferred exploration, evaluation and development costs
Exploration and evaluation assets carried forward in respect of mining areas of interest
Exploration and evaluation phase:
Exploration and evaluation expenditure at 1 July
Capitalised expenditure during the year
Exploration expenditure written off
Balance at 30 June
Production phase:
Development costs at 1 July
Expenditure during the year
Operating costs to P&L
Production expenditure written off
Balance at 30 June
2016
$
4,749,065
449,992
(301,360)
4,897,697
-
73,072
(43,102)
(29,970)
-
$
237,329
14,429
251,758
216,261
21,068
237,329
201,257
17,305
218,562
185,959
15,298
201,257
33,196
36,072
2015
$
3,781,514
2,281,431
(1,313,880)
4,749,065
-
98,762
(64,988)
(33,774)
-
Total
4,897,697
4,749,065
The recoverability of the carrying amounts of exploration and evaluation assets is dependent on the successful development and
commercial exploitation or sale of the respective area of interest. This is assessed at balance date on an annual basis.
39
12. Joint venture
Permit
EP 368
EP 426
EP 413
L14
TP/15
EP492
P2265
Country
Australia
Australia
Australia
Australia
Australia
Australia
UK
13. Exploration expenditure commitments
Within one year
One year or later and no later than five years
Later than five years
Interest held at balance date
20.00%
22.22%
27.945%
6.278%
100.00%
100.00%
65.00%
2016
$
8,140,330
14,824,560
364,440
23,329,330
2015
$
6,820,770
12,783,321
89,424
19,693,515
In order to maintain current rights of tenure to exploration permits, the Consolidated entity is required to perform minimum exploration
work to meet the minimum expenditure requirements specified by various Governments. These obligations are subject to renegotiation.
These obligations are not provided for in the financial report.
The permit commitments above will be met through either capital raisings, free carry from farm-in partners, or asset sales. In order to
ensure that the Group’s permits remain in good order, discussions and negotiations with the relevant regulatory bodies take place on a as
required basis to amend the timing of permit commitments where possible so as to align the permit commitments with the financial
capacity of the Group. Should the Group not be permitted to amend the timing of the permit commitments, or have sufficient funds to
satisfy those commitments, the Group risks having to relinquish title to those permits and return the permit(s) to the relevant regulatory
body.
14. Trade and other payables
Trade creditors
Accrued expenses
Goods and services tax
Other payables
15. Provisions - current
Current
Provision for annual leave
40
2016
$
101,279
106,879
883
17,337
226,378
2016
$
24,784
24,784
2015
$
131,057
339,741
8,259
22,858
501,915
2015
$
43,452
43,452
16. Provisions – non-current
Balance at 1 July
Movements during the year:
Permit L14 site restoration (1)
Employee benefits – Long service leave
Finder Exploration (2)
2016
$
975,222
-
2,328
-
2015
$
408,893
13,938
14,391
538,000
975,222
Balance at 30 June
(1): The provision for site restoration relates to production permit L14 Jingemia. It is reassessed on an annual basis and reflects the Company’s
share of the present value of restoration costs.
977,550
(2): The provision in relation to Finder Exploration Pty Ltd (“Finder”) relates to part of the consideration for the purchase from Finder of Finder
No.5 Pty Ltd, the applicant for an Exploration Permit over the SPA-16 AO area. Upon completion of the transaction the Company is to pay Finder
for past costs incurred on SPA-16 AO and for assistance in obtaining the grant of the Exploration Permit.
17. Contributed equity
(a) Issued and Unissued capital
2016
$
2015
$
2,050,569,394 fully paid ordinary shares (30 June 2015: 1,440,454,999)
56,076,464
54,953,620
17. Contributed equity (continued)
(b) Movements in Ordinary Shares during the past two years
Date
01-Jul-15
02-12-15
23-12-15
06-01-16
30-Jun-16
30-Jun-16
01-Jul-14
03-Nov-14
25-Mar-15
25-Mar-15
25-Mar-15
03-June-15
11-Jun-15
30-Jun-15
30-Jun-15
Details
Opening Balance
Share placement
Non-renounceable rights issue
Non-renounceable rights issue - shortfall
Share issue costs
Closing balance
Opening Balance
Acquisition of controlled entity
Share purchase plan
Share purchase plan - shortfall
Share placement
Share placement
Share placement
Share issue costs
Closing balance
No. of Ordinary
Shares
1,440,454,999
200,000,000
136,652,968
273,461,427
-
2,050,569,394
1,103,140,782
2,000,000
156,617,685
55,606,549
16,977,929
53,056,027
53,056,027
-
1,440,454,999
Issue price $
0.0025
0.002
0.002
-
-
0.001
0.004712
0.004712
0.004712
0.004712
0.004712
-
-
$
54,953,620
500,000
273,306
546,923
(197,385)
56,076,464
53,482,856
20,000
737,982
262,018
80,000
250,000
250,000
(129,236)
54,953,620
41
18. Reserves
Share based payment reserve
2016
$
1,409,600
1,409,600
2015
$
1,672,348
1,672,348
(a) Nature and purpose
The share based payment reserve is used to record the fair value of Incentive Options issued by the Group.
(b) Movements in share-based payments reserve during the past two years
Opening balance
Expired during the period
Exercised during the period
Granted during the period
Closing balance
Number
of options
2016
41,650,000
(17,500,000)
-
30,000,000
54,150,000
Number
of options
2015
52,650,000
(11,000,000)
-
-
41,650,000
$
2016
1,672,348
(304,748)
-
42,000
1,409,600
$
2015
2,024,347
(351,999)
-
-
1,672,348
The Incentive Options are granted based upon the following terms and conditions:
Grant date
Entitlement
Number of options Exercising Conditions
10 July 15
Key management,
employees
8,000,000
50% exercisable after 6 months and 50%
exercisable after 12 months
16 Nov 15
Key management,
employees
12,000,000
50% exercisable after 6 months and 50%
exercisable after 12 months
Exercise
Price $
0.006
0.006
Life of
Options
4 years
and less
4 years
and less
29 Nov 12
Directors
16,000,000 (*)
from
7 Feb 13
Key management,
employees & consultants
18,150,000
54,150,000
Vest immediately 50% exercisable after 6
months and 50% exercisable after 12 months
Vest immediately 50% exercisable after 6
months and 50% exercisable after 12 months
0.1155
4 years
0.1155
4 years
and less
(*): Includes 8,000,000 options held by Peter Munachen who is able to hold these options for 6 months after his resignation date.
19. Accumulated Losses
Balance at 1 July
Net loss for the year attributable to members of Norwest Energy NL
Other comprehensive income
Transfer of reserves due to cancelled incentive options
Balance at 30 June
2016
$
(51,793,353)
(1,875,759)
16,408
304,748
2015
$
(48,987,571)
(3,215,464)
57,683
351,999
(53,347,956)
(51,793,353)
42
20. Share-based payments
(a) Recognised Share-based Payments Expense
The Group provides Incentive Options to officers, employees and consultants as part of remuneration and incentive arrangements from
time to time. The number of options granted and the terms of the options are determined by the Board. Shareholder approval is sought
where required. During the past two years, the following equity settled share-based payments have been recognised:
Expense arising from equity-settled share-based payment transactions
2016
$
42,000
42,000
2015
$
-
-
(b) Summary of Incentive options granted as Share-based payments
The following table illustrates the number and weighted average exercise prices (“WAEP”) of Incentive Options granted as share-based
payments at the beginning and end of the financial year.
Outstanding at the beginning of year
Expired/lapsed during the year
Exercised during the year
Granted during the year
Outstanding and exercisable at end of year
Number
2016
41,650,000
(17,500,000)
-
30,000,000
54,150,000
WAEP
2016
0.1111
0.1155
-
0.006
Number
2015
52,650,000
(11,000,000)
-
-
41,650,000
WAEP
2015
0.0997
0.0554
-
-
0.1111
(c) Valuation models and key assumptions used
The fair value of the equity-settled share options granted is estimated as at the date of grant using the Binomial option valuation model
taking into account the terms and conditions upon which the options were granted.
The table below lists the inputs to the valuation model used for the share options granted by the Group that are currently on issue and
outstanding at the end of year:
Number of options
Fair value at grant date
Share price at grant date
Exercise price
Expected volatility¹
Expected life²
Dividend yield (%) ³
Risk-free interest rate
Nov 2015
12,000,000
$0.003
$0.004
$0.006
110.00%
4.62 years
Nil
2.32%
July 2015
8,000,000
$0.006
$0.007
$0.006
110.00%
4.98 years
Nil
2.22%
2014
5,000,000
$0.017
$0.038
$0.1155
90.00%
4.0 years
Nil
2.8%
2013
29,150,000
$0.044
$0.077
$0.1155
90.00%
4.0 years
Nil
2.8%
¹: The expected volatility is indicative of future trends, which may not necessarily be the actual outcome.
²: The dividend yield reflects the assumption that the current dividend pay-out will remain unchanged.
³: The expected life of the options is based on the expiry date of the options as there is limited track record of early exercise of options.
(d) Weighted Average Remaining Contractual Life
As 30 June 2016, the weighted average remaining contractual life of Incentive Options on issue that had been granted as share-based
payments was 1.74 years (2015: 1.35 years).
(e) Range of Exercise Prices
At 30 June 2016, the range of exercise prices of Incentive Options granted as share-based payments is $0.006 to $0.1155 (2015: $0.036 to
$0.1155).
(f) Weighted average Fair Value
The weighted average fair value of Incentive Options granted as share-based payments by the Group is $0.08 (2015: $0.1111).
43
21. Earnings per share
The following reflects the income and share data used in the calculations of the basic and diluted earnings per share:
Loss attributable to ordinary shareholders
Weighted average number of shares at 30 June
2016
$
2015
$
(1,859,351)
(3,157,781)
Number of
Ordinary Shares
Number of Ordinary
Shares
1,287,270,900
1,170,496,044
Diluted earnings per share
There is no material dilutive effect therefore diluted earnings per share is equal to basic earnings per share.
22. Audit fees
Australia – Rothsay Chartered Accountants
Audit and review of Group financial report
United Kingdom – Geoffrey Cole & Co
Preparation of UK subsidiary financial reports
23. Financial risk management
(a) Overview:
20120
2016
$
(29,500)
2015
$
(36,500)
(9,078)
(9,944)
(38,578)
(46,444)
The Group’s principal financial instruments comprise receivables, payables, security deposits, cash and short term deposits and shares held
at fair value. The main risks arising from the Group’s financial instruments are credit risk, liquidity risk, interest rate risk, equity price risk
and foreign currency risk. This note presents information about the Group’s exposure to each of the above risks, their objectives, policies
and processes for measuring and managing risk, and the management of capital. Other than disclosed there has been no significant changes
since the previous financial year to the exposure or management of these risks.
The Group manages its exposure to key financial risks in accordance with the Group’s financial risk management policy. Key risks are
monitored and reviewed as circumstances change (eg. acquisition of a new project) and policies are revised as required. The overall
objective is to support the delivery of the Group’s financial targets whilst protecting future financial security.
Due to the nature and size of the business and uncertainty as to the timing and amount of cash inflows and cash outflows, the Group does
not enter into derivative transactions to mitigate the financial risks. In addition, the Group’s policy is that no trading in financial
instruments shall be undertaken for the purposes of making speculative gains. As the Group’s operations change, the Directors will review
this policy periodically going forward.
The Directors have overall responsibility for the establishment and oversight of the risk management framework. Management monitors
and manages the financial risks relating to the operations of the Group through regular reviews of the risks.
44
(b) Credit risk:
Credit risk is the risk of financial loss to the Consolidated entity if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Consolidated entity’s cash equivalents, security deposits and trade and other
receivables.
The carrying amount of the Group’s financial assets represents the maximum credit risk exposure, as represented below:
Trade and other receivables
Cash and cash equivalents
Total exposure
2016
$
73,784
335,143
408,927
2015
$
129,876
1,412,191
1,542,067
Trade and other receivables comprise trade receivables, GST and VAT refunds due and recharges due from joint venture partners. Where
possible the Consolidated entity trades only with recognised, creditworthy third parties. Receivable balances are monitored on an ongoing
basis with the result that the Group’s exposure to bad debts is not significant. At 30 June 2016, none (2015: Nil) of the Group’s receivables
are past due.
With respect to credit risk arising from cash and cash equivalents, the Group’s exposure to credit risk arise from default of the counter
party, with a maximum exposure equal to the carrying amount of these instruments. Where possible, the Group invests its cash and cash
equivalents with banks that are rated the equivalent of investment grade and above. The Group’s exposure and credit ratings of its
counterparties are continuously monitored.
(c) Liquidity risk:
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Board’s approach to managing
liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. At 30 June 2016 and
2015, the Group has sufficient liquid assets to meet its financial obligations.
The following are the contractual maturities of financial liabilities, including estimated interest payments. There are no netting agreements:
Forecast contractual obligations:
Carrying amount
Contractual cash flows
Consolidated 30 June 2016:
Trade and other payables
Consolidated 30 June 2015:
Trade and other payables
(d) Foreign Currency risk:
$
$
(226,378)
(226,378)
(501,915)
(501,915)
6 months or less
$
(226,378)
(501,915)
The Group is exposed to the risk of movements in exchange rates as a result of overseas activities. The Group’s exposure to foreign
currency risk during the current and prior year primarily arose from controlled entities whose transactions were denominated in Great
British Pounds (“GBP”). Foreign currency risk arises on translations of the net assets to Australian dollars. The foreign currency, gains or
losses arising from this risk are recorded through the Statement of Profit or Loss.
The Consolidated entity has not entered into any derivative financial instruments to hedge such transactions or anticipated future receipts or
payments that are denominated in a foreign currency.
The Consolidated entity’s exposure to foreign currency risk at balance date was as follows, based on notional amounts:
Cash and equivalents
Trade and other receivables
Trade and other payables
Total exposure
30 June 2016
AUD
GBP
Total Equivalent
AUD
30 June 2015
AUD
GBP
319,436
72,881
(180,999)
15,707
903
(45,379)
211,318
(28,769)
335,143
73,784
(226,378)
182,549
910,098
128,822
(320,000)
718,920
502,094
1,054
(181,915)
321,233
Total Equivalent
AUD
1,412,191
129,876
(501,915)
1,040,152
45
Foreign exchange rate sensitivity analysis
At reporting date, had the Australian dollar appreciated or depreciated against the GBP by 10%, Profit or Loss and Other Comprehensive
Income would have increased/ (decreased) by $1,525 (2015: $35,693). This analysis assumes that all other variables, remain constant. The
analysis is performed on the same basis for 2015.
(e) Commodity Price risk:
The Group is exposed to commodity price risk. These commodity prices can be volatile and are influenced by factors beyond the Group’s
control. As the Group does not currently have any sales of commodities and none are forecast for the next 12 months, no hedging or
derivative transactions have been used to manage commodity risk.
(f) Interest rate risk:
The Group’s exposure to the risk of changes in market interest rates relates primarily to the cash and cash equivalents held within financial
institutions. These financial assets with variable rates expose the Group to cash flow interest rate risk. All other financial assets and
liabilities, in the form of receivables and payables are non-interest bearing.
The interest rate profile of the Group’s interest bearing financial instruments was as follows:
Cash and cash equivalents
30 June 2016
$
335,143
30 June 2015
$
1,412,191
The Group’s cash at bank and on hand had a weighted average floating interest rate of 2.00% (2015: 2.00%). The Group does not engage in
any hedging or derivative transactions to manage interest rate risk.
Interest rate sensitivity analysis
A sensitivity of 1% (100 basis points) has been selected as this is considered reasonable given the current level of short term and long term
interest rates. A 1% (100 basis points) movement in interest rates at the reporting date would have increased/decreased Profit or Loss and
Other Comprehensive Income by $3,351 (2015: $14,122). This analysis assumes that all other variables, in particular foreign currency
rates, remain constant.
(g) Capital management:
The Group defines its Capital as total equity of the Group, being $4,138,108 for the year ended 30 June 2015 (2015: $4,832,615). The
Group manages its capital to ensure that it is able to continue as a going concern while financing the development of it projects through
primarily equity based financing. The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. Given the stage of development of the Group, the Board’s objective is to
minimise debt and to raise funds as required through the issue of new shares.
There were no changes in the Consolidated entity’s approach to capital management during the year. During the next 12 months, the
Group will continue to explore farm-out opportunities and additional issues of equity.
46
24. Statement of Cash Flows
Reconciliation of Loss after Tax to the Net Cash Flows from Operations
Note
10
11
20
Loss for the period
Adjustments for non-cash income and expense items:
Depreciation
Depletion expense
Exploration expenditure written off
Impairment of investment
Equity-settled share-based payment
Operating profit before changes in working capital and provisions
(Increase)/decrease in trade and other receivables
(Increase)/decrease in investments & assets
Increase/(decrease) in provisions
Increase/(decrease) in trade and other payables
Net cash outflow from operating activities
2016
$
2015
$
(1,859,351)
(3,157,781)
17,305
-
331,330
-
42,000
(1,468,716)
56,092
(1,000)
(16,340)
(275,537)
(1,705,501)
15,298
13,937
1,347,654
19,998
-
(1,760,894)
8,253
2,333
563,158
124,813
(1,062,337)
25. Related parties
(a) Subsidiaries
Name
Westranch Holdings Pty Ltd
Norwest Perth Basin Pty Ltd
Norwest Holdings (UK) Pty Ltd
NWE Mirrabooka (UK) Pty Ltd
NWE Appalachians LLC
(b) Ultimate Parent
Norwest Energy is the ultimate parent of the Group.
(c) (i) Details of Key Management Personnel
Country of incorporation
% Ownership interest
Australia
Australia
UK
UK
USA
2016
100%
100%
100%
100%
-
2015
100%
-
100%
100%
100%
The Key Management Personnel (“KMP”) of the Consolidated entity at any time during or since the financial year were:
Non-Executive Directors
Michael John Fry
Henry David Kennedy
Ronald Gordon Currie (from 31 March 2016)
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Executives
Peter Munachen (until 31 March 2016)
John Douglas Annand (until 18 July 2016)
CEO
Company Secretary, CFO
Unless otherwise stated, the KMP held their position from 1 July to the date of this report.
(c) (ii) Key Management Personnel compensation
Short term salary & fees
Post-employment benefits
Share-based payments
(d) Loans with Key Management Personnel
No loans were provided to or received from KMP during the year ended 30 June 2016 (2015: nil).
47
2016
$
555,860
19,308
21,000
596,168
2015
$
805,550
18,784
-
824,334
(e) Related Party Transactions with Key Management Personnel
Resource Services International (Aust) Pty. Ltd (RSIA), a company of which Mr Munachen is a director and beneficial shareholder,
was paid $nil (2015: $20,148) for the provision of accounting, administration and office services which was fully paid as of the
reporting dates. The services provided by RSIA were terminated with effect from 1 July 2015 and instead were performed internally.
26. Acquisition of Controlled Entity
On 3 November 2014, the Company acquired Finder No.5 Pty Ltd (since renamed Norwest Perth Basin Pty Ltd) which holds the Special
Prospecting Authority SPA – 16 AO (“SPA”). The SPA grants the right to apply to the Western Australian Department of Mines and
Petroleum (“DMP”) to convert the SPA into a six year Exploration Permit. Completion of the acquisition is subject to and conditional upon
the DMP granting the Exploration Permit.
The transaction has been accounted for as an asset acquisition, considering AASB 3 Business Combinations and the nature of the asset
being acquired.
Net assets acquired:
Cash and cash equivalents
Exploration and evaluation asset
Provision – Finder Exploration Pty Ltd (*)
Cost of the acquisition:
2,000,000 fully paid ordinary shares (#)
Right to acquire Exploration Permit
Note
16
3 November
2014
$
2
538,000
(538,000)
2
(20,000)
19,998
(*):The provision in relation to Finder Exploration Pty Ltd (“Finder”) relates to part of the consideration for the purchase from Finder of
Finder No.5 Pty Ltd, the applicant for an Exploration Permit over the SPA-16 AO area. Upon completion of the transaction the Company is
to pay Finder for past costs incurred on SPA-16 AO and for assistance in obtaining the grant of the Exploration Permit.
(#): The fair value of fully paid ordinary shares issued at the acquisition date has been determined based on the closing share price of the
Company as quoted on the ASX on 3 November 2014 being $0.01 per ordinary share.
27. Contingent Assets and Liabilities
(a) Contingent Assets
As at the date of this report, no contingent assets have been identified in relation to the 30 June 2016 financial year (2015: nil).
(b) Contingent Liabilities
Part of the consideration for the acquisition of SPA-16 AO from Finder Exploration Pty Ltd is an over-riding royalty of 25% of the
Government Royalty that is payable on petroleum production and is only payable if future production from the SPA is achieved . No value
has been recorded in the financial statements for this potential royalty payment to Finder Exploration Pty Ltd.
48
28. Parent information
(a) Financial Position
Assets
Current assets
Non-current assets
TOTAL ASSETS
Liabilities
Current liabilities
Non-current liabilities
TOTAL LIABILITIES
Equity
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
(b) Financial Performance
Profit/(loss) for the year
Other comprehensive income/(loss)
Total comprehensive income/(loss)
29. Commitments
2016
$
2015
$
304,360
4,989,987
5,294,347
952,165
4,823,884
5,776,049
169,719
439,549
609,268
318,530
437,222
755,752
56,076,464
1,409,600
(52,800,985)
4,685,079
54,953,620
1,672,348
(51,605,671)
5,020,297
(1,500,064)
-
(1,500,064)
(2,970,201)
-
(2,970,201)
Management have identified the following material commitments (excluding the exploration commitments disclosed in note 13) for the
Consolidated entity as at 30 June 2016:
2016
Operating Lease
30. Subsequent events
Payable within 1
year
$
112,056
Payable within 1 year
less than 5 years
$
74,704
Total
$
186,760
In July 2016, the Company formed a strategic alliance with Transerv Energy Ltd to facilitate the farmout and drilling of the 160 million
barrel Xanadu Prospect located in TP/15, in addition to other onshore permits Norwest has interests in within the Perth Basin. As part of the
alliance, Transerv acquired via a share placement 100 million shares for $200,000. In addition 115 million shares were issued to
sophisticated and professional investors, raising $430,000 before costs.
A shareholder general meeting subsequently approved the issue of 100 million shares to Director Henry David Kennedy (or his nominee),
50 million shares to Director Ronald Currie (or his nominee) and 50 million shares to a related party of Mr. Currie, raising a further
$400,000 before costs. Thus raising a total of $830,000 before costs for the above placements.
Subsequent to year end, the following management changes were made; Shelley Robertson was appointed Chief Executive Officer who was
previously the Company’s Asset Manager since joining Norwest in January 2011. Emma Curnow was appointed Company Secretary on 18
July replacing Mr John Annand. Ms Curnow was previously the Company’s Financial Controller since joining the Company in March 2015,
a role that she has retained.
In September 2016, the Company announced that a Sale and Purchase Agreement (SPA), Change of Title and Change of Operator
documentation for Production Licence L14 (L14) were submitted to the Department of Mines and Petroleum (DMP) for formal approval.
Subject to DMP approval, Cyclone Energy and RCMA Australia will acquire equity in L14, with the intention to restart production from the
Jingemia Oil Field. Norwest’s contribution to necessary workovers and start-up costs leading to first production are forecast to be
approximately $200,000, and it is anticipated that production will recommence in the first half of 2017 subject to the necessary approvals.
No matters or circumstances have arisen other than the above, since the end of the financial year which significantly affected or may
significantly affect the operations of the Consolidated Entity, the results of the Consolidated Entity, or the state of affairs of the
Consolidated Entity as reported to the year ended 30 June 2016.
49
Directors' Declaration
1
In the opinion of the Directors of Norwest Energy NL (‘the Company’):
(a)
the financial statements and notes, and the Remuneration Report set out in section 12 in the Directors’ Report, are in
accordance with the Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the Company’s and the Group’s financial position as at 30 June 2016 and of their
performance, for the financial year ended on that date; and
complying with the Australian Accounting Standards (including the Australian Accounting Interpretations) and the
Corporations Regulations 2001;
(b)
the financial report also complies with International Financial Reporting Standards as disclosed in Note 2(a); and
(c)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable.
2
3
There are reasonable grounds to believe that the Company and the Group entities identified in Note 25(a) will be able to meet any
obligations or liabilities to which they are or may become subject to by virtue of the Deed of Cross Guarantee between the
Company and those Group entities pursuant to ASIC Class Order 98/1418.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Chairman for the
financial year ended 30 June 2016.
Signed in accordance with a Resolution of Directors:
Dated in Perth on this 21st day of September 2016.
Michael John Fry
Non-Executive Director and Chairman
50
51
52
ASX Additional Information
Additional information required by the ASX Ltd and not shown elsewhere in this report is as follows. The information is current as at
28 September 2016.
(a) Distribution of equity securities
An analysis of numbers of holders of listed securities by size of holdings as at 28 September 2016 is listed below:
1
1,001
5,001
- 1,000
- 5,000
- 10,000
10,001
- 100,000
100,001
and over
The number of shareholders holding less than a
marketable parcel of shares are:
Ordinary shares
Number of holders Number of shares
166
235
366
1,702
1,527
3,996
2,750
33,969
787,127
3,090,372
76,322,276
2,385,335,650
2,465,569,394
117,812,036
(b) Twenty largest shareholders
The names of the twenty largest holders of listed securities as at 28 September are listed below:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
KEMPRUST PTY LTD
SUNDOWNER INTERNATIONAL LIMITED
CARJAY INVESTMENTS PTY LTD
TRANSERV ENERGY LIMITED
REYNE NOMINEES PTY LTD
ARGONAUT EQUITY PARTNERS PTY LTD
REY CATTAMARRA PTY LTD
AVIEMORE CAPITAL PTY LTD
MR RONALD GORDON CURRIE
PERSHING AUSTRALIA NOMINEES PTY LTD
BSG SERVICES PTY LTD
AFM PERSEUS FUND LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR KEVIN MARK JOHNSON
MR ROBERT ANTHONY HUTCHFIELD
MR JOHN DOUGLAS ANNAND
MR ANDREW TROTT HOPKINS + MRS ADRIENNE JANET HOPKINS
MR ANTHONY JOHN WYETH
MR VERNON REGINALD PARROTT
MR MICHAEL STOKES
(c) Voting rights
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
Listed ordinary shares
Number of shares
140,000,000
127,174,705
102,500,000
100,000,000
67,500,000
59,000,000
53,056,027
50,000,000
50,000,000
43,779,289
43,665,848
43,000,000
37,734,846
30,000,000
28,300,000
28,000,001
25,000,001
22,848,342
20,000,001
19,897,472
Percentage of
ordinary shares
5.68
5.16
4.16
4.06
2.74
2.39
2.15
2.03
2.03
1.78
1.77
1.74
1.53
1.22
1.15
1.14
1.01
0.93
0.81
0.81
1,091,456,532
44.27
53
ASX Additional Information
(d) Substantial Shareholders
Substantial shareholder notices have been received from the following at 28 September 2016.
Holder
Mr Henry David Kennedy
Kemprust Pty Ltd
Number of Ordinary Shares
162,806,630
140,000,000
(e) Options
The names of the security holders holding more than 20% or more of an unlisted class are listed below:
Holder
Mr Peter Munachen
Mr John Annand
$0.006 share options
Expiring 30-Jun-2020
-
10,000,000
$0.1155 share options
Expiring 28-Nov-16
8,000,000
-
Mrs Shelley Robertson
10,000,000
Aztech Well Construction Pty Ltd
Others (less than 20%)
-
-
Total
20,000,000
-
11,400,000
14,750,000
34,150,000
(f) Restricted Securities
There is currently no restricted securities of the Company’s securities.
(g) On-Market Buy Back
There is currently no on-market buy-back of the Company’s securities.
54
Registered Office
Level 2, 6 Thelma Sreet
West Perth Western Australia 6005
Telephone: +61 8 9227 3240
Facsimile: +61 8 9227 3211
Email: info@norwestenergy.com.au
www.norwestenergy.com.au