2022 ANNUAL REPORT
2
CORPORATE DIRECTORY
NORWEST ENERGY NL
ABN 65 078 301 505
ACN 078 301 505
Directors
Mr Ernest Anthony Myers
(Non-Executive Chairman)
Mr Bruce Frederick William Clement
(Non-Executive Director)
Managing Director
Mr Iain Peter Smith
Company Secretary
Ms Jo-Ann Long
Registered Office
Level 2, 30 Richardson Street
West Perth WA 6005
Tel: + 61 8 9227 3240
Share Registry
Computershare Investor Services Pty Ltd
GPO Box D182
Perth WA 6840
Level 11
172 St Georges Terrace
Perth WA 6000
Telephone: 1300 850 505 (within Australia)
+61 8 9415 4000 (outside Australia)
Internet Address
www.norwestenergy.com.au
Shareholder Enquiries
info@norwestenergy.com.au
Auditors
Rothsay Audit & Assurance Pty Ltd
Level 1, Lincoln House
4 Ventnor Avenue
West Perth WA 6005
Australian Securities Exchange
NWE
Contents
Chairman’s Report
3
Directors’ Report
4
Lead Auditor’s Independence Declaration
17
Corporate Governance Statement
18
Independent Audit Report
24
Directors’ Declaration
28
Statement of Profit or Loss and other Comprehensive Income
29
Statement of Financial Position
30
Statement of Changes in Equity
31
Statement of Cash Flows
32
Notes to the Financial Statements
33
ASX Additional Information
52
3
CHAIRMAN’S REPORT
Dear Shareholders,
I am pleased to present to you Norwest Energy's Annual Report for the year ended 30 June 2022.
Your Company has continued to prosper since confirming the Lockyer Deep-1 gas/condensate discovery in September 2021,
with the results of subsequent analysis and testing indicating a remarkable find. Having confirmed some 25 metres of gas
pay within a particularly high quality Kingia Sandstone reservoir, production testing of the well in March 2022 resulted in the
highest flow rate achieved in the Perth Basin Permian gas play to date, and one of the highest rates seen anywhere onshore
Australia. We have been fortunate to encounter a particularly high quality gas reservoir.
Further drilling and a 3D seismic survey are now required to confirm the size of the discovery, which has the potential to
cover an area of more than 100 km2. If this is proven to be the case then in all probability your company will own a meaningful
interest in the largest ever conventional onshore gas discovery within Australia, quite possibly by a significant margin.
Upon completion of production testing the Company raised funds via a share placement to predominantly institutional
investors, combined with a share purchase plan for existing shareholders; both of which were well supported. Norwest
Energy is, as a result, fully funded for its net share of costs for a comprehensive appraisal program of up to four wells and a
3D seismic survey. Since the placement in April 2022 the company has received continued strong interest from institutional
and corporate investors, such that the Top 40 shareholders now jointly hold approximately 50% of the shares on issue. This
has resulted in an excellent level of market support and strong share price appreciation since announcement of the discovery,
against a backdrop of market volatility in recent months. Clearly the market regards natural gas as an essential and highly
valuable source of energy.
As the EP368/426 Joint Venture now prepares for appraisal activities, targeting commencement late 2022, we are also
considering targets for future exploration drilling. The recently announced Ringneck 2D seismic results have confirmed the
presence of a large, enticing lead (known as Lead E) immediately to the southeast of the greater Lockyer Deep/North
Erregulla Deep structure. Lead E warrants consideration for future drilling, in addition to a number of other leads including
the Greater Springy Creek oil prospect. We have ample opportunity for growth.
In parallel with appraising the Lockyer discovery Norwest Energy is pursuing various initiatives to develop potential markets
for the gas. Our recently announced investment in Pilbara Clean Fuels Pty Ltd is a good example of one such opportunity.
Operator Energy Resources Limited has set an aggressive timeline to achieving first production in 2024, placing the Lockyer
project in an excellent position to provide incremental gas supply into Western Australia ahead of a projected shortfall
between 2025 to 2027. If the Lockyer project's recoverable resources are as significant as we believe them to be then
additional markets for the gas will be required to support full field development, potentially including export.
The next twelve months promise to be an exciting period for Norwest Energy and I remain excited for your Company's future.
My thanks to the Norwest Energy team for their ongoing effort and commitment, and also to the team at Operator, Energy
Resources Limited, for their excellent technical and operational work to date.
Thank you for your continued support of your Company.
Yours faithfully,
Signed by:
Ernie Myers
Non-Executive Chairman
4
Directors’ Report
The Directors of Norwest Energy NL (“Norwest” or “the Company”) herein present their financial report of the Company
and its subsidiaries (“Consolidated entity” or “Group”), for the financial year ended 30 June 2022.
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.
Ernest Myers (Independent Non-Executive Chairman) CPA
Mr Myers became a Director of Norwest on 28 November 2018. Mr Myers, an Accountant by profession, has held senior
management and executive roles within a number of ASX listed companies. During his career he has been instrumental in
the capital raisings and financial management of these companies. With skills and knowledge gained from vast experiences
in corporate, exploration and operational areas, Mr Myers has played a key role in maintaining the Company’s financial
stability. Mr Myers is an executive director and CEO of Pancontinental Energy NL.
Iain Smith (Managing Director) BSc, MSc, GD-BA
Mr Smith joined Norwest Energy on 2 April 2019. Mr Smith is a petroleum geoscientist with 33 years’ broad experience of
the upstream oil & gas industry, both internationally and in Australia. His early career saw him work offshore UK North
Sea, before joining Premier Oil as a New Ventures Explorationist. Thereafter, Mr Smith spent seven years in the geoscience
services sector, before joining Woodside Energy in a commercial role. At Woodside he worked within the Exploration &
New Ventures group, and subsequently the Browse LNG project, with responsibilities including commercial analysis and
asset divestment. In 2008 Mr Smith joined private exploration company Neon Energy, as Commercial Manager, and was
responsible for the subsequent merger with ASX-listed Salinas Energy. He managed the commercial and investor relations
aspects of the company’s activities in Southeast Asia and California, including the high profile farmout of Neon’s two
offshore Vietnam projects. In 2016 Mr Smith joined Pilot Energy as Managing Director, overseeing an aggressive new
ventures campaign that resulted in the low-cost acquisition of six exploration permits within Western Australia, including
within the onshore and offshore Perth Basin.
Bruce Clement (Non-Executive Director) BEng, BSc, MBA
Mr Clement became a Director on 18 December 2019. Mr Clement has 42 years’ oil and gas industry experience having
held engineering, senior management, and board positions with a variety of companies including ExxonMobil, Ampolex,
Roc Oil, AWE and Santos. He has extensive experience and knowledge of the Perth Basin, previously managing development
of the Cliff Head oil field for Roc Oil and, more recently, overseeing the discovery of the Waitsia gas field as Managing
Director of AWE. Mr Clement is a non-executive director of Horizon Oil Limited.
Jo-Ann Long (Company Secretary and Chief Financial Officer) B.Comm, FCA, GAICD
Ms Long was appointed CFO and Company Secretary on 2 April 2019. Ms Long has over 33 years of experience building,
leading and advising corporations on financial management, restructuring, international expansion, acquisitions and risk
management, initially with Deloitte’s and subsequently with 23 years spent in the Oil and Gas industry with Woodside, and
a number of junior Oil & Gas companies. Ms Long has specialised expertise in joint venture operations, commercial
agreements, tax strategies, risk management and governance. With strong broad commercial and business skills Ms Long
brings a strong discipline of financial management and a track record of documented contributions of improved financial
performance, heightened productivity and enhanced internal controls. Ms Long is Managing Director of Eco Smart Designs
and West Perth Accounting Services and holds non-executive directorships with Yijiyangu Corporation Limited and B2
Yaramarri Direct Benefits Trust.
5
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
Iain Smith (Managing Director)
7,337,662
160,000,000
Ernest Myers (Non-Executive Chairman)
6,731,602
55,000,000
Bruce Clement (Non-Executive Director)
-
55,000,000
3. EARNINGS PER SHARE
2022
2021
Basic earnings per share (cents per share)
(0.034)
(0.01)
Diluted earnings per share (cents per share)
(0.034)
(0.01)
4. CORPORATE INFORMATION
Corporate Structure
The Company is a no liability company that is incorporated and domiciled in Australia.
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.
6
5. OPERATING AND FINANCIAL REVIEW
Operational Review
As at the date of this report, the Company holds interests in the following North Perth Basin exploration permits:
•
20% working interest in EP368
•
22.22% working interest in EP426
•
25% working interest in TP/15 (as Operator)
Exploration Permits EP368 and EP426
During the reporting period the EP368 Joint Venture drilled the Lockyer Deep-1 well, to a depth of 4,274 metres. The well
encountered a very significant conventional gas and condensate discovery in the Permian Kingia Sandstone reservoir, with
20 metres of net pay identified within excellent quality reservoir. Reservoir pressure of 6,514 psi was measured at the top
of the Kingia pay zone, indicating a gas column estimated at approximately 800 metres based on offset-well water pressure
gradients. The apparent presence of such a significant column suggests that gas may extend across the greater structure,
covering an area of some 100 km2 and far exceeding the Company's pre-drill expectations.
Figure 1: Top Kingia Formation Depth Map
Lockyer Deep-1 was production-tested in late March 2022, with a six-day test program designed to determine well
deliverability, reservoir quality and gas composition across a 25-metre interval of the Kingia Sandstone (4041.5m to
4066.75m, MDRT). The initial main flow period ran for several hours, during which flow was increased through a number
of increasing choke settings. A maximum sustained flow rate of 102 MMscf/d (million standard cubic feet per day) was
achieved through a 76/64" choke, with a maximum instantaneous gas flow rate of 117 MMscf/d; one of the highest rates
recorded onshore Australia.
With a well head pressure of 3,618 psi, the well was capable of higher rates of delivery, however the main flow period was
stopped at this point due to indications of sand being produced to surface (at rates in excess of 50 MMscf/d). Sand
production is to be expected at such exceptionally high flow rates and the produced sand was captured by the installed
sand filtration system. As with the nearby Waitsia development wells, future Lockyer Deep production wells will likely be
completed with appropriate sand control measures in place in order to maintain long term reservoir and well integrity.
7
Figure 2: Lockyer Deep-1 production test operations
The production test confirmed high quality gas with 87.5% methane, 3.9% CO2 and low H2S. Associated condensate was
produced throughout the test, with an estimated CGR (Condensate-Gas Ratio) of 3.2 barrels per MMscf gas offering
significant value upside. Subsequent analysis of test data confirms that the testing objectives were met, with a high-quality
dataset recorded. Key insights from this analysis include an estimated Absolute Open Flow rate for Lockyer Deep-1 (i.e.,
unconstrained by tubing) of 190 MMscf/d, and an estimated 70 Bcf to 110 Bcf gas-in-place connected to the Lockyer Deep-
1 well within the well test maximum radius-of-investigation (representing an area of approximately 3km2).
With gas pay potentially present across an area of approximately 100km2, the Lockyer Deep-North Erregulla Deep greater
structure may host a very large gas field, with resources that significantly exceed the Company's pre-drill high case estimate
of prospective resources (which were 1.12 Tcf gas, gross recoverable). Additional drilling is required to confirm the volume
of Contingent Resources with drilling targeted to commence Q4 CY 2022 in parallel with the field-wide Rococo 3D seismic
program.
Significant follow-on potential has been identified across permits EP368 and EP426, with a variety of gas leads and the
Greater Springy Creek oil prospect all under consideration for future drilling subject to completing further technical studies.
Exploration success at Lockyer Deep-1 has significantly de-risked a number of gas leads, and the 148 line-kms Ringneck 2D
seismic survey was conducted in Q1 CY 2022 in order to mature leads for future exploration drilling, in addition to obtaining
modern seismic data across the Lockyer Deep discovery area.
8
Figure 2: EP368 and EP426 - Discovery & Leads showing Ringneck 2D Area of Interest
EP368 JV Participants
Westranch Holdings Pty Ltd1
20%
Energy Resources Ltd2
80%
(Operator)
EP426 JV Participants
Westranch Holdings Pty Ltd
22.22%
Energy Resources Ltd
77.78%
(Operator)
1 Westranch Holdings Pty Ltd is a wholly owned subsidiary of Norwest Energy NL.
2 Energy Resources Ltd is a wholly owned subsidiary of Mineral Resources Ltd.
Exploration Permit TP/15
During the reporting period the Company gave notice to its TP/15 joint venture partners that it will withdraw from the
permit and joint venture, effective 6 December 2021. Subsequently the Company has agreed to remain as Operator of the
Joint Venture until the permit is surrendered by all parties, effective 6 December 2022.
TP/15 JV Participants
Westranch Holdings Pty Ltd
25%
(Operator)
3C Group
30%
Triangle Xanadu Pty Ltd3
45%
3 Triangle Xanadu Pty Ltd is a wholly owned subsidiary of Triangle Energy (Global) Ltd
9
Financial Review
Focus of the Business
Norwest Energy is focused on appraisal and potential development of the Lockyer Deep gas/condensate discovery and
further exploration of the Company’s North Perth Basin acreage, Western Australia.
Financial Results
The net loss of the Consolidated entity for the year ended 30 June 2022 of $1,993,894 was higher than the loss of the prior
year 2021 ($445,255). The main contributing factors were:
Increased operating and management costs due to increased activity for the business; and
Increased Exploration activity and expenditure in EP368 and EP426.
Financial Position
At 30 June 2022, the Group had cash reserves of $22.8m (2021: $3.5m). At 30 June 2022, the Group had net assets of
$27.6m (2021: $4.6m) an increase of $23.0m from the previous year. The change in the cash position is largely attributable
to capital raisings, offset by expenditure on exploration activity, and the increase in net assets is attributable to the increase
in cash and the increase in capitalised exploration expenditure.
Performance Indicators
Management and the Board regularly monitor the Group's overall performance by:
assessing 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 are directly controlled using a disciplined approach
to reducing the Group’s non-essential costs and allocating funds to those activities which will add to shareholder value.
The Company's share price may be influenced by factors outside the control of management and the Board, such as market
conditions and commodity prices.
10
Risk Management
The Board takes a pro-active approach to risk management and is responsible for ensuring that both risks and opportunities
are identified in a timely manner so that the Company's activities are focused on mitigating risks to the fullest extent
possible while taking maximum advantage of opportunities.
Risk
Description
Exploration and
Appraisal
Exploration, and to a lesser degree appraisal, are speculative activities with a risk of discovery
of hydrocarbons in commercial quantities and an associated risk of development. If Norwest
Energy is unsuccessful in locating and developing additional reserves and resources, that are
commercially viable, this may have a material adverse effect on the Company's state of affairs.
Norwest Energy utilises established methodologies and experienced personnel to mitigate these
risks and maximise the chances of success for exploration and appraisal activities.
There are a variety of physical risks associated with operating in the hydrocarbon industry. The
occurrence of any event associated with these risks could result in significant losses to Norwest
Energy that may have a material adverse effect on the Company's financial position. To the
extent that it is reasonable and possible to do so, Norwest Energy mitigates the risk of loss
associated with operating events by being insured appropriately.
Development and
Production
Development and production of hydrocarbon projects may be subject to downside resource
outcomes, budget overruns, and interruptions to production. Norwest Energy will undertake
technical, financial, and commercial analysis in order to determine a project’s readiness to
proceed.
Financing
Further to successful production testing of the Lockyer Deep-1 gas discovery Norwest Energy
raised funds totalling approximately $18 million via a share placement and share purchase plan.
These funds, combined with the proceeds received from exercise of listed options in early 2022,
provide Norwest Energy with the capacity to fund its share of planned appraisal drilling,
exploration drilling and seismic acquisition in the 2022/23 financial year.
Subject to successfully appraising the discovery the Joint Venture intends to proceed with
development and the Company will be required to fund its net share of the cost of
development funding, which may be derived from a variety of sources.
The Norwest Energy Board of Directors is planning for the potential requirement to fund
development activities for Lockyer Deep, and is commencing a strategic process to identify
funding options available to the Company
While Norwest Energy is presently debt free it is possible that the Company may need to take
on debt as the Lockyer gas project progresses from appraisal through to development. Norwest
Energy may at that time become more exposed to risks associated with gearing and leverage,
including interest rate movements.
Climate and
Sustainability
Norwest Energy recognises that the impacts of climate change may affect our operations and
the markets into which the Company intends to sell its products. Direct risks include those
arising from increased severe weather events and indirect risks arise from various governmental
and market responses to the challenges that climate change poses during the transition to a
lower emissions future. These risks may impact demand for the Company’s products, the cost
to produce those products, the Company's social license and the attractiveness of the Company
to both the investment and financing communities.
Mitigation of these risks is managed by continual assessment of the risks posed by direct physical
impacts and the market risk, and identification of the manner in which the Company can
minimise its future emissions impact. Consideration is given to the likely requirements of future
funding partners with respect to the Company's Environmental, Social & Governance
performance.
11
With regards to market risk, the Board of Directors regards the Company's gas resources as
facing a near term low risk to reduced demand due to climate change, particularly given that
natural gas is increasingly regarded as a low emissions energy source that can provide much
needed "firming" capacity to assist in the transition to a fully renewable-based economy.
Government,
Regulatory and
policy
Norwest Energy operates in a highly regulated environment and there is a risk that regulatory
approvals to undertake activities are withheld or take longer than expected, causing project
delays.
Changes in Government policy and/or law (both State and Federal) may impact Norwest
Energy’s operations. However, the Board of Directors considers Western Australia as a
jurisdiction that provides a stable environment for investment.
Market
The West Australian domestic gas market and the international LNG market are subject to
fluctuations in demand, supply, and consequently price. There are risks of a reduction to the
level of demand for the Company’s products, attributable to (for example) changes in energy
consumption preferences and the effect of the local and global economies on demand. If this
occurs, it may result in reduced revenues with a consequent effect on the Company’s financial
position.
Norwest Energy monitors developments in both the WA domestic and international gas markets
as preparation for future contracting of its gas resources once the available sales volumes are
well defined.
Environment
Norwest Energy's operations inherently present certain risks to the environment. The Company
actively manages these risks, working with joint Venture partners to ensure compliance with
regulatory and government requirements.
Norwest Energy is not able to predict the effect of additional environmental laws and
regulations which may be legislated in future. Further, there can be no guarantee that new laws,
regulations or enforcement policies will not impede the Company's proposed activities and/or
result in additional costs to the business.
COVID-19
Norwest Energy has maintained its response to the COVID-19 pandemic in line with its focus on
prioritising the safety and welfare of its employees, suppliers and the community within which
it operates. Minor operational delays were experienced during the drilling and testing of the
Lockyer Deep-1 exploration well, and the acquisition of the Ringneck 2D seismic survey. The
Company continues to monitor ongoing potential COVID-19-related threats to the business and
to consider appropriate preventative actions and responses.
6. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Drilling success at the Lockyer Deep-1 well represents a significant change in the state of affairs of the Company.
7. SIGNIFICANT EVENTS AFTER THE BALANCE DATE
Other than the events outlined in note 24 of the financial statements, at the date of this report, there are no matters or
circumstances which have arisen since 30 June 2022 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
There were no likely developments in the operations of the Group that were not finalised at the date of this report.
9. ENVIRONMENTAL AND HEALTH & SAFETY
Norwest Energy is subject to significant environmental regulation in respect of exploration activities within its licences and
permits and is committed to undertaking all operational activities in an environmentally responsible manner. The Directors
believe that the Company has adequate systems in place for managing its environmental commitments and is not aware
of any breach under its obligations.
Similarly, Norwest Energy operates under strict health and safety guidelines and regulations, and regards the wellbeing of
12
its personnel, contractors, partners and all stakeholders as a priority. The Directors believe that the Company has adequate
systems in place for ensuring it maintains its excellent track record with regards to health and safety and note that during
the reporting period there were no lost-time injuries related to its operational activities.
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 insurance cover for Directors and Officers against any potential liability and the associated legal expenses
of any 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 fact that the
Group is currently undertaking only exploration activities, the risks associated with undertaking these activities and (other
than profit from asset sales) the Company does not expect to achieve 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.
Fixed remuneration is reviewed regularly by the Board. The process consists of a review of Company and individual
performance, comparative remuneration externally 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.
Employment Contracts with Executives
Mr Iain Smith, Managing Director – from 2nd April 2019
Mr Smith has a Services Agreement (“the agreement”) which specifies the duties and obligations to be fulfilled in his role.
As of 1 April 2022 Mr Smith, receives a fixed remuneration component of $500,000 per annum for the position of Managing
Director (inclusive of Superannuation). The Company or the Managing Director may terminate the agreement by providing
12 months’ and 3 months’ notice respectively. The Company has implemented a Short-Term Incentive Plan for Mr Smith,
comprising an annual cash bonus based on performance during the year, as well as a Long-Term Incentive Plan, comprised
of share options and performance rights as approved by shareholders.
Ms Jo-Ann Long Chief Financial Officer and Company Secretary – from 2nd April 2019
Ms Long provides the services of part time Chief Financial Officer and Company Secretary under a services agreement that
specifies the duties and obligations to be provided in her role. The contract may be terminated by either party by giving 6
months’ notice. Ms Long receives a retainer of $3,500 per month for the position of Company Secretary and an hourly
rate for the Chief Financial Officer and other specialised duties.
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
13
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 subject to
shareholder approval.
Fees for the Chairman are presently $100,000 per annum (2021: $48,000) and fees for Non-Executive Directors are
presently set at $100,000 per annum (2021: $36,000).
Emoluments of Directors and Executive KMP
Short term
Salary
& Fees
$
Post-
Employment
Superannuation
$
Short Term
Incentive
Payment
Share-based
Payments
$
Total
$
Performance
related
%
Directors
Iain Smith
2022
358,552
-
50,000
160,699
569,251
37.01
2021
296,000
-
25,000
60,000
381,000
15.75
Ernest Myers
2022
61,000
-
-
58,000
119,000
48.74
2021
48,000
-
-
10,000
58,000
17.24
Bruce Clement
2022
47,388
4,739
-
58,000
110,127
52.67
2021
32,877
3,123
-
10,000
46,000
21.74
Other KMP
Jo-Ann Long
2022
195,220
-
-
28,000
223,220
12.54
2021
114,825
-
-
10,000
124,825
8.01
TOTAL 2022
662,160
4,739
50,000
304,699
1,021,598
TOTAL 2021
491,702
3,123
25,000
90,000
609,825
14
Options and rights granted to KMP
During the financial year ended 30 June 2022 the Company granted 165,000,000 options over unissued ordinary shares, (30
June 2021: 135,000,000) in the Company, to directors and executives as part of their remuneration.
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:
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 17 to the financial
statements.
Option holdings of Key Management Personnel
Value of Options
granted (A)
$
Value of Options
exercised (B)
$
Value of Options
lapsed (C)
$
Value of vested
Options included
in remuneration
report
$
Remuneration
that consists of
Options
%
2022
Iain Smith
84,000
-
-
160,699
28.23
Ernest Myers
48,000
-
-
58,000
48.74
Bruce Clement
48,000
-
-
58,000
52.67
Jo-Ann Long
18,000
161,000
-
28,000
12.54
2021
Iain Smith
-
-
-
60,000
15.75
Ernest Myers
-
-
-
10,000
17.24
Bruce Clement
-
-
-
10,000
21.74
Jo-Ann Long
-
-
-
10,000
8.01
Held at 1 July
Granted as
Remuneration
Exercised
Net other Change
Vested and
exercisable at 30 June
2022
Iain Smith
62,142,857
70,000,000
2,142,857
30,000,000
160,000,000
Ernest Myers
12,142,857
40,000,000
2,142,857
5,000,000
55,000,000
Bruce Clement
10,000,000
40,000,000
-
5,000,000
55,000,000
Jo-Ann Long
11,428,572
15,000,000
10,000,000
3,571,428
20,000,000
2021
Held at 1 July
Granted as
Remuneration
Exercised
Net Other
Change
Vested and
exercisable at 30 June
Iain Smith
32,142,857
-
-
30,000,000
62,142,857
Ernest Myers
7,142,857
-
-
5,000,000
12,142,857
Bruce Clement
5,000,000
-
-
5,000,000
10,000,000
Jo-Ann Long
6,428,572
-
-
5,000,000
11,428,572
15
Performance Rights of Key Management Personnel
Performance rights granted to KMP
During the financial year ended 30 June 2022 the Company granted 30,000,000 (30 June 2021: Nil) performance rights over
unissued ordinary shares, in the Company, to the Managing Director as part of his remuneration.
The Performance Rights have been granted with the following conditions:
1. 10,000,000 performance rights upon achieving an independently verified 2C contingent resource that exceeds 1.6Tcf
recoverable gas (inc. condensate equivalent) for the Lockyer Deep gas discovery;
2. 10,000,000 performance rights on achieving a 30-day VWAP of the NWE share price of equal to or greater than 5.5 cents
per share;
3. 10,000,000 performance rights upon achieving a 30-day VWAP of the NWE share price of equal to or greater than 7.0
cents per share;
4. All performance rights are to expire five years after award and will vest immediately upon a Change of Control event.
Shareholdings of Key Management Personnel
No loans were provided to or received from Key Management Personnel during the year ended 30 June 2022 (2021: 0).
Other Transactions with KMP
Nil.
End of Remuneration Report.
Held at 1 July
Granted as
Remuneration
Exercised
Net other Change
Vested and
exercisable at 30 June
2022
Iain Smith
-
30,000,000
-
-
-
Held at 1 July
Granted as
Remuneration
Exercised
Net Other
Change
Vested and
exercisable at 30 June
2021
Iain Smith
-
-
-
-
-
Held at 1 July
Purchases
Sales
Net Other Change
Held at 30 June
2022
Iain Smith
4,285,715
3,051,947
-
-
7,337,662
Ernest Myers
4,285,715
2,445,887
-
-
6,731,602
Jo-Ann Long
2,857,144
12,428,572
4,285,716
-
11,000,000
2021
Iain Smith
4,285,715
-
-
-
4,285,715
Ernest Myers
4,285,715
-
-
-
4,285,715
Jo-Ann Long
2,857,144
-
-
-
2,857,144
16
14. SHARE OPTIONS
At 30 June 2022 unissued ordinary shares under options were:
Expiry date (Options Unlisted)
Exercise price
Number of options
30 June 2024
$0.0089
32,486,172
30 June 2024
$0.0107
10,000,000
30 June 2025
$0.0089
32,060,485
30 June 2025
$0.0107
10,000,000
19 October 2025
$0.0341
191,000,000
30 June 2026
$0.0089
42,000,000
30 June 2026
$0.0107
10,000,000
Total outstanding as at 30 June 2022
327,546,657
15. DIRECTORS’ MEETINGS
The number of Board meetings held during the year and the number of meetings attended by each Director is as follows:
In addition to formal Board meetings, the Directors are in continual communication with regards to the Company's activities
and strategy. As such, various matters are resolved via Circular Resolutions of the Board of Directors. During the reporting
period seven such circular resolutions were approved.
Committee membership
As at the date of this report, the Company did not have any formal committees.
16. AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration is set out on page 16 and forms part of the Directors’ Report for the year ended 30
June 2022.
17. NON-AUDIT SERVICES
The Company’s auditor, Rothsay Auditing and Rothsay Audit & Assurance Pty Ltd did not provide any non-audit services
during the year (2021: nil).
Dated this 28th Day of September 2022 in accordance with a resolution of the Directors and signed for and on behalf of the
Board by Mr Ernest Anthony Myers
Signed By:
Ernest Anthony Myers
Non-Executive Director and Chairman
Number eligible to
attend
Number attended
Mr Ernest Anthony Myers (Non-Executive Chairman)
3
3
Mr Iain Smith (Managing Director)
3
3
Mr Bruce Clement (Non-Executive Director)
3
3
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001
As lead auditor of the audit of Norwest Energy NL for the year ended 30 June 2022, I declare that,
to the best of my knowledge and belief, there have been:
•
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
•
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Norwest Energy NL and the entities it controlled during the year.
Rothsay Audit & Assurance Pty Ltd
Donovan Odendaal
Director
28 September 2022
18
Corporate Governance Statement
This Corporate Governance Statement has been prepared on the basis of disclosure under the 4th 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
Comply
Yes/No
Principle 1 – Lay solid foundations for management and oversight
1.1
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.
Yes
1.2
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.
Yes
1.3
Written agreement with each director and senior executive setting out the terms of their
appointment.
Yes
1.4
The Company Secretary should be accountable to the Board through the Chair, on all matters to do
with the proper functioning of the Board.
Yes
1.5
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.
Yes
1.6
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.
Yes
1.7
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.
Yes
Principle 2 – Structure the Board to add value
2.1
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.
Yes
2.2
Disclose a Board skills matrix setting out the mix of skills and diversity that the Board has or would
like to achieve.
Yes
2.3
Disclose the names of the independent Directors, along with the length of service of each director.
Yes
2.4
A majority of the Board should be independent.
Yes
2.5
The Chair of a Board should be an independent director and should not be the same person as the
Managing Director.
Yes
2.6
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.
Yes
Principle 3 – Act ethically and responsibly
3.1
Articulate and disclose its values
Yes
3.2
Establish a code of conduct for its directors, senior executives and employees and ensure the Board
is informed of material breaches
Yes
19
3.3
Have a whistleblower policy that ensures the Board is aware of material incidents.
Yes
3.4
Have an anti-bribery and corruption policy that ensures the Board is material breaches.
Yes
Principle 4 – Safeguard integrity in corporate reporting
4.1
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.
Yes
4.2
Before the Board approves its’ financial statements, it should receive from its CFO and Managing
Director 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.
Yes
4.3
Disclose its process to verify the integrity of any periodic corporate report it releases to market that
is not audited or reviewed by an external auditor.
Yes
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.
Yes
5.2
The entity should ensure that its board receives copies of all material market announcements
promptly after they have been made.
Yes
5.3
The entity releases a copy of any new and substantive investor or analyst presentation materials on
the ASX Markets Announcements Platform ahead of the presentation.
Yes
Principle 6 – Respect the rights of the shareholders
6.1
Provide information about the entity and its governance to investors via its website.
Yes
6.2
Design and implement an investor relations program to facilitate effective two-way communication.
Yes
6.3
Disclose the policies and processes to facilitate and encourage participation at meetings of
shareholders.
Yes
6.4
Ensure all substantive resolutions at a meeting of security holders are decided by a poll rather than
by a show of hands.
Yes
6.5
Give shareholders the option to receive and send communications to the entity and it share registry
electronically.
Yes
Principle 7 – Recognise and manage risk
7.1
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.
Yes
7.2
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.
Yes
7.3
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.
Yes
7.4
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.
Yes
Principle 8 – Remunerate fairly and responsibly
8.1
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 and not excessive.
Yes
8.2
Separately disclose its policies and practices regarding the remuneration of non-executive directors,
executive directors, and other senior executives.
Yes
8.3
If the entity has an equity-based remuneration scheme, it should have a policy on whether
participants are permitted to enter into transactions to limit their risk, whether through the use of
derivatives or otherwise.
Yes
20
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:
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:
% Female
2022
2021
Full Time Employees
50%
50%
Executive Employees & Board Members
25%
25%
Recommendation 1.6 and 1.7 – Performance evaluation
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 Managing Director, 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.
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:
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.
•
blend of skills – wide range of backgrounds; geology, engineering, finance and corporate experience;
•
gender – both male and female members; and
•
age – the age range spans over 25 years.
-
board succession planning;
-
performance evaluation of the Board and individual directors;
-
director induction and professional development; and
-
appointment and re-election of directors.
21
The below is the preferred combination of capabilities, skills and experience for the Board:
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.
Recommendation 2.4 – Majority of the Board should be independent
As at 30 June 2022, Ernest Myers and Bruce Clement are considered to be independent.
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 development.
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:
The Charter provides that independent directors may meet with the external auditor.
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.
-
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.
-
monitor and review the integrity of the financial reporting of the Company;
-
review the Company’s internal financial control system; and
-
monitor, review and oversee the external audit function including matters concerning appointment,
remuneration, independence and non-audit services.
22
The Board is ultimately responsible for risk management, however, implementation of the risk management system and day
to day management of risk is the responsibility of the Managing Director, with the assistance of senior 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.
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:
Recommendation 7.4 – Material exposure to environmental and social risks
The Company has identified a series of environmental and social risks which the Group believes to be inherent in the industry.
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
and Norwest works closely with the respective parties and associated communities to come to a mutually beneficial
agreement.
Recommendation 8.1 – Remuneration Committee
The Board does not have a separate Remuneration Committee, rather the non-executive directors fulfil 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:
-
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 Managing Director and CFO prior to sign off of financial statements
by the Board; and
-
Monthly reporting and review of financial and budgetary information.
-
Remuneration packages of directors and senior executives; and
-
Employee incentive and equity-based plans.
23
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, whether through the use of derivatives
or otherwise, to Incentive Options granted as part of their remuneration package.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
NORWEST ENERGY NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Norwest Energy NL (“the Company”) and its controlled entity (“the
Group”) which comprises the statement of financial position as at 30 June 2022, the statement of profit or
loss and other comprehensive income, the statement of changes in equity and the statement of cash flows
for the year then ended on that date and notes to the financial statements, including a summary of
significant accounting policies and the directors’ declaration of the Company.
In our opinion the financial report of the Group is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial
performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under these
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report
section of this report. We are independent of the Group in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and
Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the “Code”) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
NORWEST ENERGY NL (continued)
Key Audit Matter – Share-Based Payments
How our Audit Addressed the Key Audit Matter
The Group recorded share-based payments in the
current year of $245,899.
Share based payments are considered to be a key
audit matter due to:
•
the complexities involved in the recognition
and measurement of these instruments; and
•
the judgement involved in determining the
inputs used in the valuations.
Management used the Black-Scholes option
valuation model to determine the fair value of the
options and performance rights granted. In both
cases the process involved estimations and
judgements to determine the fair value of the
equity instruments granted.
Our procedures over the existence of the Group’s
share-based payments included but were not limited
to:
•
Assessing the amount recognised during the
year in accordance with the vesting
conditions of the agreements;
•
Reviewing management’s valuation of
share-based payments; and
•
Reviewing the compliance of accounting
treatment of the share-based payments with
AASB 2 Share-based Payment.
We have also assessed the appropriateness of the
disclosures included in the financial report.
Key Audit Matter – Exploration and evaluation
expenditure
How our Audit Addressed the Key Audit Matter
The Group has capitalised a significant amount of
exploration and evaluation expenditure during the
year.
We do not consider exploration and evaluation
expenditure to be at a high risk of significant
misstatement, or to be subject to a significant level
of judgement.
However due to the materiality in the context of the
financial statements as a whole, this is considered to
be an area which had an effect on our overall
strategy and allocation of resources in planning and
completing our audit.
Our
procedures
in
assessing
exploration
and
evaluation expenditure included but were not limited
to the following:
•
We assessed exploration and evaluation
expenditure with reference to AASB 6
Exploration for and Evaluation of Mineral
Resources.
•
We tested a sample of exploration and
evaluation
expenditure
to
supporting
documentation to ensure they were bona
fide payments; and
•
We documented and assessed the processes
and controls in place to record exploration
and evaluation transactions.
We have also assessed the appropriateness of the
disclosures included in the financial report.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
NORWEST ENERGY NL (continued)
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2022, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Directors’ Responsibility for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with the Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or cease operations,
or have no realistic alternative but to do so.
Auditor’s Responsibility for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at: www.auasb.gov.au/Home.aspx.
We communicate with the directors regarding, amongst other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
NORWEST ENERGY NL (continued)
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit matters.
We describe those matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communications.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year ended 30 June 2022.
In our opinion the remuneration report of Norwest Energy NL for the year ended 30 June 2022 complies with
section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Rothsay Audit & Assurance Pty Ltd
Donovan Odendaal
Director
Dated 28 September 2022
28
Directors’ Declaration
The Directors of the Company declare that, in the opinion of the Directors:
(a)
The attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the financial position and performance of the consolidated entity; and
(ii) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements.
(b)
The financial statements and notes thereto also comply with International Financial Reporting Standards, as disclosed
in Note 1 and other mandatory professional reporting requirements.
(c)
The Directors have been given the declarations required by s.295A of the Corporations Act 2001.
(d)
There are reasonable grounds to believe that Norwest Energy NL will be able to pay its debts as and when they become
due and payable.
Signed in accordance with a resolution of the Directors made pursuant to s.295(5) of the Corporations Act 2001.
Dated in Perth on this 28th Day of September 2022.
Signed By:
Ernest Anthony Myers
Non-Executive Director and Chairman
29
Statement of Profit or Loss and Other Comprehensive
Income for the year ended 30 June 2022
The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
Note
Consolidated Entity
2022
$
2021
$
Continuing Operations
Interest income
2
517
691
Other Income
2
228,994
577,784
229,511
578,475
Depreciation
2
(82,813)
(81,329)
Audit fees
2,21
(34,000)
(41,000)
Legal expense
2
(8,970)
(999)
Exploration expense and Exploration write off
2,10
(84,331)
(26,369)
Provision for Restoration
2,14
(36,320)
263,820
Employee, consulting, and administration expenses
2
(1,976,971) (1,137,853)
(Loss) from continuing operations before income tax
(1,993,894)
(445,255)
Income tax benefit
4
-
-
(Loss) from continuing operations for the year
(1,993,894)
(445,255)
Other Comprehensive Income
Exchange differences on translation of foreign operations
-
-
Net change in fair value of available for sale financial assets transferred to
profit and loss
-
-
Total Comprehensive (Loss) attributable to Members of Norwest Energy NL
(1,993,894)
(445,255)
Profit/(Loss) per share attributable to the ordinary equity holders of the
company:
Basic and diluted earnings/(loss) per share (Cents)
5
(0.034)
(0.01)
30
Statement of Financial Position
as at 30 June 2022
Note
Consolidated Entity
2022
$
2021
$
Current Assets
Cash and cash equivalents
6
22,807,806
3,524,952
Trade and other receivables
8
22,221
204,161
Total Current Assets
22,830,027
3,729,113
Non-Current Assets
Property, plant, and equipment
9
384
2,008
Exploration and evaluation expenditure
10
6,171,672
1,394,382
Other Assets
11
235,010
81,188
Total Non-Current Assets
6,407,066
1,477,578
Total Assets
29,237,093
5,206,691
Current Liabilities
Trade and other payables
12
1,301,786
499,863
Provision for Annual Leave
10,853
7,134
Provision for Long Service Leave
5,945
13,287
Other Liabilities
13
73,029
91,440
Total Current Liabilities
1,391,613
611,724
Non-Current Liabilities
Provision for Restoration
14
47,500
11,180
Other Liabilities
13
161,981
-
Total Non-Current Liabilities
209,481
11,180
Total Liabilities
1,601,094
622,904
Net Assets
27,635,999
4,583,785
Equity
Contributed equity
15(a)
90,678,445
65,822,236
Reserves
16
509,899
320,000
Accumulated losses
16
(63,552,345)
(61,558,451)
Total Equity
27,635,999
4,583,785
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
31
Statement of Changes in Equity
for the year ended 30 June 2022
Consolidated Entity
Contributed
Equity
$
Share-Based
Payment
Reserve
$
Accumulated
Losses
$
Total Equity
$
Balance at 1 July 2021
65,822,236
320,000
(61,558,451)
4,583,785
Comprehensive income for the year
Profit/(Loss) for the year
-
-
(1,993,894)
(1,993,894)
Total Comprehensive Income for the Year 65,822,236
320,000
(63,552,345)
2,589,891
Transactions with owners in their capacity
as owners:
Share issue (net of costs)
24,856,209
-
24,856,209
Unlisted Options Exercised
-
(56,000)
(56,000)
Unlisted Options Granted
-
229,200
229,200
Performance Rights Granted
-
16,699
16,699
Balance at 30 June 2022
90,678,445
509,899
(63,552,345)
27,635,999
Balance at 1 July 2020
63,920,369
320,000
(61,113,196)
3,127,173
Comprehensive income for the year
Profit/(Loss) for the year
-
(445,255)
(445,255)
Total Comprehensive Income for the Year 63,920,369
320,000
(61,558,451)
(2,681,918)
Transactions with owners in their capacity
as owners:
Share issue (net of costs)
1,901,867
-
-
1,901,867
Share options expired/exercised (1)
-
Share based payments expense
-
Balance at 30 June 2021
65,822,236
320,000
(61,558,451)
4,583,785
(1)
During the year options valued at $10,400 expired.
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
32
Statement of Cash Flows
for the year ended 30 June 2022
Note
Consolidated Entity
2022
$
2021
$
Cash Flows from Operating Activities
Payments to suppliers and employees
(1,529,834)
(1,208,226)
Joint Venture Operator Management fees
67,614
81,702
R&D Incentive Grant
-
174,278
Recoveries and Government Grants
169,482
237,789
Interest received
517
691
Net Cash Used In Operating Activities
6(b)
(1,292,221)
(713,767)
Cash Flows from Investing Activities
Payments for property, plant, and equipment
-
100
Proceeds from sale of Production Assets
100,000
-
Payments for exploration and evaluation expenditure
(4,107,371)
(704,885)
Net Cash Used In Investing Activities
(4,007,371)
(704,775)
Cash Flows from Financing Activities
Proceeds from share issue
25,754,328
2,033,858
Share issue costs
(1,171,882)
(145,190)
Net Cash Provided by Financing Activities
24,582,446
1,888,668
Net Increase/ (Decrease) in Cash Held
19,282,854
470,117
Cash and Cash Equivalent at the Beginning of the Financial Year
3,524,952
3,054,835
Effects of exchange rate changes on cash held
-
-
Cash and Cash Equivalents at 30 June
6(a)
22,807,806
3,524,952
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
33
Notes to the Financial Statements
1
ABOUT THIS FINANCIAL REPORT
Reporting Entity
This financial report of Norwest Energy NL (‘the Company’) for the year ended 30 June 2022 comprises the Company and its
subsidiary (collectively referred to as ‘the consolidated entity’ or ‘Group’). Norwest Energy NL is a company limited by shares
incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange.
The notes to the financial statements are organised into the following sections:
(a) Key Performance: Provides a breakdown of the key individual line items in the statement of comprehensive income
that is most relevant to understanding performance and shareholder returns for the year:
Notes
2
Revenue from continuing operations
3
Segment information
4
Income tax expense
5
Profit/(Loss) per share
(b) Financial Risk Management: Provides information about the Consolidated Entity’s exposure and management of
various financial risks and explains how these affect the Consolidated Entity’s financial position and performance:
Notes
6
Cash and cash equivalents
7
Financial risk management
(c) Other Assets and Liabilities: Provides information on other balance sheet assets and liabilities that do not materially
affect performance or give rise to material financial risk:
Notes
8
Trade and other receivables
9
Property, plant, and equipment
10
Exploration and evaluation expenditure
11
Other assets
12
Trade & other payables
13
Other liabilities
14
Provision for restoration
(d) Capital Structure: This section outlines how the Consolidated Entity manages its capital structure and related
financing costs (where applicable), as well as capital adequacy and reserves. It also provides details on the dividends
paid by the Company:
Notes
15
Contributed equity
16
Reserves and accumulated Losses
17
Share-based payments
(e) Consolidated Entity Structure: Provides details and disclosures relating to the parent entity of the Consolidated
Entity, controlled entities, investments in associates and any acquisitions and/or disposals of businesses in the year.
Disclosure on related parties is also provided in the section:
Notes
18
Parent entity information
19
Investment in controlled entities
20
Key management personnel disclosures & related party transactions
34
(f) Other: Provides information on items which require disclosure to comply with Australian Accounting Standards and
other regulatory pronouncements, however, are not considered significant in understanding the financial
performance or position of the Consolidated Entity:
Notes
21
Remuneration of auditors
22
Commitments for expenditure
23
Contingencies
24
Events occurring after reporting date
25
Summary of Significant Accounting Policies
26
Critical Accounting Estimates and Judgements
1a
Basis of Preparation
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards, other
authoritative pronouncements of the Australian Accounting Standards Board, Australian Accounting Interpretations, and the
Corporations Act 2001. Norwest Energy NL is a for-profit entity for the purposes of preparing the financial statements.
Compliance with IFRSs
The financial statements of Norwest Energy NL also comply with International Financial Reporting Standards (IFRSs) as issued
by the International Accounting Standards Board (IASB).
New Accounting standards and interpretations
Standards and Interpretations applicable to 30 June 2022
In the year ended 30 June 2022, the Directors have reviewed all the new and revised Standards and Interpretations issued
by the AASB that are relevant to the Company and effective for the current annual reporting period. As a result of this review,
the Directors have determined that there are no new or revised Standards and Interpretations with respect to the Company
and, therefore, no change is necessary to Group accounting policies.
Standards and Interpretations in issue not yet adopted
The Directors have also reviewed all Standards and Interpretations in issue not yet adopted for the year ended 30 June 2022.
As a result of this review the Directors have determined there are no new or revised Standards and Interpretations with
respect to the Company and, therefore, no change is necessary to Group accounting policies.
1b
Principles of Consolidation
The consolidated financial statements incorporate the assets and liabilities of the Company as at 30 June 2022 and the results
of its subsidiaries for the year then ended. The Company and its subsidiaries are referred to in this financial report as Reward
or the Consolidated Entity.
All inter-company balances and transactions between entities in the Consolidated Entity, including any unrealised profits or
losses, have been eliminated on consolidation.
1c
GST
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part
of the expense.
Receivables and payables are stated as inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the Statement of
Financial Position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.
35
2022
$
2021
$
2
REVENUE AND EXPENSES FROM CONTINUING OPERATIONS
Interest income
517
691
JV Operator fees and other recoveries
228,994
303,506
Proceeds of Sale of Exploration Asset
-
100,000
Research and development tax rebate received
-
174,278
229,511
578,475
Employee Remuneration and Benefits:
Wages and Salaries
111,127
100,951
Superannuation Expense
12,706
10,386
Provisions for Annual and Long Service Leave
(3,623)
4,124
Consulting Fees
712,110
485,891
Short Term Incentive Payment
107,000
75,000
Share-based Payments
465,298
-
Directors Fees
108,388
80,877
1,513,006
757,229
Other Expenses:
Professional Fees
56,545
69,984
Depreciation
82,813
81,329
ASX fees
78,762
48,582
Consultant Costs
112,000
66,000
Share Registry
31,719
21,574
Office Costs
172,741
155,510
Administration Costs
55,168
60,973
All Other Expenses
120,651
(237,451)
710,399
266,501
3
SEGMENT INFORMATION
The Group has adopted AASB 8 Operating Segments which requires operating segments to be identified based on
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 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 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
INCOME TAX EXPENSE
2022
$
2021
$
(a)
The major components of income tax expense are
Income statement
Current income tax:
Current income tax benefit
(1,626,332)
512,972
Deferred income tax:
Relating to origination and reversal of temporary differences
1,244,536
(344,641)
Unused tax losses not recognised as a DTA
381,796
(168,331)
Income tax (expense)/income reported in the income statement
-
-
36
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:
2022
$
2021
$
Accounting loss
(1,993,894)
(445,255)
Prima facie tax payable at 25% (2021:26%)
(498,474)
(115,766)
Non-deductible expenses
353
324
Add tax effect of items not brought to account:
Non-deductible and non-assessable permanent items
116,325
(52,889)
Tax losses not brought to account
381,796
168,331
-
-
(b) Deferred income tax
2022
$
2021
$
Deferred income tax at 30 June relates to the following:
Deferred tax liabilities
Tax effect of exploration expenses
1,542,918
362,539
Tax effect of other
58,753
23,991
Set-off against carry forward losses
(1,601,671)
(386,530)
Deferred tax liability balance
-
-
Deferred tax assets
Tax value of carry forward losses
13,018,235
11,847,579
Set off against deferred tax liability
(1,601,671)
(386,529)
Deferred tax assets – temporary differences
402,385
125,568
Non-recognition of deferred tax asset
(11,818,949)
(11,586,618)
Deferred tax asset balance
-
-
(c) Tax losses
Deferred tax assets
Tax losses – revenue
11,247,510
10,006,026
Tax losses – capital
1,770,725
1,841,553
13,018,235
11,847,579
At 30 June 2022, the Consolidated entity has $52,072,949 (2021: $45,567,612) of tax losses that are available indefinitely for
offset against future taxable profits of the Company. 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
- 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.
37
5
PROFIT/(LOSS) PER SHARE
2022
Cents Per Share
2021
Cents Per Share
Basic loss per share
(0.034)
(0.01)
2022
$
2021
$
The profit/(loss) for the year and the weighted average number of ordinary
shares used in the calculation of basic loss per share are as follows:
Loss for the year after income tax
(1,993,894)
(445,255)
2022
No.
2021
No.
Weighted average number of ordinary shares for the purposes of basic
earnings per share
5,792,620,673
4,834,127,428
2022
2021
$
$
6
CASH AND CASH EQUIVALENTS
6a
Reconciliation of Cash
For the purposes of the Statements of Cash Flows, cash includes cash on hand
and in banks. Cash at the end of the financial year as shown in the Statement of
Cash Flows is reconciled to the related items in the Statement of Financial
Position as follows:
Cash and short-term deposits
22,807,806
3,524,952
6b
Reconciliation of Net Cash used In Operating Activities to Operating
Profit/(Loss) after Income Tax
Profit/(Loss) for the year
(1,993,894)
(445,255)
Depreciation
82,813
81,329
Bad Debts
10,539
Director & Employee Options
189,898
Exploration costs written off
57,916
26,369
Equity settled share-based payment
275,400
-
Rental adjustment for right of use asset
(94,257)
(84,549)
Interest Lease Liability Office
2,817
13,248
Accrued expenditure
24,000
(294,089)
Restoration Provision
36,320
Change in assets and liabilities during the financial year:
Trade and other receivables
71,400
(173,463)
Investments and assets
-
-
Provisions
32,697
(259,697)
Trade and other payables
12,130
422,340
Net cash inflow/(outflow) from operating activities
(1,292,221)
(713,767)
38
7
FINANCIAL RISK MANAGEMENT
The consolidated entity's activities expose it to a variety of financial risks: market risk, credit risk, liquidity risk and cash flow
interest rate risk. The consolidated entity's overall risk management program focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the financial performance of the consolidated entity.
The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting
policies to these financial statements, are as follows:
2022
2021
Note
$
$
Financial Assets
Cash and cash equivalents
6a
22,807,806
3,524,952
Loans and receivables
8
22,221
204,161
Total Financial Assets
22,830,027
3,729,113
Financial Liabilities
Financial liabilities at amortised cost
Trade and other payables
12
1,301,786
499,863
Total Financial Liabilities
1,301,786
499,863
Risk management is carried out by the Board of Directors, who identify, evaluate and manage financial risks as they consider
appropriate.
7a
Market Risk
(i)
Cash Flow Interest Rate Risk
Refer to (d) below.
7b
Credit Risk
The Group does not have any significant concentrations of credit risk. Credit risk is managed by the Board and arises from
cash and cash equivalents as well as credit exposure including outstanding receivables and committed transactions.
All cash balances held at banks are held at internationally recognised institutions. The majority of receivables are immaterial
to the Group. Given this, the credit quality of financial assets that are neither past due nor impaired can be assessed by
reference to historical information about default rates. The maximum exposure to credit risk at reporting date is the carrying
amount of the financial assets as summarised at the start of this note.
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit
ratings (if available) or to historical information about counterparty default rates. Financial assets that are neither past due
nor impaired are as follows:
2022
2021
$
$
Cash and cash equivalents
‘AA’ S&P rating
22,807,806
3,524,952
7c
Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and, the availability of
funding through the ability to raise further equity or through related party entities. Due to the dynamic nature of the
underlying businesses, the Board aims at maintaining flexibility in funding through management of its cash resources. The
Group has no financial liabilities at the year-end other than normal trade and other payables incurred in the general course
of business. All financial liabilities mature in less than 6 months.
39
7d
Cash Flow Risk
As the Group has significant interest-bearing assets in the form of cash, the Group's income and operating cash flows are
exposed to changes in market interest rates.
Based on the year-end balances, a 1% increase in interest rates would have decreased the consolidated loss by $199,389
(2021: $35,250) and increased the cash balances by a corresponding amount. There were no other amounts included in Net
Assets subject to material interest rate risks.
2022
$
2021
$
8
TRADE AND OTHER RECEIVABLES
GST receivable
12,097
6,471
Trade and other receivables
10,124
197,690
22,221
204,161
No receivables are impaired or past due but not impaired. Refer to Note 7 for Financial Risk considerations. The carrying
value of all receivables approximates their fair value.
2022
$
2021
$
9
PLANT AND EQUIPMENT
Office Furniture and Equipment at cost
262,374
262,374
Accumulated depreciation
(261,990)
(260,366)
384
2,008
Movements in carrying amounts
Movement in the carrying amounts for each class of plant and equipment between the beginning and the end of the
current financial year.
2022
Office
Furniture and
Equipment
$
Total
$
Balance at the beginning of the year
2,008
2,008
Additions
-
-
Disposals
-
-
Depreciation
(1,624)
(1,624)
Balance at end of the Year
384
384
2021
Balance at the beginning of the year
6,422
6,422
Additions
-
-
Disposals
-
-
Depreciation
(4,414)
(4,414)
Balance at end of the Year
2,008
2,008
40
2022
$
2021
$
10 EXPLORATION AND EVALUTION EXPENDITURE
6,171,672
1,394,382
Exploration and evaluation phase:
Carrying amount at the beginning of the year
1,394,380
408,677
Additions
4,861,346
1,012,074
Exploration expenditure impairment
(84,054)
(26,369)
Carrying amount at the end of the year
6,171,672
1,394,382
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.
2022
$
2021
$
11
OTHER ASSETS
Right to Use Asset
Accumulated Depreciation
235,010
-
235,010
233,992
(152,804)
81,188
The right to use asset relates to the capitalisation of the Office lease under AASB 16
2022
$
2021
$
12
TRADE AND OTHER PAYABLES
Trade Payables
56,963
103,596
Accrued Expenses
1,232,548
389,089
Other payables
12,275
7,178
1,301,786
499,863
2022
$
2021
$
13
OTHER LIABILITIES
Lease Liability (Office Lease) - Current
73,029
91,440
Lease Liability (Office Lease) – Non-Current
161,981
-
The lease liability relates to the capitalisation of the Office lease under AASB 16 (See note 11)
41
2022
$
2021
$
14
PROVISION FOR RESTORATION
Balance at 1 July 2021
11,180
275,000
Provision made during the year
36,320
(263,820)
Balance at 30 June 2022
47,500
11,180
2022
$
2021
$
15
CONTRIBUTED EQUITY
15a
Issued capital
6,707,582,956 fully paid ordinary shares (30 June 2021: 5,073,443,410)
90,678,443
65,822,237
15b
Movements in Ordinary Shares during the past two years
Date
Details
No. of Ordinary
Shares
Issue price $
$
01-Jul-20
Opening balance
4,734,467,074
63,920,369
29-Jan-21
Share Placement
338,976,336
0.0060
2,033,858
01-Sep-21
Share Placement
343,750,000
0.0080
2,750,000
24-Jan-22
Exercise of Listed Options
704,650,752
0.0060
4,227,905
01-Apr-22
Share Placement
465,545,550
0.0330
15,398,003
01-Apr-22
Share Purchase Plan
100,739,901
0.0330
3,289,420
30-Jun-22
Exercise of Unlisted Options
10,000,000
0.0089
89,000
30-Jun-22
Exercise of Unlisted Options
9,453,343
0.0291
275,400
Share Issue Costs
(1,305,510)
6,707,582,956
90,678,445
15c Terms of Conditions of Ordinary Shares
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the company, to participate
in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held.
Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.
15d Unissued Capital - Options
There are no unissued Options as at 30 June 2022.
15e Capital Risk Management
The Group defines its Capital as total equity of the Group, being $27,635,999 for the year ended 30 June 2022 (2021:
$4,583,785). The Group manages its capital to ensure that it can 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 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.
42
2022
$
2021
$
16
RESERVES AND ACCUMULATED LOSSES
16a
Accumulated Losses
Accumulated losses at the beginning of the year
(61,558,451)
(61,113,196)
Net loss for the year
(1,993,894)
(445,255)
Other comprehensive income
-
-
Transfer of reserves due to cancelled incentive options
-
-
Accumulated Losses at the end of the year
(63,552,345)
(61,558,451)
16b
Reserves
Share based payments reserve (i)
509,899
320,000
509,899
320,000
(i)
Share-Based Payments Reserve
The share-based payments reserve is used to recognise the fair value of
incentive options issued by the Group.
Balance at beginning of the year
320,000
320,000
Granted during the Year
229,200
Exercised during the period
(56,000)
-
Performance Rights Granted
16,699
Balance at the End of the Year
509,899
320,000
17
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:
(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.
Incentive Options
Number
WAEP
Number
WAEP
2022
2022
2021
2021
Outstanding at the beginning of year
156,000,000
0.0047
156,000,000
0.0092
Expired/lapsed during the year
-
-
Exercised during the year
(19,453,343)
Granted during the year
191,000,000
-
Outstanding and exercisable at end of year
327,546,657
156,000,000
Performance rights
Number
WAEP
Number
WAEP
2022
2022
2021
2021
Outstanding at the beginning of year
-
Nil
-
-
Expired/lapsed during the year
-
-
-
-
Exercised during the year
-
-
-
Granted during the year
30,000,000
-
-
-
Outstanding and exercisable at end of year
30,000,000
-
-
-
43
(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 a 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:
Incentive Options
Grant Date
October 2019
October 2021
Number of options
136,546,657
191,000,000
Fair value at grant date
$0.002
$0.0012
Share price at grant date
$0.006
$0.025
Exercise price
$0.0089 and
$0.0107
$0.0341
Expected volatility¹
150%
50%
Expected life3
4 years
4 years
Dividend yield (%)2
Nil
Nil
Risk-free interest rate
1.75%
1.75%
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.
Performance Rights4
Grant Date June 2022
Grant A
Grant B
Grant C
Number of Performance rights
10,000,000
10,000,000
10,000,000
Fair value at grant date
$0.0139
$0.0168
$0.0139
Probability of result
50%
75%
50%
Share price at grant date
$0.044
$0.044
$0.044
Exercise price
Nil
Nil
Nil
Expected volatility¹
50%
50%
50%
Expected life3
5 years
5 years
5 years
Dividend yield (%)2
Nil
Nil
Nil
Risk-free interest rate
1.6%
1.6%
1.6%
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.
4 The Performance Rights have been granted with the following conditions:
•
Grant A – 10,000,000 performance rights upon achieving an independently verified 2C contingent resource that exceeds
1.6Tcf recoverable gas (inc. condensate equivalent) for the Lockyer Deep gas discovery;
•
Grant B – 10,000,000 performance rights on achieving a 30-day VWAP of the NWE share price of equal to or greater than
5.5 cents per share;
•
Grant C – 10,000,000 performance rights upon achieving a 30-day VWAP of the NWE share price of equal to or greater
than 7.0 cents per share;
•
All performance rights are to expire five years after award and will vest immediately upon a Change of Control event.
(d) Weighted Average Remaining Contractual Life
As 30 June 2022, the weighted average remaining contractual life of Incentive Options on issue that had been granted as
share-based payments was 3.22 years (2021: 3.67 years).
44
(e) Range of Exercise Prices
At 30 June 2022, the range of exercise prices of Incentive Options granted as share-based payments is $0.0089 - $0.0341.
(f) Weighted average Fair Value
The weighted average fair value of Incentive Options granted as share-based payments by the Group is $0.00153 (2021:
$0.0092).
Parent
2022
$
2021
$
18
PARENT ENTITY INFORMATION
18a
Summary Financial Information
Financial Position
Assets
Current assets
22,747,268
3,604,755
Non-current assets
6,077,027
1,874,829
Total Assets
28,824,295
5,479,584
Liabilities
Current liabilities
313,799
244,752
Non-current liabilities
161,981
-
Total Liabilities
475,780
244,752
Net Assets
28,348,515
5,234,832
Equity
Issued capital
90,678,449
65,822,239
Reserves
509,899
320,000
Accumulated losses
(62,839,833)
(60,907,407)
Total Equity
28,348,515
5,234,832
Financial Performance
Profit/(Loss) for the year
(1,932,426)
(709,838)
Other comprehensive income
Total comprehensive profit/ (loss) for the year
(1,932,426)
(709,838)
18b
Guarantees
Norwest Energy NL has not entered into any guarantees in relation to the debts of its subsidiary.
18c
Other Commitments and Contingencies
Norwest Energy NL has no commitments to acquire property, plant, and equipment. Refer to Note 24 for the Company’s
contingent liabilities.
45
19
INVESTMENTS IN CONTROLLED ENTITIES
Name of Entity
Country of
Incorporation
Class of Shares
Equity Holding
2022
%
2021
%
Westranch Holdings Pty Ltd
Australia
Ordinary
100
100
2022
$
2021
$
20
KEY MANAGEMENT PERSONNEL DISCLOSURES & RELATED PARTY
TRANSACTIONS
20a
Details of Remuneration of Key Management Personnel
Short-term salary and fees
712,160
516,702
Post-employment benefits
4,739
3,123
Share-based payments
304,699
90,000
1,021,598
609,825
Detailed remuneration disclosures are provided in the remuneration report.
21
REMUNERATION OF AUDITORS
Australia – Rothsay Audit & Assurance Pty Ltd
24,000
-
Australia – Rothsay Auditing
10,000
41,000
34,000
41,000
No non-audit services have been provided to the Group by the auditor. The Audit fees for 2022 are $34,000.
22
COMMITMENTS FOR EXPENDITURE
22a
Exploration expenditure commitments
Within one year
1,491,660
3,570,000
One year or later and no later than five years
3,002,640
4,277,640
Later than five years
-
-
4,494,300
7,847,640
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. Notwithstanding the minimum requirements management has estimated the commitments for
expenditure based on reasonable expectation of activities on the exploration permits. 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 standing, discussions and negotiations with the relevant
regulatory bodies take place as required to manage the timing of permit commitments where possible. 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.
46
22b Other commitments
Management have identified the operating lease for the registered office as commitments (other than the exploration
commitments disclosed above):
Within one year
73,029
131,327
One year or later and no later than five years
161,981
-
Later than five years
-
-
235,010
131,327
23
CONTINGENCIES
23a
Contingent Assets
There are no contingent assets at reporting date.
23b
Contingent Liabilities
There are no contingent liabilities at reporting date.
24
EVENTS OCCURRING AFTER REPORTING DATE
On 29th August 2022 the Company completed an Unmarketable Sale Facility which resulted in a reduction of 609
shareholders.
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 2022.
25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
25a
Historical Cost Convention
These financial statements have been prepared under the historical cost convention, as modified by the revaluation of
available-for-sale financial assets.
Critical Accounting Estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management
to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of
judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed
in Note 27.
25b
Income Tax
The consolidated entity adopts the liability method of tax-effect accounting whereby the income tax expense is based on the
profit adjusted for any non-assessable or disallowed items.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be
recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on
accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised, or liability is
settled. Deferred tax is credited in the Statement of Profit or Loss and Other Comprehensive Income except where it relates
to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against
which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse
change will occur in income taxation legislation and the anticipation that the consolidated entity will derive sufficient future
assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.
47
25c
Leases
At the lease commencement, the Company recognises a right-of-use asset and associated lease liability for the lease term.
The lease term includes extension periods where the Company believes it is reasonably certain that the option will be
exercised.
The right-of-use asset is measured using the cost model where cost on initial recognition comprises of the lease liability,
initial direct costs, prepaid lease payments, estimated cost of removal and restoration less any lease incentives received.
The right-of-use asset is depreciated over the lease term on a straight-line basis and assessed for impairment in accordance
with the impairment of assets accounting policy.
The lease liability is initially measured at the present value of the remaining lease payments at the commencement of the
lease. The discount rate is the rate implicit in the lease, however where this cannot be readily determined then the
Company’s incremental borrowing rate is used.
Subsequent to initial recognition, the lease liability is measured at amortised cost using the effective interest rate method.
The lease liability is remeasured whether there is a lease modification, change in estimate of the lease term or index upon
which the lease payments are based (e.g., CPI) or a change in the Company's assessment of lease term.
Where the lease liability is remeasured, the right-of-use asset is adjusted to reflect the remeasurement or is recorded in
profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
Exceptions to lease accounting
The Company has elected to apply the exceptions to lease accounting for both short-term leases (i.e., leases with a term of
less than or equal to 12 months) and leases of low-value assets. The Company recognises the payments associated with
these leases as an expense on a straight-line basis over the lease term.
25d
Adoption of new and revised accounting standards
The Company adopts all Standards and Interpretations issued by the AASB that are relevant to the Company and effective
for the current annual reporting period.
25e
Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of
returns, trade allowances and amounts collected on behalf of third parties. Revenue is recognised for major business
activities as follows:
(i)
Interest Income
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial
assets.
(ii)
Other Services
Other debtors are recognised at the amount receivable and are due for settlement within 30 days from the end of the
month in which services were provided.
25f
Exploration and Evaluation Expenditure
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs
are only carried forward to the extent that they are expected to be recouped through the successful development of the area
or where activities in the area have not yet reached a stage which permits reasonable assessment of the economically
recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against operating results in the year in which the
decision to abandon the area is made. When production commences the accumulated costs for the relevant area of interest
are classified as development costs and amortised over the life of the project area according to the rate of depletion of the
economically recoverable reserves.
48
Where independent valuations of areas of interest have been obtained, these are brought to account. Subsequent
expenditure on re-valued areas of interest is accounted for in accordance with the above principles. A regular review is
undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that
area of interest.
At 30 June 2022 the Directors considered that the carrying value of the oil and gas tenement interests of the consolidated
entity was as shown in the Statement of Financial Position and no further impairment arises other than that already
recognised.
25g
Plant and Equipment
Each class of plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and
impairment losses.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it
is probable that future economic benefits associated with the item will flow to the consolidated entity and the cost of the
item can be measured reliably. All other repairs and maintenance are charged to the Statement of Comprehensive Income
during the financial period in which they are incurred.
The carrying amount of plant and equipment is reviewed annually by the Directors to ensure it is not in excess of the
recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that
will be received from the assets’ employment and subsequent disposal. The expected net cash flows have been discounted
to their present values in determining recoverable amounts.
Depreciation
The depreciable amount of all plant and equipment is depreciated on a diminishing value over their useful lives to the
consolidated entity commencing from the time the asset is held ready for use.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Depreciation Rate
Plant and Equipment
27% Declining Balance
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset's
carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its
estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are
included in the Statement of Comprehensive Income. When revalued assets are sold, amounts included in the revaluation
reserve relating to that asset are transferred to retained earnings.
25h
Trade Receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less allowance for
doubtful debts. Trade receivables are due for settlement no more than 30 days from the date of recognition.
Collectability of trade receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off.
An allowance for bad debts is established when there is objective evidence that the consolidated entity will not be able to
collect all amounts due according to the original terms of receivables. The amount of the provision is recognised in the
Statement of Comprehensive Income. They are recognised initially at fair value and subsequently at amortised cost.
Deposits with maturity periods in excess of three months but less than twelve months are included in receivables and not
discounted if the effect of discounting is immaterial.
25i
Trade and Other Payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
year and which are unpaid, together with assets ordered before the end of the financial year. The amounts are unsecured
and are usually paid within 30 days of recognition.
25j
Employee Entitlements
(i)
Wages, salaries and annual and sick leave
A liability for wages, salaries and annual leave expected to be settled within 12 months of the reporting date is
recognised in other payables and is measured as the amount unpaid at balance date at current pay rates in respect of
employees’ services up to that date. No liability exists for sick leave.
49
(ii)
Long service leave
A liability for long service leave is recognised in the provision for employee benefits and is measured as the present
value of expected future payments to be made in respect of services provided by employees’ up to balance date.
25k
Equity-Based Payments
Equity-based compensation benefits are provided to Directors and executives.
The fair value of options granted to Directors and executives is recognised as an employee benefit expense with a
corresponding increase in contributed equity. The fair value is measured at grant date and recognised over the period during
which the Directors and/or executives becomes unconditionally entitled to the options. Where options are issued to
consultants the fair value of the options given is valued by the market value of the service being provided.
The fair value at grant date is independently determined using an option pricing model that takes into account the exercise
price, the term of the option, the vesting and performance criteria, the impact of dilution, the non-tradeable nature of the
option, the share price at grant date and expected price volatility of the underlying share, the expected divided yield and the
risk-free interest rate for the term of the option.
25l
Earnings per share
(i)
Basic earnings per share
Basic earnings per share is determined by dividing the profit attributable to equity holders of the company, excluding
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.
(ii)
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after-income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares and the weighted average number of shares assumed to have been issued for no consideration in relation to
dilutive potential ordinary shares.
25m Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker has been identified as the steering committee that makes strategic decisions.
The standard requires a ‘management approach’, under which segment information is presented on the same basis as that
used for internal reporting purposes. The segments are reported in a manner that is consistent with the internal reporting
provided to the chief operating decision maker.
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and
incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All
operating segments’ operating results are regularly reviewed by the Group’s Managing Director to make decisions about
resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.
Segment results that are reported to the Managing Director include items directly attributable to a segment as well as those
that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company’s
headquarters), head office expenses, and income tax assets and liabilities.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and
intangible assets other than goodwill.
25n
Impairment of Assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that
are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and
value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (cash generating units).
50
25o
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities on the Statement of Financial Position.
25p
Provisions
Provisions are recognised when the consolidated entity has a present legal or constructive obligation as a result of past
events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount has
been reliably estimated.
25q
Contributed Equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds. Incremental costs directly attributable to the issue of new shares or options, or for the acquisition of a
business, are included in the cost of the acquisition as part of the purchase consideration.
If the entity reacquires its own equity instruments, e.g., as the result of a share buy-back, those instruments are deducted
from equity and the associated shares are cancelled. No gain or loss is recognised in the Statement of Comprehensive Income
and the consideration paid including any directly attributable incremental costs (net of income taxes) is recognised directly
in equity.
25s
Comparative Figure
When required by accounting standards, comparative figures have been adjusted to conform to changes in presentation for
the current financial year.
25t
Government Grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be
received, and the Group satisfies all attached conditions.
When the grant relates to an expense item, it is recognised as income over the periods necessary to match the grant on a
systematic basis to the costs that it is intended to compensate.
When the grant relates to an asset, the fair value is credited to a deferred income account and is released to the Consolidated
Statement of Profit or Loss and other Comprehensive Income over the expected useful life of the relevant asset by equal
annual instalments.
Where a grant is received in relation to the tax benefit of research and development costs, the grant shall be credited to
other income in the Consolidated Statement of Profit or Loss and other Comprehensive Income in the year of receipt.
27
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
i)
Significant accounting judgements
In the process of applying the Group’s accounting policies, management has made the following judgements, apart
from those involving estimations, which have the most significant effect on the amounts recognised in the financial
statements:
Capitalisation of exploration and evaluation expenditure
The Group has capitalised significant exploration and evaluation expenditure on the basis either that this is expected
to be recouped through future successful development (or alternatively sale) of the Areas of Interest concerned or
on the basis that it is not yet possible to assess whether it will be recouped. As at 30 June 2022, the carrying value of
capitalised exploration expenditure is $6,171,672.
51
ii)
Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often based on estimates and assumptions of future events.
The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of certain assets and liabilities within the next annual reporting period are:
Impairment of capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors,
including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the
related exploration and evaluation asset through sale.
Factors that could impact the future recoverability include the level of reserves and resources, future technological
changes, costs of drilling and production, production rates, future legal changes (including changes to environmental
restoration obligations) and changes to commodity prices.
Valuation of share-based payments
The Group measures the cost of equity settled share-based payments at fair value at the grant date using the Black-
Scholes model taking into account the exercise price, the term of the option, the impact of dilution, the share price
at grant date, the expected volatility of the underlying share, the expected dividend yield and risk-free interest rate
for the term of the option.
Where options are issued to consultants, the Group values the service provided based on market rates. In the absence
of market rates, the share-based payments are valued as above.
52
1
ASX ADDITIONAL INFORMATION
Additional information required by the Australian Securities Exchange Limited and not shown elsewhere in this report
is as follows. The information is accurate as at 10 October 2022.
1.1
CORPORATE GOVERNANCE STATEMENT
A statement disclosing the extent to which the Company has followed the best practice recommendations set by the
ASX Corporate Governance Council during the period is contained on the Company’s website.
1.2
SUBSTANTIAL SHAREHOLDERS
The names of substantial shareholders who have notified the Company in accordance with section 671B of the
Corporations Act are set out in the table below.
No.
Shareholder
Number of Shares
Held
% of All
Shares
1.
MINERAL RESOURCES LTD
1,334,809,008
19.88
1.3
SHARES ON ISSUE
The total number of shares on issue is 6,713,571,592 and these shares are held by a total of 7,173 registered
shareholders.
1.4
VOTING RIGHTS
All ordinary shares (whether fully paid or not) carry one vote per share without restriction. There are no voting rights
attaching to any option. There is no other class of security in the Company.
1.5
DISTRIBUTION OF SHAREHOLDERS
The distribution of all shareholders is set out in the table below.
Range
Total Holders
Shares
% of All Shares
1 – 1,000
82
11,581
0.00
1,001 – 5,000
24
76,536
0.00
5,001 – 10,000
62
561,101
0.01
10,001 – 100,000
3,609
163,900,940
2.44
101,000 and over
3,396
6,549,021,434
97.55
Total
6,700
6,713,571,592
100.00
1.6
DISTRIBUTION OF UNLISTED EQUITIES
Range
Total Holders
Unlisted Options
% of All Unlisted
Options
101,000 and over
10
346,000,000
100.00
Total
10
346,000,000
100.00
1.7
UNMARKETABLE PARCELS
The minimum parcel size at 10 October 2022 per unit is 10,417 shares.
There are 178 shareholders that hold unmarketable parcels.
53
1.8
TOP 20 SHAREHOLDERS
The top twenty registered shareholders of the Company are set out in the table below.
No.
Shareholder
Shares
% of All
Shares
1.
BELL POTTER NOMINEES LTD
1,267,085,545
18.87
2.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
302,064,310
4.50
3.
MR HENRY DAVID KENNEDY
263,776,936
3.93
4.
CITICORP NOMINEES PTY LIMITED
254,979,810
3.80
5.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C 2
123,423,572
1.84
6.
MR ROBERT ANTHONY HUTCHFIELD
95,231,785
1.42
7.
MR VERNON REGINALD PARROT
70,000,000
1.04
8.
NATIONAL NOMINEES LIMITED
69,156,000
1.03
9.
MINERAL RESOURCES LTD
67,723,463
1.01
10.
NETWEALTH INVESTMENTS LIMITED
63,866,204
0.95
11.
MCCUSKER HOLDINGS PTY LTD
46,000,000
0.69
12.
AXSIM FUNDS MANAGEMENT PTY LTD
44,613,054
0.66
13.
BERENES NOMINEES PTY LTD
44,000,000
0.66
14.
MR PAUL AINSWORTH
42,000,000
0.63
15.
MR SCOTT ROBERT WEIR
39,616,270
0.59
16.
MR ANDREW TROTT HOPKINS + MRS ADRIENNE JANET HOPKINS
29,000,001
0.43
17.
MR GREGORY THOMAS TURVEY + MRS HELEN GRACE TURVEY
28,600,000
0.43
18.
UURO PTY LTD
28,521,310
0.42
19.
HALCYON NOMINEES PTY LTD
28,000,000
0.42
20.
SUTTON NOMINEES PTY LTD
27,547,491
0.41
TOTAL
2,935,205,751
38.37
TOTAL REMAINING HOLDERS BALANCE
3,778,365,841
61.63
1.9
RESTRICTED SECURITIES
The Company has no restricted securities on issue.
1.10 ON-MARKET BUY-BACK
There is no current on-market buy-back.
54
Registered Office
Level 2, 30 Richardson Street
West Perth Western Australia 6005
Telephone: +61 8 9227 3240
Facsimile: +61 8 9227 3211
Email: info@norwestenergy.com.au
www.norwestenergy.com.au