TIDMOEX
RNS Number : 5578Q
Oilex Ltd
28 October 2021
ASX-RNS Announcement
28 October 2021
ASX: OEX
AIM: OEX
September 2021 Quarterly Report
CAMBAY FIELD, ONSHORE GUJARAT, INDIA
>> The Company is focussing on re-establishing a field
program including a re-frac of the existing C-77H well to increase
production and to develop a reliable fraccing methodology that can
be applied to future wells. In this respect the Company is planning
two new horizontal wells (C-78H and C-79H), subject to securing the
necessary funding, for H2 2022 and has issued a Request for
Quotation for well management services for the execution. Funding
requirements may be mitigated by a successful farm out on the
Cambay PSC.
>> Government of India approval for the transfer of the
55% interest in Cambay which the Company purchased from GSPC is
expected in the coming months, following which Oilex will hold a
100% participating interest in Cambay.
East Irish Sea, UNITED KINGDOM CONTINENTAL SHELF
>> During the Quarter, the Company relinquished its UK
P2446 exploration licence, which incorporated the Doyle and Peel
structures in the UK East Irish Sea.
West kampar, indonesia
>> Progress continues to be made towards the Company's
strategic objective to regain a participating interest in the West
Kampar PSC in Indonesia which, subject to financing, is expected to
lead to recommencing production from the Pendalian Oilfield.
UNITED KINGDOM CONTINENTAL SHELF CCS
>> The Company has made an application via the OGA's
nomination process for Carbon Capture and Storage ("CCS") on two
UKCS depleted gas fields, Esmond and Forbes
CORPORATE
>> Cash resources at 30 September 2021 were A$0.78 million.
>> In accordance with ASX Listing Rule 3.13.1, the Company
advised that the Annual General Meeting ("AGM") of the Company will
be held on Friday, 26 November 2021. A Notice of Meeting for the
AGM is being prepared by the Company and will be announced to ASX
and provided to Shareholders by the end of October 2021.
>> During the Quarter the Company advised that it is
establishing an opt-out unmarketable parcel sale facility
("Facility") for shareholders on the ASX register who hold less
than A$500 worth of fully paid ordinary shares in the Company
("Unmarketable Parcel"). The ASX Listing Rules define an
Unmarketable Parcel as those with a market value of less than
A$500. The Facility will only be available to shareholders who hold
their shares on ASX, and not AIM Depository Interest holders.
>> The Report is for the period 1 July 2021 to 30 September 2021 ("Quarter")
CHIEF EXECUTIVE OFFICER'S REPORT TO SHAREHOLDERS FOR THE
QUARTER
OVERVIEW
Following a strategy review, Oilex Ltd ("Oilex" or the
"Company") is currently focused on developing its current primary
asset in the Cambay Basin, India, and applying to acquire mature
gas producing assets and instigate carbon capture and storage
("CCS") projects in the UK. The focus of the Company will be
centred on gas production and CCS with a view to becoming a
carbon-neutral gas producer.
The Company elected to relinquish its P2446 exploration licence
in the East Irish Sea, UK since this exploration licence did not
fit with the Company's strategy, which will now be directed at
acquiring existing mature gas filed production in conjunction with
CCS projects.
The Company aims to restart gas production cycling between two
existing production wells in its Cambay PSC in the near future. The
agreement to purchase the Gujarat State Petroleum Company's 55%
participating interest in the Cambay Production Sharing Contract
has enabled it to accelerate field development of the Cambay
field's c.930 BCF gas resources. Oilex plans to re-frac the
existing C-77H well to demonstrate a reliable fraccing methodology
for two new wells planned for H2 2022, subject to securing the
necessary funding. The Company will also seek to identify a new
joint venture partner for the Cambay PSC in order to mitigate the
funding requirement.
HEALTH, SAFETY, SECURITY AND ENVIRONMENT
All work was undertaken safely, without environmental incident
and in accordance with COVID-19 related protocols during the
Quarter.
CAMBAY FIELD, GUJARAT, INDIA
(Oilex: Operator and 100% interest pending Government of India
ratification)
Oilex currently holds a 45% PI in the Cambay Field, which will
increase to 100% PI once the Government of India ratifies the GSPC
acquisition. The bank guarantee of US$2.2 million (in favour of
GSPC) to secure the acquisition was arranged during the Quarter,
decreasing the Company's cash balance.
The Cambay field development is centred on the successful
exploitation of the gas resources held in the Eocene EP-IV
reservoir which extends across the field and has been penetrated by
over 30 wells. The EP-IV reservoir comprises low permeability
("tight") siltstones and requires frac stimulation to provide
economic gas production rates.
Whereas two horizontal wells (C-76H in 2011 and C-77H in 2014)
were successfully and efficiently drilled to total depth in the
EP-IV reservoir, the fraccing and completion of the wells were
disappointing. In advance of drilling two new horizontal wells, the
Company has decided to re-frac the existing C-77H well to not only
increase production but to also develop a reliable fraccing
methodology that can be applied to future wells. C-77H had initial
production levels of up to 1.0 mmscfd. The Company believes that a
successful re-frac stimulation will increase production levels by 3
to 5 times.
The development of well programs for two new horizontal wells
(C-78H and C-79H) is at an advanced stage and the Company has
issued a Request for Quotation for well management services for the
execution of the two new wells which is planned, subject to
securing the necessary funding, for H2 2022. Funding requirements
may be mitigated by a successful farm out on the Cambay PSC.
Environmental Clearance
The Company is presently in the final stages of obtaining a new
environmental clearance from the Ministry of Environment and Forest
and Cabinet Committee to supersede the previous clearances already
obtained under the previous regulatory requirements. The clearances
are necessary to recommence production and carry out future
development activities at Cambay. Following receipt of the
necessary environmental clearances, production from wells C-73 and
C-77H are on standby for re-commencement.
An Environmental Impact Assessment has been prepared by the
Company's independent consultants and has been submitted to the
applicable authorities. Public hearings are scheduled for the end
of October 2021. The environmental permit will be required for the
drilling of C-78H and C-79H.
Joint Venture Management
During the Quarter, Oilex received a payment of US$543k towards
outstanding cash calls from its Joint Venture partner.
United Kingdom Continental Shelf
East Irish Sea Licence P2446 (UK jurisdiction)
During the Quarter, following an unsuccessful request to the UK
Oil and Gas Authority to extend the initial term of the P2446
exploration licence, the Company relinquished its UK P2446
exploration licence. The extension was requested due to COVID-19
related delays in completing the initial phase work programme. The
remaining technical uncertainties and the Company's new strategy to
focus on mature gas field acquisitions and CCS opportunities were
the main drivers behind the Company's decision.
Acquisition of Mature Gas Field Assets
During the Quarter, the Company commenced its search for mature
gas assets that may be suitable for CCS projects in the future.
Carbon Capture and Storage
The Company believes that natural gas will form a vital
component of the energy mix for the foreseeable future, however, it
also recognises the adverse impact of ongoing CO(2) emissions. The
Company has significant gas storage credentials and is seeking to
exploit that expertise to implement CCS projects, initially in the
UK, where there is a mature carbon allowance structure.
To this end, the Company has made an application for a CO(2)
storage licence on the Esmond and Forbes depleted gas fields in the
southern sector of the North Sea via the OGA nomination process.
The Esmond field alone has the potential to store greater than 50
million metric tons of CO(2) .
JPDA 06-103, TIMOR SEA
(Oilex: PSC Terminated 15 July 2015 - Operator and 10%
interest)
In August 2020, on behalf of its Joint Venture Participants,
Oilex announced a Deed of Settlement and Release ("Deed") with the
Autoridade Nacional Do Petroleo E Minerais ("ANPM").
Under the terms of the Deed, Oilex committed to a settlement of
US$800k payable up to the financial year 2024. A total of US$50k
has been drawn down to date on the US$800k loan facility provided
by two of the joint venture partners to fund the settlement,
leaving an undrawn balance of US$750k on the loan facility. US$212k
has also been credited to the loan facility to date, resulting in a
credit on the loan facility of US$162k at quarter end. The balance
of US$588k on the loan facility is due for settlement prior to
August 2023 (for further details of the loan refer to the
"FINANCIAL" section below).
WEST KAMPAR PSC, CENTRAL SUMATRA, INDONESIA
During the Quarter, the Company continued with its strategic
objective to regain a participating interest in the West Kampar PSC
in Indonesia, which is expected to lead, subject to financing, to
recommencing production from the Pendalian Oilfield.
CORPORATE AND FINANCIAL
2021 Annual Report to Shareholders
During the Quarter the Company released its 2021 Annual Report
to Shareholders, Corporate Governance Statement and Appendix 4G.
The Annual Report can be accessed via the Company website
https://www.oilex.com.au/investors/financial-reports .
2021 Annual General Meeting of Shareholders
In accordance with ASX Listing Rule 3.13.1, the Company advised
that the Annual General Meeting ("AGM") of the Company will be held
on Friday, 26 November 2021. A Notice of Meeting for the AGM is
being prepared by the Company and will be announced to ASX and
provided to Shareholders shortly.
Board Changes
On 25 August 2021, the Company announced the appointment of
Suzie Foreman as Company Secretary of the Company. Mark Bolton
stepped down as Company Secretary and continues as a Non-Executive
Director of Oilex.
Unmarketable Parcel Sale Facility for ASX Shareholders
On 7 September 2021, Oilex advised that it is establishing an
opt-out unmarketable parcel sale facility ("Facility") for
shareholders on the ASX register who hold less than A$500 worth of
fully paid ordinary shares in the Company ("Unmarketable Parcel").
ASX Listing Rules define an Unmarketable Parcel as those with a
market value of less than A$500. The Facility will only be
available to shareholders who hold their shares on ASX, and not AIM
Depository Interest holders.
As at market close on Friday 3 September 2021 ("Record Date"),
the closing price of the Company's shares on ASX was $0.003 and on
this basis, an Unmarketable Parcel is less than 166,667 shares.
In accordance with the Company's Constitution and ASX Listing
Rules, all shareholders holding an Unmarketable Parcel of shares as
at the Record Date have been informed of the Facility and provided
with a Share Retention Form should they decide to opt out of the
Facility.
The Company values all of its shareholders, however, it incurs
significant administrative costs maintaining such a large number of
Unmarketable Parcels. By facilitating this sale, the Company
expects to reduce the administrative costs associated with
maintaining a large number of very small holdings.
A summary of key dates in relation to the Facility are as
follows:
Unmarketable Parcels Record Date 7.00pm (AEST) Friday, 3 September
2021
Despatch of Letter to holders Friday, 10 September 2021
of Unmarketable Parcels
-------------------------------------
Closing Date for Receipts of Share 5.00pm (AEST) Friday, 22 October
Retention Form 2021
-------------------------------------
Estimated Unmarketable Parcels As soon as practicable after Friday,
payment date 19 November 2021
-------------------------------------
Shareholders who have any questions about the Facility should
contact the Oilex Ltd Information Line on 1300 131 678 (within
Australia) or +61 1300 131 678 (from outside Australia) between
8:30am and 5:30pm (AEST) Monday to Friday, or visit
www.linkmarketservices.com.au.
Issue of Shares to Non-Executive Directors
During the Quarter the company issued 2,458,785 new ordinary
shares as consideration in lieu of Non-Executive Director fees as
follows:
Shares Issued
-------------- --------------
Mr P Haywood 702,510
Mr P Schwarz 1,756,275
--------------
2,458,785
These new ordinary shares were issued at a price of A$0.004 per
ordinary share.
The issue of shares to Non-Executive Directors in lieu of fees
was approved by shareholders on 16 December 2020.
Payments Made to Related Parties and Their Associates
The attached Appendix 5B includes an amount of A$300k in items
6.1 and 6.2 (total) which constitutes payments to directors and
other related parties for salaries, director fees and
superannuation.
FINANCIAL
At 30 September 2021, Oilex retained cash resources of A$0.78
million.
The Company also has a loan facility which the Company
previously entered with two of its JPDA 06-103 joint venture
partners, Japan Energy E&P JPDA Pty Ltd and Pan Pacific
Petroleum (JPDA 06 103) Pty Ltd, for US$800k. The loan was in
credit of US$162k at 30 September 2021, and the balance of the
facility available to be drawn was US$750k at 30 September 2021,
with no further amounts drawn during the Quarter.
The interest rate of the loan facility is 11% and the balance of
any loan amounts are to be repaid prior to the loan's maturity on
17 August 2023.
Capital Structure
The shares and options on issue at 30 September 2021 were as
follows:
Ordinary Shares 5,688,430,356
Unlisted Options (Exercise Price,
Expiry): 603,403,361
GBP 0.00476, 30/06/2022
----------------------------------- --------------
Qualified Petroleum Reserves and Resources Evaluator
Statement
Pursuant to the requirements of Chapter 5 of the ASX Listing
Rules, the information in this report relating to petroleum
reserves and resources is based on and fairly represents
information and supporting documentation prepared by or under the
supervision of Mr Joe Salomon, Executive Chairman employed by Oilex
Ltd. Mr Salomon has over 32 years experience in petroleum geology
and is a member of the Society of Petroleum Engineers and AAPG. Mr
Salomon meets the requirements of a qualified petroleum reserve and
resource evaluator under Chapter 5 of the ASX Listing Rules and
consents to the inclusion of this information in this report in the
form and context in which it appears. Mr Salomon also meets the
requirements of a qualified person under the AIM Note for Mining,
Oil and Gas Companies, and consents to the inclusion of this
information in this report in the form and context in which it
appears.
Board of Directors
Roland Wessel CEO and Director
Joe Salomon Executive Chairman
Mark Bolton Non-Executive Director
Paul Haywood Non-Executive Director
Peter Schwarz Non-Executive Director
Company Secretary
Suzie Foreman Company Secretary
Stock Exchange Listing
Australian Securities Code: OEX
Exchange
AIM London Stock Exchange Code: OEX
AIM Nominated Adviser AIM Broker
Strand Hanson Limited Novum Securities Limited
Share Registry - Australia
Link Market Services Limited
Level 12
250 St. Georges Terrace
Perth WA 6000 Australia
Telephone: 1300 554 474
Website: http://investorcentre.linkmarketservices.com.au
Share Registry - United Kingdom
Computershare Investor Services
PLC
The Pavilions
Bridgwater Road
Bristol BS13 8AE United Kingdom
Telephone: +44 (0) 870 703 6149
Website: www.computershare.com
PETROLEUM PERMIT SCHEDULE - 30 SEPTEMBER 2021
ASSET LOCATION ENTITY CHANGE EQUITY OPERATOR
IN INTEREST %
%
------------------ ------------------- -------------- -------- --------------
Cambay Gujarat, India Oilex Ltd - 30.0 Oilex
Field PSC Ltd
(1)
------------------ --------------
Oilex N.L.
Holdings
(India) Limited - 15.0
----------------------------------------------------- -------------- -------- --------------
JPDA 06-103 Joint Petroleum Oilex (JPDA - 10.0 Oilex
PSC (2) Development 06-103) Ltd (JPDA
Area 06-103)
Timor Leste Ltd
and Australia
------------------ ------------------- -------------- -------- --------------
United Kingdom
(East Irish Oilex EIS Oilex
P2446 (3) Sea) Limited (100.0) 0.0 EIS Limited
------------------ ------------------- -------------- -------- --------------
(1) Oilex signed a binding agreement to acquire GSPC's 55%
equity and the purchase price is being arranged by Oilex under a
bank guarantee, which was arranged during the Quarter. Following
Government of India approval, Oilex will hold 100% equity.
(2) PSC terminated on 15 July 2015.
(3) On 17 September 2021, the Company announced its plans to
relinquish the P2446 licence. The licence was subsequently
relinquished on 30 September 2021 upon its expiry.
Associated Natural gas found in contact with or dissolved
Gas in crude oil in the reservoir. It can
be further categorised as Gas-Cap Gas
or Solution Gas.
--------------- ------------------------------------------------------------
Barrels/Bbls Barrels of oil or condensate - standard
unit of measurement for all oil and condensate
production. One barrel is equal to 159
litres or 35 imperial gallons.
--------------- ------------------------------------------------------------
BBO Billion standard barrels of oil or condensate
--------------- ------------------------------------------------------------
BCF Billion cubic feet of gas at standard
temperature and pressure conditions.
--------------- ------------------------------------------------------------
BCFE Billion cubic feet equivalent of gas at
standard temperature and pressure conditions.
--------------- ------------------------------------------------------------
BOE Barrels of Oil Equivalent. Converting
gas volumes to the oil equivalent is customarily
done on the basis of the nominal heating
content or calorific value of the fuel.
Common industry gas conversion factors
usually range between 1 barrel of oil
equivalent (BOE) = 5,600 standard cubic
feet (scf) of gas to 1 BOE = 6,000 scf.
(Many operators use 1 BOE = 5,620 scf
derived from the metric unit equivalent
1 m(3) crude oil = 1,000 m(3) natural
gas).
--------------- ------------------------------------------------------------
BOEPD Barrels of oil equivalent per day.
--------------- ------------------------------------------------------------
BOPD Barrels of oil per day.
--------------- ------------------------------------------------------------
Contingent Those quantities of petroleum estimated,
Resources as of a given date, to be potentially
recoverable from known accumulations by
application of development projects, but
which are not currently considered to
be commercially recoverable due to one
or more contingencies.
Contingent Resources may include, for
example, projects for which there are
currently no viable markets, or where
commercial recovery is dependent on technology
under development, or where evaluation
of the accumulation is insufficient to
clearly assess commerciality. Contingent
Resources are further categorized in accordance
with the level of certainty associated
with the estimates and may be sub-classified
based on project maturity and/or characterised
by their economic status.
--------------- ------------------------------------------------------------
Discovered Is that quantity of petroleum that is
in place estimated, as of a given date, to be contained
volume in known accumulations prior to production.
--------------- ------------------------------------------------------------
GOR Gas to oil ratio in an oil field, calculated
using measured natural gas and crude oil
volumes at stated conditions. The gas/oil
ratio may be the solution gas/oil, symbol
Rs; produced gas/oil ratio, symbol Rp;
or another suitably defined ratio of gas
production to oil production. Volumes
measured in scf/bbl.
--------------- ------------------------------------------------------------
MMBO Million standard barrels of oil or condensate.
--------------- ------------------------------------------------------------
mD Millidarcy - unit of permeability.
--------------- ------------------------------------------------------------
MD Measured Depth.
--------------- ------------------------------------------------------------
MMbbls Million barrels of oil or condensate.
--------------- ------------------------------------------------------------
MMscfd Million standard cubic feet (of gas) per
day.
--------------- ------------------------------------------------------------
MSCFD Thousand standard cubic feet (of gas)
per day.
--------------- ------------------------------------------------------------
PI Participating Interest.
--------------- ------------------------------------------------------------
Prospective Those quantities of petroleum which are
Resources estimated, as of a given date, to be potentially
recoverable from undiscovered accumulations.
--------------- ------------------------------------------------------------
PSC Production Sharing Contract.
--------------- ------------------------------------------------------------
Reserves Reserves are those quantities of petroleum
anticipated to be commercially recoverable
by application of development projects
to known accumulations from a given date
forward under defined conditions.
Proved Reserves are those quantities of
petroleum, which by analysis of geoscience
and engineering data, can be estimated
with reasonable certainty to be commercially
recoverable, from a given date forward,
from known reservoirs and under defined
economic conditions, operating methods
and government regulations.
Probable Reserves are those additional
Reserves which analysis of geoscience
and engineering data indicate are less
likely to be recovered than Proved Reserves
but more certain to be recovered than
Possible Reserves.
Possible Reserves are those additional
reserves which analysis of geoscience
and engineering data indicate are less
likely to be recoverable than Probable
Reserves. Reserves are designated as 1P
(Proved), 2P (Proved plus Probable) and
3P (Proved plus Probable plus Possible).
Probabilistic methods:
* P90 refers to the quantity for which it is estimated
there is at least a 90% probability the actual
quantity recovered will equal or exceed.
* P50 refers to the quantity for which it is estimated
there is at least a 50% probability the actual
quantity recovered will equal or exceed.
* P10 refers to the quantity for which it is estimated
there is at least a 10% probability the actual
quantity recovered will equal or exceed.
--------------- ------------------------------------------------------------
SCF/BBL Standard cubic feet (of gas) per barrel
(of oil).
--------------- ------------------------------------------------------------
SCFD Standard cubic feet (of gas) per day.
--------------- ------------------------------------------------------------
TCF Trillion cubic feet of gas at standard
temperature and pressure conditions.
--------------- ------------------------------------------------------------
Tight The reservoir cannot be produced at economic
Gas Reservoir flow rates or recover economic volumes
of natural gas unless the well is stimulated
by a large hydraulic fracture treatment,
a horizontal wellbore, or by using multilateral
wellbores.
--------------- ------------------------------------------------------------
Undiscovered Is that quantity of petroleum estimated,
in place as of a given date, to be contained within
volume accumulations yet to be discovered.
--------------- ------------------------------------------------------------
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
-----------------------------------------------------
OILEX LTD
ABN Quarter ended ("current quarter")
--------------- ----------------------------------
50 078 652 632 30 SEPTEMBER 2021
----------------------------------
Consolidated statement of cash Current quarter Year to date
flows
$A'000 (3 months)
$A'000
1. Cash flows from operating
activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation
(if expensed) (107) (107)
(b) development - -
(c) production (care and maintenance
costs) (63) (63)
(d) staff costs (369) (369)
(e) administration and corporate
costs (356) (356)
1.3 Dividends received (see note - -
3)
1.4 Interest received - -
1.5 Interest and other costs of - -
finance paid
1.6 Income taxes paid - -
1.7 Government grants and tax - -
incentives
Other (recovery of prior period
1.8 operating costs) 356 356
Net cash (used in) operating
1.9 activities (539) (539)
----- ------------------------------------- ---------------- -------------
2. Cash flows from investing
activities
2.1 Payments to acquire or for:
(a) entities - -
(b) tenements - -
(c) property, plant and equipment - -
(d) exploration & evaluation - -
(if capitalised)
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal
of:
(a) entities - -
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) Bhandut joint venture - -
2.3 Cash flows from loans to other - -
entities
2.4 Dividends received (see note - -
3)
Other (payment for bank guarantee
related to purchase of 55%
2.5a interest of Cambay joint venture) (2,903) (2,903)
Other (costs related to bank
2.5b guarantee) (89) (89)
---------------- -------------
2.6 Net cash from investing activities (2,992) (2,992)
----- ------------------------------------- ---------------- -------------
3. Cash flows from financing
activities
3.1 Proceeds from issues of equity
securities (excluding convertible
debt securities) - -
3.2 Proceeds from issue of convertible - -
debt securities
3.3 Proceeds from exercise of - -
options
3.4 Transaction costs related - -
to issues of equity securities
or convertible debt securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related - -
to loans and borrowings
3.8 Dividends paid - -
3.9 Other (provide details if - -
material)
---------------- -------------
3.10 Net cash from financing activities - -
----- ------------------------------------- ---------------- -------------
4. Net increase / (decrease)
in cash and cash equivalents
for the period
Cash and cash equivalents
4.1 at beginning of period 4,311 4,311
Net cash from / (used in)
operating activities (item
4.2 1.9 above) (539) (539)
Net cash from / (used in)
investing activities (item
4.3 2.6 above) (2,992) (2,992)
4.4 Net cash from / (used in)
financing activities (item
3.10 above) - -
Effect of movement in exchange
4.5 rates on cash held (1) (1)
---------------- -------------
Cash and cash equivalents
4.6 at end of period 779 779
----- ------------------------------------- ---------------- -------------
5. Reconciliation of cash and Current quarter Previous quarter
cash equivalents $A'000 $A'000
at the end of the quarter
(as shown in the consolidated
statement of cash flows) to
the related items in the accounts
5.1 Bank balances 779 4,311
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
---------------- -----------------
Cash and cash equivalents
at end of quarter (should
5.5 equal item 4.6 above) 779 4,311
---- ----------------------------------- ---------------- -----------------
6. Payments to related parties of the entity Current quarter
and their associates $A'000
Aggregate amount of payments to related
parties and their associates included in
6.1 item 1 300
-----------------
6.2 Aggregate amount of payments to related -
parties and their associates included in
item 2
-----------------
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly
activity report must include a description of, and an explanation
for, such payments.
Directors and other related parties' salaries, director fees
and superannuation.
-------------------------------------------------------------------------
7. Financing facilities Total facility Amount drawn
Note: the term "facility' amount at quarter at quarter end
includes all forms of financing end $A'000
arrangements available to $A'000
the entity.
Add notes as necessary for
an understanding of the sources
of finance available to the
entity.
7.1 Loan facilities 1,041 -
------------------- ----------------
7.2 Credit standby arrangements - -
------------------- ----------------
7.3 Other (please specify) - -
------------------- ----------------
7.4 Total financing facilities 1,041 -
------------------- ----------------
Unused financing facilities available at
7.5 quarter end 1,041
----------------
7.6 Include in the box below a description of each facility
above, including the lender, interest rate, maturity date
and whether it is secured or unsecured. If any additional
financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing
details of those facilities as well.
---- ------------------------------------------------------------------------
The Company previously obtained an unsecured loan facility
with two of its JPDA 06--103 joint venture partners (Japan
Energy E&P JPDA Pty Ltd and Pan Pacific Petroleum (JPDA 06--103)
Pty Ltd) for US$800k. The loan was in credit of US$162k at
30 September 2021, and the balance of the facility available
to be drawn was US$750k at 30 September 2021, with no further
amounts drawn during the Quarter.
The interest rate of the loan facility is 11% and the balance
of any loan amounts are to be repaid prior to the loan's maturity
on 17 August 2023.
8. Estimated cash available for future operating $A'000
activities
Net cash from / (used in) operating activities
8.1 (Item 1.9) (539)
8.2 (Payments for exploration & evaluation classified -
as investing activities) (Item 2.1(d))
8.3 Total relevant outgoings (Item 8.1 + Item (539)
8.2)
8.4 Cash and cash equivalents at quarter-end 779
(Item 4.6)
8.5 Unused finance facilities available at quarter-end 1,041
(Item 7.5) (also see note in Item 8.7.1
below)
8.6 Total available funding (Item 8.4 + Item 1,820
8.5)
8.7 Estimated quarters of funding available 3.38
(Item 8.6 divided by Item 8.3) (also see
note in Item 8.7.1 below)
----- ----------------------------------------------------------------------
Note: if the entity has reported positive relevant outgoings
(ie a net cash inflow) in item 8.3, answer item 8.7 as
"N/A". Otherwise, a figure for the estimated quarters
of funding available must be included in item 8.7.
---------------------------------------------------------------------------------------
8.7.1 Note:
The unused finance facilities as per item 8.5 and as
detailed in section 7 is specifically allocated for the
purposes of funding the committed settlement of US$800k
(for further details refer to the heading "JPDA 06-103,
Timor Sea" on page 3). Without the unused finance facilities,
the estimated quarters of funding available is 1.45 quarters.
---------------------------------------------------------------------------------------
8.8 If Item 8.7 is less than 2 quarters, please provide answers
to the following questions:
8.8.1 Does the entity expect that it will continue to
have the current level of net operating cash flows for
the time being and, if not, why not?
---------------------------------------------------------------------------------------
Answer: Yes.
The Company expects that it will continue to have the
current level of net operating cash flows for the time
being.
---------------------------------------------------------------------------------------
8.8.2 Has the entity taken any steps, or does it propose
to take any steps, to raise further cash to fund its operations
and, if so, what are those steps and how likely does it
believe that they will be successful?
---------------------------------------------------------------------------------------
Answer: Yes.
The Company has on hand investments in listed equity securities
(with a market value of $417k at quarter end), which it
plans to sell during the December 2021 quarter.
The Company also aims to arrange an equity capital raise
of approximately $3 million in the next 3 months.
---------------------------------------------------------------------------------------
8.8.3 Does the entity expect to be able to continue its
operations and to meet its business objectives and, if
so, on what basis?
---------------------------------------------------------------------------------------
Answer: Yes.
With the funds from the Company's planned sale of its
investments in listed equity securities, the Company expects
to be able to meet its planned expenditures for at least
the next two quarters.
---------------------------------------------------------------------------------------
Note: where item 8.7 is less than 2 quarters, all of questions
8.8.1, 8.8.2 and 8.8.3 above must be answered.
---------------------------------------------------------------------------------------
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Date: 28 October 2021
Authorised by: By the Board
Notes
1. This quarterly cash flow report and the accompanying activity
report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and
the effect this has had on its cash position. An entity that wishes
to disclose additional information over and above the minimum
required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions
in, and provisions of, AASB 6: Exploration for and Evaluation of
Mineral Resources and AASB 107: Statement of Cash Flows apply to
this report. If this quarterly cash flow report has been prepared
in accordance with other accounting standards agreed by ASX
pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities,
depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market
by your board of directors, you can insert here: "By the board". If
it has been authorised for release to the market by a committee of
your board of directors, you can insert here: "By the [name of
board committee - eg Audit and Risk Committee]". If it has been
authorised for release to the market by a disclosure committee, you
can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market
by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance
Council's Corporate Governance Principles and Recommendations, the
board should have received a declaration from its CEO and CFO that,
in their opinion, the financial records of the entity have been
properly maintained, that this report complies with the appropriate
accounting standards and gives a true and fair view of the cash
flows of the entity, and that their opinion has been formed on the
basis of a sound system of risk management and internal control
which is operating effectively.
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END
UPDUWUNRABURURA
(END) Dow Jones Newswires
October 28, 2021 02:34 ET (06:34 GMT)
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