Notes to the Financial Statements

Year Ended 30 June 2021

All amounts are Australian Dollars

 

1       Statement of Accounting Policies

 

The principal accounting policies adopted in preparing the financial report of Mosman Oil and Gas Limited (or "the Company'') and Controlled Entities ("Consolidated entity" or "Group"), are stated to assist in a general understanding of the financial report. These policies have been consistently applied to all the years presented, unless otherwise indicated.

 

Mosman Oil and Gas Limited is a Company limited by shares incorporated and domiciled in Australia.

 

(a)    Basis of Preparation

 

This general purpose financial report has been prepared in accordance with Australian Accounting Standards (including Australian Interpretations) adopted by the Australian Accounting Standards Board and the Corporations Act 2001. Compliance with Australian Accounting Standards ensures that the financial statements also comply with International Financial Reporting Standards.

 

The financial report has been prepared on the basis of historical costs and does not take into account changing money values or, except where stated, current valuations of non-current assets.

 

Going Concern

The Group recognises that its ability to continue as a going concern to meet its debts when they fall due is dependent on the Group raising funds as required to pay its debts as and when they fall due, and the continuation of production which results in a gross profit The directors have reviewed the business outlook and are of the opinion that the use of the going concern basis of accounting is appropriate as they believe the Group will achieve this.

 

This financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts nor to the amounts and classification of liabilities that may be necessary should the Group be unable to continue as a going concern.

 

The financial report was authorised for issue by the Directors on 29 December 2021.

 

(b)    Principles of Consolidation and Equity Accounting

 

The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by Mosman Oil and Gas Limited at the end of the reporting period.  A controlled entity is any entity over which Mosman Oil and Gas Limited has the ability and right to govern the financial and operating policies so as to obtain benefits from the entity's activities.

Where controlled entities have entered or left the Group during the year, the financial performance of those entities is included only for the period of the year that they were controlled.  Details of Controlled and Associated entities are contained in Notes 29 and 30 to the financial statements.

In preparing the consolidated financial statements, all inter-group balances and transactions between entities in the consolidated group have been eliminated in full on consolidation.

Under AASB 11 Joint Arrangements, investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. Mosman Oil and Gas Limited has a working interest in various joint operations.

 

Joint ventures

 

Joint operations represent arrangements whereby joint operators maintain direct interests in each asset and exposure to each liability of the arrangement. The Group's interests in the assets, liabilities, revenue and expenses of joint operations are included in the respective line items of the financial statements.

 

 

 

Interests in joint ventures are accounted for using the equity method (see below), after initially being recognised at cost in the consolidated balance sheet.

 

Equity method

 

Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise the group's share of the post-acquisition profits or losses of the investee in profit or loss, and the group's share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment.

 

When the group's share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.

 

Unrealised gains on transactions between the group and its associates and joint ventures are eliminated to the extent of the group's interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the group.

 

The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described in note 1(q).

 

(c)    Use of Estimates and Judgements

 

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses.  Actual results may differ from these estimates.  Estimates and underlying assumptions are reviewed on an ongoing basis.  Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

 

Critical Accounting Estimates and Judgements

 

Impairment of Exploration and Evaluation Assets

 

The ultimate recoupment of the value of exploration and evaluation assets, is dependent on the successful development and commercial exploitation, or alternatively, sale, of the exploration and evaluation assets.

 

Impairment tests are carried out when there are indicators of impairment in order to identify whether the asset carrying values exceed their recoverable amounts. There is significant estimation and judgement in determining the inputs and assumptions used in determining the recoverable amounts.

 

The key areas of judgement and estimation include:

 

·      Recent exploration and evaluation results and resource estimates;

·      Environmental issues that may impact on the underlying tenements;

·      Fundamental economic factors that have an impact on the operations and carrying values of assets and liabilities.

 

Taxation

 

Balances disclosed in the financial statements and the notes related to taxation, are based on the best estimates of directors and take into account the financial performance and position of the Group as they pertain to current income tax legislation, and the directors understanding thereof.  No adjustment has

 

 

been made for pending or future taxation legislation.  The current tax position represents the best estimate, pending assessment by the tax authorities.

 

 

 

 

 

Exploration and Evaluation Assets

 

The accounting policy for exploration and evaluation expenditure results in expenditure being capitalised for an area of interest where it is considered likely to be recoverable by future exploitation or sale or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. 

 

This policy requires management to make certain estimates as to future events and circumstances. Any such estimates and assumptions may change as new information becomes available.  If, after having capitalised the expenditure under the policy, a judgement is made that the recovery of the expenditure is unlikely, the relevant capitalised amount will be written off to profit and loss.

 

(d)    Income Tax

 

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities.  The tax rates and tax laws used to compute the amounts are those that are enacted or substantively enacted at the balance sheet date.

 

Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

 

Deferred income tax liabilities are recognised for all taxable temporary differences.

 

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised;

 

The carrying amount of deferred income tax assets is reviewed at each balance sheet date reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

 

Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

 

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

 

Income taxes relating to items recognised directly in equity are recognised in equity and not in the income statement.

 

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.

 

 

 

(e)    Goods and Services Tax

 

Revenues, expenses and assets are recognised net of the amount of GST except:

 

(i)    Where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset, or as part of the expense item as applicable;

 

(ii)   Receivables and payables are stated with the amount of GST included;

 

(iii)  The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Statement of Financial Position;

 

 

 

    

(iv)  Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority, are classified as operating cash flows; and

 

(v)   Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

 

(f)     Property, Plant and Equipment

 

Plant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and any accumulated impairment.  In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised either in profit or loss, or as a revaluation decrease if the impairment losses relate to a revalued asset.  A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(q) for details of impairment).

 

The carrying amount of plant and equipment is reviewed annually by 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 asset's employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

 

(g)    Depreciation

 

The depreciable amount of all fixed assets is depreciated on a straight-line basis over the asset's useful life to the consolidated group commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

 

(h)    Exploration and Evaluation Assets

 

Mineral exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest and is subject to impairment testing.  These costs are carried forward only if they relate to an area of interest for which rights of tenure are current and in respect of which:

 

·      Such costs are expected to be recouped through the successful development and exploitation of the area of interest, or alternatively by its sale; or

·      Exploration and/or evaluation activities in the area have not reached a stage which permits a reasonable assessment of the existence, or otherwise, of economically recoverable reserves and active or significant operations in, or in relation to, the area of interest is continuing.

 

In the event that an area of interest is abandoned accumulated costs carried forward are written off in the year in which that assessment is made.  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.

 

Where a resource has been identified and where it is expected that future expenditures will be recovered by future exploitation or sale, the impairment of the exploration and evaluation is written back and transferred to development costs.  Once production commences, the accumulated costs for the relevant

 

area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves.

 

Costs of site restoration and rehabilitation are recognised when the Company has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be reliably estimated.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

 

Exploration and evaluation assets are assessed for impairment if facts and circumstances suggest that the carrying amount exceeds the recoverable amount.

 

For the purpose of impairment testing, exploration and evaluation assets are allocated to cash-generating units to which the exploration activity relates. The cash generating unit shall not be larger than the area of interest.

 

(i)     Accounts Payable

 

These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid.  The amounts are unsecured and are usually paid within 30 days of recognition.

 

(j)     Contributed Equity

 

Issued Capital

 

Incremental costs directly attributable to issue of ordinary shares and share options are recognised as a deduction from equity, net of any related income tax benefit.

 

(k)    Earnings Per Share

 

Basic earnings per share ("EPS") are calculated based upon the net loss divided by the weighted average number of shares.  Diluted EPS are calculated as the net loss divided by the weighted average number of shares and dilutive potential shares.

 

(l)     Share-Based Payment Transactions

 

The Group provides benefits to Directors, KMP and consultants of the Group in the form of share-based payment transactions, whereby employees and consultants render services in exchange for shares or rights over shares ("equity settled") transactions.

 

The value of equity settled securities is recognised, together with a corresponding increase in equity.

 

Where the Group acquires some form of interest in an exploration tenement or an exploration area of interest and the consideration comprises share-based payment transactions, the fair value of the assets acquired are measured at grant date.  The value is recognised within capitalised mineral exploration and evaluation expenditure, together with a corresponding increase in equity.

 

(m)   Comparative Figures

 

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

 

(n)    Financial Risk Management

 

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework, to identify and analyse the risks faced by the Group.  These risks include credit risk, liquidity risk and market risk from the use of financial instruments.  The Group has only limited use of financial instruments through its cash holdings being invested in short term interest bearing securities.  The Group has no debt, and working capital is maintained at its highest level possible and regularly reviewed by the full board.

 

 

(o)    Financial Instruments

 

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.  The Company determines the classification of its financial instruments at initial recognition.

 

Financial assets

From 1 July 2018, financial assets are classified at initial recognition a (i) subsequently measured at amortised cost, (ii) fair value through other comprehensive income (OCI) or (iii) fair value through profit or loss.  The classification depends on the purpose for which the financial assets were acquired.

 

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designed upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value.  Financial assets are classified as held for trading if

 

they are acquired for the purpose of selling or repurchasing in the near term. Derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

 

Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognised in the Income Statement within finance costs. Transaction costs arising on initial recognition are expensed in the Income Statement.

 

Financial assets at fair value through other comprehensive income

The financial asset is held for both collecting contractual cash flows and selling the financial asset. Movements in the carrying amount are taken through other comprehensive income and accumulated in the fair value reserve, except for the recognition of impairment, interest income and foreign exchange difference which are recognised directly in profit or loss. Interest income is calculated using the effective interest rate method.

 

The Company's financial assets at fair value through other comprehensive income include it's investment in listed equities.

 

Financial assets at amortised cost

Financial asset at amortised costs are non-derivative financial assets with fixed or determinable payments that re not quoted in an active market.

 

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gain and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

 

The Company's financial assets at amortised cost include 'trade and other receivables' and "cash and equivalents' in the Balance Sheet.

 

Financial liabilities

Financial liabilities are classified at initial recognition as (i) financial liabilities at fair value through profit or, (ii) loans and borrowings, (iii) payables or (iv) derivatives designated as hedging instruments, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net directly attributable transaction costs. The Company's financial liabilities include trade and other payables, loans and borrowings.  These are subsequently measured at amortised cost using the effective interest method. Gain and losses are recognised in the Income Statement when the liabilities are derecognised. Amortisation is included as finance costs in the Income Statement.

 

Fair Value

Fair value is determined based on current bid prices for all quoted investments.  Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm's length transactions, reference to similar instruments and option pricing models. The expression "fair value" - and derivatives thereof - wherever used in this report bears the meaning ascribed to that expression by the Australian Accounting Standards Board. 

 

 

Impairment

 

At each reporting date, the Company assesses whether there is objective evidence that a financial instrument has been impaired.  In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen.  Impairment losses are recognised in the profit or loss.

 

(p)    Oil and gas assets

 

The cost of oil and gas producing assets and capitalised expenditure on oil and gas assets under development are accounted for separately and are stated at cost less accumulated amortisation and impairment losses. Costs include expenditure that is directly attributable to the acquisition or construction of the item as well as past exploration and evaluation costs.

 

When an oil and gas asset commences production, costs carried forward are amortised on a units of production basis over the life of the economically recoverable reserves. Changes in factors such as estimates of economically recoverable reserves that affect amortisation calculations do not give rise to prior financial period adjustments and are dealt with on a prospective basis.

 

(q)    Impairment of Assets

 

At each reporting date, the Group reviews the carrying values of its tangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is expensed to the income statement. Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

 

Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating until to which the asset belongs.

 

(r)     Employee Entitlements

 

Liabilities for wages and salaries, annual leave and other current employee entitlements expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees' services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.  Liabilities for non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.

 

Contributions to employee superannuation plans are charged as an expense as the contributions are paid or become payable.

 

(r)       Provisions

 

Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be the result and that outlay can be reliably measured.

 

(s)       Cash and Cash Equivalents

 

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of 3 months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet.

 

(t)       Revenue and Other Income

 

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties.

 

The group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Group's activities as described below. The group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

 

 

 

Revenue from Joint Operations is recognised based on its share of the sale by joint operation.

 

 

Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is the rate inherent in the instrument.

 

(u)      Acquisition of Subsidiary Not Deemed a Business Combination

 

When an acquisition of assets does not constitute a business combination, the assets and liabilities are assigned a carrying amount based on their relative fair values in an asset purchase transaction and no deferred tax will arise in relation to the acquired assets and assumed liabilities as the initial exemption for deferred tax under AASB 12 applies. No goodwill will arise on the acquisition and transaction costs of the acquisition will be included in the capitalised cost of the asset.

 

(v)      Foreign Currency Translation

 

Functional currency

Items included in the financial statements of the Group's operations are measured using the currency of the primary economic environment in which it operates ('the functional currency').

 

 

The functional currency of the Company and controlled entities registered in Australia is Australian dollars (AU$).

 

The functional currency of the controlled entities registered in the US is United States dollars (US$).

 

Foreign currency transactions are translated into the functional currency using the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the end of the reporting period. Foreign exchange gains and losses resulting from settling foreign currency transactions, as well as from restating foreign currency denominated monetary assets and liabilities, are recognised in profit or loss, except when they are deferred in other comprehensive income as qualifying cash flow hedges or where they relate to differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity.

 

Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when fair value was determined.

 

Presentation currency

The financial statements are presented in Australian dollars, which is the Group's presentation currency.

Functional currency balances are translated into the presentation currency using the exchange rates at the balance sheet date. Value differences arising from movements in the exchange rate is recognised in the statement of comprehensive income.

 

(w)       Joint operations

 

A joint arrangement in which the Group has direct rights to underlying assets and obligations for underlying liabilities is classified as a joint operation.

 

Interests in joint operations are accounted for by recognising the Group's assets (including its share of any assets held jointly), its liabilities (including its share of any liabilities incurred jointly), its revenue from the sale of its share of the output arising from the joint operation, its share of the revenue from the sale of the output by the joint operation and its expenses (including its share of any expenses incurred jointly).

 

(x)        New standards and interpretations

 

Account Standard and Interpretation

 

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

 

 

 

	Consolidated 2021	Consolidated      2020
	$	$
2     Cost of sales
Cost of sales	96,600	253,271
Lease operating expenses	395,170	529,456
	491,770	782,727
3     Corporate Costs
Accounting, Company Secretary and Audit fees	200,622	193,841
Consulting fees - board	321,000	325,000
Consulting fees - other	193,391	116,024
Investor relations & marketing	-	81,297
NOMAD and broker expenses	115,684	119,264
Legal and compliance fees	127,016	66,150
	957,713	901,576

  

4     Other comprehensive profit
Gain on shares at fair value through other comprehensive income (FVOCI)	363,525	38,887
Foreign currency gain	(257,952)	142,410
	105,573	181,297

 

5      Income Tax

No income tax is payable by the Group as it has incurred losses for income tax purposes for the year, therefore current tax, deferred tax and tax expense is $NIL (2020 - $NIL).

(a) Numerical reconciliation of income tax expense to prima facie tax payable

 

		Consolidated 2021	Consolidated      2020
		$	$
Loss before tax		(1,355,942)	(4,837,410)
Income tax calculated at 26% (2020: 27.5%)		(352,540)	(1,330,287)
Tax effect of amounts which are deductible/non-deductible In calculating taxable income:
	Impairment expense	-	744,811
	Upfront exploration expenditure claimed	(105,419)	(18,310)
	Other	(26,862)	(64,170)
Effects of unused tax losses and tax offsets not recognised as deferred tax assets		484,821	667,956
Income tax expense attributable to operating profit		NIL	NIL

   

 

 

 

 

5      Income Tax (continued)

 (b) Tax Losses

                                                                                                                    

As at 30 June 2021 the Company had Australian tax losses of $13,116,433 (2020: $11,719,814). The benefit of deferred tax assets not brought to account will only be realised if:

 

·    Future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised; and

·    The conditions for deductibility imposed by tax legislation continue to be complied with and no changes in tax legislation adversely affect the Company in realising the benefit.

 

(c) Unbooked Deferred Tax Assets and Liabilities

 

 

	Consolidated 2021	Consolidated      2020
	$	$

Unbooked deferred tax assets comprise:

 

Capital Raising Costs	57,528	60,354
Provisions/Accruals/Other	121,259	51,797
Tax losses available for offset against future taxable income	3,529,031	3,349,052
	3,707,818	3,461,203

 

6     Auditors Remuneration
Audit - Elderton Audit Pty Ltd
Audit of the financial statements		32,000	31,500
		32,000	31,500

 

7     Cash and Cash Equivalents
Cash at Bank		2,289,674	230,589
Funds at call1		-	141,890
		2,289,674	372,479
1.     Funds received into trust from Blackstone Oil and Gas, Inc and subsequently deposited into the Group's bank account on 7 July 2020.
8     Funds Held in Trust
Funds held in Lawyers trust account2		1,197,127	-
		1,197,127	-
2.     On 28 June 2021 funds were paid into the Group's lawyers trust for the acquisition of NADSOILCO LLC. The effective acquisition date was 1 July 2021, and the funds were settled on 7 July 2021.

 

9     Trade and Other Receivables
Deposits		54,875	-
GST receivable		39,867	20,112
Accrued Revenue		73,768	54,235
Other receivables		3,990	4,372
		172,500	78,719

 

10     Other Financial Assets
Shares in Norseman Silver Inc3		-	93,748
		-	93,748

3.     Valued at fair value with gain/loss recorded through other comprehensive income.

 

 

 

 

11     Other Assets
Prepayments					23,418	35,756
					23,418	35,756
12     Property, Plant and Equipment
			Office Equipment and Furniture $				Total $
Cost
Balance at 1 July 2020			165,710				165,710
Additions			-				-
Disposals			-				-
Effective movement in exchange rates			-				-
Balance at 30 June 2021			165,710				165,710
Depreciation
Balance at 1 July 2020			155,715				155,715
Depreciation for the year			2,848				2,848
Disposals			-				-
Effective movement in exchange rates			-				-
Balance at 30 June 2021			158,563				158,563
Carrying amounts
Balance at 30 June 2020			9,995				9,995
Balance at 30 June 2021			7,147				7,147

 

			Consolidated 2021 $		Consolidated      2020 $
13     Oil and Gas Assets
Cost brought forward				2,061,131		3,905,106
Acquisition of oil and gas assets during the year				158,486		236,783
Disposal of oil and gas assets on sale during the year				(441,384)		-
Capitalised equipment workovers during the year				1,899,759		402,901
Amortisation for the year				(170,388)		(103,616)
Impairment of oil and gas assets				-		(2,380,043)
Impact of Foreign Exchange on opening balances				(179,575)		-
Carrying value at end of year				3,328,029		2,061,131
14     Capitalised Oil and Gas Expenditure
Cost brought forward				301,242		1,615,956
Exploration costs incurred during the year				405,460		66,582
Impairment of oil and gas expenditure				-		(1,381,296)
Carrying value at end of year				706,702		301,242

 

 

 

	Consolidated 2021		Consolidated      2020
	$		$
15     Trade and Other Payables
Trade creditors		295,243		331,972
Other creditors and accruals		82,484		26,119
		377,727		358,091

 

16     Equity Settled Liabilities
Unpaid Directors fees and Directors consulting fees		-	191,000
		-	191,000

 

The amount of $191,000 was outstanding as at 30 June 2020, as the Directors had agreed to not draw on Directors fees, and only half of the contracted amount of Consultancy fees were paid. These liabilities, as well as additional liabilities covering Directors consulting fees to August 2020 (bringing the total equity settled liabilities to $225,000) were subsequently settled by the issue of shares in December 2020, post shareholder approval at the 2020 Annual General Meeting.

 

		Consolidated 2021 $	Consolidated 2020 $
17     Provisions
Employee provisions		22,423	20,269
		22,423	20,269

 

 

 

 

18	Contributed Equity
	Ordinary Shares:
	Value of Ordinary Shares fully paid
	Movement in Contributed Equity						Number of shares	Contributed Equity $
	Balance as at 1 July 2019:						885,810,968	30,164,872
			Date		Nature of Transaction	Issue Price
			14/02/2020		Shares issued (i)	$0.00293	200,000,000	585,139
	Capital raising costs						-	(58,514)
	Balance as at 1 July 2020:						1,085,810,968	30,691,497
				02/07/2020 09/09/2020 17/09/2020 23/09/2020 20/10/2020 22/12/2020 22/12/2020 22/12/2020 05/02/2021 15/02/2021 19/03/2021 21/05/2021 11/06/2021 23/06/2021	Shares issued (i) Shares issued (ii) Shares issued (ii) Shares issued (ii) Shares issued (i) Shares issued (iii) Shares issued (iii) Equity adjustment (iv) Shares issued (ii) Shares issued (ii) Shares issued (i) Shares issued (ii) Shares issued (ii) Shares issued (ii)	$0.00144 $0.00271 $0.00266 $0.00266 $0.00228 $0.00143 $0.00288 - $0.00270 $0.00268 $0.00271 $0.00274 $0.00274 $0.00278	500,000,000 56,250,000 62,500,000 70,000,000 720,000,000 52,368,750 52,083,334 - 37,500,000 10,000,000 1,000,000,000 37,500,000 70,000,000 13,750,000	720,813 152,467 166,015 186,278 1,645,001 75,000 150,000 43,348 101,208 26,811 2,714,097 102,698 191,777 38,165
		Capital raisings costs					-		(304,794)
		Balance at end of year					3,767,763,052		36,700,381

 

(i)	Placements via capital raising as announced
(ii)	Shares issued upon conversion of warrants
(iii)	Shares issued to settle Director liabilities
(iv)	Accounting Based Adjustments based on the timing of the issue of Director Shares and Warrants for the year ended 30 June 2021

19     Reserves

		Consolidated 2021 $	Consolidated      2020 $
Options reserve		90,358	471,818
Asset revaluation reserve		-	(363,525)
Foreign currency translation reserve		345,889	603,841
		436,247	712,134

 

Options Reserve

 

Nature and purpose of the Option reserve

 

The options reserve represents the fair value of equity instruments issued to employees as compensation and issued to external parties for the receipt of goods and services.  This reserve will be reversed against issued capital when the underlying shares are converted and reversed against retained earnings when they are allowed to lapse.

 

 

 

 

 

19     Reserves (continued)

 

Movement in Options Reserve	Consolidated 2021                                      $	Consolidated      2020 $
Options Reserve at the beginning of the year	471,818	471,818
Options issued	90,358	-
Options expired	(471,818)	-
Options Reserve at the end of the year	90,358	471,818

 

Foreign Currency Translation Reserve

 

Nature and purpose of the Foreign Currency Translation Reserve

 

Functional currency balances are translated into the presentation currency using the exchange rates at the balance sheet date. Value differences arising from movements in the exchange rate is recognised in the Foreign Currency Translation Reserve.

 

Movement in Foreign Currency Translation Reserve	Consolidated 2021                                      $	Consolidated      2020 $
Foreign Currency Translation Reserve at the beginning of the year	603,841	461,431
Current year movement	(257,952)	142,410
Foreign Currency Translation Reserve at the end of the year	345,889	603,841

 

Asset Revaluation Reserve

 

Changes in the fair value of investments classified as fair value through other comprehensive income (FVOCI) financial assets are taken to the available-for-sale investments revaluation reserve. 

Movement in Asset Revaluation Reserve	Consolidated 2021                                      $	Consolidated      2020 $
Asset Revaluation Reserve at the beginning of the year	(363,525)	(402,412)
Revaluation of FVOCI shares	363,525	38,887
Asset Revaluation Reserve at the end of the year	-	(363,525)1

 

1.     The asset revaluation reserve balance related to the accumulated loss on the investment in Norseman Silver Inc recorded in FY2017 and FY2018.

 

20     Accumulated Losses	Consolidated 2020 $	Consolidated 2019 $
Accumulated losses at the beginning of the year	28,939,390	24,101,980
Net loss attributable to members	1,355,923	4,837,410
Options expired	(471,818)	-
Reclassification on disposal of financial assets	(11,314)	-
Accumulated losses at the end of the year	29,812,181	28,939,390

 

 

 

 

 

21     Related Party Transactions

	Consolidated 2021	Consolidated      2020
	$	$
Key Management Personnel Remuneration
Cash Payments to Directors and Management (i)	507,000	511,000
Total	507,000	511,000

 

i.    During the year to 30 June 2021:

 

a.   Directors fees of $60,000 and consulting fees of $185,000 were paid or are payable to Kensington Advisory Services Pty Ltd;

b.   Director fees of $30,000 and consulting fees of $136,000 were paid or are payable to Australasian Energy Pty Ltd;

c.   Directors fees of $30,000 were paid or are payable to J A Young;

d.   CFO, Company Secretary and Consulting Fees totalling $66,000 were paid or are payable to J T White's accounting firm, Traverse Accountants Pty Ltd.

	Issue of Shares	Issue of Warrants
	$	$
Accounting Based Adjustments based on the timing of the issue of Director Shares and Warrants for the year ended 30 June 2021 (FY20: Nil) (i)	43,348	90,358
Total	43,348	90,358

 

Refer to note 16 for further details.

 

Movement in Shares and Options

 

The aggregate numbers of shares and options of the Company held directly, indirectly or beneficially by Key Management Personnel of the Company or their personally-related entities are fully detailed in the Directors' Report.

 

Amounts owing to the Company from subsidiaries:

 

Trident Energy Pty Ltd

At 30 June 2021 the Company's 100% owned subsidiary, Trident Energy Pty Ltd, owed Mosman Oil and Gas Limited $ 3,413,988 (2020: $2,901,011).

 

OilCo Pty Ltd

At 30 June 2021 the Company's 100% owned subsidiary, OilCo Pty Ltd (OilCo), owed Mosman Oil and Gas Limited $776,879 (2020: $776,879).

 

Mosman Oil USA, Inc

At 30 June 2021 the Company's 100% owned subsidiary, Mosman Oil USA, Inc, owed Mosman Oil and Gas Limited $ 7,025,196  (2020: $4,423,121).

 

 

 

 

22        Expenditure Commitments

 

(a)       Exploration

 

The Company has certain obligations to perform minimum exploration work on Oil and Gas tenements held.  These obligations may vary over time, depending on the Company's exploration programs and priorities. At 30 June 2021, total exploration expenditure commitments for the next 12 months are as follows:

Entity	Tenement	2021 $	2020 $
Trident Energy Pty Ltd	EP1451	-	-
Oilco Pty Ltd	EPA155	-	-
		-	-

 

1.     EP145 is currently under extension until 21 August 2022, therefore there are no committed expenditures as of the date of this report.

 

(b)       Capital Commitments

 

The Company had no other capital commitments at 30 June 2021 (2020: $NIL).

 

23    Segment Information

 

The Group has identified its operating segments based on the internal reports that are reviewed and used by the board to make decisions about resources to be allocated to the segments and assess their performance.

 

Operating segments are identified by the board based on the Oil and Gas projects in Australia and the USA (and previously New Zealand until 2019). Discrete financial information about each project is reported to the board on a regular basis.

 

The reportable segments are based on aggregated operating segments determined by the similarity of the economic characteristics, the nature of the activities and the regulatory environment in which those segments operate.

 

The Group has two reportable segments based on the geographical areas of the mineral resource and exploration activities in Australia and the USA. Unallocated results, assets and liabilities represent corporate amounts that are not core to the reportable segments.

 

 

 

23    Segment Information (continued)

 

(i)       Segment performance

 

		United States $	Australia $	Total $
Year ended 30 June 2021
Revenue
Revenue		816,695	-	816,695
Interest income		-	55	55
Gain on sale of oil and gas assets		118,067	-	118,067
Other income		40,299	52,773	93,072
Segment revenue		975,061	52,828	1,027,889
Segment Result
Allocated
-      Corporate costs		(158,979)	(798,734)	(957,713)
-      Administrative costs		(265,096)	(150,034)	(415,130)
-      Lease operating expenses		(395,170)	-	(395,170)
-      Cost of sales		(96,600)	-	(96,600)
Segment net profit (loss) before tax		59,216	(884,626)	(836,724)
Reconciliation of segment result to net loss before tax
Amounts not included in segment result but reviewed by the Board
-      Exploration expenses incurred not           capitalised		-	(21,866)	(21,866)
-      Amortisation		(171,539)	-	(171,539)
Unallocated items
-      Employee benefits expense				(182,878)
-      Depreciation				(2,848)
-      Finance costs				(6,362)
-      Other expense				(133,706)
Net Loss before tax from continuing operations				(1,355,923)

 

 

 

23    Segment Information (continued)

 

(i)       Segment performance

		United States $	Australia $	Total $
Year ended 30 June 2020
Revenue
Revenue		1,493,664	-	1,493,664
Interest income		20,578	7,869	28,447
Other income		119,773	33,036	152,809
Segment revenue		1,634,015	40,905	1,674,920
Segment Result
Allocated
-      Corporate costs		(146,873)	(754,703)	(901,576)
-      Administrative costs		(32,876)	(140,676)	(173,552)
-      Lease operating expenses		(529,456)	-	(529,456)
-      Cost of sales		(253,271)	-	(253,271)
Segment net profit (loss) before tax		671,539	(854,474)	(182,935)
Reconciliation of segment result to net loss before tax
Amounts not included in segment result but reviewed by the Board
-      Exploration expenses incurred not           capitalised		-	(71,604)	(71,604)
-      Evaluation and due diligence		(84,790)	(68,703)	(153,493)
-      Amortisation		(102,222)	-	(102,222)
-      Impairment		(2,761,580)	(1,381,296)	(4,142,876)
Unallocated items
-      Employee benefits expense				(175,064)
-      Depreciation				(4,039)
-      Finance costs				(5,177)
Net Loss before tax from continuing operations				(4,837,410)

 

 

 

 

 

23    Segment Information (continued)

			United States $			Australia $	Total $
Total assets as at 1 July 2020					2,350,564	683,037	3,033,601
Segment asset balances at end of year
-      Exploration and evaluation					-	7,887,620	7,887,620
-      Capitalised Oil and Gas Assets					4,885,757	-	4,885,757
-      Less: Amortisation					(182,811)	-	(182,811)
-      Less: Expenditure previously capitalised, written off in financial year					(1,374,917)	(7,180,918)	(8,555,835)
					3,328,029	706,702	4,034,731
Reconciliation of segment assets to total assets:
Other assets					1,597,888	2,091,978	3,689,866
Total assets from continuing operations As at 30 June 2021					4,925,917	2,798,680	7,724,597
			United States $			Australia $	Total $
Total assets as at 1 July 2019					4,618,616	2,571,517	7,190,133
Segment asset balances at end of year
-      Exploration and evaluation					-	7,482,160	7,482,160
-      Capitalised Oil and Gas Assets					4,632,884	-	4,632,884
-      Less: Amortisation					(191,710)	-	(191,710)
-      Less: Impairment					(2,380,043)	(7,180,918)	(9,560,961)
					2,061,131	301,242	2,362,373
Reconciliation of segment assets to total assets:
Other assets					289,433	381,795	671,228
Total assets from continuing operations As at 30 June 2020					2,350,564	683,037	3,033,601

 

 

 

 

 

23     Segment Information (continued)

 

(iii)     Segment liabilities
	United States $		Australia $	Total $
Segment liabilities as at 1 July 2020	87,486		481,874	569,360
Segment liability increases (decreases) for the year	(58,106)		(111,104)	(169,210)
	29,380		370,770	400,150
Reconciliation of segment liabilities to total liabilities:
Other liabilities	-		-	-
Total liabilities from continuing operations As at 30 June 2021	29,380		370,770	400,150
	United States $		Australia $	Total $
Segment liabilities as at 1 July 2019	316,192		280,212	596,404
Segment liability increases (decreases) for the year	(228,706)		201,662	(27,044)
	87,486		481,874	569,360
Reconciliation of segment liabilities to total liabilities:
Other liabilities	-		-	-
Total liabilities from continuing operations As at 30 June 2020	87,486		481,874	569,360