3D Oil Limited (TDO) 2020年年度報告「ASX」.pdf

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1、AnnuAl RepoRt 2020uncovering hidden value Maximising shareholder value by recognising high-impact strategic opportunities before our competitors 2Executive Chairmans Letter to shareholders 4 Review of operations 6Directors report 18Auditors independence declaration 27Statement of profit or loss and

2、other comprehensive income 29Statement of financial position 30Statement of changes in equity 31Statement of cash flows 32Notes to the financial statements 33Directors declaration 55Independent auditors report to the members of 3D Oil Limited 56Shareholder information 60Corporate directory 613D Oil

3、has strengthened its portfolio of high potential,frontier offshore exploration permits in Australia,while ensuring the progression of high-impact gas projects through arguably one of the best farmout deals in the last 15 years in Australia.A farm down in equity of T/49-P permit(20%-owned),offshore O

4、tway Basin,to ConocoPhillips provides the opportunity to realise a total prospective gas resource of 10TCF(Best Estimate).The 100%-owned WA-527-P permit covers a large underexplored area with similar plays to the significant Dorado-1 hydrocarbon discovery in the Bedout Sub-basin.The 50%-owned VIC-P7

5、4 permit,offshore Gippsland Basin,is proximal to the largest oil discovery in Australia and under evaluation through the recent purchase of state-of-the-art reprocessing.3executive chAiRmAns letteR to shAReholdeRs 4If just for a moment we put the effects of Covid-19 on the global economy aside I can

6、 categorically state that 3D Oil has had its most positive year since the inception of the company.Of course,virtually all facets of business have been affected by the tsunami which is Covid-19 and the oil and gas industry is no exception.In fact,prior to the outbreak a glut of oil globally had alre

7、ady significantly softened the oil price.Covid-19 drove global oil price below US$30 per bbl and resulted in some cases an inability to dispose of oil as global demand dropped by approximately 10%.Subsequently gas prices have fallen as a function of the linkage between oil price and long-term gas co

8、ntracts-though we may have already passed the bottom for LNG prices as demand in SE Asia has recently risen driven by switching from coal to gas power generation.The uncertainty created by Covid-19 shows little sign of abating.Second waves continue to strike countries globally.While major oil and ga

9、s companies slash budgets and staff levels.In the US we have witnessed the shale oil industry be decimated due to high costs of production,representing about 10%of global production,the withdrawal of capital from the industry and a number of high-profile shale company insolvencies.Global investment

10、in exploration and development has dried up.Many projects in pre execution phase are now on ice with a 32%reduction in capex so far this year compared to last year.In spite of this dramatic backdrop 3D Oil has managed to secure arguably the best farmout deal in Australia for over 15 years.But more o

11、n this in moment.Is there a silver lining to this crisis?Considering historical oil prices most oil price collapses are followed by a significant rebound within a relatively short time but of course every oil crisis is different and no one has a crystal ball.I am extremely confident that 3D Oil will

12、 not only survive this crisis but will shine on the other side of the pandemic.Our farmout of T/49P has stunned many in the industry for a number of reasons.The deal itself is exceptional by any standard;it was executed in the middle of the Covid-19 crisis when most majors were slashing budgets;Cono

13、coPhillips(COP)had recently sold major assets in Western Australia and appeared to be retreating.The deal also confirmed that 3D Oils optimism in relation to the gas potential of this permit is also shared with one of the largest oil and gas companies in the world.Most importantly it underlines that

14、 3D Oils strategy is valid.It is also arguably unique in Australia with virtually no other junior explorers attempting to disrupt where the majors explore.Let me remind you of the major terms of the deal.3D Oil received$5 million cash payment,COP to acquire a minimum of 1600 sq km of 3D seismic at n

15、o expense to 3D Oil.Further,if COP decide to drill they will carry the first US$30 million of the well.At the time of writing this letter COP are in full swing to undertake acquisition of the 3D seismic in 2021 while undertaking some preparation for drilling in 2022.The cash payment is particularly

16、relevant as it enables TDO to fund its activities while it develops further value creation opportunities and positions itself for further farmoutsThe timing could not be better with the Federal Governments push for a gas led recovery at a time when gas production in this region is in serious decline

17、.Production from the Gippsland Basin is currently in rapid decline while in the Otway Basin operators have deferred exploration drilling.I have said this previously it is 3D Oils belief that the T/49P permit is the last place on the east coast where large gas reserves can potentially be uncovered.Th

18、ere is nowhere else.I am proud our team has put us in the box seat.3D Oil is now being carried towards the drilling of an exploration well that could realise reserves of potentially more than 1 TCF gas and provide an answer to the southeast gas supply deficit.3D Oil is unique being one of the few re

19、maining junior oil and gas companies active offshore in Australia and providing the opportunity to be involved in large scale hydrocarbon discoveries.The acquisition of the Gippsland Basin permit VIC/P74 was no accident.It fit perfectly into our strategy of getting in early where the majors play.Of

20、course,however,we had to have an idea.The permit has been poorly explored in the past and forgotten for almost two decades despite being adjacent the largest oilfield in Australia Kingfish,which has produced over a billion barrels of oil.The permit was picked up with a minimal bid purchase of reproc

21、essed 3D seismic and it contains the Omeo gas discovery!3D Oil recently acquired the 3D reprocessed seismic data which we are now singularly focused on interpreting.It may be an early call but VIC/P74 is shaping up as significantly more prospective than we could have foreseen.We are very excited abo

22、ut what we are uncovering and intend to release Prospective Resources to the market as soon as possible.It must be remembered the commercial threshold within this area is relatively low due to its proximity to existing infrastructure.It is significant that we have had a number of unsolicited approac

23、hes on VIC/P74 already.The acquisition of WA-527P permit prior to the discovery of Dorado was a master stroke by our team-it wasnt an accident or luck.We reviewed the previous drilling results of the region and the Dorado prospect and again picked up the permit for a relatively low work program bid.

24、The rest is history of course,with the Dorado-1 well uncovering the largest oil discovery in Australia in decades,in a newly discovered petroleum province.It is now pleasing to see that the Dorado joint venture is proceeding with FEED for the development of the field despite the low oil prices.This

25、gives an indication of the robustness of the project.The experience of farming out T/49P has taught us that patience is paramount when dealing with the majors.The process can be extremely long.Just getting a major through the door of a junior explorer is a significant achievement in itself.Once on b

26、oard all opportunities have to be ranked against all global opportunities and then pass internal gateways.This process rarely takes less than 12 months!But as seen from the deal on T/49P the wait can be worth it,even transformational.WA-527P is now the only entry point for new players to access the

27、Dorado style play and this exciting new petroleum system.We have an exciting year ahead at 3D Oil with the acquisition of 3D seismic surveys in the Otway Basin and Bedout Sub-basin respectively.The focus in both areas will be to locate highly prospective drilling targets.I am extremely proud of my t

28、eam at 3D Oil which has executed a brilliant farmout by any measure but in the middle of a global pandemic!3D Oil has survived through tough times,which means that we can keep participating in these high risk,but high value projects for the long haul,therefore maximizing the potential return to shar

29、eholders.On behalf of the Company,I thank the Board and the 3D Oil team for their endeavors and commitment over the last year.They are an integral part of realizing our ambition to become a significant Australian oil and gas producer.I would also like to acknowledge the important contribution and th

30、ank our recently retired board advisor Peter Willcox.Noel Newell Managing Director5Review of opeRAtions6wA/527-p,Bedout suB-BAsin,offshoRe noRthwest shelfExploration permit WA/527-P is a large permit covering approximately 6,500km2 in the Bedout Sub-basin of the Northwest Shelf,approximately 80km no

31、rth-east of the recent Dorado oil and gas condensate discovery(Carnarvon Petroleum 20%,Santos 80%).The Bedout Sub-basin is an element of the Roebuck Basin located along the productive Northwest Shelf of Australia.Recent exploration results in adjacent acreages have proven 3D Oils long held technical

32、 view that the region hosts a prolific petroleum system that until recently has been overlooked by industry.The acquisition of WA/527-P demonstrates the ability for 3D Oil to recognize opportunity early and act ahead of our larger competitors.Exploration in the basin began during the 1980s with the

33、drilling of the Phoenix wells by BP Australia.Disappointing results caused a lack of subsequent exploration activity in the basin,until the Phoenix South and Roc wells were drilled between 2014 and 2019.Phoenix South 1 discovered a series of light oil zones,while Roc 1&2 and other Phoenix South well

34、s all discovered gas-condensate within sands of the lower Triassic,Caley reservoir.In July of 2018,the Santos(ASX:STO)led Joint Venture drilled Dorado-1 discovering 162 MMbbls of liquids and 748 Bcf of gas within multiple reservoir zones of the Lower Triassic.The high quality of these sands has been

35、 confirmed by the Dorado appraisal program.Flow testing at Dorado-3 drilled in September of 2019,recorded a maximum 48 mscf/day of gas and 4,500 bbl/day oil from the Baxter reservoir while testing from the Caley achieved up to 11,100 bbl/day oil and 21mcf/day associated gas(STO release,8 October 201

36、9).Flow rates from both intervals were constrained by surface equipment and are some of the best ever recorded on the Northwest Shelf of Australia.These are excellent results for reservoirs buried greater than 4000m.Importantly,Triassic targets within WA/527-P are likely to have up to 1000m less ove

37、rburden than at Dorado and are therefore interpreted to host similar if not better reservoir potential.The Santos led Joint Venture is currently in the stakeholder consultation phase of a development plan at Dorado.The proposed development will comprise a Well Head Platform(WHP)with a Floating Produ

38、ction,Storage and Offloading Facility(FPSO).Once completed,the development will establish the Bedout Sub-basin as one of Australias newest producing petroleum provinces.3D Oil is proud to have secured a 6,500km2 piece of what will be Australias newest petroleum producing region.Figure 1 WA/527-P Loc

39、ation and Sea Floor Bathymetry“The acquisition of WA/527-P demonstrates the ability for 3D Oil to recognize opportunity early and act ahead of our larger competitors.”7ActivitiesThroughout 2019,3D Oil conducted reprocessing of a series of legacy 2D seismic lines.Results support the interpretation of

40、 a series of erosional channel systems(Figure 2)that may represent trapping mechanisms for targets within the lower Triassic.These erosional systems are considered important to the play concept as a similar feature,filled with impermeable claystone is proven to provide the trap for the nearby Dorado

41、 discovery.The balance of available 2D seismic in WA/527-P is sparse with mostly poor quality and it is difficult to fully map these channels or any associated targets.As such,the next stage in 3D Oils exploration campaign includes acquisition and processing of modern 3D seismic data.During the year

42、 3D Oil received approval to acquire the Sauropod 3D Marine Seismic Survey(MSS).The Sauropod 3D program is planned for January April inclusive of 2021 and will allow for acquisition of up to 3,447 km2 of 3D seismic data.This survey is an integral next step in the exploration strategy for the permit

43、and will have multiple objectives,including;Delineation of any targets that are analogous to the Dorado discovery by virtue of trapping against the interpreted Triassic erosional channel systems in the southwest of the acreage,Maturation of Leads identified by 2D seismic including Salamander,Jaubert

44、 and Whaleback,Investigation of the potential Palaeozoic play interpreted to be operating in the eastern side of the acreage and,Identification of any prospects that are not imaged by the current 2D seismic data.Sauropod has been designed to provide modern,high resolution imaging allowing,technical

45、staff to determine whether identified traps represent viable closures,and detect any additional targets hidden between available 2D data.Even with social distancing restrictions imposed throughout 2020,3D Oil has continued to host presentations for multiple interested Exploration&Production companie

46、s.3D Oil has also begun a procurement process for a seismic vessel operator that is capable of acquiring the Sauropod 3D MSS within the constraints of the approved Environment Plan.Figure 2 Interpretation of reprocessed seismic line JN87-20,including a series of erosional channels within WA/527-PFig

47、ure 3 WA/527-P Location,recent oil&gas discoveries and Triassic erosional channel systems8pRospectivitymesozoic leads3D Oil has identified a series of structures along the western side of the acreage which may host Triassic sands,similar to those encountered at Dorado and Roc.Trap types in the Trias

48、sic play include a combination of conventional faulted anticlines and possible stratigraphic traps sealed by the mentioned erosional channel systems.Additional inversion and fault-bound targets within the Jurassic sections are also identified.The largest of the Mesozoic leads include Whaleback and S

49、alamader,with a Best Estimate Prospective Resource of 86 MMbbls and 190 MMbbls respectively.The Sauropod 3D MSS will allow 3D Oil to delineate the structural closure of these features more accurately,and thus update the prospective resource estimates.palaeozoic leads3D Oil has identified the presenc

50、e of at least six reef-like features that could form viable oil targets.These features range in size from 3-30km2.These are mostly identifiable within the eastern side of the acreage,within what is interpreted to be a section of an extensive Palaeozoic Barrier Reef System.This system is proven as an

51、 effective petroleum system by the Blina and Ungani oil fields in the onshore Canning Basin.The Sauropod 3D MSS will provide imaging for the largest of these features located in the north of the permit.Figure 4 Proposed Location of Sauropod 3D MSS Full-Fold Acquisition Areatable 1:wA/527-p prospecti

52、ve Resource estimate(mmbbls)Recoverable oil(Asx ann.26/2/18)ProspectStatusLowBestHighSalamanderLead57191713JaubertLead1772205WhalebackLead1687219WA/527-P Arithmetic Total903501,1379Figure 5 Otway Basin,Fields and Infrastructure Location10t49/p,otwAy BAsin,offshoRe victoRiA3D Oil holds 20%interest in

53、 the T/49P exploration permit,which covers 4,960km2 of the strategic offshore Otway Basin.The permit is located adjacent to the producing Thylacine and Geographe gas fields(100%owned by Beach Energy Limited(ASX:BPT).The Otway Basin covers an area of 150,000km2 along the southern margin of Australia.

54、The basin has been an important supplier of gas to the east coast since the 1980s,and the T49/P permit is optimally placed to contribute much needed additional resources to this market.3D Oil management firmly believes that the south-east Australian gas market will be strong in coming years as exist

55、ing gas production in both the Gippsland and Otway Basin decline.The National COVID-19 response Co-ordination Commission has flagged the importance of securing additional natural gas supply to fuel industry recovery from the COVID-19 Pandemic.In addition,the federal government Technology Roadmap dis

56、cussion paper released on 21 May 2020 comments that gas will play an important role as the nation switches from coal fired power,and will also support the uptake of renewable energy by filling gaps in the grid where renewable energy generation is intermittent.3D Oil recognized the potential for the

57、shortfall in gas supply to south-east Australia as early as 2012,and as a result acquired the T49/P exploration permit in the Otway Basin.The wider industry now shares the view that the region contains significant yet-to-find gas.In August of 2019 Cooper Energy(ASX:COE)drilled Annie-1 resulting in t

58、he first offshore gas discovery in the Otway Basin in 11 years.In December of 2019,Cooper Energy and Mitsui Group took possession of the Minerva Gas Plant and announced a$37 Million investment with the intention of processing gas from the Casino,Henry and Netherby fields(COE Release,20 July 2020).Be

59、ach Energy plans to drill up to nine wells between December 2020 and March 2021.The first of these will be the Aritsan-1 exploration well,followed by a series of near-field and appraisal wells at Thylacine and Geographe.Yet another compelling indication of the importance of the Otway Basin is the en

60、trance of ConocoPhillips Australia,by way of farm-in to 3D Oils T49/P exploration permit.The T49/P permit contains a number of structures prospective for gas within an area of 4,960 km2 and in water depths generally no greater than 100m.The north of the permit is covered by 974 km2 of modern 3D seis

61、mic,while the area to the south remains lightly explored and covered by a broad grid of 2D seismic data of varying vintage and quality.Only two early exploration wells have been drilled in the permit(in 1967 and 1970)on historic,widely spaced 2D seismic.In subsequent years the region was largely ove

62、rlooked by the industry despite the proximity of the Thylacine and Geographe gas fields.ActivitiesThis year 3D Oil completed the farm-out of 80%interest in the T49/P exploration permit to ConocoPhillips Australia SH1 Pty Ltd(COP).The National Offshore Petroleum Titles Administrator(NOPTA),granted ap

63、proval for the farmout on 9 June 2020.This transaction signifies an important step forward in 3D Oils strategy to discover gas in South East Australia and provide resources to the local market.3D Oil believes that COP are the ideal partner,with the resources and technical expertise required to compe

64、tently progress the exploration campaign in T49/P.Under the terms of the Joint Operating Agreement(JOA),COP now holds 80%interest in the permit and is operating.In accordance with the Farm out Agreement(FOA),COP has transferred A$5m cash payment to 3D OIL in recognition of previous permit expenditur

65、e.According to the agreement,COP will now undertake the acquisition of a 3D seismic survey of not less than 1580 sq km within the Permit to which 3D OIL will make no financial contribution.The survey is of paramount importance to the Joint Ventures overall exploration strategy as it will cover remai

66、ning leads in lightly explored central and southern sections of the T/49P acreage and will allow for the generation of a permit-wide prospect seriatim that will inform the best possible drilling location.Upon completion of the 3D seismic program,COP may elect to drill an exploration well which will

67、full-fill the current Year 6 work commitment.In the event COP elects to drill such exploration well,the Company will be carried for up to US$30 million in drilling costs after which it will contribute 20%of drilling costs in line with its interest in the Permit.pRospectivity3D Oil selected T49/P bas

68、ed on its unique position within the regional structural configuration of the Southern Otway Basin.The permit is located along the edge of a paleo-shelf break,which was the depositional focus of a series of thick progradational clino-forms throughout the last 35 Million Years.These clino-forms have

69、resulted in rapid loading of the proven sources rocks in this section of the Otway Basin.3D Oil believes that this mechanism for hydrocarbon generation is responsible for charging the largest offshore Otway Basin gas fields,Thylacine and Geographe and is likely to contribute hydrocarbons to the Lead

70、s and Prospects of T49/P(Figure 5).Figure 6 Modelled gas expulsion and migration“This transaction signifies an important step forward in 3D Oils strategy to discover gas in South East Australia and provide resources to the local market”11flanagan prospectFlanagan is the permits drill ready prospect.

71、The structure has a maximum aerial closure of approximately 80 sq km and is positioned adjacent to multiple source kitchens.It is defined by the Flanagan 3D survey acquired in 2014 and has a best estimate prospective resource 1.34 TCF(announced 27 July 2017).The Prospect is located in shallow water

72、and is the permits closest feature to existing infrastructure at Thylacine and Geographe.The potential for gas in the Flanagan Prospect is supported by quantitative geophysical modelling,which indicates the presence of a Class III amplitude versus offset(AVO)anomaly.In the Otway Basin,this type of r

73、esponse is known to be indicative of gas bearing sands.seal Rocks leadOne of the key objectives of the upcoming 3D seismic program is the Seal Rocks Lead,located in the South of the permit.In 2019 3D Oil completed reprocessing and interpretation of legacy 2D seismic.This data defined the presence of

74、 high amplitude zones,likely to represent good quality reservoir sands appearing to fit a series of tilted fault-blocks.While the reprocessed 2D seismic has provided a more accurate understanding of the structure at Seal Rocks,3D seismic data is required to determine the true resource potential of t

75、he feature.Figure 7 Seismic Interpretation at the Seal rocks Leadtable 2:t/49p prospective Resource estimate(tcf)Recoverable Gas(Asx ann.27-Jul-17)LocationStatusLowBestHighFlanaganProspect0.531.342.74Munro(T/49P Part)Lead0.040.190.57Whistler PointLead0.822.048.95British AdmiralLead0.371.034.45Seal R

76、ocksLead0.954.6410.64HarbingerLead0.330.791.43T/49P Arithmetic Total3.0410.0328.78The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s)relate to undiscovered accumulations.These estimates have both an associated risk of discover

77、y and a risk of development.Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons12vic/p57,GippslAnd BAsin offshoRe victoRiAExploration Permit VIC/P57 is located in the northwest of the offshore Gippsland Ba

78、sin.The permit is approximately 246km2 in size and located in shallow waters close to shore and proximal to existing infrastructure.The permit was renewed by 3D Oil and operating partner Carnarvon Hibiscus Pty Ltd(CHPL)in 2018 for further five-year tenure.As part of this process the Joint Venture re

79、linquished non prospective graticular blocks and has retained the most valuable acreage.3D Oil holds a 24.9%interest in the VIC/P57.By arrangement with permit operator Carnarvon Hibiscus Pty Ltd(CHPL),3D Oil Limited continues to carry out subsurface technical work for the permit on behalf of the Joi

80、nt Venture.The Gippsland Basin,with initial reserves estimated at 4 billion barrels of oil and 11.5 trillion cubic feet of gas,is Australias most prolific oil and gas producing basin.Twenty-one oil and gas fields are on production with most of the hydrocarbons hosted by the world-class sandstones of

81、 the Latrobe Group.The Gippsland Basin is considered extremely important for gas supply to south east Australia,however,production from the basin is in decline.This year ExxonMobil continued with their plan to bring the West Barracouta development online,while Cooper Energy has commenced commissioni

82、ng of the Orbost Gas Plant with the intention of processing gas from the Sole Gas field.The Australian Energy Market Operator(AEMO)Gas Statement of Opportunities released in March of 2020 suggests that current and contingent resources(such as West Barracouta and Sole)will be insufficient to offset e

83、xisting decline.Between 2019 and 2020 ExxonMobil embarked on a new drilling campaign in an attempt to bolster supply.The campaign included the drilling of exploration wells Hairtail-1,Baldfish-1 and Sculpin-1,however,all failed to discover additional resources.In September of 2019,ExxonMobil announc

84、ed their intention to sell their stake in the Gippsland Basin assets,including their interest in the Longford Gas plant.In August of 2020,Joint Venture partner BHP announced that they too intended to sell their non-operator assets.If successful,this sale will end a 50-year history of ExxonMobil and

85、BHP exploring and producing in the Gippsland Basin.3D Oil believes that there are significant resources remaining in the Gippsland Basin,with many plays including some within the lower Latrobe Group remaining underexplored.If there is to be secure supply of gas to the south-east Australia,innovative

86、 exploration that takes advantage of modern data to investigate previously overlooked opportunities is required.This requires investment in new technology such as modern seismic acquisition and/or reprocessing of existing data with a focus on enhancing imaging of the less understood,deeper levels of

87、 the Gippsland Basin.The 3D Oil/Hibiscus Joint Venture is leveraging new reprocessed seismic data to search for new prospects.The Joint Venture now has two exploration permits in the western Gippsland Basin that share a common exploration rationale.Figure 8 VIC/P57 Location(blue polygon)with Gippsla

88、nd ReGeneration Reprocessing data(red polygon)“The Australian Energy Market Operator(AEMO)Gas Statement of Opportunities released in March of 2020 suggests that current and contingent resources(such as West Barracouta and Sole)will be insufficient to offset existing decline”13ActivitiesThe Joint Ven

89、ture has completed its technical evaluation in VIC/P57.The primary term of the current renewal period was designed to de-risk and high grade the prospect inventory and ultimately progress prospects to drill-ready status.Two drilling candidates have been identified in the permit including;Felix and P

90、ointer.The Pointer Prospect is an AVO supported gas target,located close to shore and nearby infrastructure.It is well placed to supply gas to the east Australian market.The Felix Prospect is a low risk Oil&Gas prospect located between the Wirrah discovery and Moonfish field.Dexter has been confirme

91、d as a strong Lead and represents valuable additional potential for the permit.Since completion of the technical program,a farm-out campaign was initiated,and 3D Oil has hosted data rooms for numerous interested parties throughout the year.The low risk profile of Felix and the potential for Pointer

92、to provide low-cost gas to the domestic market is recognized by industry.pRospectivityfelix prospectFelix Prospect is an inversion anticline(Figure 8)favourably situated between the Moonfish and Wirrah discoveries along the Seahorse Fault.The structure is highly likely to have access to charge from

93、the same kitchen as the existing discoveries.The reservoir-seal configuration is well constrained by nearby wells and excellent reservoir seal pairs are anticipated across the L.balmei zone at Felix.Since finalizing interpretation of the latest reprocessed seismic data,3D Oil believes that it is now

94、 possible to understand the trapping mechanism at Felix with far greater accuracy.This provides a higher degree of certainty with respect to the prospective resource estimations for the prospect.The improved velocity model from the reprocessed data has helped to de-risk the presence of closure in th

95、e depth domain across the L.balmei zone and has assisted with determining the best drilling location at the Prospect.Figure 9 Arbitrary seismic line through Wirrah Discovery,Felix Prospect and Moonfish Field(Image courtesy of CGG Multiclient&New Ventures)14pointer prospectThe Pointer Prospect is a c

96、ombination structural-stratigraphic gas prospect within the Upper L.balmei reservoir of the upper Latrobe Group.The prospect shows a clear rising amplitude with offset response,a Class III AVO(Figure 9)which is likely to represent dry gas.Improved imaging has permitted high-resolution mapping of the

97、 fault architecture and has reduced uncertainty on the trapping mechanism,highlighting a conformance of amplitude with structure.Located proximal to existing infrastructure,within water depths of less than 40m,and a drilling depth of 1600m,Pointer represents low-cost development for the domestic gas

98、 market.table 3:total vic/p57 prospective Resources estimate(mmbbls)Recoverable oil(Asx ann.27/7/17)LocationStatusLowBestHighFelixProspect6.815.926.9SalsaLead10.715.120.6VIC/P57 Total17.531.047.5table 4:total vic/p57 prospective Resource estimate(Bcf)Recoverable Gas(Asx ann.27/7/17)LocationStatusLow

99、BestHighPointerProspect140.1235.3364.9DexterLead37.0132.0259.1VIC/P57 Total177.1367.3624.0Figure 10 Pointer Prospect Amplitude Anomaly(image courtesy of CGG Multiclient&New Ventures)15vic/p74,GippslAnd BAsin offshoRe victoRiALocated in shallow waters of the offshore Gippsland Basin,VIC/P74 was award

100、ed to 3D Oil on 26 July 2019 by the NOPTA.The permit covers 1,006 km2 and is situated on the southern flank of the Gippsland Basin,where it straddles the boundary of the Southern Terrace and the Central Deep.The permit includes the Omeo Gas-condensate discovery and is located adjacent to the giant,w

101、orld class Kingfish Oil Field,the largest oil field ever discovered in Australia.To date,Kingfish Field has produced over one billion barrels of oil from the classic Top of Latrobe play.Bream Field is also located adjacent to VIC/P74,a large oil and gas discovery also producing from the Top of Latro

102、be play,with additional columns throughout the deeper Latrobe Group.As with VIC/P57,exploration of this region has been hampered by velocity anomalies in shallow overburden causing limitations to seismic imagery.Exploration drilling post-mortems suggests that several of the wells in permit have fail

103、ed as a result of this issue.As evidenced in VIC/P57,recent advances in reprocessing techniques have made significant improvements in relation to this technical limitation.The rationale for the acquisition of VIC/P74 was based on anticipated uplift in 3D imaging and velocity data given the availabil

104、ity of CGG 3D ReGeneration Reprocessing over the area,as well as the potential for significant un-drilled traps and the local prolific petroleum system.fARmout to hiBiscusIn October 2019,3D Oil announced that Carnarvon Hibiscus Pty Ltd(CHPL),an indirect wholly owned subsidiary of Hibiscus Petroleum

105、Berhad,elected to enter into a joint venture agreement by acquiring a 50%interest in the permit.During July of 2020,NOPTA approved the Assignment Agreement between 3D OIL and CHPL which created the right for the two companies to enter into a Joint Operating Agreement(JOA).3D OIL has since executed a

106、 Joint JOA with CHPL and is currently awaiting approval of this document from NOPTA.Under the terms of the agreement,3D Oil will remain as Operator and retain 50%equity in the permit.3D OIL is pleased to further strengthen its partnership with Hibiscus.The Joint Venture now has significant acreage h

107、olding in the Western Gippsland Basin.Figure 11 VIC/P74 LocationVIC/P74 Permit Outline CGG 3D ReprocessingPetroleum TitlesPipelines GasOilFields GasOilLEGEND16ActivitiesThe primary work programme(Years 1-3)is fully funded and requires the development of an exploration database,purchase of 905km2 of

108、the CGG Gippsland 3D ReGeneration Reprocessing,and a range of geology and geophysics(G&G)studies aimed at adding to the Gippsland Joint Ventures portfolio of leads and prospects.3D Oils well database has been extended to include the local VIC/P74 area,allowing the construction of a seamless stratigr

109、aphic framework between VIC/P57 and VIC/P74,as well as an improved understanding of the local distribution of hydrocarbon shows and discoveries.This has included an in-house petrophysical assessment of the Omeo wells to aid in the development of a geostatistical model for the Omeo gas-condensate dis

110、covery,and subsequent volumetric assessment.Geochemistry data has been consolidated and interrogated to determine local source rock candidates.Whole oil and cuttings geochemistry datasets from the Omeo wells indicate that hydrocarbons have migrated into the permit from a thermally mature source rock

111、 that is likely to contribute hydrocarbon to other targets in the permit.Omeo hydrocarbon reservoirs are located within the Golden Beach Sub-Group,however,most Golden Beach well penetrations are located on the flank of the Northern Terrace.Hence,a regional assessment of formation tops and reservoir

112、properties has better informed the likely depositional settings and reservoir properties to be expected at any Golden Beach leads identified from future mapping of the CGG 3D reprocessing.In August of 2020,the Joint Venture licensed 1,004 km2 of the CGG 3D ReGeneration Reprocessing,fulfilling a majo

113、r work commitment of the primary term.Data includes full and offsets stacks,gathers and velocity cube.The next major phase of the VIC/P74 work programme will comprise the detailed interpretation of the seismic,including AVO screening and the identification of leads and prospects.As anticipated,the s

114、tate-of-the-art CGG reprocessing has yielded a significant uplift in data quality,especially across the deeper Latrobe Group stratigraphy.Most important to the strategy of the permit,the Joint Venture now has excellent constraint on velocity inversions across the shallow overburden,permitting increa

115、singly accurate depth conversions.A range of depth conversion techniques and comprehensive sensitivity analysis will be conducted after the completion of the seismic interpretation.“hydrocarbons have migrated into the permit from a thermally mature source rock that is likely to contribute hydrocarbo

116、n to other targets in the permit”17diRectoRs RepoRt18The Directors present their report,together with the financial statements,on the consolidated entity(referred to hereafter as the Consolidated Entity)consisting of 3D Oil Limited(referred to hereafter as the Company or parent entity)and the entiti

117、es it controlled at the end of,or during,the year ended 30 June 2020.diRectoRsThe following persons were Directors of 3D Oil Limited during the whole of the financial year and up to the date of this report,unless otherwise stated:Mr Noel Newell Mr Ian Tchacos Mr Leo De MariapRincipAl ActivitiesDurin

118、g the financial year the principal continuing activities of the Company consisted of exploration and development of upstream oil and gas assets.dividendsThere were no dividends paid or declared during the current or previous financial year.The Consolidated Entity does not have franking credits avail

119、able for subsequent financial years.Review of opeRAtionsThe loss for the Consolidated Entity after providing for income tax amounted to$3,006,065(30 June 2019:$1,089,254).Refer to the detailed Review of Operations preceding this Directors Report.finAnciAl positionThe net assets decreased by$3,000,20

120、0 to$8,742,543 at 30 June 2020(30 June 2019:$11,742,743).During the period the Consolidated Entity spent a net amount after reimbursements of$726,453(2019:$880,967)on exploration,mainly in relation to WA/527P and VIC/P74 during the year.Exploration assets at 30 June 2020 were net of$5,000,000,receiv

121、ed in relation to T/49P for the completion of Farm-out Agreement with Conoco Phillips.Following a review by the Directors and management,the book value of VIC/P57 was written down to Nil as at 30 June 2020,reflecting the estimated future economic benefits expected to be derived from this area of int

122、erest.The working capital position as at 30 June 2020 of the Consolidated Entity results in an excess of current assets over current liabilities of$4,033,946(30 June 2019:$903,047).The Consolidated Entity made a loss after tax of$3,006,065 during the financial year(2019 loss:$1,089,254)and had net o

123、perating cash outflows of$980,209(2019:$958,034).The cash balances,including term deposits,as at 30 June 2020 was$5,170,768 (2019:$1,934,458).Based on the above the Directors believe the Company is in a stable position to continue to pursue its current operations.siGnificAnt chAnGes in the stAte of

124、AffAiRsOn 26 July 2019,the Company announced that it was awarded the VIC/P74 permit in the offshore Gippsland Basin.The permit covers approximately 1,006km2 and the primary work programme is modest and largely consists of purchase of reprocessed 3D seismic data.On 4 October 2019,the Company and Hibi

125、scus Petroleum Berhad entered into a farm-out arrangement in relation to VIC/P74.The Company will remain as operator with 50%equity when a Joint Operating Agreement(JOA)is signed by both parties and required government approvals.On 18 December 2019,the Company announced that its wholly owned subsidi

126、ary,3D Oil T49P Pty Ltd had executed a Farm-out Agreement(FOA)with ConocoPhillips Australia SH1 Pty Ltd(ConocoPhillips Australia)in relation to the offshore Tasmanian Permit T/49P.ConocoPhillips Australia have taken operatorship of T/49P and were transferred an 80%interest in the permit at completio

127、n of the Farm-out.In exchange for the transfer:3D Oil received a A$5m cash payment in recognition of previous permit expenditure;ConocoPhillips Australia will acquire at least 1,580km2 of 3D seismic survey in T/49P at no cost to 3D Oil;and ConocoPhillips Australia may elect to drill an exploration w

128、ell in which it will carry up to the first US$30 million of costs,after which 3D Oil will contribute 20%of costs in line with its interest in the permit.On 1 April 2020,the Company announced that it had been granted a 21-month Suspension and Extension by the National Offshore Petroleum Titles Admini

129、strator(NOPTA)for the offshore Bedout Sub-basin permit WA-527-P.This now provides 3D Oil until the 28 December 2021 to acquire and process a minimum of 510 km2 of 3D seismic data.There were no other significant changes in the state of affairs of the Consolidated Entity during the financial year.mAtt

130、eRs suBsequent to the end of the finAnciAl yeAROn 14 July 2020,the Company announced that it has been awarded the necessary environmental approvals from the Commonwealth Statuary National Agency,NOPSEMA,to acquire the Sauropod 3D Marine Seismic Survey(MSS)within 100%owned WA-527-P of the Offshore Ro

131、ebuck Basin.No other matter or circumstance has arisen since 30 June 2020 that has significantly affected,or may significantly affect the Consolidated Entitys operations,the results of those operations,or the Consolidated Entitys state of affairs in future financial years.likely developments And exp

132、ected Results of opeRAtionsThe Consolidated Entity will continue to pursue its exploration interest in VIC/P57 and VIC/P74 in partnership with Carnarvon Hibiscus Pty Ltd;T/49P in partnership with Conoco Phillips Australia;WA-527-P in the Roebuck Basin of Western Australia.enviRonmentAl ReGulAtionThe

133、 Consolidated Entity holds participating interests in a number of oil and gas areas.The various authorities granting such tenements require the licence holder to comply with the terms of the grant of the licence and all directions given to it under those terms of the licence.There have been no known

134、 breaches of the tenement conditions,and no such breaches have been notified by any government agencies during the year ended 30 June 2020.19infoRmAtion on diRectoRsmr noel newellexecutive chairmanqualificationsB App Sc(App Geol)experience and expertiseNoel Newell holds a Bachelor of Applied Science

135、 and has over 25 years experience in the oil and gas industry,with 20 years of this time with BHP Billiton and Petrofina.With these companies Mr Newell has been technically involved in exploration of areas around the globe,particularly South East Asia and all major Australian offshore basins.Prior t

136、o leaving BHP Billiton in 2002,Mr Newell was Principal Geologist working within the Southern Margin Company and primarily responsible for exploration within the Gippsland Basin.Mr Newell has a number of technical publications and has co-authored Best Paper and runner up Best Paper at the Australian

137、Petroleum Production&Exploration Association conference and Best Paper at the Western Australian Basins Symposium.Mr Newell is the founder of 3D Oil.Immediately prior to starting 3D Oil,Mr Newell was a technical advisor to Nexus Energy Limited and was directly involved in their move to explore in th

138、e offshore of the Gippsland Basin.other current directorshipsNoneformer directorships (last 3 years)Nonespecial responsibilitiesNoneinterests in shares44,192,229 ordinary fully paid shares.interests in optionsNonemr leo de marianon-executive directorexperience and expertiseLeo De Maria is a Chartere

139、d Accountant with extensive experience in company management,financial management,mergers and acquisitions and risk management.other current directorshipsNoneformer directorships (last 3 years)Nonespecial responsibilitiesChairman of Audit Committee and Remuneration and Nomination Committeeinterests

140、in shares650,070 ordinary fully paid shares.interests in optionsNonemr ian tchacosnon-executive directorexperience and expertiseIan Tchacos is an oil and gas professional with over 30 years international experience in corporate development and strategy,mergers and acquisitions,petroleum exploration,

141、development and production operations,decision analysis,commercial negotiation,oil and gas marketing and energy finance.He has a proven management track record in a range of international energy company environments.other current directorshipsADX Energy Ltdformer directorships (last 3 years)Xstate R

142、esources Limited(resigned on 26 November 2019)special responsibilitiesMember of Audit Committee and Member of Remuneration and Nomination Committeeinterests in shares428,500 ordinary fully paid sharesinterests in optionsNonecompAny secRetARiesmelanie leydin BBus(Acc.corp law)cA fGiAJoint company sec

143、retaryMelanie Leydin holds a Bachelor of Business majoring in Accounting and Corporate Law.She is a member of the Institute of Chartered Accountants,Fellow of the Governance Institute of Australia and is a Registered Company Auditor.She graduated from Swinburne University in 1997,became a Chartered

144、Accountant in 1999 and since February 2000 has been the principal of Leydin Freyer.The practice provides outsourced company secretarial and accounting services to public and private companies across a host of industries including but not limited to the Resources,technology,bioscience,biotechnology a

145、nd health sectors.Melanie has over 25 years experience in the accounting profession and over 15 years as a Company Secretary.She has extensive experience in relation to public company responsibilities,including ASX and ASIC compliance,control and implementation of corporate governance,statutory fina

146、ncial reporting,reorganisation of Companies and shareholder relations.mr stefan RossJoint company secretaryMr Ross has over 10 years of experience in accounting and secretarial services for ASX Listed companies.His extensive experience includes ASX compliance,corporate governance control and impleme

147、ntation,statutory financial reporting and Board and secretarial support.Other current directorships quoted above are current directorships for listed entities only and excludes directorships in all other types of entities,unless otherwise stated.Former directorships(in the last 3 years)quoted above

148、are directorships held in the last 3 years for listed entities only and excludes directorships in all other types of entities,unless otherwise stated.20meetinGs of diRectoRsThe number of meetings of the Companys Board of Directors(the Board)held during the year ended 30 June 2020,and the number of m

149、eetings attended by each Director were:Meetings HeldMeetings AttendedMr N Newell33Mr L De Maria33Mr I Tchacos33Held:represents the number of meetings held during the time the Director held office.RemuneRAtion RepoRt(Audited)The remuneration report,which has been audited,outlines the director and exe

150、cutive remuneration arrangements for the Company,in accordance with the requirements of the Corporations Act 2001 and its Regulations.Key management personnel are those persons having authority and responsibility for planning,directing and controlling the activities of the entity,directly or indirec

151、tly,including all directors.The remuneration report is set out under the following main headings:Principles used to determine the nature and amount of remuneration Details of remuneration Service agreements Share-based compensation Additional information Additional disclosures relating to key manage

152、ment personnelprinciples used to determine the nature and amount of remunerationThe objective of the Consolidated Entitys executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered.The framework aligns executive reward with the achievement

153、 of strategic objectives and the creation of value for shareholders,and conforms with the market best practice for delivery of reward.The Board of Directors(the Board)ensures that executive reward satisfies the following key criteria for good reward governance practices:competitiveness and reasonabl

154、eness acceptability to shareholders alignment of executive compensation transparencyThe Board is responsible for determining and reviewing remuneration arrangements for its directors and executives.The performance of the Consolidated Entity and the Company depends on the quality of its directors and

155、 executives.The remuneration philosophy is to attract,motivate and retain high performance and high quality personnel.The Board has structured an executive remuneration framework that is market competitive and complementary to the reward strategy of the Consolidated Entity.The reward framework is de

156、signed to align executive reward to shareholders interests.The Board have considered that it should seek to enhance shareholders interests by:focusing on sustained growth in shareholder wealth,consisting of dividends and growth in share price,and delivering constant or increasing return on assets as

157、 well as focusing the executive on key non-financial drivers of value attracting and retaining high calibre executivesAdditionally,the reward framework should seek to enhance executives interests by:rewarding capability and experience reflecting competitive reward for contribution to growth in share

158、holder wealth providing a clear structure for earning rewardsIn accordance with best practice corporate governance,the structure of non-executive director and executive director remuneration is separate.21non-executive directors remunerationFees and payments to non-executive directors reflect the de

159、mands which are made on,and the responsibilities of,the directors.Non-executive directors fees and payments are reviewed annually by the Board.The chairmans fees are determined independently to the fees of other non-executive directors based on comparative roles in the external market.The chairman i

160、s not present at any discussions relating to determination of his/her own remuneration.Non-executive directors do not receive share options or other incentives.ASX listing rules requires that the aggregate non-executive directors remuneration shall be determined periodically by a general meeting.The

161、 most recent determination was at the Annual General Meeting held on 21 November 2012,where the shareholders approved an aggregate remuneration of$400,000.executive remunerationThe Consolidated Entity aims to reward executives with a level and mix of remuneration based on their position and responsi

162、bility,which are both fixed.The executive remuneration and reward framework have three components:base pay and non-monetary benefits share-based payments other remuneration such as superannuation and long service leaveThe combination of these comprises the executives total remuneration.Fixed remuner

163、ation,consisting of base salary,superannuation and non-monetary benefits,are reviewed annually by the Board,based on individual and business unit performance,the overall performance of the Company and comparable market remunerations.Executives can receive their fixed remuneration in the form of cash

164、 or other fringe benefits(for example motor vehicle benefits)where it does not create any additional costs to the Company and adds additional value to the executive.All Executives are eligible to receive a base salary(which is based on factors such as experience and comparable industry information)o

165、r consulting fee.The Board reviews the Executive Chairmans remuneration package,and the Executive Chairman reviews the senior Executives remuneration packages annually by reference to the Consolidated Entitys performance,executive performance and comparable information within the industry.The perfor

166、mance of Executives is measured against criteria agreed annually with each executive and is based predominantly on the overall success of the Consolidated Entity in achieving its broader corporate goals.Bonuses and incentives are linked to predetermined performance criteria.The Board may,however,exe

167、rcise its discretion in relation to approving incentives,bonuses,and options,and can require changes to the Executives remuneration.This policy is designed to attract the highest calibre of Executives and reward them for performance that results in long-term growth in shareholder wealth.All remunera

168、tion paid to Directors and Executives is valued at the cost to the Consolidated Entity and expensed.Options are valued using the Black-Scholes or Binomial methodology.The long-term incentives(LTI)includes long service leave and share-based payments.Shares and or options are awarded to executives on

169、the discretion of the Board based on long-term incentive measures.consolidated entity performance and link to remunerationRemuneration packages do not include performance-based components.An individual member of staffs performance is assessed by reference to their contribution to the Companys overal

170、l achievements.The intention of this program is to facilitate goal congruence between Executives with that of the business and shareholders.Generally,the executives remuneration is tied to the Consolidated Entitys successful achievement of certain key milestones as they relate to its operating activ

171、ities.voting and comments made at the companys 11 november 2019 Annual General meeting(AGm)The Company received 91.78%of for votes in relation to its remuneration report for the year ended 30 June 2019.The Company did not receive any specific feedback at the AGM regarding its remuneration practices.

172、detAils of RemuneRAtionAmounts of remunerationDetails of the remuneration of key management personnel of the Consolidated Entity are set out in the following tables.Details of the remuneration of the directors and other key management personnel(defined as those who have the authority and responsibil

173、ity for planning,directing and controlling the major activities of the company)of the company are set out in the following tables.22Short-term benefitsPost-employment benefitsLong-term benefitsSalaries and feesSuper-annuationLong service leaveTotal2020$Non-Executive Directors:Mr I Tchacos 43,1514,09

174、9-47,250Mr L De Maria41,0963,904-45,000Executive Directors:Mr N Newell353,18023,27514,414390,869437,42731,27814,414483,1192019$Non-Executive Directors:Mr I Tchacos 43,1514,099-47,250Mr L De Maria41,0963,904-45,000Executive Directors:Mr N Newell337,48819,308-356,796421,73527,311-449,046The proportion

175、 of remuneration linked to performance and the fixed proportion are as follows:Fixed remunerationName20202019Non-Executive Directors:Mr I Tchacos100%100%Mr L De Maria100%100%Executive Directors:Mr N Newell100%100%23seRvice AGReementsRemuneration and other terms of employment for key management perso

176、nnel are formalised in service agreements.Details of these agreements are as follows:mr n newell executive chairmanAgreement commenced1 November 2006details(i)Mr Newell may resign from his position and thus terminate this contract by giving 6 months written notice.(ii)The Company may terminate this

177、employment agreement by providing 6 months written notice.(iii)The Company may terminate the contract at any time without notice if serious misconduct has occurred.Where termination with cause occurs,Mr Newell is only entitled to that portion of remuneration which is fixed,and only up to the date of

178、 termination.(iv)On termination of the agreement,Mr Newell will be entitled to be paid those outstanding amount owing to him up until the Termination date.mr ian tchacosnon-executive director Agreement commenced14 October 2016details(i)Mr Tchacos may resign from his position and thus terminate this

179、contract by giving 3 months written notice.(ii)The Company may terminate this employment agreement by providing 3 months written notice.(iii)The Company may terminate the contract at any time without notice if serious misconduct has occurred.Where termination with cause occurs,Mr Tchacos is only ent

180、itled to that portion of remuneration which is fixed,and only up the date of termination.(iv)On termination of the agreement,Mr Tchacos will be entitled to be paid those outstanding amounts owing to him up until the Termination date.mr leo de marianon-executive directorAgreement commenced30 Septembe

181、r 2014details(i)Mr De Maria may resign from his position and thus terminate this contract by giving 3 months written notice.(ii)The Company may terminate this employment agreement by providing 3 months written notice.(iii)The Company may terminate the contract at any time without notice if serious m

182、isconduct has occurred.Where termination with cause occurs,Mr De Maria is only entitled to that portion of remuneration,which is fixed,and only up the date of termination.(iv)On termination of the agreement,Mr De Maria will be entitled to be paid those outstanding amounts owing to his up until the T

183、ermination date.Key management personnel have no entitlement to termination payments in the event of removal for misconduct.24shARe-BAsed compensAtionissue of sharesThe Company issued nil(2019:1,552,072)shares to directors and key management personnel as part of compensation during the year ended 30

184、 June 2020.optionsThere were no options over ordinary shares granted to or vested by Directors and other key management personnel as part of compensation during the year ended 30 June 2020(2019:Nil).performance rightsThere were no performance rights over ordinary shares issued to Directors and other

185、 key management personnel as part of compensation that were outstanding as at 30 June 2020(2019:Nil).Additional informationThe earnings of the Consolidated Entity for the five years to 30 June 2020 are summarised below:20202019201820172016$Interest income/sundry income85,27943,62927,69614,67773,967N

186、et loss before tax(3,006,065)(1,089,254)(1,154,810)(1,839,978)(10,332,422)Net loss after tax(3,006,065)(1,089,254)(1,154,810)(1,839,978)(10,291,156)The factors that are considered to affect total shareholders return(TSR)are summarised below:20202019201820172016Share price at financial year start($)0

187、.110.050.040.020.06Share price at financial year end($)0.070.110.050.040.02Basic earnings per share(cents per share)(1.13)(0.42)(0.49)(0.77)(4.33)Additional disclosures relating to key management personnelshareholdingThe number of shares in the Company held during the financial year by each Director

188、 and other members of key management personnel of the Consolidated Entity,including their related parties,is set out below:Balance at the start of the yearReceived as part of remunerationAdditionsDisposals/otherBalance at the end of the yearOrdinary sharesMr N Newell 44,082,229-110,000-44,192,229Mr

189、L De Maria650,070-650,070Mr I Tchacos 428,500-428,50045,160,799-110,000-45,270,799 This concludes the remuneration report,which has been audited.25shares under optionThere were no unissued ordinary shares of 3D Oil Limited under option outstanding at the date of this report.shares under performance

190、rightsThere were no unissued ordinary shares of 3D Oil Limited under performance rights outstanding at the date of this report.shares issued on the exercise of optionsThere were no ordinary shares of 3D Oil Limited issued on the exercise of options during the year ended 30 June 2020 and up to the da

191、te of this report.shares issued on the exercise of performance rightsThere were no ordinary shares of 3D Oil Limited issued on the exercise of performance rights during the year ended 30 June 2020.indemnity and insurance of officersThe Consolidated Entity has indemnified the directors of the Company

192、 for costs incurred,in their capacity as a director,for which they may be held personally liable,except where there is a lack of good faith.During the financial year,the Company paid a premium in respect of a contract to insure the directors of the Company against a liability to the extent permitted

193、 by the Corporations Act 2001.The contract of insurance prohibits disclosure of the nature of liability and the amount of the premium.indemnity and insurance of auditorThe Company has not otherwise,during or since the financial year,indemnified or agreed to indemnify the auditor of the Company or an

194、y related entity against a liability incurred by the auditor.During the financial year,the Company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity.proceedings on behalf of the companyNo person has applied to the Court under section 237 of th

195、e Corporations Act 2001 for leave to bring proceedings on behalf of the Company,or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.non-audit servicesThere were no non-audit services

196、 provided during the financial year by the auditor.Officers of the Company who are former partners of Grant Thornton Audit Pty LtdThere are no officers of the Company who are former partners of Grant Thornton Audit Pty Ltd.Auditors independence declarationA copy of the auditors independence declarat

197、ion as required under section 307C of the Corporations Act 2001 is set out immediately after this Directors report.AuditorGrant Thornton Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.Rounding of amounts3D Oil Limited is a type of Company that is referr

198、ed to in ASIC Corporations(Rounding in Financial/Directors Reports)Instrument 2016/191 and therefore the amounts contained in this report and in the financial report have been rounded to the nearest dollar.This report is made in accordance with a resolution of Directors,pursuant to section 298(2)(a)

199、of the Corporations Act 2001.On behalf of the DirectorsNoel Newell Executive Chairman24 September 2020 Melbourne26 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 Grant Thornton refers to the brand under which the Grant T

200、hornton member firms provide assurance,tax and advisory services to their clients and/or refers to one or more member firms,as the context requires.Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd(GTIL).GTIL and the member firms are not a worldwide partnership.GTIL a

201、nd each member firm is a separate legal entity.Services are delivered by the member firms.GTIL does not provide services to clients.GTIL and its member firms are not agents of,and do not obligate one another and are not liable for one anothers acts or omissions.In the Australian context only,the use

202、 of the term Grant Thornton may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities.GTIL is not an Australian related entity to Grant Thornton Australia Limited.Liability limited by a scheme approved under Professional Standards L.au Coll

203、ins Square,Tower 5 727 Collins Street Melbourne Victoria 3008 Correspondence to:GPO Box 4736 Melbourne VIC 3001 T+61 3 8320 2222 F+61 3 8320 2200 E W .au Auditors Independence Declaration To the Directors of 3D Oil Limited In accordance with the requirements of section 307C of the Corporations Act 2

204、001,as lead auditor for the audit of 3D Oil Limited for the year ended 30 June 2020,I declare that,to the best of my knowledge and belief,there have been:a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit;and b no contraventions of any

205、applicable code of professional conduct in relation to the audit.Grant Thornton Audit Pty Ltd Chartered Accountants B L Taylor Partner Audit&Assurance Melbourne,24 September 2020 27finAnciAl RepoRts28stAtement of pRofit oR loss And otheR compRehensive incomeFor the year ended 30 June 2020Consolidate

206、dNote20202019$Other income575,873-Interest income9,406 43,629 ExpensesCorporate expenses(572,794)(568,673)Employment expenses(471,800)(418,442)Occupancy expenses(34,427)(91,619)Depreciation and amortisation expense6(110,207)(32,762)Impairment of exploration assets14(1,886,343)(19,740)Finance costs6(

207、15,773)(1,647)Loss before income tax expense(3,006,065)(1,089,254)Income tax expense7-Loss after income tax expense for the year attributable to the owners of 3D Oil Limited(3,006,065)(1,089,254)Other comprehensive income for the year,net of tax-Total comprehensive income for the year attributable t

208、o the owners of 3D Oil Limited(3,006,065)(1,089,254)CentsCentsBasic earnings per share32(1.13)(0.42)Diluted earnings per share32(1.13)(0.42)The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes29stAtement of finAnciAl positionA

209、s at 30 June 2020ConsolidatedNote20202019$AssetsCurrent assetsCash and cash equivalents85,077,191 934,458 Trade and other receivables98,216 58,288 Short term investments1093,577 1,000,000 Prepayments39,447 38,401 Total current assets5,218,431 2,031,147 Non-current assetsFurniture and computer equipm

210、ent1114,031 17,800 Right-of-use assets12165,496-Intangibles1374,068 94,160 Exploration and evaluation144,546,537 10,735,892 Total non-current assets4,800,132 10,847,852 Total assets10,018,563 12,878,999 LiabilitiesCurrent liabilitiesTrade and other payable15934,177 1,000,333 Lease liabilities16102,0

211、39-Employee benefits17148,269 127,767 Total current liabilities1,184,485 1,128,100 Non-current liabilitiesLease liabilities1885,705-Employee benefits195,830 8,156 Total non-current liabilities91,535 8,156 Total liabilities1,276,020 1,136,256 Net assets8,742,543 11,742,743 EquityIssued capital2055,48

212、3,678 55,483,678 Accumulated losses(46,741,135)(43,740,935)Total equity8,742,543 11,742,743 The above statement of financial position should be read in conjunction with the accompanying notes30stAtement of chAnGes in equityFor the year ended 30 June 2020Contributed equityAccumulated lossesReservesTo

213、tal equityConsolidated$Balance at 1 July 201852,657,366(42,665,694)53,22110,044,893Loss after income tax expense for the year-(1,089,254)-(1,089,254)Other comprehensive income for the year,net of tax-Total comprehensive income for the year-(1,089,254)-(1,089,254)Transactions with owners in their cap

214、acity as owners:Contributions of equity,net of transaction costs(note 20)2,787,104-2,787,104Expiry of performance rights-14,013(14,013)-Conversion of vested performance rights39,208-(39,208)-Balance at 30 June 201955,483,678(43,740,935)-11,742,743Contributed equityAccumulated losses ReservesTotal eq

215、uityConsolidated$Balance at 1 July 201955,483,678(43,740,935)-11,742,743Adjustment from adoption of AASB 16-5,865-5,865Balance at 1 July 2019 restated55,483,678(43,735,070)-11,748,608Loss after income tax expense for the year-(3,006,065)-(3,006,065)Other comprehensive income for the year,net of tax-

216、Total comprehensive income for the year-(3,006,065)-(3,006,065)Balance at 30 June 202055,483,678(46,741,135)-8,742,543The above statement of changes in equity should be read in conjunction with the accompanying notes31stAtement of cAsh flowsFor the year ended 30 June 2020ConsolidatedNote20192018$Cas

217、h flows from operating activitiesPayments to suppliers and employees(inclusive of GST)(1,058,349)(984,616)Interest received25,245 28,230 Interest paid(12,353)(1,648)(1,045,457)(958,034)COVID-19 incentives65,248-Net cash used in operating activities31(980,209)(958,034)Cash flows from investing activi

218、tiesPayments for computer equipment11-(18,845)Payments for intangibles13-(2,665)Payments for exploration and evaluation(726,453)(880,967)Proceeds from/(used)short term investments906,423(1,000,000)Proceeds from farm-out arrangement145,000,000-Net cash from/(used in)investing activities5,179,970(1,90

219、2,477)Cash flows from financing activitiesProceeds from issue of shares20-3,003,035 Share issue transaction costs-(215,931)Payment of principal element of lease liabilities(57,028)-Net cash from/(used in)financing activities(57,028)2,787,104 Net increase/(decrease)in cash and cash equivalents4,142,7

220、33(73,407)Cash and cash equivalents at the beginning of the financial year934,458 1,007,865 Cash and cash equivalents at the end of the financial year85,077,191 934,458 The above statement of cash flows should be read in conjunction with the accompanying notes32notes to the finAnciAl stAtements30 Ju

221、ne 2020note 1.GeneRAl infoRmAtionThe financial statements cover 3D Oil Limited as a consolidated entity consisting of 3D Oil Limited and the entities it controlled at the end of,or during,the year.The financial statements are presented in Australian dollars,which is 3D Oil Limiteds functional and pr

222、esentation currency.3D Oil Limited is a listed public company limited by shares,incorporated and domiciled in Australia.Its registered office and principal place of business is:Level 18 41 Exhibition Street Melbourne VIC 3000A description of the nature of the Consolidated Entitys operations and its

223、principal activities are included in the Directors report,which is not part of the financial statements.The financial statements were authorised for issue,in accordance with a resolution of Directors,on 24 September 2020.The Directors have the power to amend and reissue the financial statements.note

224、 2.siGnificAnt AccountinG policiesThe principal accounting policies adopted in the preparation of the financial statements are set out either in the respective notes or below.These policies have been consistently applied to all the years presented,unless otherwise stated.new oR Amended AccountinG st

225、AndARds And inteRpRetAtions AdoptedThe Consolidated Entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board(AASB)that are mandatory for the current reporting period.Any new or amended Accounting Standards or Interpreta

226、tions that are not yet mandatory have not been early adopted.The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Consolidated Entity.The following Accounting Standards and Interpretations are most relevant

227、 to the Consolidated Entity:interpretation 23 uncertainty over income tax treatmentsInterpretation 23 requires the assessment of whether the effect of uncertainty over income tax treatments should be included in the determination of taxable profit(tax loss),tax bases,unused tax losses,unused tax cre

228、dits and tax rates.The Interpretation outlines the requirements to determine whether an entity considers uncertain tax treatments separately,the assumptions an entity makes about the examination of tax treatments by taxation authorities,how an entity determines taxable profit(tax loss),tax bases,unu

229、sed tax losses,unused tax credits and tax rates and how an entity considers changes in facts and circumstances.The Company has adopted Interpretation 23 from 1 July 2019,based on an assessment of whether it is probable that a taxation authority will accept an uncertain tax treatment.This assessment

230、takes into account that for certain jurisdictions in which the Company operates,a local tax authority may seek to open a companys books as far back as inception of the Company.Where it is probable,the Company has determined tax balances consistently with the tax treatment used or planned to be used

231、in its income tax filings.Where the Company has determined that it is not probable that the taxation authority will accept an uncertain tax treatment,the most likely amount or the expected value has been used in determining taxable balances(depending on which method is expected to better predict the

232、 resolution of the uncertainty).There has been no impact from the adoption of Interpretation 23 in this reporting period.AAsB 16 leasesThe Consolidated Entity has adopted AASB 16 from 1 July 2019.The standard replaces AASB 117 Leases and for lessees eliminates the classifications of operating leases

233、 and finance leases.Except for short-term leases and leases of low-value assets,right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position.Straight-line operating lease expense recognition is replaced with a depreciation charge for the right-of-use

234、assets(included in operating costs)and an interest expense on the recognised lease liabilities(included in finance costs).In the earlier periods of the lease,the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117.However,EBITDA(Earnings Bef

235、ore Interest,Tax,Depreciation and Amortisation)results improve as the operating expense is now replaced by interest expense and depreciation in profit or loss.For classification within the statement of cash flows,the interest portion is disclosed in operating activities and the principal portion of

236、the lease payments are separately disclosed in financing activities.For lessor accounting,the standard does not substantially change how a lessor accounts for leases.Other accounting pronouncements which have become effective from 1 July 2019 and have therefore been adopted have not had a significan

237、t impact on the Groups financial results or position.GoinG conceRnThe financial report has been prepared on the going concern basis,which assumes continuity of normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.The working ca

238、pital position as at 30 June 2020 of the Consolidated Entity results in an excess of current assets over current liabilities of$4,023,321(30 June 2019:$903,047).The Consolidated Entity made a loss after tax of$3,006,065 during the financial year(2019 loss:$1,089,254)and had net operating cash outflo

239、ws of$980,209(2019:$958,034).The cash balances,including term deposits,as at 30 June 2020 was$5,170,768(2019:$1,934,458).The continuing viability of the Consolidated Entity and its ability to continue as a going concern is dependent upon the Consolidated Entity being successful in its continuing eff

240、orts in exploration projects and accessing additional sources of capital to meet the commitments as and when required.To meet the Companys funding requirements as and when they fall due the Group will need to take appropriate steps,including a combination of:Raising capital by one of or a combinatio

241、n of the following:placement of shares,rights issue,share purchase plan,etc;Meeting its obligations by either farm-out or partial sale of the Groups exploration interests;33 Subject to negotiation and approval,minimum work requirements may be varied or suspended,and/or permits may be surrendered or

242、cancelled;or Other avenues that may be available to the Group.In March 2020,the World Health Organization declared the outbreak of a novel coronavirus(COVID-19)as a pandemic,which continues to spread globally as well as in Australia.The spread of COVID-19 has caused significant volatility in Austral

243、ian and international markets.There is a significant uncertainty around the breadth and duration of business disruptions related to COVID-19 and therefore the Company has taken precautionary measures by temporarily closing the Companys office and having arranged for its employees to work remotely,as

244、 well as minimising non-critical activities and curtailing travel.At the date of this report,the impact of these measures is not expected to significantly impact the completion of the current work being undertaken.However,as the circumstances continue to evolve,there may be disruptions to the future

245、 work timelines if employees,consultants or their respective families are personally impacted by COVID-19 or if travel and other operational restrictions are not lifted.Having assessed the potential uncertainties relating to the Consolidated Entitys ability to effectively fund exploration activities

246、 and operating expenditures,the Directors believe that the Consolidated Entity will continue to operate as a going concern for the foreseeable future.Therefore,the Directors consider it is appropriate to prepare the financial statements on a going concern basis.RoundinG of Amounts3D Oil Limited is a

247、 type of Company that is referred to in ASIC Corporations(Rounding in Financial/Directors Reports)Instrument 2016/191 and therefore the amounts contained in this report and in the financial report have been rounded to the nearest dollar.BAsis of pRepARAtionThese general purpose financial statements

248、have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board(AASB)and the Corporations Act 2001,as appropriate for for-profit oriented entities.These financial statements also comply with International Financial Reporti

249、ng Standards as issued by the International Accounting Standards Board(IASB).histoRicAl cost conventionThe financial statements have been prepared under the historical cost convention,except for,where applicable,the revaluation of financial assets and liabilities at fair value through profit or loss

250、,financial assets at fair value through other comprehensive income,investment properties,certain classes of property,plant and equipment and derivative financial instruments.cRiticAl AccountinG estimAtesThe preparation of the financial statements requires the use of certain critical accounting estim

251、ates.It also requires management to exercise its judgement in the process of applying the Consolidated Entitys 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

252、 3.pARent entity infoRmAtionIn accordance with the Corporations Act 2001,these financial statements present the results of the Consolidated Entity only.Supplementary information about the parent entity is disclosed in note 27.pRinciples of consolidAtionThe consolidated financial statements incorpora

253、te the assets and liabilities of all subsidiaries of 3D Oil Limited(Company or parent entity)as at 30 June 2020 and the results of all subsidiaries for the year then ended.3D Oil Limited and its subsidiaries together are referred to in these financial statements as the Consolidated Entity.Subsidiari

254、es are all those entities over which the Consolidated Entity has control.The Consolidated Entity controls an entity when the Consolidated Entity is exposed to,or has rights to,variable returns from its involvement with the entity and has the ability to affect those returns through its power to direc

255、t the activities of the entity.Subsidiaries are fully consolidated from the date on which control is transferred to the Consolidated Entity.They are de-consolidated from the date that control ceases.Intercompany transactions,balances and unrealised gains on transactions between entities in the Conso

256、lidated Entity are eliminated.Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Consolidated Entity.The

257、 acquisition of subsidiaries is accounted for using the acquisition method of accounting.A change in ownership interest,without the loss of control,is accounted for as an equity transaction,where the difference between the consideration transferred and the book value of the share of the non-controll

258、ing interest acquired is recognised directly in equity attributable to the parent.Where the Consolidated Entity loses control over a subsidiary,it derecognises the assets including goodwill,liabilities and non-controlling interest in the subsidiary together with any cumulative translation difference

259、s recognised in equity.The Consolidated Entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.inteRest incomeInterest revenue is recognised as interest accrues using the effective interest method.

260、This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net ca

261、rrying amount of the financial asset.otheR RevenueOther revenue is recognised when it is received or when the right to receive payment is established.income tAxThe income tax expense or benefit for the period is the tax payable on that periods taxable income based on the applicable income tax rate f

262、or each jurisdiction,adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences,unused tax losses and the adjustment recognised for prior periods,where applicable.Deferred tax assets and liabilities are recognised for temporary differences at the tax rates e

263、xpected to be applied when the assets are recovered or liabilities are settled,based on those tax rates that are enacted or substantively enacted,except for:When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that

264、is not a business combination and that,at the time of the transaction,affects neither the accounting nor taxable profits;or When the taxable temporary difference is associated with interests in subsidiaries,associates or joint ventures,and the timing of the reversal can be controlled and it is proba

265、ble that the temporary difference will not reverse in the foreseeable future.34Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.The carr

266、ying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date.Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered.Previously unrecognised defe

267、rred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset.Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferr

268、ed tax assets against deferred tax liabilities;and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.3D Oil Limited(the head entity)and its wholly-owned Australian subsidiaries have formed an income tax con

269、solidated group under the tax consolidation regime.The head entity and each subsidiary in the tax consolidated group continue to account for their own current and deferred tax amounts.The tax consolidated group has applied the separate taxpayer within group approach in determining the appropriate am

270、ount of taxes to allocate to members of the tax consolidated group.cuRRent And non-cuRRent clAssificAtionAssets and liabilities are presented in the statement of financial position based on current and non-current classification.An asset is classified as current when:it is either expected to be real

271、ised or intended to be sold or consumed in the Consolidated Entitys normal operating cycle;it is held primarily for the purpose of trading;it is expected to be realised within 12 months after the reporting period;or the asset is cash or cash equivalent unless restricted from being exchanged or used

272、to settle a liability for at least 12 months after the reporting period.All other assets are classified as non-current.A liability is classified as current when:it is either expected to be settled in the Consolidated Entitys normal operating cycle;it is held primarily for the purpose of trading;it i

273、s due to be settled within 12 months after the reporting period;or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period.All other liabilities are classified as non-current.Deferred tax assets and liabilities are always classified

274、as non-current.Joint opeRAtionsA joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets,and obligations for the liabilities,relating to the arrangement.The Consolidated Entity has recognised its share of jointly held assets,lia

275、bilities,revenues and expenses of joint operations.These have been incorporated in the financial statements under the appropriate classifications.exploRAtion expendituReExploration expenditure incurred is accumulated in respect of each identifiable area of interest.These costs are only carried forwa

276、rd in relation to each area of interest to the extent the following conditions are satisfied:(a)the rights to tenure of the area of interest are current;and(b)at least one of the following conditions is also met:(i)the exploration and evaluation expenditures are expected to be recouped through succe

277、ssful development and exploitation of the area of interest,or alternatively,by its sale;and(ii)exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable

278、reserves,and active and significant operations in,or in relation to,the area of interest are continuing.Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made.When production commences,the accumulated co

279、sts 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.A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward cost in relation to that a

280、rea of interest.Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the cost of that stage.Site restoration costs include the dismantling and removal of mining plant,equipment and building structures,waste removal,and rehabilitatio

281、n of the site in accordance with clauses of the mining permits.Such costs have been determined using estimates of future costs,current legal requirements and technology on an undiscounted basis.Any changes in the estimates for the costs are accounted on a prospective basis.In determining the costs o

282、f site restoration,there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation.Accordingly the costs have been determined on the basis that the restoration will be completed within one year of abandoning the site.impAiRment of non-finA

283、nciAl AssetsNon-financial assets 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 assets carrying amount exceeds its recoverable amount.Recoverable amount is t

284、he higher of an assets fair value less costs of disposal and value-in-use.The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs.Assets that do not have inde

285、pendent cash flows are grouped together to form a cash-generating unit.leAses At inception of a contract,the Consolidated Entity assesses whether a contract is,or contains,a lease.A contract is,or contains,a lease if the contract conveys the right to control the use of an identified asset for a peri

286、od of time in exchange for consideration.To assess whether a contract conveys the right to control the use of an identified asset,the Consolidated Entity assesses whether:The contract involves the use of an identified asset this may be specified explicitly or implicitly and should be physically dist

287、inct or represent substantially all of the capacity of a physically distinct asset.If the supplier has a substantive substitution right,then the asset is not identified;The Consolidated Entity has the right to obtain substantially all of the economic benefits from use of the asset throughout the per

288、iod of use;and35 The Consolidated Entity has the right to direct the use of the asset.The Consolidated Entity has this right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used.In rare cases where the decision about how and for what pu

289、rpose the asset is used is predetermined,the Consolidated Entity has the right to direct the use of the asset if either:The Consolidated Entity has the right to operate the asset;or The Consolidated Entity designed the asset in a way that predetermine how and for what purpose it will be used.This po

290、licy is applied to contracts entered into,or changed,on or after 1 July 2019.At inception or on reassessment of a contract that contains a lease component,the Consolidated Entity allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.How

291、ever,for the leases of land and buildings in which it is a lessee,the Consolidated Entity has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.As A lesseeThe Consolidated Entity recognises a right-of-use asset and a lease lia

292、bility at the lease commencement date.The right-of-use asset is initially measured at cost,which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date,plus any initial direct costs incurred and an estimate of costs to dismantle an

293、d remove the underlying asset or to restore the underlying asset or the site on which it is located,less any lease incentives received.The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the righ

294、t-of-use asset or the end of the lease term.The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment.In addition,the right-of-use asset is periodically reduced by impairment losses,if any,and adjusted for certain remeasurements of the leas

295、e liability.The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,discounted using the interest rate implicit in the lease or,if that rate cannot be readily determined,the Consolidated Entitys incremental borrowing rate.Genera

296、lly,the Consolidated Entity uses its incremental borrowing rate as the discount rate.Lease payments included in the measurement of the lease liability comprise the following:Fixed payments,including in-substance fixed payments;Variable lease payments that depend on an index or a rate,initially measu

297、red using the index or rate as at the commencement date;Amounts expected to be payable under a residual value guarantee;and The exercise price under a purchase option that the Consolidated Entity is reasonably certain to exercise,lease payments in an optional renewal period if the Consolidated Entit

298、y is reasonably certain to exercise an extension option,and penalties for early termination of a lease unless the Consolidated Entity is reasonably certain not to terminate early.The lease liability is measured at amortised cost using the effective interest method,It is remeasured when there is a ch

299、ange in future lease payments arising from a change in an index or rate,if there is a change in the Consolidated Entitys estimate of the amount expected to be payable under a residual value guarantee,or if the Consolidated Entity changes its assessment of whether it will exercise a purchase,extensio

300、n or termination option.When the lease liability is remeasured in this way,a corresponding adjustment is made to the carrying amount of the right-of-use assets,or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.shoRt-teRm leAses And leAses of l

301、ow-vAlue AssetsThe Consolidated Entity has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets,including IT equipment.The Consolidated Entity recognises the lease payments associated with

302、these leases as an expense on a straight-line basis over the lease term.Goods And seRvices tAx(Gst)And otheR similAR tAxesRevenues,expenses and assets are recognised net of the amount of associated GST,unless the GST incurred is not recoverable from the tax authority.In this case it is recognised as

303、 part of the cost of the acquisition of the asset or as part of the expense.Receivables and payables are stated inclusive of the amount of GST receivable or payable.The net amount of GST recoverable from,or payable to,the tax authority is included in other receivables or other payables in the statem

304、ent 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 tax authority,are presented as operating cash flows.Commitments and contingencies are disclosed net of the

305、amount of GST recoverable from,or payable to,the tax authority.fAiR vAlue meAsuRementWhen an asset or liability,financial or non-financial,is measured at fair value for recognition or disclosure purposes,the fair value is based on the price that would be received to sell an asset or paid to transfer

306、 a liability in an orderly transaction between market participants at the measurement date;and assumes that the transaction will take place either:in the principal market;or in the absence of a principal market,in the most advantageous market.Fair value is measured using the assumptions that market

307、participants would use when pricing the asset or liability,assuming they act in their economic best interests.For non-financial assets,the fair value measurement is based on its highest and best use.Valuation techniques that are appropriate in the circumstances and for which sufficient data are avai

308、lable to measure fair value,are used,maximising the use of relevant observable inputs and minimising the use of unobservable inputs.new AccountinG stAndARds And inteRpRetAtions not yet mAndAtoRy oR eARly AdoptedAustralian Accounting Standards and Interpretations that have recently been issued or ame

309、nded but are not yet mandatory,have not been early adopted by the Consolidated Entity for the annual reporting period ended 30 June 2020.The Consolidated Entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.36note 3.cRiticAl AccountinG JudGements,es

310、timAtes And AssumptionsThe preparation of the financial statements requires management to make judgements,estimates and assumptions that affect the reported amounts in the financial statements.Management continually evaluates its judgements and estimates in relation to assets,liabilities,contingent

311、liabilities,revenue and expenses.Management bases its judgements,estimates and assumptions on historical experience and on other various factors,including expectations of future events,management believes to be reasonable under the circumstances.The resulting accounting judgements and estimates will

312、 seldom equal the related actual results.The judgements,estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities(refer to the respective notes)within the next financial year are discussed below.coronavirus(covid-19)pand

313、emicJudgement has been exercised in considering the impacts that the Coronavirus(COVID-19)pandemic has had,or may have,on the Consolidated Entity based on known information.This consideration extends to the nature of the products and services offered,customers,supply chain,staffing and geographic re

314、gions in which the Consolidated Entity operates.Other than as addressed in specific notes,there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the Consolidated Entity u

315、nfavourably as at the reporting date or subsequently as a result of the Coronavirus(COVID-19)pandemic.estimation of useful lives of assetsThe Consolidated Entity determines the estimated useful lives and related depreciation and amortisation charges for its property,plant and equipment and finite li

316、fe intangible assets.The useful lives could change significantly as a result of technical innovations or some other event.The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives,or technically obsolete or non-strategic assets that have b

317、een abandoned or sold will be written off or written down.income taxThe Consolidated Entity is subject to income taxes in the jurisdictions in which it operates.Significant judgement is required in determining the provision for income tax.There are many transactions and calculations undertaken durin

318、g the ordinary course of business for which the ultimate tax determination is uncertain.The Consolidated Entity recognises liabilities for anticipated tax audit issues based on the Consolidated Entitys current understanding of the tax law.Where the final tax outcome of these matters is different fro

319、m the carrying amounts,such differences will impact the current and deferred tax provisions in the period in which such determination is made.Recovery of deferred tax assetsDeferred tax assets are recognised for deductible temporary differences only if the Consolidated Entity considers it is probabl

320、e that future taxable amounts will be available to utilise those temporary differences and losses.lease termThe lease term is a significant component in the measurement of both the right-of-use asset and lease liability.Judgement is exercised in determining whether there is reasonable certainty that

321、 an option to extend the lease or purchase the underlying asset will be exercised,or an option to terminate the lease will not be exercised,when ascertaining the periods to be included in the lease term.In determining the lease term,all facts and circumstances that create an economical incentive to

322、exercise an extension option,or not to exercise a termination option,are considered at the lease commencement date.Factors considered may include the importance of the asset to the Consolidated Entitys operations;comparison of terms and conditions to prevailing market rates;incurrence of significant

323、 penalties;existence of significant leasehold improvements;and the costs and disruption to replace the asset.The Consolidated Entity reassesses whether it is reasonably certain to exercise an extension option,or not exercise a termination option,if there is a significant event or significant change

324、in circumstances.incremental borrowing rateWhere the interest rate implicit in a lease cannot be readily determined,an incremental borrowing rate is estimated to discount future lease payments to measure the present value of the lease liability at the lease commencement date.Such a rate is based on

325、what the Consolidated Entity estimates it would have to pay a third party to borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset,with similar terms,security and economic environment.employee benefits provisionAs discussed in note 2,the liability for employee be

326、nefits expected to be settled more than 12 months from the reporting date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date.In determining the present value of the liability,estimates of attrition rates an

327、d pay increases through promotion and inflation have been taken into account.exploration and evaluation costsExploration and evaluation costs have been capitalised on the basis that the Consolidated Entity will commence commercial production in the future,from which time the costs will be amortised

328、in proportion to the depletion of the mineral resources.Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related to these activities and allocating overheads between those that are expensed and capitalised.In addition,costs are only c

329、apitalised that are expected to be recovered either through successful development or sale of the relevant mining interest.The expectation of recovery of the costs capitalised is based on the assumption that the Group will be able to obtain adequate financing to allow the continued exploration and s

330、ubsequent development of areas of interest by either successfully farming out a proportion of existing permits or raising adequate capital in its own right.To the extent that capitalised costs are determined not to be recoverable in the future,they will be written off in the period in which this det

331、ermination is made.note 4.opeRAtinG seGmentsAASB 8 requires operating segments to be identified on the basis of internal reports about the components of the Consolidated Entity that are regularly reviewed by the chief decision maker in order to allocate resources to the segment and to assess its per

332、formance.3D Oil Limited operates in the development of oil and gas within Australia.The Consolidated Entitys activities are therefore classified as one operating segment.The chief decision makers,being the Board of Directors,assess the performance of the Consolidated Entity as a whole and as such th

333、rough one segment.37Accounting policy for operating segmentsOperating segments are presented using the management approach,where the information presented in this financial statements is on the same basis as the internal reports provided to the Chief Operating Decision Makers(CODM).The CODM is responsible for the allocation of resources to operating segments and assessing their performance.note 5.