25 Parent entity information (continued) Capital commitments Refer Note 23 to the financial statements for the details of the exploration commitments. The parent entity had no other capital commitments for property, plant and equipment as at 30 June 2022 and 30 June 2021. Significant accounting policies The accounting policies of the parent entity are consistent with those of the Consolidated Entity, as disclosed in Note 2, except for the following: – Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity. – Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an indicator of an impairment of the investment. 26 Interest in subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in Note 2: Ownership interest Principal place of business / Country of incorporation 30-June-22 % 30-June-21 % Methanol Australia Pty Ltd Australia 100 100 LNG Australia Pty Ltd Australia 100 100 MEO International Pty Ltd Australia 100 100 Finniss Offshore Exploration Pty Ltd Australia 100 100 Melbana Operations Pty Ltd (Australia) Pty Ltd Australia 100 100 Melbana Energy AC/P70 Pty Ltd Australia 100 - 27 Interest in farm-out arrangements Name Principal place of business / Country of incorporation Block 9 PSC Cuba On 25May 2020 the Consolidated Entity entered into a Farm-in Agreement (FIA) with Sonangol Pesquisa E Produção S.A (Sonangol). Under the terms of the FIA, Sonangol agreed to fund 85% of the cost of two exploration wells in Block 9 in return for receiving a 70% interest. On 17 August 2020, the Company announced that formal Cuban regulatory approvals had been received for Sonangol to acquire this 70% interest and drilling operations commenced in September 2021 and are ongoing at the date of this report. Group Commitments and contingent liabilities For the current sub-period of Block 9, the remaining committed activity is the drilling of one well, 15% of the cost of which is to be met by Melbana. It is expected that the current drilling of the Zapato-1 exploration well should satisfy this commitment. Additional amounts have been allowed for Melbana’s share of appraisal of the oil encountered to date and post well studies and planning which together are estimated to total US$13.0million to the end of next fiscal year. These are budgeted amounts and not commitments. The expected expenditure towards meeting primary term commitments for permits WA-544-P, NT/P87 and AC/P70 up to the end of the next fiscal year is forecast to be $1,000,000. Notes to the Consolidated Financial Statements for the year ended 30 June 2022 48 Melbana Energy Limited Annual Report 2022
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