Puffin Oil Field Skua Oil Field Challis Oil Field Jabiru Oil Field Montara Oil Field Cash/Maple Gas Field Swan Gas Discovery 20 Km AC/P70 Vesta-1 Vesta-2 Gas Field Oil Field Well Figure 5 – Location of AC/P70 and existing well control in and around the permit area AC/P50, AC/P51 (Melbana contingent cash and royalty interest) Exploration permits AC/P50 and AC/P51 are in the Vulcan sub-basin, offshore northwestern Australia. The Company sold its 55% interest in these permits to joint venture partner Rouge Rock Pty Ltd (Rouge Rock) in 2018 in consideration for an interest in any future farmout or sale of these permits. The Company later received its share of the consideration Rouge Rock received when it on sold AC/P50. During the reporting period this permit was surrendered so no further entitlement is possible. The purchasers of AC/P50 also acquired an option to acquire AC/P51. Should this right be exercised, the Company would be entitled to receive similar cash consideration and contingent royalties. Tassie Shoals (Melbana 100%) The Company has Australian Government environmental approvals to construct, install and operate two stand-alone world scale 1.75 Mtpa methanol plants - collectively referred to as the Tassie Shoal Methanol Project - and a single 3 Mtpa LNG plant - known as the Tassie Shoal LNG Project - on Tassie Shoal, an area of shallow water in the Australian waters of the Timor Sea approximately 275 km northwest of Darwin, Australia. These environmental approvals are valid until 2052. These projects uniquely provide a development option for discovered but undeveloped gas resources in the region. Progress for these projects is dependent on securing access to proximate gas supply on suitable commercial terms. No material progress was made in this regard during the reporting period. Results for the year The net loss after tax of the Consolidated Entity for the financial year was $1,001,999 (2022: net profit after tax of $6,332,812). The loss for the year was mainly due to the administration costs of running the various exploration programs of $4,151,532 offset by a partial recovery of these administration costs on Block-9 in Cuba. During the year, the Consolidated Entity incurred net operating cash outflows of $3,126,076 (2022: outflows of $2,119,543), net investing cash outflows of $13,363,748 (2022: inflows of $3,264,709) and net financing cash inflows of $15,766,348 (2022: inflows of $23,830,840). The successful drilling and commercialisation of any oil and gas discoveries in Cuban and Australian exploration permits and/or the development/sale of the Consolidated Entity’s methanol and LNG Projects could ultimately lead to the establishment of a profitable business or result in a profit to the Company if an asset sale occurs. While the Consolidated Entity is in the exploration/appraisal stage of drilling for hydrocarbons in its offshore Australian exploration permit and overseas acreage and in the project development phase for its other offshore Australian interests, funding will be provided by asset sales, equity capital raised from the issue of new shares and/or farm out or joint development arrangements with other companies. Directors’ Report continued 16 Melbana Energy Limited Annual Report 2023
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