Note 19. Financial instruments (continued) Fair value of financial instruments Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value. The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values due to their short-term nature. Where appropriate, the fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current market interest rate that is available for similar financial instruments. Note 20. Key management personnel disclosures Compensation The aggregate compensation made to Directors and other members of key management personnel of the Consolidated Entity is set out below: 30-June-25 $ 30-June-24 $ Short-term employee benefits 2,300,699 1,884,739 Post-employment benefits 118,305 120,534 2,419,004 2,005,273 A percentage of the fixed remuneration of the Key Management personnel is allocated to the exploration assets based on the percentage of time written to each exploration project by each individual. Note 21. Remuneration of auditors During the financial year the following fees were paid or payable for services provided by MNSA, the auditor of the Company: 30-June-25 $ 30-June-24 $ Audit services Audit or review of the financial statements 50,284 49,137 50,284 49,137 Note 22. Commitments Guarantee The Consolidated Entity has provided no guarantees (2024: nil) at 30 June 2025. Exploration Commitments In order to maintain rights of tenure to petroleum exploration tenements, the Consolidated Entity has minimum exploration requirements to fulfil. These requirements are not provided for in the financial statements. If the Consolidated Entity decides to relinquish certain tenements and/or does not meet these obligations, assets recognised in the Statement of financial position may require review in order to determine the appropriateness of carrying values. There are no commitments for exploration expenditure on Australian permits over the next fiscal year. The Company will satisfy its remaining commitment for the current exploration subperiod under the Block 9 PSC by drilling Amistad-2, with the Company’s share of costs estimated at AUD 4 million. In addition, there is provision for one contingent production well, which, if undertaken, would require a further contribution from the Company of AUD 6.9 million. The Company continues to produce crude oil and build inventory with volumes in storage available for sale. Proceeds from these sales are expected to be applied toward funding future work program obligations. While the Company has not yet declared commerciality, these activities reflect the ongoing preparation for a declaration of commerciality and a transition from meeting statutory exploration requirements to advancing development and production commitments. For Australian exploration permits in the jurisdiction of the Commonwealth of Australia, the first three-years of a work program are referred to as the primary term. The work program is guaranteed and cannot be reduced. Later years (4, 5 and 6) are referred to as the secondary term and the work program for each year becomes guaranteed upon entry to that year. Whilst failure to complete a guaranteed work program does not result in a financial penalty, it is grounds for cancellation of the permit. Further, the default may be considered by the Regulator in relation to future interactions with the defaulting party for a period of 5 years. 67 Melbana Energy Limited Annual Report 2025
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