Gulf Energy Limited ABN: Financial Statements

Transcription

1 ABN: Financial Statements

2 Contents Financial Statements Directors' Report Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 Statement of Profit or Loss and Other Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements Directors' Declaration Independent Audit Report

3 Directors' Report 30 June 2017 The directors present their report on the company for the financial year ended 30 June Directors The names of the directors in office at any time during or since the end of the year are: Wolfgang Siegfried Fischer Stephen Charles Simonds Arclauss Rukmotarto Toronata Tambun (Appointed: 18 November 2016) Scott Riley (Appointed: 15 December 2016) Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Principal activities The principal activities of the company during the period were related to the exploration for oil and gas. No significant changes in the nature of these activities occurred during the year. Review of operations The loss of the company for the period after providing for income tax amounted to: Year Ended Year Ended 30 June June 2016 (1,467,452) (1,868,518) A review of the operations of the Company during the period and the results of those operations found that the company continued in its endeavours to explore the potential of Q/23P. Significant changes in state of affairs No significant changes in the company's state of affairs occurred during the financial year. Events subsequent to the end of the reporting period No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years. Likely developments and expected results of operations The company expects to maintain the present status and level of operations and hence there are no likely developments in the operations in future financial years.

4 Directors' Report 30 June 2017 Environmental regulation The company s operations are subject to environmental regulations in regards to its exploration activities. The company is compliant with all aspects of these requirements. The directors are not aware of any environmental law that is not being complied with. Dividends No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has been made. Options During the 2017 financial year, the following options were issued as a result of approval at the 2016 AGM: Number of Options Granted Issuing Entity Number of Ordinary Shares Under Option 10,000,000 Gulf Energy Ltd 10,000,000 No options over issued shares or interests in the company were granted since the end of the financial year. As at 30 June 2017, there was 21,126,455 outstanding options on issue. Information on Directors Wolfgang Siegfried Fischer - BSc(Hons), FAus IMM, FAICD, Managing Director Wolfgang's involvement in the Australian and overseas natural resources industry, particularly petroleum exploration and development, has spanned more than 43 years. In 1974 Wolfgang graduated from the University of Melbourne, with a first class Bachelor of Science Degree with Honours majoring in Geology. Upon graduating, he joined Esso Australia and spent 13 years with the company during which he held a range of operational and senior management positions including a period in which he managed all of Esso s many onshore and offshore exploration ventures in Western Australia. During his time with Esso he was a member of the exploration team responsible for Esso's exploration activities in the world class offshore Gippsland Basin and the Bonaparte Basin and offshore Western Australia. Whilst with Esso he also participated in the discovery of four oil and gas fields in offshore Malaysia with total reserves in excess of 1.5 billion barrels of oil. In the early 1980s Wolfgang headed Esso s petroleum new ventures activities where he developed his lasting interest in the commercial aspects of the natural resources industry. In 1986 he joined the ASX listed Australian Petroleum Fund (AUSPET) as Exploration Manager and six months later took on the role of Managing Director, a position he held until September 1989 when he left to set up his own companies in the petroleum industry. During his time with AUSPET he directed its growth from a junior explorer to a successful oil and gas producer and pipeline owner. After leaving AUSPET, Wolfgang was involved in the discovery of the massive Bayu-Undan gas-condensate field in the Timor Sea, which is now a world class LNG project. He was also one of the few who, in the mid-late 1990s, recognised early on the potential of coal seam natural gas in Queensland and was instrumental in building and developing a coal seam gas acreage portfolio which was sold to a major Australian energy company for more than 700 million. Currently Wolfgang is a director of several unlisted companies involved in the upstream energy industry in Australia, including. Wolfgang is a long standing member of several professional associations including the Australian Institute of Company Directors, the Australian Institute of Mining and Metallurgy, the European Association of Geoscientists and Engineers, the American Association of Petroleum Geologists and the Petroleum Exploration Society of Australia. During his career Wolfgang has identified attractive business opportunities in their early stages and has developed them to generate substantial shareholder value. He has a strong commercial focus and the ability to appraise situations in their local and strategic contexts.

5 Directors' Report 30 June 2017 Stephen Charles Simonds - BCom FCPA, Non-Executive Director Stephen is a public practicing accountant with 20 years experience. He has expertise in tax accounting, finance and investment banking. His experience includes foreign subsidiaries and private client work for family groups. Stephen has held the position of Chairman of Audit & Risk Committee for a listed company on the National Stock Exchange of Australia. He holds a number of directorships within Australia for foreign owned companies from the US and Europe. Previous employers include Westpac Banking Corporation, the Glebe Administration Board and the financial advisory firm Godfrey Pembroke. He is a director and one of six partners of YCG Chartered Accountants which has more than 60 staff currently servicing a range of clients from individuals to SME corporates. Stephen has been a director of since March Toronata Tambun - B. Nucl. Eng. (UGM), MBA (Monash), Non-Executive Director Toro Tambun is an oil and gas professional with 22 years experience, of which he spent 13 years with Schlumberger undertaking various assignments. His career has developed with emphasis on sales, marketing and business development for several oil and gas service companies covering the Asia Pacific, Middle East, Northern Africa and Eastern Africa. He has led successful negotiations with government agencies, national oil companies, major oil companies and O&G service companies. With his extensive industry networks, Toro has delivered more than US1 billion worth of seismic contracts through the negotiation of more than 200 oil and gas contracts. He currently leads a team of regional salesmen in the eastern hemisphere for a US3.1 billion international company - implementing a structured sales methodology encompassing the process of building and channelling sales pipelines, managing and orchestrating negotiation teams in all facets of sales, and working inter-departmentally with QHSE, technical and marketing teams. Toro holds a Master of Business Administration in Strategic Management from Monash University in Melbourne, Australia. He received his Bachelor of Nuclear Engineering Degree from Gadjah Mada University at Yogyakarta, Indonesia in In March 2017 he completed his Advanced Certificate for Executives, Management and Leadership from the Sloan Executive Education faculty at MIT. He has also participated in several courses in the Executive Education program at the Harvard Business School. Toro s appointment to the GEL Board became effective on 18 November, Scott Riley - BSC (Bus. Admin.), Non-Executive Director Scott Riley has a Bachelor of Science in Business Administration from the McDonough School of Business at Georgetown University, Washington, D.C. He is a Portfolio Manager at Drake Management LLC in New York, where he has been for over 13 years and is currently responsible for all trade execution in Drake Private Investments (DPI), one of GEL s largest shareholders. DPI is a multi-million dollar global macro fund, dealing in interest rate swaps, futures, EM and US equities, corporates, US treasuries, non-us sovereigns, commodities, and ABS/MBS bonds. Scott is involved in FX transactions including spots, forwards, NDFs, and options in G21+ currencies. Additionally he researches and presents new trade ideas in all asset classes and undertakes screens and performs financial analysis for all potential private equity opportunities, which has resulted in over 25 investments to date. From 1998 to 2003 Scott was with Bear, Stearns & Co. in New York and Los Angeles as an analyst in the Derivatives Middle Office where, amongst other duties he generated ISDA governed confirmations, assignments, partial and full terminations for fixed income and equity derivative transactions. He was involved with a range of transactions including interest rate swaps, swaptions, straddles, asset swaps, mortgage-backed securities, equity options and equity swaps, and exotics. Scott became a director of on 15 December 2016.

6 Directors' Report 30 June 2017 Indemnification of officers or auditors A directors and officers insurance policy has been affected with an insurance premium being paid by the company. In accordance with commercial practice, the insurance policy prohibits disclosure of the amount of the premium and the nature of the amount of the liability covered. Proceedings on behalf of the company No person has applied for leave of Court to bring proceedings on behalf of the company or 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 any part of those proceedings. The company was not a party to any such proceedings during the year. We note that a legal claim has been made against by Mr C. V. Alexander and an associate company Gnomikos Pty Ltd in the 2016 financial year. This claim is still ongoing, and shareholders will be provided with an update once a result is achieved. An additional legal claim has been made against Gulf Energy Ltd by China Investment Capital Limited, being a company also associated with Mr C. V. Alexander in the 2017 financial year. Auditor's Independence Declaration A copy of the auditor s independence declaration as required under s307c of the Corporations Act 2001 in relation to the 30 June 2017 financial report is presented and forms part of this Directors Report. This Directors Report is signed in accordance with a resolution of the Board of Directors: Wolfgang Siegfried Fischer Managing Director Dated this 8th day of August 2017

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8 Statement of Profit or Loss and Other Comprehensive Income Note Income Revenue from non-operating activities 2 216,668 20,629 Expenses Exploration expense (160,718) (378,426) Impairment charge - (122,513) Share based payment (668,239) - Other expenses 2 (1,072,017) (1,388,208) Total Expenses (1,900,974) (1,889,147) Loss before Income Tax Expense (1,684,306) (1,868,518) Income tax expense 216,854 - Net Loss for the Year (1,467,452) (1,868,518) Other Comprehensive Loss Revaluation of exploration assets 1(e) - (10,000,000) - (10,000,000) Total Comprehensive Loss for the Year (1,467,452) (11,868,518) The accompanying notes form part of these financial statements.

9 Statement of Financial Position 30 June 2017 Note ASSETS Current Assets Cash and cash equivalents 3 246,195 7,276 Trade and other receivables 4 20,939 9,134 Total Current Assets 267,134 16,410 Non-Current Assets Trade and other receivables 4-19,360 Other financial assets Exploration assets 6 20,000,000 20,000,000 Total Non-Current Assets Total Assets 20,000,000 20,019,460 20,267,134 20,035,870 LIABILITIES Current Liabilities Trade and other payables 7 1,159, ,342 Total Current Liabilities 1,159, ,342 Non-Current Liabilities Other payables 8 393, ,010 Interest bearing liabilities 9 5,117,404 4,584,686 Financial liabilities 10 1,860,132 1,729,465 Total Non-Current Liabilities Total Liabilities Net Assets 7,371,397 6,675,161 8,531,271 7,622,503 11,735,863 12,413,367 EQUITY Issued capital 11 12,912,544 12,459,855 Reserves 11 15,299,977 15,799,902 Accumulated losses 11 (16,476,658) (15,846,390) Total Equity 11,735,863 12,413,367 The accompanying notes form part of these financial statements.

10 Statement of Changes in Equity Note Issued & Paid Up Capital Revaluation Reserve Share Based Payment Reserve Accumulated Losses Balance at 1 July ,459,855 24,535,444 1,264,458 (13,977,872) 24,281,885 Loss for the year Total (1,868,518) (1,868,518) Share based payments Capital raising costs Shares issued during the period Loyalty options reserve Revaluation of Q/23P - (10,000,000) - - (10,000,000) Share revaluation re-classified Subtotal - (10,000,000) - (1,868,518) (11,868,518) Balance at 30 June ,459,855 14,535,444 1,264,458 (15,846,390) 12,413,367 Balance at 1 July ,459,855 14,535,444 1,264,458 (15,846,390) 12,413,367 Loss for the year (1,467,452) (1,467,452) Share based payments - - (168,945) 837, ,239 Capital raising costs 326,980 - (330,980) - (4,000) Shares issued during the period 125, ,709 Loyalty options reserve Share revaluation re-classified Subtotal 452,689 - (499,925) (630,268) (677,504) Balance at 30 June ,912,544 14,535, ,533 (16,476,658) 11,735,863 The accompanying notes form part of these financial statements.

11 Statement of Cash Flows Note CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers 20,020 17,809 Payments to suppliers and employees (226,860) (535,788) Research and development tax benefit received 216,854 - Interest received 2,934 2,767 Net cash provided by/(used in) operating activities 13(ii) 12,948 (515,212) CASH FLOWS FROM INVESTING ACTIVITIES: Exploration expenditure Net cash used in investing activities (10,091) (290,925) (10,091) (290,925) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from borrowings 125,000 50,000 Issue of share capital 111,062 - Net cash provided by financing activities 236,062 50,000 Net increase/(decrease) in cash and cash equivalents held 238,919 (756,137) Cash and cash equivalents at beginning of year 7, ,413 Cash and cash equivalents at end of financial year 13(i) 246,195 7,276 The accompanying notes form part of these financial statements.

12 Notes to the Financial Statements is a public company limited by shares, incorporated and domiciled in Australia. Basis of Preparation The directors have prepared the financial statements on the basis that the company is a non-reporting entity because there are no users dependant on general purpose financial statements. The financial statements are therefore special purpose financial statements that have been prepared in order to meet the requirements of the members and shareholders. The financial statements for the year ended 30 June 2017 have been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and the significant accounting policies disclosed below, which the directors have determined are appropriate to meet the needs of the members. Such accounting policies are consistent with the previous period unless stated otherwise. The financial statements have been prepared on an accruals basis and are based on historical costs unless otherwise stated in the notes. The amounts presented in the financial statements have been rounded to the nearest dollar. 1 Significant Accounting Policies (a) Going Concern The financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business. The company incurred a loss for the year ended 30 June 2017 of 1,467,452 (2016 loss: 1,868,518) and net cash inflows from operating activities of 12,948 (2016 cash outflows: 515,212). Notwithstanding the loss for the year, the financial report of the company has been prepared on a going concern basis. This basis has been applied as the directors believe that financial support will be made available to the company including, the raising additional funds through placement of additional stocks, or if necessary, from the directors themselves. While the Directors are reasonably confident of raising funds, no assurance can be given that the company will be able to raise future funding on acceptable terms to complete the minimum work nor that the company will be able to negotiate future extensions of its deadline for completing that work. In those circumstances the company may not be able to realise its assets and to crystallise its liabilities at the amounts stated in this Financial Report. Depending on timing and market conditions, should a decision be taken not to continue exploration or to sell all or part of the Permit, Q/23P exploration expenditure carried forward in the Balance Sheet may be required to be written off in the period in which the event occurs. The company has entered into a 250,000 loan facility agreement with the Managing Director (Mr W.S. Fischer) for the purpose of funding the company. This agreement provides for the company to continue its operations into the future with a significant effort being made to keep ongoing expenses to a minimum. At the date of this report 175,000 of that facility has been drawn down.

13 Notes to the Financial Statements 1 Significant Accounting Policies (continued) (b) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the Statement of Financial Position. (c) Revenue and Other Income Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. For this purpose, deferred consideration is not discounted to present values when recognising revenue. Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets is the rate inherent in the instrument. Revenue recognition relating to the provision of services is determined with reference to the stage of completion of the transaction at the end of the reporting period and where outcome of the contract can be estimated reliably. Stage of completion is determined with reference to the services performed to date as a percentage of total anticipated services to be performed. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent that related expenditure is recoverable. All revenue is stated net of the amount of goods and services tax (GST). (d) Goods and services tax (GST) Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable in the Statement of Financial Position. (e) Q/23P Exploration Expenditures Exploration Expenditures relate to the accumulated expenditures incurred on exploration, evaluation and development in respect to each identifiable area of interest of the permit. The costs are carried forward where the company s rights to tenure of the area of interest are current and provided further that: Such costs are expected to be recouped by successful development and/or exploitation of the areas of interest; or Exploration and evaluation activities have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in relation to the area are continuing. Should any area of interest be abandoned or considered to be of no value, accumulated expenditure applicable to such area of interest is written off to the income statement in the year in which the decision is made.

14 Notes to the Financial Statements 1 Significant Accounting Policies (continued) (e) Q/23P Exploration Expenditures (continued) A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. The company maintains a 100% interest in the permit. Exploration Permit Q/23P was renewed on 18 August 2015 for a five year Permit Term and is currently in the second Permit Year which finishes midnight 17 August The main obligations of the minimum work program comprise the recording of at least 150 square kilometres of 3D seismic data and reprocessing at least 400 kilometres of 2D seismic with an indicative expenditure of 3.18 million. The terms of the Permit allow the company to perform the minimum work at any time within the first three Permit Years, as long as it is substantially completed by 18 August A directors valuation was reviewed as at 30 June 2016 on the estimated value of the Q/23P area. Based on current market conditions, the directors advise that no change in the valuation be taken into account for the 2017 financial year. Valuations are undertaken more frequently if there is a material change in the fair value relative to the carrying amount, any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Increases in the carrying amounts arising on revaluation of land and buildings are credited in other comprehensive income through to the revaluation surplus reserve in equity. Any revaluation decrements are initially taken in other comprehensive income through to the revaluation surplus reserve to the extent of any previous revaluation surplus of the same asset. Thereafter the decrements are taken to profit or loss. (f) Trade and Other Payables Trade and other payables represent the liability for goods and services received by the entity that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. (g) Impairment of assets At the end of each reporting period, the company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset s fair value less costs to sell and value in use, to the asset s carrying amount. Any excess of the asset s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount. Any impairment loss of a revalued asset is treated as a revaluation decrease. Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Impairment testing is performed annually for goodwill and the intangible assets with indefinite lives. (h) Share Based Payments The fair value of shares and options issued to directors and third parties is determined in accordance with Australian Accounting Standards AASB 2 Share-based Payment. The value of shares has been calculated on the estimated net tangible assets of the company at time of issue. The value of future shares will be based on their face value.

15 Notes to the Financial Statements 1 Significant Accounting Policies (continued) (h) Share Based Payments (continued) The cost of these share and options is included in capitalized Exploration Expenditures where the directors are involved in operational activities of the Permit; otherwise the costs are expensed in the income statement. A reserve is established in recognition of these contributions to Equity. (i) Financial Instruments and Available for Sale Financial Assets Investments and other financial assets, other than investments in associates, are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. They are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on the purpose of the acquisition and subsequent reclassification to other categories is restricted. The fair values of quoted investments are based on current bid prices. For unlisted investments, the company establishes fair value by using valuation techniques. These include the use of recent arm s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models. Financial assets are derecognised when then rights to receive cash flows from the financial assets have expired or have been transferred and the company has transferred substantially all the risks and rewards of ownership. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are either: i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or ii) designated as such upon initial recognition, where they are managed on a fair value basis or to eliminate or significantly reduce an accounting mismatch. Except for effective hedging instruments, derivatives are also categorised as fair value through profit or loss. Fair value movements are recognised in profit or loss. Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets, principally equity securities, that are either designated as available-for-sale or not capable of being classified as any other category of financial assets due to their nature. After initial recognition, fair value movements are recognised in other comprehensive income through the available-for-sale reserve in equity. Cumulative gain or loss previously reported in the available-for-sale reserve is recognised in profit or loss when the asset is derecognised or impaired. Impairment of financial assets The company assesses at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets has been impaired. Objective evidence includes significant financial difficulty of the issuer or obligor, a breach of contract such as default or delinquency in payments, the lender granting to a borrower concessions due to economic or legal reasons that the lender would not otherwise do, it becomes probable that the borrower will enter bankruptcy or other financial reorganisation, the disappearance of an active market for the financial asset, or observable data indicating that there is a measurable decrease in estimated future cash flows.

16 Notes to the Financial Statements 1 Significant Accounting Policies (continued) (i) Financial Instruments and Available for Sale Financial Assets (continued) The amount of the impairment allowance for financial assets carried at cost is the difference between the asset s carrying amount and the present value or estimated future cash flows, discounted at the current market rate of return for similar financial assets. Available-for-sale financial assets are considered impaired when there has been a significant or prolonged decline in value below initial cost. Subsequent increments in value are recognised in other comprehensive income through the available-for-sale reserve. (j) Critical Accounting Estimates and Judgements The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the company. Key estimates Impairment The company assess impairment at the end of each reporting period by evaluation of conditions specific to the company s exploration permit. No impairment has been recognised to date on exploration and evaluation activities as they have not reached a stage which requires a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in relation to the area are continuing. 2 Revenue and Expenses Revenue from Non-Operating Activities Interest received 2,934 2,767 Other revenue 213,734 17,862 Total Revenue from Non-Operating Activities 216,668 20,629 Other Expenses Administrative expenses 92, ,609 Audit fees 12,000 18,775 Consultants fees 61, ,100 Interest 763, ,511 Legal fees 71,816 36,836 Travel, accomodation and conferences 4,308 7,546 Unrealised foreign exchange losses - 54,829 Other expenses 65,944 77,002 Total Other Expenses 1,072,017 1,388,208

17 Notes to the Financial Statements 3 Cash and Cash Equivalents Cash at bank 246,195 7,276 4 Trade and Other Receivables Current Other debtors 20,939 9,134 Non-current Other debtors - 19,360 5 Other Financial Assets Non-current Shares in subsidiary companies Exploration Assets Q/23P: Exploration cost 5,464,556 5,464,556 Directors valuation 14,535,444 14,535,444 20,000,000 20,000,000 7 Trade and Other Payables Current Unsecured: Trade payables 279, ,651 Other payables 880, ,691 1,159, ,342 8 Other Payables Non-current Unsecured: Other payables 393, ,010

18 Notes to the Financial Statements 9 Interest Bearing Liabilities Unsecured: Interest bearing liabilities 5,117,404 4,584, Financial Liabilities Unsecured: Financial liabilities 1,860,132 1,729, Equity Shares on Issue At the beginning of the period 12,459,855 12,459,855 Shares issued during the period 125,709 - Capital raising costs 326,980 - As at 30 June ,912,544 12,459,855 Reserves Assets revaluation reserve 14,535,444 14,535,444 Share payments reserve 764,533 1,264,458 As at 30 June ,299,977 15,799,902 Accumulated Losses At the beginning of the year (15,846,390) (13,977,872) Loss for the period (1,467,452) (1,868,518) Increase in accumulated losses 837,184 - As at 30 June 2017 (16,476,658) (15,846,390) Total Equity 11,735,863 12,413,367 Ordinary shares participate in dividends and the proceeds on winding up of the company in proportion to the number of shares held. At shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands. 12 Options During the 2017 financial year, 10,000,000 options were issued as a result of approval at the 2016 AGM. No options over issued shares or interests in the company were granted since the end of the financial year. As at 30 June 2017, there was 21,126,455 outstanding options on issue.

19 Notes to the Financial Statements 13 Cash Flow Information (i) Reconciliation of Cash Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows: Cash and cash equivalents 246,195 7,276 (ii) Reconciliation of Cash Flow from Operations with Profit from Ordinary Activities after Income Tax Loss from ordinary activities after income tax Non-cash flows in loss from ordinary activities - Impairment charge (1,467,452) (1,868,518) - 4,869 - Loss on foreign exchange - 54,829 - Exploration expenditure 150,627 87,500 - Interest expense 759, ,511 - Share based payment 668, Unrealised foreign exchange gain (193,714) - Changes in assets and liabilities Decrease in assets Trade and other receivables 19, ,936 Increase in liabilities Trade and other payables 76, ,661 Cash flows from operations 12,948 (515,212)

20 Notes to the Financial Statements 14 Research and Development Eligible expenditure incurred by Gulf Energy Ltd for Q23/P has entitled the company to claim a refundable research and development tax offset. The R&D Tax incentive provides a tax rebate to support Australian companies to undertake Australian research and development. The refund is claimable by the company following lodgement of its annual income tax return. As a result of this offset, the company has received a cash rebate of 216,854 during the 2017 financial year. 15 Events Occurring After the Reporting Date There are no events to report subsequent to balance sheet date. 16 Contingencies Legal claims have been made against by Mr C V Alexander and associate companies Gnomikos Pty Limited and China Investment Capital Limited. is defending itself against these claims and as at the signing of the financial report no reliable estimate can be made of any possible liability. 17 Company Details The Registered Office of the Company is: 8/142 James Ruse Drive, PARRAMATTA, NSW 2150 The Principal Place of Business of the Company is: Suite 1003, Level 10 The Cliveden, 4 Bridge Street, SYDNEY, NSW 2000

21 Directors' Declaration In accordance with a resolution of the directors of, the directors have determined that the Company is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies described in Note 1 to the financial statements. The directors of the Company declare that: 1. The financial statements and notes, present fairly the company's financial position as at 30 June 2017 and its performance for the year ended on that date in accordance with the Corporations Act 2001, accounting policies described in Note 1 to the financial statements and comply with Australian Accounting Standards; 2. In the directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Board of Directors. Wolfgang Siegfried Fischer Director Dated this 8th day of August 2017

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