30th Sep 2005 13:11
Global Petroleum Ltd30 September 2005 Preliminary Results for the year ended 30 June 2005 Principal activities The principal activities of the Company during the course of the financial yearwere: * A continuing 20% interest in four production sharing contracts related to blocks L-5, L-7, L-10 and L-11 in offshore Kenya. * An investment of 14% held in Falkland Oil and Gas Limited which holds a 77.5%interest in seven offshore petroleum licences covering approximately 29,000 km2and 100% interest in a further seven licences covering approximately 50,000 km2in offshore Falkland Islands. * An investment of 10% held in Falkland Gold and Minerals Limited which holds anexclusive minerals licence, onshore Falkland Islands. * Ireland Licence Option held 100% to carry out a work program in an area whichcomprises part of four blocks in the North Celtic Sea Basin to decide whether torelinquish the option or apply for an exclusive exploration licence. * Malta Exploration Study Agreement held 100% to decide whether to enter into aproduction sharing contract with the Government of Malta over two blocks in thesouthern end of the Ragusa Trough, offshore Malta. Review and results of operations Consolidated operating loss after tax attributable to the members of the Companyfor the year ended 30 June 2005 was $1,772,832 (2004: $3,054,408). Kenya (Global Petroleum 20%) The Company has a holding of 20% in three blocks L-5, L-7, and L-11 offshoreKenya. In regard to the fourth Block L-10, which is held by Dana (80% andoperator) and Global Petroleum (20%) - the terms of an extension of the Licenceincluding the work programme are subject to discussion with the KenyaGovernment. In L-5 and L-7 Global Petroleum is in a Joint Venture with Woodside (50% andoperator) and Dana Petroleum (E&P) Limited (30%). The costs associated withGlobal Petroleum's 20% equity are carried for all activities including thedrilling and testing of two wells. Woodside withdrew from L-11 in September 2005 and Global Petroleum and DanaPetroleum (E&P) Limited are negotiating terms for the operation of this block. In August 2004, the Company announced Woodside's intention to continue in BlocksL-5 and L-7 at which time Woodside committed to the drilling of the first of thetwo wells through which Global Petroleum's costs are carried. In May 2005,Woodside indicated that it was actively seeking a drilling rig for Kenya and hasindicated the second or third quarters of calendar year 2006 as a likely time ofdrilling of the first well which is targeted to be in Block L-5. Mapping of the 2003 5,500 km2 2D seismic survey revealed several leads in BlocksL-5 and L-7 in water depths of 1,650 - 2,800 metres with the leads (potentialtargets for drilling) ranging in size from 10 km2 (2,500 acres) to 60 km2(15,000 acres). Preliminary interpreted results of the 3,600 km 2D seismic survey which wascarried out between November 2004 and January 2005 now indicate the presence ofover 30 leads with sizes ranging from 20 to 100 km2. A lead of 50 km2 would becapable of holding 350 million barrels of recoverable oil on the basis ofreasonable reservoir assumptions. Relinquishments have been made during the year from blocks L-5, L-7 and L-10. Falkland Oil and Gas Limited - FOGL (Global Petroleum 14.0%) FOGL issued a public offering prospectus on 30 September 2004 and was admittedto the UK AIM board on 14 October 2004 with a capital raising of £12 million(A$30 million). Global Petroleum held 12.85 million shares or 16.1% in the newlisted company. The capital was raised to fund seismic surveys over the licenceareas of 33,700 km2 in offshore Falkland Islands held 77.5% by FOGL and 22.5% byHardman Resources. In December 2004 FOGL was awarded a further 50,000 km2 in itsown right which is north of the FOGL/Hardman area. In late December 2004 the seismic survey of 9,450 kms 2D commenced andpreliminary results were announced in May 2005. Over 130 leads were identifiedcompared with the initial eight leads stated in the AIM prospectus in September2004. Encouraged by the results of the first round of seismic, FOGL decided to conducta second round of seismic and in June 2005 the GSI vessel 'Admiral' commenced8,000 kms of 2D seismic which is expected to be completed in October 2005. Thissurvey has since been extended to 15,000 kms. The company's aim is to identify20 drillable prospects with drilling possibly beginning in 2007. In June 2005 directors of FOGL placed an additional 11.765 million shares at 85pto raise further funds of £10 million (A$25 million) for the new seismic surveysto investigate leads identified through the interpretation of the seismic todate. Global Petroleum did not take up any shares in the placement preferringinstead to conserve its cash. As a result the Company's holding in FOGL wasdiluted down to 14.0%. In June 2005 FOGL was granted a two year extension to Phase one of its initiallicence area of approximately 33,700 km2 (which was reduced by relinquishment inJune 2005 to approximately 29,000 km2). Phase one now expires in July 2007.Phase two of the initial licence area with a commitment to drill two wells nowexpires in July 2010. Falkland Gold and Minerals Limited - FGML (Global Petroleum 10.1%) In November 2004 the company's name was changed from Falkland Minerals Limitedto Falkland Gold and Minerals Limited (FGML) to better reflect its objectives.The company holds an exclusive onshore minerals licence over the entire landarea of the Falkland Islands. In order to fund onshore drilling, assays and analysis of the results, FGMLsought and was admitted to the UK AIM board on 9 December 2004 with a capitalraising of some £9 million after costs (A$22.5 million). Global Petroleum holds7.91 million shares or 10.1% in the new listed company. Drilling commenced in March 2005 on targets developed from its 2004 aeromagneticsurvey and at June 2005 three holes had been drilled from an initial target ofnine. In June 2005 the first assays were reported as being sub-economic. Astral assets At the AGM held on 25 November 2004 shareholders approved the acquisition of100% of the issued shares of Astral Petroleum Limited (Astral) and the paymentto one of the vendors, TM Services Ltd, of £195,000 (A$504,322) plus the issueof one million fully paid ordinary Global Petroleum shares to the vendors. Thevendors of Astral included Mr P Blakey and Mr P Taylor who are directors andsubstantial shareholders of Global Petroleum; a company associated with both ofthem and a company associated with the spouse of Mr M Savage, a director ofGlobal Petroleum. Mr Savage no longer has any association with the vendors ofAstral. The two assets acquired were the Ireland Licensing Option and the MaltaExploration Study Agreement (details of which are listed below). Shareholdersalso approved the issue to the vendors of an additional four million fully paidordinary Global Petroleum shares (each for Tranches 2 and 3) in respect of eachasset provided the Company entered into conditional farmouts for each asset by25 November 2005 (ie eight million shares in total if both assets arefarmed-out). The Company has undertaken remapping and studies combined with some reprocessingto improve the quality of the seismic lines in the deeper sections to provideinformation which will be attractive to potential farminees for both of theIreland and Malta interests. However, the Company was delayed in its endeavours to achieve farmouts due inlarge part to the serious illness of its London based consultant. As the duedate for both farmouts is now unlikely to be achieved, the Company will seek anextension of time from shareholders until 30 June 2006 at the forthcoming AGM tobe held on 24 November 2005. Details will be available in the ExplanatoryMemorandum in the AGM Notice of Meeting. Irish Licensing Option 100% interest in parts of blocks 57/3, 57/4, 57/8 and 57/9 in the North CelticSea Basin. The Irish Minister for Communications, Marine and Natural Resources granted theIrish Licensing Option to Astral (Ireland) on 5 September 2003. Under the Irish Licensing Option, Global Petroleum applied for an exclusivelicence and an extension was granted on a conditional basis until 31 December2005 provided that Company undertake additional work as agreed by the Ministerand the Company. The Company has applied for a 12 month extension to the LicenseOption until 31 December 2006. Since the grant of the Option, Global Petroleum has been working closely withthe Irish Government on the existing work program and has initiated a marketingprogram to bring new parties into the Option. The purpose of the extension is to allow the optionholder (Global Petroleum) tocarry out further work, seek potential farminees through the marketing programand following completion of both programs decide then what is the best coursefor the Company to follow. Maltese Exploration Study Agreement Under the Maltese Exploration Study Agreement, TM Services (Malta) Ltd andAstral Petroleum (Malta) Limited are permitted to study data owned by theGovernment and all other data in relation to the area the subject of theagreement. The parties may elect to enter into a production sharing contractwith the Government of Malta within a certain period of time. Since the grant of the Exploration Study Agreement, Global Petroleum has beenworking on the existing work program which includes seismic reprocessing trialsand has initiated a marketing program to bring new parties into the ExplorationStudy Agreement. The Maltese Exploration Study Agreement was to expire on 26 June 2005. TheMaltese Government extended it by 6 months until 26 December 2005 on generallythe same terms. The Company has applied for a 12 month extension to theExploration Study Agreement until 26 December 2006. The purpose of the extension is to allow Global Petroleum to carry out furtherwork, seek potential farminees through the marketing program and followingcompletion of both programs decide then what is the best course for the Companyto follow. Global Petroleum may give notice that it wishes to enter into a ProductionSharing Contract over the area at any time up to expiry of the MalteseExploration Study Agreement. Surat Basin, Queensland (Global Petroleum 100%) In July 2004 the Company surrendered two permits ATPs 729P and 731P back to theQueensland Government. During the March 2005 quarter the Company applied tosurrender the remaining permit ATP 728P. Iraq A joint venture was established in the previous financial year between theCompany and local interests in Iraq to procure a production sharing contract(PSC) in northern Iraq. The application to the Kurdistan Regional Governmentsought the right to rehabilitate the Chamchamal gas and condensate field. Asreported last year the application was unsuccessful and the joint venture haslapsed. In June 2005 the Company formed a joint venture alliance with TM ServicesLimited for the purpose of pursuing upstream petroleum interests in Iraq exceptin certain areas in northern Iraq known as Chamchamal and Taq Taq. Significant changes in the state of affairs The consolidated entity's ordinary share capital increased by $5,897,478 to$34,436,135 (2004: $28,538,657), principally as a result of the one-for-threenon-renounceable rights issue in September 2004. The consolidated entity's total assets increased by $3,440,349 to $27,259,208(2004: $23,818,859), principally as a result of higher cash holdings of$2,870,407 following the rights issue in September 2004.Dividends No dividends have been declared, provided for or paid in respect of thefinancial year ended 30 June 2005. Events subsequent to reporting date Since 30 June 2005: * The Company has proposed to amend the Astral Petroleum Limited acquisitionagreement which was approved at the November 2004 AGM. The amendment is inrespect of the Tranche 2 and Tranche 3 shares, being an extension of time forthe issue from 25 November 2005 to 30 June 2006, and is subject to shareholderapproval at the November 2005 AGM. * 500,000 options were exercised in September 2005 at an exercise price of $0.25(there were no amounts unpaid on the shares issued). * Woodside withdrew from L-11 in offshore Kenya in September 2005. For reporting periods beginning on or after 1 July 2005, the consolidated entitymust comply with Australian equivalents to International Financial ReportingStandards (AIFRS) as issued by the Australian Accounting Standards Board. Theimplementation plan and potential impact of adopting AIFRS are detailed in Note35 to the financial statements. Other than the matters discussed above there has not arisen in the intervalbetween the end of the financial year and the date of this report any item,transaction or event of a material and unusual nature likely, in the opinion ofthe directors of the Company to affect significantly the operations of theconsolidated entity, the results of those operations or the state of affairs ofthe consolidated entity in future financial years Likely developments At the date of this report the Company is awaiting the result of Woodside'sendeavours in securing a deepwater drilling rig to drill the first well in L-5in offshore Kenya. The Company will announce when a rig has been secured byWoodside. The consolidated entity will continue to investigate opportunities to addprojects to its portfolio which fit its strategy. STATEMENTS OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2005 Consolidated Global Petroleum Note 2005 2004 2005 2004 $ $ $ $ Revenue fromordinary activities 3 1,624,106 1,588,064 1,006,413 140,522 Depreciationexpense 4 (58,251) (34,800) (13,940) (16,231)Salaries andemployee benefitsexpense (444,000) (189,035) (265,848) (82,320)Consulting fees (862,751) (241,575) (742,816) (159,965)Shareholder costs (172,011) (96,683) (126,429) (88,244)Occupancy costs (46,283) (25,843) (12,124) (12,291)Carrying amount ofnon-current assetsdisposed (14,728) (2,357) (405) (2,357)Exploration andevaluation expenditure written off:Relating toexploration assetsdisposed 4 (887,532) (996,757) (166,585) -Other 4 (593,502) (2,875,580) (593,502) (470,970)Write-down ofinvestment incontrolled entity 4 - - (613,234) (1,776,605)Net other expensesfrom ordinaryactivities (235,409) (168,377) (148,713) (90,434)Net foreignexchange loss 4 - (4,570) (986) - -------- -------- -------- --------Share of net lossesof associatesaccounted for using the equitymethod 27 (82,471) (6,895) - - -------- -------- -------- --------Loss from ordinaryactivities beforerelated income taxexpense/benefit (1,772,832) (3,054,408) (1,678,169) (2,558,895) Income tax(expense)/benefit 6 - - - - -------- -------- -------- -------- Net loss 20 (1,772,832) (3,054,408) (1,678,169) (2,558,895) -------- -------- -------- -------- Non-owner transaction changes in equity - - - - -------- -------- -------- -------- Total changes inequity from non-ownertransactions attributableto the members of the parent entity (1,772,832) (3,054,408) (1,678,169) (2,558,895) ======== ======== ======== ======== Cents CentsBasic earnings pershare 7 (1.08) (2.51)Diluted earningsper share 7 (1.08) (2.51) STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2005 Consolidated Global Petroleum Note 2005 2004 2005 2004 $ $ $ $Current assetsCash assets 8 6,159,540 3,289,133 6,135,310 3,279,991Receivables 9 213,340 119,222 77,700 56,082Other financialassets 10 600 61,480 600 600Other assets 11 72,710 13,929 19,837 13,929 ------- -------- -------- --------Total currentassets 6,446,190 3,483,764 6,233,447 3,350,602 ------- -------- -------- -------- Non-current assetsOther financialassets 12 2,495,798 - 18,625,854 18,147,910Investmentsaccounted forusing the equitymethod 27 - 2,112,981 - -Receivables 13 - - 2,769,662 1,256,924Property, plantand equipment 14 73,897 114,318 69,594 96,599Exploration andevaluationexpenditure 15 18,243,323 18,107,796 113,687 742,931 ------- -------- -------- --------Total non-currentassets 20,813,018 20,335,095 21,578,797 20,244,364 ------- -------- -------- -------- TOTAL ASSETS 27,259,208 23,818,859 27,812,244 23,594,966 ------- -------- -------- -------- Current liabilitiesPayables 16 303,247 945,838 206,510 166,835Provisions 17 7,095 48,801 7,095 48,801 ------- -------- -------- --------Total currentliabilities 310,342 994,639 213,605 215,636 ------- -------- -------- -------- Non-current liabilitiesPayables 18 - - 61,260 61,260 ------- -------- -------- --------Total non-currentliabilities - - 61,260 61,260 ------- -------- -------- -------- TOTAL LIABILITIES 310,342 994,639 274,865 276,896 ------- -------- -------- -------- NET ASSETS 26,948,866 22,824,220 27,537,379 23,318,070 ======= ======== ======== ======== EquityContributedequity 19 34,436,135 28,538,657 34,436,135 28,538,657Accumulatedlosses 20 (7,487,269) (5,714,437) (6,898,756) (5,220,587) ------- -------- -------- -------- TOTAL EQUITY 22 26,948,866 22,824,220 27,537,379 23,318,070 ======= ======== ======== ======== STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2005 Consolidated Global Petroleum Note 2005 2004 2005 2004 $ $ $ $Cash flows fromoperating activitiesPayments to suppliersand employees (1,413,269) (694,600) (981,404) (392,124)Goods and services taxrefunded 119,646 53,652 119,646 53,652Interest received 330,522 101,056 336,565 109,023Dividends receivedfrom controlledentities - - 652,793 -Management feesreceived 359,165 91,756 - - -------- -------- -------- --------Net cash provided by/(used in) operatingactivities 33(a) (603,936) (448,136) 127,600 (229,449) -------- -------- -------- -------- Cash flows frominvesting activitiesPayments for property,plant and equipment (42,420) (4,493) (35,579) (4,493)Payments forexploration expenditure,Including overheadscapitalised (592,201) (876,373) (176,715) (269,775)Proceeds on disposalof exploration assets 850,745 - - -Payments forcontrolled entities 26(b) (721,178) - (721,178) - Payments forinvestments (1,183,369) (25,558) - -Proceeds from otherfinancial assets 60,886 161,297 - 9,868Repayments of loansfrom controlledentities - - 599,053 -Advances to controlledentities/associatedcompany - - (2,018,616) (703,200) -------- -------- -------- --------Net cash used ininvesting activities (1,627,537) (745,127) (2,353,035) (967,600) -------- -------- -------- -------- Cash flows fromfinancing activitiesProceeds from issue ofshares 5,661,518 2,509,000 5,661,518 2,509,000Share issue expenses (134,040) (73,281) (134,040) (73,281)Costs of admission tothe Alternative InvestmentMarket of the LondonStock Exchange (446,724) - (446,724) - -------- -------- -------- --------Net cash provided byfinancing activities 5,080,754 2,435,719 5,080,754 2,435,719 -------- -------- -------- -------- Net increase in cashheld 2,849,281 1,242,456 2,855,319 1,238,670 Cash acquired onacquisition ofcontrolled entities 26(b) 21,126 - - - Cash at beginning ofthe financial year 3,289,133 2,046,677 3,279,991 2,041,321 -------- -------- -------- -------- Cash at end of thefinancial year 33(b) 6,159,540 3,289,133 6,135,310 3,279,991 ======== ======== ======== ======== NOTES TO FINANCIAL STATEMENTS 1. REVENUE FROM ORDINARY ACTIVITIES Consolidated 2005 2004 $ $ $ $Revenue from operatingactivitiesInterest received/receivable -related parties - - 8,795 8,795Interest received/receivable -other parties 347,527 123,909 344,775 123,182Rendering of services fromoperating activities 424,681 92,094 - -Other revenuesNet foreign exchange gain 1,103 - - 5,715Proceeds on the disposal ofexploration assets 850,745 1,366,629 - -Proceeds on disposal ofproperty, plant and equipment 50 2,830 50 2,830Dividends - related parties -wholly-owned group - - 652,793 -Other revenue - 2,602 - - -------- -------- -------- -------- 1,624,106 1,588,064 1,006,413 140,522 ======== ======== ======== ======== 2. EXPENSES AND (GAINS)/LOSSES FROM ORDINARY ACTIVITIES Consolidated Global Petroleum 2005 2004 2005 2004(a) Expenses Depreciation of plant andequipment 68,113 71,974 62,179 69,663Less: depreciation capitalisedor oncharged to controlledentities (9,862) (37,174) (48,239) (53,432) -------- -------- -------- -------- 58,251 34,800 13,940 16,231 -------- -------- -------- -------- Net expense/(credit) frommovement in:Provision for employeeentitlements (41,706) 30,843 (41,706) 30,843Exploration and evaluationexpenditure written off:Relating to explorationassets disposed 887,532 996,757 166,585 -Other 593,502 2,875,580 593,502 470,970Write-down of investment incontrolled entity - - 613,234 1,776,605Operating lease rentalexpenses 11,657 14,102 11,657 14,102 (b) (Gains)/losses Net losses/(gains) ondisposal of explorationassets 36,787 (369,872) 166,585 -Net losses/(gains) ondisposal of property, plantand equipment 14,678 (473) 355 (473)Net foreign exchange losses - 4,570 986 - (c) Significant items included in loss from ordinaryactivities (including items in Notes 4(a) and 4(b))Loss from ordinary activities before income tax expense includes thefollowing revenues and expenses whose disclosure is relevant in explaining the financial performance of the consolidated entity: Exploration and evaluationexpenditure written off (593,502) (2,875,580) (593,502) (470,970)(Losses)/gains on disposalof exploration assets (36,787) 369,872 (166,585) -Write-down of investment incontrolled entity - - (613,234) (1,776,605)Costs of admission to theAlternative InvestmentMarket of the London StockExchange (AIM) (446,724) - (446,724) - 3. INCOME TAX The aggregate amount of income tax attributable to the financial year differsfrom the amount calculated on the loss from ordinary activities before tax. Thedifferences are reconciled as follows: Consolidated Global Petroleum 2005 2004 2005 2004 $ $ $ $ Loss from ordinaryactivities before tax (1,772,832) (3,054,408) (1,678,169) (2,558,895) ======== ======== ======== ========Income tax calculatedat 30% (2004: 30%) (531,850) (916,322) (503,451) (767,669)Tax effect of permanentdifferences: Exploration and evaluation expenditure written-off 178,050 862,674 178,050 141,291 Write-down of investment - - 183,970 532,982 Net loss/(gain) on disposal of exploration assets 11,036 (84,467) 49,976 - Non-assessable dividends - - (195,838) - Share of associates' net losses 24,741 - - - Other (35,833) 689 (35,833) 689 Tax losses not brought to account 353,856 137,426 323,126 92,707 -------- -------- -------- --------Income tax attributable to - - - -operating loss ======== ======== ======== ======== Future income tax benefits arising from tax losses and timing differences havenot been brought to account at balance date as recovery of tax losses is notvirtually certain and recovery of timing differences is not assured beyondreasonable doubt: Consolidated Global Petroleum 2005 2004 2005 2004 $ $ $ $Tax losses carried forward 2,087,941 1,674,149 2,066,032 1,630,901Timing differences (359,866) (631,016) (359,866) (647,639) --------- -------- -------- -------- 1,728,075 1,043,133 1,706,166 983,262 ========= ======== ======== ======== The potential future income tax benefits will only be obtained if: (i) the relevant company derives future assessable income of a nature and anamount sufficient to enable the benefit to be realised; (ii) the relevant company continues to comply with the conditions fordeductibility imposed by the law; and (iii) no changes in tax legislation adversely affect the relevant company inrealising the benefit. 4. EARNINGS PER SHARE Consolidated 2005 2004 Cents Cents Basic earnings per share (1.08) (2.51)Diluted earnings per share is not materiallydifferent from basic earnings per share (1.08) (2.51) $ $Earnings used in the calculation of basic anddiluted earnings per share (1,772,832) (3,054,408) ========= ======== Weighted average number of ordinary shares No. No.outstanding during the year used in the calculation of basic and diluted earnings per share 164,045,928 121,787,953 ========= ======== There has been no conversion to, calls of, or subscriptions for ordinary sharessince the reporting date and before the completion of this financial report. Options to purchase ordinary shares not exercised at 30 June 2005 have not beenincluded in the determination of basic earnings per share and diluted earningsper share as they are not dilutive. 5. DIVIDENDS No dividends have been declared, provided for or paid in respect of thefinancial years ended 30 June 2005 and 2004. 6. STATEMENT OF CASH FLOWS Consolidated Global Petroleum 2005 2004 2005 2004 $ $ $ $ (a) Reconciliation of net loss to net cashprovided by/(used in) operating activities Net loss (1,772,832) (3,054,408) (1,678,169) (2,558,895)Add/(less) items classifiedas investing/financingactivities:(Profit)/loss ondisposal of non-current assets 14,678 (473) 355 (473)(Profit)/loss ondisposal of exploration assets 36,787 (369,872) 166,585 -Exploration andevaluation expenditurewritten off 593,502 2,875,580 593,502 470,970Costs of admission to theAlternative InvestmentMarket of the LondonStock Exchange (AIM) 446,724 - 446,724 -Add/(less) non-cash items:Write-down of investment incontrolled entity - - 613,234 1,776,605Depreciation 58,251 34,800 13,940 16,231Net foreign exchange(gain)/loss (1,103) 4,570 986 (5,715)Provision for employeeentitlements (41,706) 30,843 (41,706) 30,843Share of net losses ofassociates 82,471 6,895 - - -------- -------- -------- --------Net cash provided by/(usedin) operating activitiesbefore change inassets and liabilities (583,228) (472,065) 115,451 (270,434) Changes in operating assets andliabilities, net of effects of purchase of controlled entities during the financial year:Decrease/(increase) inreceivables (94,118) (41,728) (21,618) (29,561)Decrease/(increase) inprepayments 23,262 (12,368) (5,908) (12,499)(Decrease)/increase inpayables 50,148 78,025 39,675 83,045 -------- -------- -------- --------Net cash providedby/(used in) operatingactivities (603,936) (448,136) 127,600 (229,449) ======== ======== ======== ======== (b) Reconciliation of cash Cash at bank and on hand 203,566 132,922 179,336 123,780Bank short term deposits 5,955,974 3,156,211 5,955,974 3,156,211 -------- -------- -------- -------- 6,159,540 3,289,133 6,135,310 3,279,991 ======== ======== ======== ======== (c) Non-cash investing and financing activities During the year the Company issued 1 million shares at $0.37 each for theacquisition of a controlled entity as disclosed in Note 26(b). During 2004 the consolidated entity disposed of exploration assets for$1,366,629 in exchange for equity investments in associated entities. 7. EVENTS SUBSEQUENT TO REPORTING DATE International Financial Reporting Standards For reporting periods beginning on or after 1 January 2005 the consolidatedentity must comply with Australian equivalents to International FinancialReporting Standards (AIFRS) as issued by the Australian Accounting StandardsBoard. The potential impact of adopting AIFRS is detailed in Note 35. Other Since 30 June 2005: * The Company has proposed to amend the Astral Petroleum Limited acquisitionagreement which was approved at the November 2004 AGM. The amendment is inrespect of the Tranche 2 and Tranche 3 shares, being an extension of time forthe issue from 25 November 2005 to 30 June 2006, and is subject to shareholderapproval at the November 2005 AGM. * 500,000 options were exercised in September 2005 at an exercise price of $0.25(there were no amounts unpaid on the shares issued). * Woodside withdrew from L-11 in offshore Kenya in September 2005. Other than matters discussed above, there has not arisen since the end of thefinancial year any item, transaction or event of a material and unusual naturelikely, in the opinion of the directors of the Company, to affect significantlythe operations of the consolidated entity, the results of those operations, orthe state of affairs of the consolidated entity, in future financial years. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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