15th Feb 2010 07:37
OILEX LTD ABN 50 078 652 632 CONSOLIDATED INTERIM FINANCIAL REPORT For the half-year ended 31 December 2009 CONTENTS Directors'
Report.......................................1
Auditor's IndependenceDeclaration..................................3Consolidated Statement of ComprehensiveIncome.......................................4Consolidated Interim BalanceSheet........................................5Consolidated Interim Statement of Changes inEquity.......................................6Consolidated Interim Statement of CashFlows........................................7
Condensed Notes to the Consolidated Interim Financial Report...................................... 8
Directors'
Declaration..................................13
Independent ReviewReport.......................................14The Directors present their report together with the consolidated financialreport of Oilex Ltd (the "Company") and of the consolidated entity, being theCompany and its controlled entities (the "Group") for the six months ended 31December 2009 and the review report thereon.
DIRECTORS
The directors of the Company at any time during or since the end of the interimperiod are detailed below. All directors were in office for this entire period. Mr Max Dirk Jan Cozijn Non-Executive ChairmanDr Bruce Henry McCarthy Managing DirectorMr Raymond George Barnes Technical DirectorMr Ben Clube Finance DirectorMr Laxmi Lal Bhandari Non-Executive DirectorMr Ronald Miller Non-Executive DirectorREVIEW OF OPERATIONSFinancial PerformanceThe Group incurred a consolidated loss after income tax of $7,057,668 for thehalf-year (31 December 2008: loss of $32,633,462). The loss is mainly due to awrite down of capitalised exploration and evaluation expenditure following anassessment of asset carrying values at the balance sheet date ($4,266,207).Cash and cash equivalents held by the Group increased in the half year by$9,318,886 to $19,153,199 (31 December 2008: cash and cash equivalents of14,708,829). The net increase in cash and cash equivalents held is mainly dueto a placement of shares to raise A$10.1 million that was completed during
thehalf year. Operations
Oilex Ltd is a dual listed company (ASX and AIM) with a diversified portfolio of interests in India, Indonesia, Oman, Timor-Leste and Australia. The Company's current focus is on:
* Planning for further exploration drilling in JPDA 06-103, Timor Sea.
* Further re-processing and interpretation of 3D seismic in WA-388-P,
offshore Australia.
* Maintaining oil production and further evaluation in the Cambay PSC area,
India. * Appraisal of the Pendalian discovery and exploration in the West Kampar PSC, Indonesia. * New opportunity identification and review.
The main events for the Company during the period were:
* A placement of shares to raise A$10.1 million was finalised in November
2009.
* Key farm-out agreement concluded with Japan Energy resulting in Oilex being
carried for its share of two initial wells (up to an agreed cap) and being
reimbursed for some past costs resulting in Oilex holding 10%.
* Drilling of Lor©-1 and Lolotoe-1 wells in JPDA 06-103, Timor Sea.
* Encouraging initial results from WA-388-P seismic interpretation.
* Continued oil production from Company's India assets with 13,551 barrels
oil produced during the six month period.
Further details are contained within releases made by the Company over this period.
DIRECTORS' REPORT
Significant Events After Balance Date
Oilex (West Kampar) Limited ("OWK"), a wholly owned subsidiary of Oilex Ltdincorporated in Cyprus, is pursuing the recovery of a debt in excess of US$4.1million owed by PT Sumatera Persada Energi ("SPE") to OWK. This debt arose outof SPE's failure to repay monies advanced by OWK under the farmout agreementrelating to West Kampar Production Sharing Contract ("PSC") entered into bythem in August 2008 which was subsequently terminated in January 2009. Underthe terms of a parent company guarantee provided to OWK at the time of enteringinto the farmout agreement, PT Asiabumi Petroleo ("Asiabumi"), the parentcompany, guaranteed SPE's obligations to repay the monies owing under thefarmout agreement. Asiabumi has not repaid the monies and OWK consequentlyfiled an arbitration proceeding in the International Chamber of Commerce inSingapore on 30 April 2009. The first arbitration hearing occurred on 25January 2010 and is scheduled to be continued on 18 and 19 February 2010. In the course of the arbitration proceeding, PT Asiabumi Petroleo notified OWKof a claim filed on 25 January 2010 by SPE in an Indonesian court against OWK.OWK has not been served with the claim. OWK understands that SPE is seekingdamages from OWK for alleged defamation arising out of correspondence inNovember 2008 that provided BPMigas with information relating to SPE'sperformance as operator. No information has been provided in relation to thequantification of the damages claimed for costs and damage to SPE's reputation.OWK rejects the allegations in the claim and, if served, will vigorously opposethe claim. CORPORATE MATTERSCapital Structure
As at 31 December 2009, Oilex had a total issued capital of 220,074,885 ordinary shares.
In addition there were a total of 29,975,000 unlisted options exercisable at prices of between $0.30 and $2.75 and 555,000 performance rights.
At 31 December 2009, Oilex retained cash of approximately $19.2 million.
LEAD AUDITOR'S INDEPENDENCE DECLARATION
The lead auditor's independence declaration is set out on page 3 and forms partof the Directors' Report for the six months ended31 December 2009.This report is signed in accordance with a resolution of the Board ofDirectors. Mr M.D.J. Cozijn Mr B. ClubeChairman Finance DirectorWest PerthWestern Australia12 February 2010
Lead Auditor's Independence Declaration under Section 307C of the Corporations Act 2001
To: the directors of Oilex Ltd
I declare that, to the best of my knowledge and belief, in relation to the review for the half-year ended 31 December 2009 there have been:
no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and
no contraventions of any applicable code of professional conduct in relation to the review.
KPMGBrent SteedmanPartnerPerth, WA12 February 2010KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss
cooperative. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 31 DECEMBER 2009 31 December 31 December Note 2009 2008 $ $ Continuing operations Revenue 724,133 439,652 Cost of sales Production costs (313,326) (297,779) Inventory movement (36,498) - Amortisation of development assets (301,609) - Total cost of sales (651,433) (297,779) Gross profit 72,700 141,873 Other income 8,332 - Net loss on sale of investment - (4,317,320) Employee benefits expense (398,332) (603,148) Depreciation expense (218,747) (295,004) Exploration expenditure (including recovery of 861,057 (9,231,070)past costs) Impairment of exploration and evaluation 6 (4,266,207) (17,103,297)expenditure
Impairment of development assets (833,052)
- Well abandonment provision - (76,692) Administration expense (250,967) (1,675,166) Share based payments (890,797) (537,030) Other expenses (312,226) - Results from operating activities (6,228,239) (33,696,854) Finance income 60,968 444,721 Finance costs (2,127) (19) Foreign exchange gain/(loss) (888,270) 1,731,054 Net finance income/(expense) (829,429) 2,175,756 Loss before income tax (7,057,668) (31,521,098) Income tax expense - (1,112,364) Loss for the period (7,057,668) (32,633,462) Other comprehensive income Foreign currency translation difference (2,560,500)
12,380,106
Other comprehensive (loss)/income for the (2,560,500) 12,380,106period, net of income tax Total comprehensive loss for the period (9,618,168) (20,253,356) Earnings per share Basic loss per share (cents per share) (3.73)
(24.7)
Diluted loss per share (cents per share) (3.73)
(24.7)
The condensed notes on pages 8 to 12 are an integral part of these consolidated interim financial statements.
CONSOLIDATED INTERIM BALANCE SHEETAS AT 31 DECEMBER 2009 Note 31 December 2009 30 June 2009 $ $ Current assets Cash and cash equivalents 19,153,199 10,506,379 Trade and other receivables 1,515,349 1,384,981 Prepayments 177,461 161,703 Inventories 1,326,517 1,892,203 Total current assets 22,172,526 13,945,266 Non-current assets Exploration and evaluation 6 21,746,826
31,261,621
Property, plant & equipment 1,299,319 884,614 Total non-current assets 23,046,145 32,146,235 Total assets 45,218,671 46,091,501 Current liabilities Trade and other payables 2,443,256 3,795,494 Employee benefits 163,436 167,453 Total current liabilities 2,606,692 3,962,947 Non-current liabilities Provisions 2,610,330 2,829,930 Total non-current liabilities 2,610,330 2,829,930 Total liabilities 5,217,022 6,792,877 Net assets 40,001,649 39,298,624 Equity Issued capital 120,165,305 110,734,909 Reserves 13,879,375 18,330,351 Accumulated losses (94,043,031) (89,766,636) Total equity 40,001,649 39,298,624
The condensed notes on pages 8 to 12 are an integral part of these consolidated interim financial statements.
CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 DECEMBER 2009
Asset Foreign Issued Revaluation Currency Total Option Reserve Translation Accumulated Capital Reserve Reserve Losses Equity $ $ $ $ $ $ Balance at 1 July 2008 101,368,396 13,101,354 2,595,516 (2,658,994) (41,583,408) 72,822,864 Devaluation of - - (2,199,336) - - (2,199,336)investments Loss for the period - - - - (32,633,462) (32,633,462) Transferred to income statement upon sale of investment - - (396,180) - - (396,180) Foreign - - - 12,380,106 - 12,380,106currency translation differences Shares issued 4,391,620 - - - - 4,391,620 Capital raising costs (366,169) - - - - (366,169) Shares issued on exercise of Employee Performance Rights - (239,400) - - 239,400 - Transfer on cancellation & forfeiture of options - (813,172) - - 813,172 - Equity-settled share based payment transactions - 537,030 - - - 537,030 Balance at 31
December 2008 105,393,847 12,585,812 - 9,721,112 (73,164,298)
54,536,473 Balance at 1
July 2009 110,734,909 12,819,214 - 5,511,137 (89,766,636)
39,298,624 Loss for the period - - - - (7,057,668) (7,057,668) Foreign - - - (2,560,500) - (2,560,500)currency translation differences Shares issued 10,120,000 - - - - 10,120,000 Capital raising costs (689,604) - - - - (689,604) Shares issued on exercise of Employee Performance Rights - (28,000) - - 28,000 - Transfer on forfeiture of options - (2,753,273) - - 2,753,273 - Equity-settled share based payment transactions - 890,797 - - - 890,797 Balance at 31
December 2009 120,165,305 10,928,738 - 2,950,637 (94,043,031) 40,001,649
The condensed notes on pages 8 to 12 are an integral part of these consolidated interim financial statements.
CONSOLIDATED INTERIM STATEMENT OF CASH FLOWSFOR THE SIX MONTHS ENDED 31 DECEMBER 2009 31 December 31 December 2009 2008 $ $
Cash flows from operating activities
Cash receipts from customers 786,286 - Payments to suppliers and employees (994,304) (2,025,018) Production costs (313,326) (297,779) Interest received 43,843 414,665 Net cash used in operating activities (477,501) (1,908,132)
Cash flows from investing activities Advances from/(to) joint ventures 29,059
1,311,662
Payments for/(recovery of) exploration and 426,792 (19,424,077)evaluation Payments for purchase of prospects - (4,128,333) Proceeds from sale of assets 29,488 - Proceeds from sale of investment -
937,279
Acquisition of property, plant and equipment (119,348)
(303,649)
Net cash used in investing activities 365,991 (21,607,118)
Cash flows from financing activities Proceeds from issue of share capital 10,120,000
4,391,621
Share capital received in advance -
101,565
Payment for share issue costs (689,604)
-
Proceeds from the exercise of options -
-
Net cash from financing activities 9,430,396 4,493,186 Net increase/(decrease) in cash held 9,318,886
(19,022,064)
Cash and cash equivalents at 1 July 10,506,379
33,487,053
Effect of exchange rate fluctuations on cash (672,066) 243,840held Cash and cash equivalents at 31 December 19,153,199
14,708,829
The condensed notes on pages 8 to 12 are an integral part of these consolidated interim financial statements.
CONDENSED NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2009
1. REPORTING ENTITY
Oilex Ltd (the "Company") is a company domiciled in Australia. The consolidatedinterim financial report of the Company as at and for the six months ended 31December 2009 comprises the Company and its subsidiaries (together referred toas the "Group") and the Group's interest in jointly controlled operations. The consolidated annual financial report of the Group as at and for the yearended 30 June 2009 is available upon request from the Company's registeredoffice at Level 2, 50 Kings Park Road, West Perth, Western Australia 6005 or atwww.oilex.com.au. 2. BASIS OF PREPARATION(a) Statement of Compliance
The consolidated interim financial report is a general purpose financial report which has been prepared in accordance with AASB 134: Interim Financial Reporting and the Corporations Act 2001.
The consolidated interim financial report does not include all of theinformation required for a full annual financial report, and should be read inconjunction with the consolidated annual financial report of the Group as atand for the year ended 30 June 2009.
This consolidated interim financial report was approved by the Board of Directors on 12 February 2010.
(b) Going Concern
The Directors believe that it is appropriate to prepare the financialstatements on a going concern basis. As at 31 December 2009, the Group'scurrent assets exceeded current liabilities by $19,565,834 and the Group hascash and cash equivalents of $19,153,199. The Directors are satisfied that thevalue of the Group's assets can be realised through further evaluation,development and production or alternatively through asset sale or farm down.The Directors are also satisfied that the Company has adequate plans in placein order that its funding requirements in the foreseeable future can be met andthat the Company is progressing with these plans accordingly.
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied by Oilex in this consolidated interim financialreport are the same as those applied by the Group in its consolidated financialreport as at and for the year ended 30 June 2009. 4. ESTIMATESThe preparation of an interim financial report requires management to makejudgements, estimates and assumptions that affect the application of accountingpolicies and the reported amounts of assets and liabilities, income andexpense. Actual results may differ from these estimates.In preparing this consolidated interim financial report, the significantjudgements made by management in applying the Group's accounting policies andthe key sources of estimation uncertainty were the same as those that appliedto the consolidated financial report as at and for the year ended 30 June 2009. 5. SEGMENT INFORMATION Group and India Australia Oman Timor-Leste Indonesia Unallocated Consolidated $ $ $ $ $ $ $ Half-year ended 31 December 2008 Segment revenue 439,652 - - - - - 439,652 Segment result (3,068,616) (1,157,492) (9,168,138) (7,789,010) (4,562,068) (6,888,138) (32,633,462) Half-year ended 31 December 2009 Segment revenue 724,133 724,133 Segment result (5,452,506) (146,268) (343,324) 2,338,859 (1,020,535) (2,433,894) (7,057,668) 6. EXPLORATION AND EVALUATION 31 December Year Ended 2009 30 June 2009 $ $ Exploration and evaluation Opening Balance 31,261,621 31,464,923 Expenditure capitalised net of recovery (666,004)
12,909,841
Transfer to development expenditure (1,662,560)
-
Acquisition of exploration assets -
4,128,333
Effect of movements in foreign exchange rates (2,920,024) 7,637,503 26,013,033 56,140,600 Impairment of exploration and evaluation expenditure (4,266,207) (24,878,979) Closing Balance 21,746,826 31,261,621 7. SHARE BASED PAYMENTSThe Company has an established share option programme that entitles directors,key management personnel and advisers to purchase shares in the Company. Theterms and conditions of the share option program are disclosed in theconsolidated financial report as at and for the year ended 30 June 2009. In thesix months ended 31 December 2009 further grants on similar terms were made todirectors and advisors.The Company also has established an Employee Performance Rights Plan, approvedby shareholders in 2006, which entitles employees to options and performancerights. The terms and conditions of the Plan are disclosed in the consolidatedfinancial report as at and for the year ended 30 June 2009. No further grantswere made in the six months ended 31 December 2009.The basis of measuring fair value of options and performance rights granted isconsistent with that disclosed in the consolidated financial report as at andfor the year ended 30 June 2009.
The terms and conditions of the grants made during the six months ended 31 December 2009 are as follows:
Number of Vesting Exercise ContractualGrant Date Instruments Conditions Price Life of Options OPTIONS Directors 26 November 2009 2,250,000 One year of $0.30 5 years service Key Management Personnel 17 August 2009 2,350,000 One year of $0.30 5 years service 24 August 2009 300,000 One year of $0.30 5 years service Employees 17 August 2009 600,000 One year of $0.30 5 years service Financiers and Advisors 31 August 2009 2,000,000 Vest immediately $0.30 2 years Total Options 7,500,000 During the six months ended 31 December 2009, the following options lapsedunexercised and performance rights were forfeited due to service conditions notbeing met: Number of ExerciseGrant Date Instruments Expiry Date Price OPTIONS Directors 3 December 2004 500,000 31 December $1.50 2009 14 December 2005 4,000,000 14 December $0.80 2009 Key Management Personnel 3 December 2004 300,000 31 December $1.50 2009 31 July 2006 775,000 31 July $0.50 2009 31 July 2006 775,000 31 July $0.65 2009 Employees 3 December 2004 200,000 31 December $1.50 2009 14 December 2005 250,000 14 December $0.80 2009 Former Managing Director 3 December 2004 500,000 31 December $1.00 2009 3 December 2004 2,000,000 31 December $1.50 2009 Financiers and Advisors 10 October 2006 500,000 31 October $1.50 2009 10 October 2006 500,000 31 October $1.75 2009 Total Options 10,300,000 PERFORMANCE RIGHTS Key Management Personnel 11 January 2007 35,000 1 July 2011 - 11 January 2007 35,000 1 July 2011 - Employees 11 January 2007 143,000 1 July 2011 - 11 January 2007 138,000 1 July 2011 - Total Performance Rights 351,000 Total Options and 10,651,000 Performance Rights 7. SHARE BASED PAYMENTS (CONTINUED)
Fair value of options granted during the six months ended 31 December 2009 has been determined using the following assumptions:
Options Fair value at measurement date $0.12 to $0.22 Share price $0.25 to $0.31 Exercise price $0.30 Expected volatility 92% to 97% Option life 2 to 5 years Expected dividends - Risk-free interest rate 3.0% - 3.5%
The fair value of the options is calculated at the date of grant using the Black-Scholes Model.
8. EQUITY SECURITIES ISSUED
2009 2008 Number of Shares Number of Shares Issue of share capital 44,000,000 19,094,000
Exercise of employee performance rights 20,000
171,000 Exercise of options - - 44,020,000 19,265,000
Shareholders at a General Meeting held 16 November 2009 ratified the issue of24,000,000 shares issued in Tranche 1 and approved a further Tranche 2allotment of 20,000,000, both tranches were issued at $0.23 cents per share,relating to a placement of a total of 44 million shares at $0.23 cents per
share. 2009 $ Number of Shares Issued Capital Number of shares on issue 1 July 2009 176,054,885
110,734,909
Exercise of employee performance rights 20,000
Issue of share capital Allotment 44,000,000 10,120,000 Capital raising costs (689,604)
Number of shares on issue 31 December 2009 220,074,885 Issued Capital as at 31 December 2009 120,165,305 9. CONTINGENCIES(a) Oilex Ltd has issued guarantees in relation to the lease of corporateoffices in West Perth as well as credit card guarantees. The Bank Guaranteesamount to $206,000. An equal amount is held in cash and cash equivalents assecurity by the Banks.
(b) A disputed invoice received by a subsidiary company of the Group from a supplier for $292,983. The subsidiary does not admit the liability and denies that is has any responsibility to pay the invoice.
(c) During the financial year ended 30 June 2009, Oilex Ltd, as operator of theEPP27 Permit, finalised the terms of a good standing agreement ("GSA") with therelevant authorities and joint venture participants in consideration forallowing the joint venture to not drill a commitment well in the EPP27 Permitdue to lack of prospective drilling targets. Oilex's monetary share of the GSAis $2,101,225. Under the terms of the GSA that expenditure is to be made onfield activities in the primary term on either (1) re-released offshore acreagewhich is awarded to Oilex in the next two Australian gazettal rounds or (2)newly released acreage awarded to Oilex as a sole bidder during the next twoAustralian gazettal rounds. 10. RELATED PARTIESArrangements with related parties continue to be in place. For details of thesearrangements, refer to the consolidated annual financial report of the Group asat and for the year ended 30 June 2009.
11. EXPENDITURE COMMITMENTS
Exploration and Evaluation Expenditure Commitments
In order to maintain current rights of tenure to exploration permits, the Groupis required to perform minimum exploration work to meet the minimum expenditurerequirements specified by various state and national governments. Theseobligations are subject to renegotiation when application for an explorationpermit is made and at other times.
The exploration and evaluation expenditure commitments below, represent commitments made to the relevant government authorities respective joint venture participants and to third party service providers. These obligations are not provided for in the financial report.
The Group's share of these commitments is estimated as follows:
31 December 30 June 2009 2009 Within one year 8,195,000 44,481 One year or later and no later than five years 13,828,186 19,899,770 22,023,186 19,944,251
Financial commitments for subsequent periods are contingent upon future exploration results and can not be estimated. These obligations are subject to renegotiation upon expiry of the exploration leases.
12. SUBSEQUENT EVENTS
Oilex (West Kampar) Limited("OWK"), a wholly owned subsidiary of Oilex Ltdincorporated in Cyprus, is pursuing the recovery of a debt in excess of US$4.1million owed by PT Sumatera Persada Energi ("SPE") to OWK. This debt arose outof SPE's failure to repay monies advanced by OWK under the farmout agreementrelating to West Kampar Production Sharing Contract ("PSC") entered into bythem in August 2008 which was subsequently terminated in January 2009. Underthe terms of a parent company guarantee provided to OWK at the time of enteringinto the farmout agreement, PT Asiabumi Petroleo ("Asiabumi"), the parentcompany, guaranteed SPE's obligations to repay the monies owing under thefarmout agreement. Asiabumi has not repaid the monies and OWK consequentlyfiled an arbitration proceeding in the International Chamber of Commerce inSingapore on 30 April 2009. The first arbitration hearing occurred on 25January 2010 and is scheduled to be continued on 18 and 19 February 2010. In the course of the arbitration proceeding, PT Asiabumi Petroleo notified OWKof a claim filed on 25 January 2010 by SPE in an Indonesian court against OWK.OWK has not been served with the claim. OWK understands that SPE is seekingdamages from OWK for alleged defamation arising out of correspondence inNovember 2008 that provided BPMigas with information relating to SPE'sperformance as operator. No information has been provided in relation to thequantification of the damages claimed for costs and damage to SPE's reputation.OWK rejects the allegations in the claim and, if served, will vigorously opposethe claim.DIRECTORS' DECLARATION
In the opinion of the Directors of Oilex Ltd (the "Company"):
1) the financial statements and notes set out on pages 4 to 12, are in accordance with the Corporations Act 2001 including:
a)giving a true and fair view of the financial position of the consolidated
entity as at 31 December 2009 and of its performance for the six month period
ended on that date; and
b)complying with Australian Accounting Standard AASB 134 Interim Financial
Reporting and the Corporations Regulations 2001; and
2) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
Dated at West Perth this 12 day of February 2010Signed in accordance with a resolution of the Directors.Mr M.D.J. Cozijn Mr B. ClubeChairman Finance DirectorWest PerthWestern Australia12 February 2010KPMG
Independent auditor's review report to the members of Oilex Ltd
Report on the financial report
We have reviewed the accompanying interim financial report of Oilex Ltd, whichcomprises the consolidated balance sheet as at 31 December 2009, consolidatedstatement of comprehensive income, consolidated statement of changes in equityand consolidated cash flow statement for the interim period ended on that date,a statement of accounting policies and other explanatory notes 1 to 12 and thedirectors' declaration of the Group comprising the company and the entities itcontrolled at the interim's end or from time to time during the interim period.
Directors' responsibility for the interim financial report
The directors of the company are responsible for the preparation and fairpresentation of the interim financial report in accordance with AustralianAccounting Standards (including the Australian Accounting Interpretations) andthe Corporations Act 2001. This responsibility includes establishing andmaintaining internal control relevant to the preparation and fair presentationof the interim financial report that is free from material misstatement,whether due to fraud or error; selecting and applying appropriate accountingpolicies; and making accounting estimates that are reasonable in thecircumstances.Auditor's responsibility Our responsibility is to express a conclusion on the interim financial reportbased on our review. We conducted our review in accordance with AuditingStandard on Review Engagements ASRE 2410 Review of Interim and Other FinancialReports Performed by the Independent Auditor of the Entity, in order to statewhether, on the basis of the procedures described, we have become aware of anymatter that makes us believe that the interim financial report is not inaccordance with the Corporations Act 2001 including: giving a true and fairview of the Group's financial position as at 31 December 2009 and itsperformance for the interim period ended on that date; and complying withAustralian Accounting Standard AASB 134 Interim Financial Reporting and theCorporations Regulations 2001. As auditor of Oilex Ltd, ASRE 2410 requires thatwe comply with the ethical requirements relevant to the audit of the annualfinancial report. A review of a interim financial report consists of making enquiries, primarilyof persons responsible for financial and accounting matters, and applyinganalytical and other review procedures. A review is substantially less in scopethan an audit conducted in accordance with Australian Auditing Standards andconsequently does not enable us to obtain assurance that we would become awareof all significant matters that might be identified in an audit. Accordingly,we do not express an audit opinion.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the interim financial report of Oilex Ltd is not in accordance with the Corporations Act 2001, including:
(a) giving a true and fair view of the Group's financial position as at 31 December 2009 and of its performance for the interim period ended on that date; and
(b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.
KPMGBrent SteedmanPartnerPerth, WA12 February 2010
KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss
cooperative.
vendorRelated Shares:
OEX.L