REG - 88 Energy Limited - Quarterly Report and Appendix 5B
30/01/2024 07:15
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RNS Number : 3481B 88 Energy Limited 30 January 2024
30 January 2024
QUARTERLY ACTIVITIES REPORT
For the quarter ended 31 December 2023
88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy, 88E or the
Company) provides the following report for the quarter ended 31 December
2023.
Highlights
Project Phoenix (~75% WI)
· Fully funded Hickory-1 discovery well flow test and stimulation
program (Flow Test) set to commence following ice road and pad construction in
early February, and rig mobilisation in mid-February
· Design, planning and logistics complete, with permitting on track
for operations commencement.
· Maiden, independently certified Contingent Resource estimate
declared for the Basin Floor Fan (BFF) which is the deepest reservoir
encountered in Hickory-1.
· Gross Best Estimate (2C) Contingent Resource worked up of 250
Million Barrels of Oil Equivalent (MMBOE) in the BFF (net to 88E of 157
MMBOE), comprised of 136 million barrels (MMbbl) of recoverable hydrocarbon
liquids, and 628 billion cubic feet (BCF) of recoverable gas(1).
· JV Partner Burgundy Xploration, LLC (Burgundy) paid US$2.0
million in initial funds towards settlement of outstanding cash calls of
US$3.5 million and in December 2023 was granted additional time to 31 January
2024 to pay remaining outstanding amount of US$1.75 million.
Onshore Namibian Farm-in Agreement (~20% WI pending approval)
· Executed farm-in agreement with Monitor Exploration Limited
(Monitor) to earn up to a 45% non-operated working interest in onshore
Petroleum Exploration Licence 93 (PEL 93).
· Farm-in provides a three-stage entry into PEL 93, a vast
18,500km(2) onshore acreage position comprising blocks 1717 and 1817 in the
Owambo Basin of Namibia. PEL 93 is more than 10 times larger than 88 Energy's
Alaskan Portfolio and more than 70 times larger than Project Phoenix.
· Provides exposure to a first-class operating jurisdiction and one
of the last frontier oil and gas regions capable of delivering multi-billion
barrel discoveries, as evidenced by Venus-1X discovery.
· Licence includes an extensive lead portfolio, with ten
significant independent structural closures identified from a range of
geophysical and geochemical techniques.
· In Q1 2024, a 20% working interest is anticipated to be
transferred to 88 Energy by Monitor following approval by Namibian Ministry of
Mines and Energy.
Project Leonis (100% WI)
· Maiden prospective resource estimate for Upper Schrader Bluff
(USB) reservoir expected H1 2024.
· Targeting farm-out in CY2024, ahead of the potential drilling of
new well in 2025/2026.
Project Peregrine (100% WI)
· Bureau of Land Management Alaska (BLM) approved a 12-month
suspension of Project Peregrine leases from 1 December 2023, following
discussions during the quarter regarding proposed new regulations governing
the management of surface resources in the National Petroleum Reserve-A
(NPR-A).
· 88E remains highly encouraged on the prospectivity at Project
Peregrine, and in particular, the Harrier-1 well.
Project Longhorn (~63% WI)
· Further non-operated working interest acquired in leases and
wells for US$0.35 million (net to 88 Energy: US$0.26 million), expanding 88
Energy's footprint in the Texas Permian Basin.
· Acquisition included a ~64% net working interest (WI) in 1,262
acres, located ½ mile south and ¼ mile north of existing Project Longhorn
assets (Longhorn) connecting the acreage position.
· Nine low-producing existing wells (~26 BOE/day gross) and ten
development opportunities were identified with potential in multiple zones and
classified as Gross Undeveloped 2P Reserves (1.2 MMBOE)(2), along with
Contingent and Prospective Resources which are yet to be quantified.
· The Joint Venture (JV) approved five workover wells to be
completed in 1H 2024 followed by the potential approval of two new production
wells in 2H 2024.
· Upon successful completion of the workovers and new wells across
its acreage, together with the existing producing wells, 88 Energy expects
Longhorn total gross production to reach approximately 600 - 675 BOE per day
(~75% oil) by year end 2024.
· The JV also secured a US$5 million line of credit facility to
assist in cash flow management associated with the development opportunities.
· Q4 production performed well, averaging 355 BOE per day gross
(~62% oil) which was above the budgeted volume of 294 BOE per day gross (68%
oil).
Corporate
· Successful oversubscribed share placement raising US$9.9 million
(before costs) to support the imminent Hickory-1 flow test and initial
exploration activities at PEL 93 in Namibia.
· Cash balance of A$18.2 million and no debt (as at 31 December 2023)
following completion of the equity placement during the quarter.
· Through Q4 CY23 management conducted an internal corporate cost
review, with several cost saving initiatives set to be implemented from Q1
CY24. These initiatives include, but are not limited to, a reduction in direct
employment costs.
· The Company's primary focus through 1H CY24 is to deliver a
successful Hickory-1 flow test. Post the Alaskan operational season a further
optimisation of the business will occur aimed at preserving and enhancing
value for shareholders and advancement of key projects.
1 Refer announcement released to ASX on 6 November 2023 for more information
on the Contingent Resource estimate report.
2 Refer announcement released to ASX on 15 December 2023 including initial
reserves estimates and assumptions and net revenue entitlement to 88 Energy.
Project Phoenix (~75% WI)
Project Phoenix is focused on oil-bearing conventional reservoirs identified
during the drilling and logging of Icewine-1 and Hickory-1 and adjacent offset
drilling and testing. Project Phoenix is strategically located on the Dalton
Highway with the Trans-Alaskan Pipeline System running through the acreage.
Hickory-1 Flow Test
The Hickory-1 discovery well, which was drilled in February 2023, is cased and
suspended ahead of the planned flow test program.
Flow Test design, planning and logistics including stimulation and flow test
modelling for each of the target intervals in Hickory-1 have been finalised.
All relevant permit applications have been submitted and approvals to be
received ahead of operations commencement. All American Oilfield's upgraded
Rig-111 was secured in September 2023 for the flow test and purchasing of
materials as well as securing of services has concluded ready to commence
operations imminently - starting with ice road and pad construction followed
by rig mobilisation in mid-February.
As announced to the ASX on 12 January 2024, the testing operations will focus
on the two primary targets, the Slope Fan System (SFS) and Shelf Margin
Deltaic (SMD) reservoirs. Of the SFS series of reservoirs, the Upper SFS
reservoir is targeted to be flow tested as it has not been previously tested,
whereas the Lower SFS has previously been flow tested and producibility of
that reservoir confirmed on adjacent acreage. The Upper SFS will be followed
by a targeted testing of the SMD-B reservoir. Each zone will be independently
isolated, stimulated and flowed to surface using nitrogen lift to assist in an
efficient clean-up of the well. Perforation, completion-running and
stimulation is expected to take approximately four days for each zone. This
will be followed by a clean-up and flow period of up to four days and a
pressure build-up of up to two days for each tested zone.
Figure 1: Flow testing program to target two of the four pay zones intersected
in the Hickory-1 discovery well.
Joint Venture Funding
On 5 December 2023, 88 Energy announced it had received US$2.0 million in
funds from Burgundy as part settlement of the US$3.745 million in unpaid cash
calls (represented by US$3,452,967 in relation to outstanding cash calls due
plus interest of US$292,505).
The Company via its 100%-owned subsidiary Accumulate Energy Alaska, Inc
(88E-Accumulate) also entered into a further standstill agreement with
Burgundy on 5(th) December 2023, providing additional time for Burgundy to
cure and pay the outstanding funds due of US$1.745 million by 31 January 2024.
As at the time of this announcement Burgundy has not paid the remaining funds
outstanding. The Company understands Burgundy is in the final stages of
securing funding, with Burgundy requesting an extension of time until 15
February 2024 which the Company has agreed to. Burgundy understands there will
be no further extensions and that non-payment by mid-February will require
Burgundy to transfer to 88E-Accumulate 50% of Burgundy's working interest
(approximately 12.5% working interest) in all of Burgundy's Project Phoenix's
Toolik River Unit leases (Transfer Interest).
Burgundy will also (within 5 days after 15 February 2024), sign and return the
Hickory-1 flow test AFE at the working interest level post the Transfer
Interest. If Burgundy has not made payment for its share of the flow test AFE
cost within six months after the due date of the AFE cash call then Burgundy
will transfer 50% of its remaining working interest in the Toolik River Unit
leases, post the Transfer Interest.
The Company maintains its rights under the joint operating agreement (JOA)
should Burgundy not be able to pay any future cash calls, including exercising
the option to require Burgundy to relinquish its working interests in Project
Phoenix and the joint venture.
Hickory-1 Confirmed Discovery with BFF Maiden Contingent Resource Estimate
As announced to the ASX on 30 October 2023, 88 Energy appointed independent
resource certifier, Netherland, Sewell & Associates, Inc (NSAI) to assess
the BFF reservoir at Project Phoenix. This followed Pantheon Resources Plc
(Pantheon) declaring a significant contingent resource for the Lower BFF in
their acreage to the north and adjacent to 88 Energy's Pheonix acreage, The
BFF reservoir was the deepest of the multiple hydrocarbon-bearing pay zones
intersected during the drilling and logging of the Hickory-1 well.
As announced to the ASX on 6 November 2023, a maiden, independently certified,
gross Contingent Resource estimate of 250 MMBOE (net to 88E of 157 MMBOE) was
declared in the deepest reservoir encountered in Hickory-1, the BFF. The gross
2C Contingent Resource estimate is comprised of 136 MMbbl of hydrocarbon
liquids and 628 BCF of recoverable gas.
NSAI's maiden Independent Contingent Resource Report was completed after its
review of an extensive data suite that included seismic data, well logs from
Hickory-1 and Icewine-1 and certain data from wells in adjacent acreage
including flow test data. NSAI confirmed that the following requirements were
met by the Company to achieve a Contingent Resource classification for the BFF
reservoir:
· Multiple successful flow tests for the same reservoir in adjacent
acreage.
· Clear reservoir continuity was demonstrated through high quality
seismic data and correlations across all four wells, Talitha-A, Theta West-1,
Hickory-1 and Icewine-1.
· Log data, petrophysical interpretations and reservoir conditions
across all four wells demonstrated sufficient similarity to confirm
producibility in Project Phoenix.
· All existing data was integrated consistently and coherently
which established the existence of a known petroleum accumulation in the BFF
reservoir in Project Phoenix.
This assessment confirmed discovery status at Hickory-1 and Icewine-1 for the
BFF reservoir in Project Phoenix and further validates 88 Energy's internal
assessments of Project Phoenix. Further, the certification of a Contingent
Resource for the BFF reservoir allows the Company to focus the Hickory-1 flow
testing on the shallower reservoirs, with any further testing of the BFF
reservoir optional and contingent on JV funding and approvals. The forward
work-program to assess the viability of the commercial development of the BFF
reservoir, either in isolation or together with the shallower reservoirs, as
well as addressing each of the contingencies, will occur after the flow test
at Hickory-1.
Onshore Namibian Farm-In Agreement (up to 45% WI)
On 13 November 2023, the Company announced the execution of a three-stage
farm-in agreement with a wholly-owned subsidiary of Monitor Exploration
Limited (Monitor) to earn up to a 45% non-operated working interest in onshore
PEL 93 (Licence), located in the Owambo Basin of Namibia.
Under the terms of the Farm-In Agreement, 88 Energy, together with the current
working interest owners, will become party to a new JOA in relation to the
Licence and may earn up to a 45% working interest by funding its share of
agreed costs under the 2023-2024 approved work program and budget as defined
in the Farm-In Agreement (2024 Work Program), and any future work program
budgets yet to be agreed. The maximum total investment costs are anticipated
to be US$18.7 million.
The current and potential future PEL 93 Joint Venture partners and working
interests are as follows:
Entity Pre Farm-in Stage 1 - Current Stage 2 Stage 3
(Past costs & 2D) (1(st) Well) (2(nd) Well)
Monitor* 75.0% 55.0% 37.5% 30.0%
Legend 15.0% 15.0% 15.0% 15.0%
NAMCOR 10.0% 10.0% 10.0% 10.0%
88 Energy - 20.0% 37.5% 45.0%
*Operator
PEL 93 covers a vast 18,500 km(2) acreage position in the north of Namibia,
comprising blocks 1717 and 1817 within the Owambo Basin. The region has been
identified as one of the last remaining under-explored onshore frontier basins
and one of the World's most prospective new exploration zones. PEL 93 is more
than 10 times larger than 88 Energy's Alaskan Portfolio and more than 70 times
larger than Project Phoenix.
Recent drilling results on nearby acreage has highlighted the potential of a
new and underexplored conventional oil and gas play in the Damara Fold belt,
referred to as the Damara Play. Historical assessment utilised a combination
of techniques and interpretation of legacy data to identify the Owambo Basin,
and specifically blocks 1717 and 1817, as having significant exploration
potential.
Monitor has utilised a range of geophysical and geochemical techniques to
assess and validate the significant potential of the acreage since award of
PEL 93 in 2018. It has identified ten (10) independent structural closures
from airborne geophysical methods and partly verified these using existing 2D
seismic coverage.
Further, ethane concentration measured in soil samples over interpreted
structural leads validates the existence of an active petroleum system, with
passive seismic anomalies also aligning closely to both interpreted structural
leads and measured alkane molecules (c1-c5) concentrations in soil.
The forward work-program will start with a low impact ~200 line-kilometre 2D
seismic program focusing on confirming the structural closures of the 10
independent leads identified. The 2D seismic program will be conducted in
mid-2024 following a period of planning, public consultation, updating of
environmental compliance requirements and relevant approvals. Results from the
2D seismic program will then be incorporated into existing historical
exploration data over the acreage, with results used to identify possible
exploration drilling locations.
In Q1 2024, a 20% working interest is anticipated to be transferred to 88
Energy by Monitor following approval by Namibian Ministry of Mines and Energy
Project Peregrine (100% WI)
In December 2023, 88 Energy via wholly-owned subsidiary Emerald House, LLC
received notice from the BLM that the Project Peregrine leases covering an
area of 125,735 acres in the NPR-A area had been suspended for a period of 12
months from 1 December 2023 to 30 November 2024.
The Company and its Alaskan advisors had been in discussions with the BLM
regarding proposed new regulations and the implications of these regulations
on the Peregrine leases throughout Q4 2023. These discussions resulted in the
BLM approving a 12-month suspension.
During the suspension period, 88 Energy will continue to refine internal
geological and geophysical models/interpretation. The suspension relieves 88
Energy of ~A$0.5 million in lease rental costs which were due in Q1 2024.
Project Longhorn (~63% WI)
In December 2023, The Company acquired a ~64% net working interest in new
leases and wells (Bighorn Phase 3) from Endeavor Energy Resources, L.P., for
US$0.35 million gross (net US$0.26 million). The purchase was made in cash by
Bighorn Energy LLC (Bighorn) which comprises Longhorn Energy Investments LLC
(LEI) a 100% wholly owned subsidiary of 88 Energy with 75% ownership and
Lonestar I, LLC (Lonestar or Operator) with remaining 25% ownership. Lonestar
acquired a ~22% working interest in the new assets with remaining WI retained
by existing non-operated partners, and Lonestar will continue as Operator for
the existing and new leases and wells.
Bighorn Phase 3 forms an extended footprint with the initial Longhorn assets
purchased in February 2022 (Bighorn Phase 1) and the assets acquired in July
2023 (Bighorn Phase 2). The new acreage is located approximately ½ mile south
of Bighorn Phase 1 and ½ mile north of Bighorn Phase 2. The newly acquired
acreage is estimated to contain independently certified net 2P reserves of
0.68 MMBOE(1).
Project Longhorn now covers ~2,625 net acres (1,262 new acres) with the
combined portfolio of assets consisting of 20 leases (7 new) with 49 producing
wells (9 new) and associated infrastructure. The existing 9 newly acquired
production wells have been in operation for several years and average
production is ~26 BOE per day gross (net ~17 BOE per day) and ~75% oil.
Importantly, the acquisition provides additional flexibility over development
opportunities including 4 lower-cost workovers (Bighorn CAPEX of ~US$800-950k
each) along with 6 new drilling targets; these are in addition to at least 14
new drilling targets on the existing acreage.
Bighorn has finalised its 2024 work program and budget, agreeing to a
development program that includes 5 workovers in 1H 2024 and 2 new wells in 2H
2024, contingent on successful workovers. Upon successful completion of the
2024 work program and budget (5 workovers and 2 contingent new wells) planned
on the 2023 acquired acreage, 88 Energy anticipates Longhorn total gross
production to reach approximately 600 - 675 BOE per day (~75% oil) by the end
of 2024.
Bighorn also secured a US$5 million line of credit facility during the quarter
to assist in cash flow management associated with the development
opportunities. The facility is supported by a local Texas Bank, with interest
at Prime and contains no cash lock up, with security over the Longhorn assets.
Q4 2023 production performed well averaging 355 BOE per day gross (~62% oil)
which was above the budgeted volume of 294 BOE per day gross (68% oil).
1. Refer announcement released to ASX on 15 December 2023 including
initial reserves estimates and assumptions and net revenue entitlement to 88
Energy.
Corporate
On 17 October 2023, 88 Energy announced that it had completed the sale of
shares in relation to the Small Holding Sale Facility (SHSF). The SHSF was
offered to holders with less than A$500 of the Company's shares and closed on
11 September 2023 with a total 212,193,734 ordinary shares sold on market at
an average price of A$0.00644 per share. The SHSF reduced the shareholder base
by 7,362 and has resulted in an immediate reduction in the Company's
adminstration costs.
On 29 November 2023, the Company successfully completed a oversubscribed share
placement to domestic and international institutional and sophisticated
investors to raise A$9.9 million (approx. £5.16 million) before costs
(Placement). 2,200,000,005 new fully paid ordinary shares in the Company (the
New Ordinary Shares) were issued, at an issue price of A$0.0045 (£0.0023) per
New Ordinary Share) (the Issue Price). The net proceeds augmented the
Company's existing cash balance to fund:
· Hickory-1 discovery well flow test operations at the Project
Phoenix
· PEL 93 farm-in exploration activities at the Company's recently
acquired acreage in Namibia
In addition, the Company issued an Options Prospectus to the ASX on 5 December
2023 to issue a total of 488,888,890 options on a 1 for 3 basis for shares
subscribed for in the Placement to ASX investors (Options) with the Company
listing the Options on the ASX. The Options are exercisable at A$0.0075 per
share and can be exercised at any time before 15 December 2026. Investors
participating in the Placement in the UK received 1 warrant for every 3 shares
subscribed for in the Placement 244,444,442 (Warrants), with an exercise price
of £0.0039. The Warrants are unlisted and can be exercised at any time before
15 December 2026. The New Ordinary Shares will rank pari passu with the
existing ordinary shares in the Company.
Euroz Hartleys Limited acted as Sole Lead Manager and Bookrunner to the
Placement. Cavendish Capital Markets Ltd acted as Nominated Adviser and Sole
Broker to the Placement in the United Kingdom. Inyati Capital Pty Ltd acted as
Co-Manager to the Placement. Commission for the Placement was 6% (plus GST) of
total funds raised across Euroz Hartleys Limited, Inyati Capital Pty Ltd and
Cavendish Capital Market Ltd. In addition and subject to shareholder approval,
the Company will issue a total of 75,000,000 Options or Warrants
(collectively) to the managers of the Placement (on the same terms as the ASX
Options and UK Warrants).
In mid-December 2023, the Company issued Tranche 1 of 2 for part payment of 2D
seismic carry of US$1.25 million in 88 Energy shares (322,147,513 new ordinary
shares at an issue price of A$0.0061 per share).
Finance
The ASX Appendix 5B attached to this quarterly report contains the Company's
cash flow statement for the quarter. The material cash flows for the period
were:
· Net proceeds from the successful equity Placement totalling
A$9.2M
· Exploration and evaluation expenditure of A$2.8M (September 2023
quarter: A$2.1M) predominantly related to Hickory-1 flow test program and
Namibia farm-in payments.
· Administration, staff, and other costs of A$1.4M (September 2023
quarter: A$1.0M). Including fees paid to Directors and consulting fees paid to
Directors of A$0.2M. The increase for the quarter was due to capital market
administration and legal costs for the rights / shortfall issue and capital
raise.
At quarter end, the Company's cash balance is A$18.2M and no debt.
Information required by ASX Listing Rule 5.4.3
Project Name Location Interest at beginning of Quarter Interest at end of Quarter
Net Area (acres)
Project Phoenix Onshore, North Slope Alaska 62,324 ~75% ~75%
Project Icewine West Onshore, North Slope Alaska 121,996 ~75% ~75%
Project Peregrine(1) Onshore, North Slope Alaska (NPR-A) 125,735 100% 100%
Project Longhorn Onshore, Permian Basin Texas 2,625 ~62% ~63%
Project Leonis Onshore, North Slope Alaska 25,431 100% 100%
Umiat Unit Onshore, North Slope Alaska (NPR-A) 17,633 100% 100%
Namibia(2) Onshore, Owambo Basin, Namibia 914,270 0% 20%
Pursuant to the requirements of the ASX Listing Rules Chapter 5 and the AIM
Rules for Companies, the technical information and resource reporting
contained in this announcement was prepared by, or under the supervision of,
Dr Stephen Staley, who is a Non-Executive Director of the Company. Dr Staley
has more than 40 years' experience in the petroleum industry, is a Fellow of
the Geological Society of London, and a qualified Geologist / Geophysicist who
has sufficient experience that is relevant to the style and nature of the oil
prospects under consideration and to the activities discussed in this
document. Dr Staley has reviewed the information and supporting documentation
referred to in this announcement and considers the prospective resource
estimates to be fairly represented and consents to its release in the form and
context in which it appears. His academic qualifications and industry
memberships appear on the Company's website, and both comply with the criteria
for "Competence" under clause 3.1 of the Valmin Code 2015. Terminology and
standards adopted by the Society of Petroleum Engineers "Petroleum Resources
Management System" have been applied in producing this document.
This announcement has been authorised by the Board.
Media and Investor Relations:
88 Energy Ltd
Ashley Gilbert, Managing Director
Tel: +61 8 9485 0990
Email:investor-relations@88energy.com
Fivemark Partners, Investor and Media Relations
Michael Vaughan Tel: +61 422 602 720
EurozHartleys Ltd
Dale Bryan Tel: + 61 8 9268 2829
Cavendish Capital Markets Limited Tel: +44 (0)20 7397 8900
Derrick Lee Tel: +44 (0)131 220 6939
Pearl Kellie Tel: +44 (0)131 220 9775
1. Refer announcement released to ASX on 21 December 2023 regarding
Project Peregrine 12-month suspension until 30 November 2024
2. In Q1 2024, a 20% working interest is anticipated to be transferred
to 88 Energy by Monitor following approval by Namibian Ministry of Mines and
Energy
Information required by ASX Listing Rule 5.4.3 - Lease Schedules as at 31
December 2023
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
Name of entity
88 Energy Limited
ABN Quarter ended ("current quarter")
80 072 964 179 31 December 2023
Consolidated statement of cash flows Current quarter Year to date (12 months)
$A'000
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from customers
1.2 Payments for - -
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (648) (2,769)
(e) administration and corporate costs (728) (2,589)
1.3 Dividends received (see note 3) - -
1.4 Interest received 17 60
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other - Small Holding Parcels Costs (84) (84)
1.9 Net cash from / (used in) operating activities (1,443) (5,382)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - (5,601)
(c) property, plant and equipment - -
(d) exploration & evaluation (2,763) (25,177)
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal of: - -
(a) entities
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other - Joint Venture Contributions 3,053 4,515
Other - Distribution from Project Longhorn 605 2,010
Other - Return of Bond - 585
2.6 Net cash from / (used in) investing activities 895 (23,668)
3. Cash flows from financing activities 9,900 35,415
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities or convertible debt (747) (2,322)
securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing activities 9,153 33,093
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 10,183 14,123
4.2 Net cash from / (used in) operating activities (item 1.9 above) (1,443) (5,382)
4.3 Net cash from / (used in) investing activities (item 2.6 above) 895 (23,668)
4.4 Net cash from / (used in) financing activities (item 3.10 above) 9,153 33,093
4.5 Effect of movement in exchange rates on cash held (605) 17
4.6 Cash and cash equivalents at end of period 18,183 18,183
5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents
$A'000
$A'000
at the end of the quarter (as shown in
the consolidated statement of cash
flows) to the related items in the
accounts
5.1 Bank balances 18,183 10,183
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 18,183 10,183
(a)
6. Payments to related parties of the entity and their Current quarter
associates
$A'000
6.1 Aggregate amount of payments to related parties and their associates included 214
in item 1
6.2 Aggregate amount of payments to related parties and their associates included -
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
6.1 Payments relate to Director and consulting fees paid to
Directors. All transactions involving directors and associates were on normal
commercial terms.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of
$US'000
$US'000
financing arrangements available to the entity.
Add notes as necessary for an understanding of
the sources of finance available to the entity.
7.1 Loan facilities - -
7.2 Credit standby arrangements - -
7.3 Other (please specify) - -
7.4 Total financing facilities - -
7.5 Unused financing facilities available at quarter end -
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (1,443)
8.2 (Payments for exploration & evaluation classified as investing activities) (2,763)
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (4,206)
8.4 Cash and cash equivalents at quarter end (item 4.6) 18,183
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 18,183
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 4.3
No
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.7
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8.
7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
Answer: Through Q4 CY23 management conducted an internal corporate cost
review, with several cost saving initiatives set to be implemented from Q1
CY24. These initiatives include, but are not limited to, a reduction in direct
employment costs.
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
Answer: n/a
8.8.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Answer: n/a
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date: 30 January 2024
Authorised by: By the Board
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash
flow report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
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