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REG - Jupiter Energy - Final Results <Origin Href="QuoteRef">JPR.AX</Origin> - Part 5

- Part 5: For the preceding part double click  ID:nRSd3263Ld 

       
                                                                    
 Year ended 30 June 2015                                            
 At 1 July 2014 net of accumulated depreciation     1,042,507       
 Additions                                          -               
 Disposals                                          (23,098)        
 Depreciation charge for the year                   (101,224)       
 Net exchange differences                           49,062          
 At 30 June 2015 net of accumulated depreciation    967,247         
 At 30 June 2015                                                    
 Cost                                               2,055,094       
 Accumulated depreciation                           (1,087,847)     
 Net carrying amount                                967,247         
 
 
11.          PLANT AND EQUIPMENT 
 
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 30 JUNE 2016 
 
12.          EXPLORATION AND EVALUATION EXPENDITURE 
 
                                                 Consolidated  
                                                 2016            2015        
                                                 $               $           
 Exploration expenditure carried forward:                                    
 Exploration and evaluation expenditure at cost  28,215,402      44,166,103  
                                                                             
 Movements during the year                                                   
 Balance at beginning of year                    44,166,103      31,986,316  
 Expenditure incurred during the year            279,759         5,519,880   
 Impairment                                      -               (787,046)   
 Foreign exchange translation                    (16,230,460)    7,446,953   
 Balance at end of year                          28,215,402      44,166,103  
 
 
Oil sales revenue capitalised into exploration and evaluation expenditure for the year was $nil (2015: $nil). 
 
In the prior period, Management decided to write-off well NZW 2. No further work had been planned for this particular
well. 
 
13.          OTHER FINANCIAL ASSETS 
 
 Liquidation fund  387,732    630,874  
 Other             -          9,364    
                   387,732    640,238  
 
 
The Group has a deposit for the purpose of a Liquidation fund in the amount of $387,732.  The deposit is to be used for
land restoration when required. Under the laws of Kazakhstan, the deposit must be replenished in the amount of 1% of the
annual investments. The fair value approximates the carrying value. 
 
14.          TRADE AND OTHER PAYABLES 
 
 Trade creditors     652,938    1,253,357  
 Accrued expenses    102,195    27,392     
                     755,133    1,280,749  
 
 
Trade payables are non-interest-bearing and are normally settled on 30-day terms. 
 
15.          DEFERRED REVENUE 
 
 As at 1 July                    60,111      844,773    
 Deferred during the year        -           -          
 Released during the year        -           (892,988)  
 Repaid during the year          (60,111)    -          
 Foreign exchange translation    -           108,326    
 At 30 June                      -           60,111     
 
 
The deferred revenue refers to an amount received in advance for oil sales.  As at 30 June 2016, there is 0 tonnes of oil
to be delivered under contracts. (2015: nil) 
 
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 30 JUNE 2016 
 
16.          PROVISIONS 
 
                                       Consolidated  
                                       2016            2015     
                                       $               $        
 Non - current                                                  
 Provision for rehabilitation          154,442         527,827  
                                       154,442         527,827  
 
 
The Group accrues provisions for the forthcoming costs of rehabilitation of the territory.  On the basis of forecasts the
cost of rehabilitation of the oilfield would be $154,442 (2015: $527,827).  The costs are denominated are Tenge.  The
timing of rehabilitation is likely to depend on when the field ceases to produce at economically viable rates which is
currently estimated to be 2044 (2015: 2039). This will depend upon future oil and gas prices, which are inherently
uncertain.  The underlining rehabilitation costs are denominated in Tenge and in calculating the provision at 30 June 2016
a discount rate of 10.37% (2015: 6.94%) was used. 
 
 Movements in rehabilitation provision     
                                           2016$        2015$    
 Carrying amount at beginning of the year  527,827      294,538  
 Unwinding of discount rate                20,850       24,952   
 Foreign exchange translation              (228,195)    65,025   
 Provision for the year                    -            143,312  
 Re-measurement for changes in estimates1  (166,040)    -        
 Carrying amount at the end of year        154,442      527,827  
 
 
1Due to a change in the discount rate and the expected timing of when the rehabilitation activities will be undertaken. 
 
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 30 JUNE 2016 
 
17.          DERIVATIVES AND OTHER FINANCIAL LIABILITIES 
 
                                 Consolidated  
                                 2016            2015        
                                 $               $           
 Current                                                     
 Derivative liability            -               1,612       
                                 -               1,612       
 Non-Current                                                 
 Promissory notes (unsecured)    42,936,226      9,744,164   
 Convertible note                -               23,628,253  
                                 42,936,226      33,372,417  
                                                             
 
 
Promissory Notes 
 
On 31 May 2016, the major shareholder Waterford Petroleum Limited ("Waterford") agreed to re-finance its current Promissory
Note (as originally announced on 7 October 2014 and subsequently amended on 30 April 2015) that, as at 31 May 2016,
amounted to US$8,633,333 (A$11,636,956) in principal with accrued interest of US$1,250,894 (A$1,686,092) (total
US$9,914,227)(A$13,323,048) into a new Promissory Note with the following key terms: 
 
·     Unsecured 
 
·     Effective 31 May 2016 
 
·     Repayable on 1 July 2018 
 
·     Interest rate of 15% pa 
 
·     Interest will accrue and be repayable with principal 
 
·     Lender can elect to be repaid if there is a change of control in Jupiter Energy Limited or Jupiter Energy Pte Ltd or
there is a change in control in contract 2275 covering the Block 31 Licence 
 
The previous Promissory Note and all accrued interest were due for repayment on 1 July 2016. 
 
On 24 May 2016, the Group and Waterford agreed to put in place a new Framework Funding Agreement that makes up to a further
US$5,000,000 (including accrued interest) available to the Group by way of a new US$5,000,000 Promissory Note. This takes
the total facility available under the existing and the new Framework Funding Agreement to US$15,000,000 (including accrued
interest) of which a further US$5,088,822 (A$6,859,274) can be drawn down on (including accrued interest). This is in order
to fund the Group's operations whilst it continues to finalise long term funding arrangements for the development of its
Block 31 licence area in Kazakhstan. 
 
The key terms of the new Framework Agreement with Waterford are: 
 
·     Effective 24 May 2016 
 
·     Drawdowns will roll into a Promissory Note 
 
·     Promissory Note is repayable on 1 July 2018 
 
·     Interest rate of 15% pa 
 
·     Interest will accrue and be repayable with principal 
 
·     Lender can elect to be repaid if there is a change of control in Jupiter Energy Limited or Jupiter Energy Pte Ltd or
there is a change in control in contract 2275 covering the Block 31 Licence 
 
As at 30 June 2016, US$744,989 (A$1,004,171) has been drawn from the US$5,000,000 facility. 
 
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 30 JUNE 2016 
 
US$15.5m Convertible Notes (Series B): 
 
On 3 June 2016, the Group announced it had reached agreement with its Convertible Note holders to refinance the 12,400,000
Convertible Notes with a total value of approx. US$20,800,000 (including accrued interest) into Promissory Notes with a
repayment date of 1 July 2018. 
 
The key terms for the new Promissory Notes are: 
 
·     Unsecured 
 
·     Effective 31 May 2016 
 
·     Repayable on 1 July 2018 
 
·     Interest rate of 15% pa 
 
·     Interest will accrue and be repayable with the principal 
 
·     Lenders can elect to be repaid if there is a change of control in Jupiter Energy Limited or Jupiter Energy Pte Ltd or
there is a change in control of the ownership of the Block 31 Licence 
 
The Convertible Notes and all accrued interest were due for repayment on 20 September 2016.  At the date of refinancing the
carrying value of the Convertible Note liability and derivative liability relating to the conversion option was
derecognised and the new Promissory Notes liability were recognised at fair value.  A gain on extinguishment of A$282,672
was recognised in the profit or loss being the difference between the fair value of the Promissory Notes liability and the
carrying value of the Convertible Note liability and derivative liability that was derecognised. As the Convertible Notes
holders and Promissory Notes holders are the same parties, the refinancing was a non cash transaction. Subsequent to
initial recognition the Promissory Notes are being measured at amortised cost. 
 
Valuation Techniques of the Convertible Notes 
 
The Notes had an embedded derivative in the form of a call option for the holder to convert the Notes at US$1.25 into
Jupiter ordinary shares. 
 
The convertible equity feature of the Notes has been separated from the liability component of the Notes for financial
reporting purposes. The call option to convert the notes into shares did not meet the definition of an equity instrument,
as the exercise price was denominated in a currency that is different to the Company's functional currency. The convertible
call option was classified as a Derivative liability and measured at fair value through the profit or loss. 
 
The Derivative component of the Notes was valued using the Black Scholes option valuation methodology. The Black Scholes
option valuation methodology calculates the expected benefit from acquiring the shares outright less the present value of
paying the exercise price for the options at expected exercise date.  An input into the Black Scholes option valuation is
the expected share price volatility over the remaining term of the options. The expected share price volatility used in the
option valuation at reporting date was 55% which was based on historical share price volatility. 
 
The fair value of the embedded derivative was sensitive to changes in share price volatility.  The table below outlines the
impact a change in the share price volatility input had on the fair value of the embedded derivative. 
 
                              30 June 2016$    30 June 2015$  
 15% increase in volatility   -                313,077        
 15 % decrease in volatility  -                (231,405)      
 
 
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 30 JUNE 2016 
 
Fair value hierarchy 
 
All financial instruments, such as the Series B Convertible Notes, for which fair value is recognised or disclosed are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to
the fair value measurement as a whole: 
 
Level 1 - Quoted market prices in an active market (that are unadjusted) for identical assets or liabilities 
 
Level 2 - Valuation techniques (for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable) 
 
Level 3 - Valuation techniques (for which the lowest level input that is significant to the fair value measurement is
unobservable) 
 
For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether transfers
have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period. 
 
As at 30 June 2016, the Group held the following classes of financial instruments measured at fair value: 
 
                                   30 June 2016  30 June 2015  
                                   Level 3       Level 3       
                                   $             $             
 Derivative financial liabilities                              
 Embedded derivative               -             1,612         
 
 
There were no transfers between Level 1, Level 2 or Level 3 fair value measurements during the year ended 30 June 2016
(2015: Nil). 
 
Reconciliation of recurring fair value measurements categorised within level 3 of the fair value hierarchy 
 
                                                                           30 June 2016$  30 June 2015$  
 Opening balance                                                           (1,612)        (229,400)      
 Fair Value at inception                                                   -              -              
 Net unrealised gain recognised in the profit or loss during the period    1,612          227,788        
 Closing balance                                                           -              (1,612)        
 
 
18.          CONTRIBUTED EQUITY 
 
                                                 Consolidated  
                                                 2016            2015         
                                                 $               $            
 Shares issued and fully paid                                                 
 Ordinary shares (a)                             85,633,935      85,633,935   
                                                 85,633,935      85,633,935   
                                                                              
                                                 Number          Number       
                                                                              
 (a) Movements in ordinary share capital:        2016            2015         
                                                                              
 Balance 30 June 2015                            153,377,693     153,377,693  
 Balance 30 June 2016                            153,377,693     153,377,693  
 
 
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 30 JUNE 2016 
 
18.          CONTRIBUTED EQUITY (continued) 
 
 (b) Movement in performance rights                            
                                                               
 Balance as at 30 June 2015                  -    8,075,000    
 Lapsed during year                          -    (8,075,000)  
 Granted during the year                     -    -            
 Balance as at 30 June 2016                  -    -            
 
 
 Capital risk management                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
 When managing capital, management's objective is to ensure the entity continues as a going concern as well as to maintain optimal returns to shareholders and benefits for other stakeholders. Management also aims to maintain a capital structure that ensures the lowest cost of capital available to the entity. In order to maintain or adjust the capital structure, the entity may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, enter into joint ventures or   
 sell assets. The entity does not have a defined share buy-back plan. No dividends were paid in 2016 and none are expected to be paid in 2017. The Group is not subject to any externally imposed capital requirements.                                                                                                                                                                                                                                                                                                          
 
 
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 30 JUNE 2016 
 
19.          RESERVES 
 
                                                                                                                                                                                                           CONSOLIDATED                          
                                                                                                                                                                                                           Foreign currency translation reserve  Share based payments reserve  Total         
                                                                                                                                                                                                           $                                     $                             $             
 At 30 June 2014                                                                                                                                                                                           (11,573,714)                          5,695,838                     (5,877,876)   
 Share based payment                                                                                                                                                                                       -                                     68,176                        68,176        
 Foreign currency translation                                                                                                                                                                              12,738,847                            -                             12,738,847    
 At 30 June 2015                                                                                                                                                                                           1,165,133                             5,764,014                     6,929,147     
 Share based payment                                                                                                                                                                                       -                                     -                             -             
 Foreign currency translation                                                                                                                                                                              (27,468,783)                          -                             (27,468,783   
 At 30 June 2016                                                                                                                                                                                           (26,303,650)                          5,764,014                     (20,539,636)  
                                                                                                                                                                                                                                                                                             
 Nature and purpose of reserves                                                                                                                                                                          
 Foreign currency translation reserve                                                                                                                                                                    
 The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.                                       
                                                                                                                                                                                                         
 Share based payments reserve                                                                                                                                                                            
 The share based payments plan reserve is used to record the value of equity benefits provided to eligible employees as part of their remuneration.  Refer to note 21 for further details of this plan.  
 
 
20.          KEY MANAGEMENT PERSONNEL AND RELATED PARTY DISCLOSURE 
 
This note is to be read in conjunction with the Remuneration Report, which is included in the Directors Report on pages 11
to 19. 
 
(a) Key management personnel compensation 
 
                               Consolidated  
                               2016          2015     
                               $             $        
 Short-term employee benefits  639,141       569,250  
 Post-employment benefits      40,333        50,233   
 Other                         163,106       151,682  
 Share-based payments          -             68,176   
                               842,580       839,341  
 
 
(b)  Transactions between the Group and other related parties 
 
Consultancy fees 
 
During the year, consulting fees of $40,599 (2015: $144,096) were accrued and paid under normal terms and conditions to
Meridian Petroleum LLP, of which Mr. Kuandykov is a director, for the provision of geological services at normal commercial
rates. 
 
During the year, consulting fees of $211,000 (2015: $146,333) were accrued and paid under normal terms and conditions to
Symdean Pty Ltd, of which Mr Gander is a director. 
 
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 30 JUNE 2016 
 
21.          SHARE BASED PAYMENTS 
 
Employee Share Option Plan (ESOP) and Performance Rights Plan 
 
There was no share based payments expense in the income statement for 2016 (2015:  $68,176). 
 
Options 
 
The fair value of the options is estimated at the date of grant using the Black -Scholes option pricing model. 
 
No options were granted during the year ended 30 June 2016 (2015: Nil). 
 
During the year ended 30 June 2016, no options were exercised over ordinary shares (2015: Nil). 
 
Performance Rights 
 
The Jupiter Energy Performance Rights Plan was established whereby Jupiter Energy Limited may, at the discretion of the
Jupiter Energy Limited Board, grant performance rights over unissued shares of Jupiter Energy Limited to directors,
executives, employees and consultants of the consolidated entity.  The rights are issued for nil consideration, will not be
quoted on the ASX, cannot be transferred and are granted at the discretion of the Jupiter Energy Board subject to
shareholder approval. 
 
The number of performance rights on issue as at 30 June 2016 was nil. 
 
During the 2015 year, 8,075,000 expired unvested. 
 
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 30 JUNE 2016 
 
22.          COMMITMENTS FOR EXPENDITURE 
 
Exploration Work Program Commitments 
 
The Group has entered into a subsoil utilisation rights for petroleum exploration and extraction in Areas 1 and 2 in
Mangistau Oblast in accordance with Contract No. 2272 dated 29 December 2006 with the Ministry of Energy and Mineral
Resources of the Republic of Kazakhstan. 
 
Exploration work program commitments contracted for (but not capitalised in the accounts) that are payable: 
 
                                                      2016    2015       
                                                      $       $          
 - not later than one year                            -       5,118,377  
 - later than one year but not later than five years  -       -          
                                                      -       5,118,377  
 
 
23.          AUDITORS REMUNERATION 
 
The auditor of Jupiter Energy Limited is Ernst & Young. 
 
 Amounts received or due and receivable by Ernst & Young (Australia) for:                       
 -       auditing or reviewing the financial report                         78,500     80,000   
                                                                            78,500     80,000   
                                                                                                
 Amounts received or due and receivable by Ernst & Young (Kazakhstan) for:                      
 -       auditing or reviewing the financial report                         18,645     78,315   
                                                                            18,645     78,315   
                                                                                                
 Amounts received or due and receivable by Ernst & Young (Singapore) for:                       
 -       auditing or reviewing the financial report                         12,477     12,085   
                                                                            12,477     12,085   
                                                                                                
 Total paid to Ernst & Young                                                109,622    170,400  
 
 
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 30 JUNE 2016 
 
24.          EARNINGS PER SHARE 
 
Basic earnings per share 
 
Basic earnings per share are calculated by dividing the profit / (loss) attributable to equity holders of the Group by the
weighted average number of ordinary shares outstanding during the period. 
 
The following reflects the income and data used in the basic and diluted earnings per share computations: 
 
                                                                                              Consolidated      
                                                                                              2016                2015              
 Net loss attributable to ordinary equity holders of the Parent from continuing operations    (10,474,870)        (10,982,261)      
                                                                                                                                    
                                                                                              Number of shares    Number of shares  
 Weighted average number of ordinary shares for basic and diluted earnings per share          153,377,693         153,377,693       
 
 
There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and
the date of authorisation of these financial statements. 
 
25.          SEGMENT REPORTING 
 
Identification of reportable segments 
 
The Group has identified its operating segments based on the internal reports that are used by the chief operating decision
makers in assessing performance and determining the allocation of resources. 
 
The Group has identified that it has one operating segment being related to the activities in Kazakhstan, on the basis that
the operations in Australia relate to running the Corporate Head Office only. 
 
All significant Oil and Gas and Exploration and evaluation expenditure are domiciled in Kazakhstan. 
 
Accounting policies and inter-segment transactions 
 
The accounting policies used by the Group in reporting segments internally are the same as those contained in Note 1 to the
accounts. 
 
Interest revenue is derived in Australia.  Non-current assets relate to capitalised exploration and evaluation expenditure
and oil and gas properties located in Kazakhstan. 
 
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 30 JUNE 2016 
 
26.          STATEMENT OF CASHFLOWS RECONCILIATION 
 
(a)   Reconciliation of operating (loss) after income tax to net cash (used in) operating activities 
 
                                              Consolidated    
                                              2016            2015            
                                              $               $               
 Operating (loss) after income tax:           (10,474,870)    (10,982,261)    
 Add/(less) non-cash items:                                                   
 Depreciation / Depletion                     155,873         361,566         
 Share based payments                         -               68,176          
 (Gain) / Loss on derivative                  54              (227,788)       
 Finance costs                                6,041,331       3,161,784       
 Effect of foreign exchange translation       969,858         4,468,779       
 Gain on extinguishment1                      (282,672)       -               
 Changes in assets and liabilities:                                           
 Decrease/(increase) in receivables           986,236         (430,233)       
 Decrease/(increase in inventories            50,651          (18,929)        
 (Increase)/decrease in other current assets  54,650          146,770         
 Increase/ (decrease)  in deferred revenue    (60,111)        (784,662)       
 Increase/ (decrease)  in payables            (525,614)       405,531         
 Decrease/(increase) in provisions            (373,385)       (58,061)        
 Net cash flows from operating activities     (3,457,999)     (3,889,328)     
 
 
1Relates to the refinancing of the Convertible Notes, refer to note 17. 
 
For the purposes of the cash flow statement, cash includes cash on hand, at banks, and money market investments readily
convertible to cash on hand, net of outstanding bank overdrafts. 
 
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 30 JUNE 2016 
 
27.          EVENTS OCCURING AFTER THE BALANCE SHEET DATE 
 
On 19 September 2016 the Group announced that it had signed Addendum 7 to Contract 2275 which confirmed that the Ministry
of Energy had agreed to a three (3) year extension to the Exploration Licence taking the Exploration Period through to 29
December 2019. The 3 year extension is based on the Group maintaining its current acreage and the Ministry of Energy
indicated that if the Group did proceed with the North East and South East land extensions that are being considered, then
a further one (1) year extension (to 29 December 2020) could be available. 
 
There have been no other significant events occurring subsequent to 30 June 2016 apart from those noted above. 
 
28.          INFORMATION ON PARENT ENTITY 
 
                                                             2016          2015          
 (a)        Information relating to Jupiter Energy Limited:  $             $             
 Current assets                                              709,903       1,385,083     
 Total assets                                                47,592,924    75,227,570    
 Current liabilities                                         (409,456)     (198,641)     
 Total liabilities                                           (43,341,521)  (33,572,670)  
 Issued capital                                              85,633,935    85,633,935    
 Retained earnings                                           (60,958,761)  (49,743,049)  
 Share based payment reserve                                 5,764,014     5,764,014     
 Total shareholders' equity                                  (4,251,403)   41,654,900    
 Profit or (loss) of the parent entity                       (19,735,223)  (1,756,586)   
 Total comprehensive income / (loss) of the parent entity    (19,735,223)  (1,756,586)   
 
 
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 
 
FOR THE YEAR ENDED 30 JUNE 2016 
 
28.          INFORMATION ON PARENT ENTITY (continued) 
 
                                      Country of     Equity Holding  
                                      incorporation  2016            2015  
                                                     %               %     
 Name of Entity                                                            
 Jupiter Energy (Victoria) Pty Ltd    Australia      100             100   
 Jupiter Biofuels Pty Ltd             Australia      100             100   
 Jupiter Energy (Kazakhstan) Pty Ltd  Australia      100             100   
 Jupiter Energy Pte Ltd               Singapore      100             100   
 Jupiter Energy (Services) Pte Ltd    Singapore      100             100   
 
 
(b) Details of any guarantees entered into by the parent entity in relation to the debts of its subsidiaries 
 
There are no guarantees entered into by the parent entity. 
 
(c) Details of any contingent liabilities of the parent entity 
 
There are no contingent liabilities of the parent entity as at reporting date. 
 
(d) Details of any contractual commitments by the parent entity 
 
There are no contractual commitments by the parent entity 
 
29.          CONTINGENT LIABILITIES 
 
The Group has no contingent liabilities as at 30 June 2016 (30 June 2015: Nil) 
 
Directors' Declaration 
 
 In accordance with a resolution of the directors of Jupiter Energy Limited, I state that:  
                                                                                            
 1                                                                                          In the opinion of the directors:                                                                                                                                   
                                                                                                                                                                                                                                                               
                                                                                            (a)                                                                                                                                                                the financial statements and notes of Jupiter Energy Limited for the financial year ended 30 June 2016 are in accordance with   
                                                                                                                                                                                                                                                               the Corporations Act 2001, including:                                                                                           
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                               (i)                                                                                                                             Giving a true and fair view of its financial position as at 30 June 2016 and performance for the year ended on that date.        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                               (ii)                                                                                                                            Complying with Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                            (b)                                                                                                                                                                The financial statements and notes also comply with International Financial Reporting Standards, as disclosed in note 2(b)      
                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                            (c)                                                                                                                                                                Subject to the matter set out in Note 2(a) there are reasonable grounds to believe that the Group will be able to pay its debts 
                                                                                                                                                                                                                                                               as and when they become due and payable.                                                                                        
                                                                                                                                                                                                                                                               
 3                                                                                          This declaration has been made after receiving the declarations required to be made to the Directors in accordance with section 295A of the Corporations Act 2001  
                                                                                            for the financial year ended 30 June 2016.                                                                                                                         
 
 
                                                 
 On behalf of the Board                      
                                                 
                                             
                                                 
 Geoff Gander                                
 Executive Chairman                          
                                                 
 Perth, Western Australia 30 September 2016  
                                                   
 
 
AUDITORS REPORT 
 
AUDITORS REPORT (continued) 
 
 ASX ADDITIONAL INFORMATION  
 
 
Additional information required by the Australian Stock Exchange Ltd Listing Rules and not disclosed elsewhere in this
report is as follows. 
 
SHAREHOLDINGS (as at 31 August 2016) 
 
Substantial shareholders 
 
 Waterford Petroleum Limited     45,246,108  29.5%  
 Arrow Business Limited          30,917,255  20.2%  
 Central Asian Oil Holdings Ltd  29,731,484  19.4%  
 
 
Voting Rights 
 
Each shareholder is entitled to receive notice of and attend and vote at general meetings of the Group. At a general
meeting, every shareholder present in person or by proxy, representative or attorney will have one vote on a show of hands
and on a poll, one vote for each share held. 
 
DISTRIBUTION OF EQUITY SECURITY HOLDINGS 
 
 Category            Total holders  OrdinaryShares  
 1 - 1,000           436            172,342         
 1,001 - 5,000       549            1,439,836       
 5,001 - 10,000      213            1,538,323       
 10,001 - 100,000    256            6,955,688       
 100,001 and over    26             143,271,504     
 Total               1,480          153,377,693     
 
 
The number of shareholders holding less than a marketable parcel of ordinary shares is 634. 
 
On-market buy back 
 
There is no current on-market buy back. 
 
Securities on Issue 
 
The number of shares issued by the Group are set out below: 
 
 Category         Number       
 Ordinary Shares  153,377,693  
 
 
TWENTY LARGEST SHAREHOLDERS 
 
        Name of Holder                                                         No. of Ordinary Shares  % of Issued capital  
 1.     COMPUTERSHARE CLEARING PTY LTD                            50,008,958              32.61                
 2.     HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED                              48,354,956              31.53                
 3.     BNP PARIBAS NOMS PTY LTD  DRP                                          29,667,795              19.34                
 4.     J P MORGAN NOMINEES AUSTRALIA LIMITED                                  6,829,357               4.45                 
 5.     CITICORP NOMINEES PTY LIMITED                                          2,234,562               1.46                 
 6.     GLENNBROWN PTY LTD                             1,333,334               0.87                 
 7.     MR GEOFFREY ANTHONY GANDER                       769,445                 0.50                 
 8.     MR ATHOL GEOFFREY JAMES                                                608,148                 0.40                 
 9.     GOLDEN BOUNTY LIMITED                                                  506,450                 0.33                 
 10.    GLENNBROWN PTY LTD                                 465,000                 0.30                 
 11.    MR WARREN GILMOUR + MRS CATHERINE GILMOUR     282,753                 0.18                 
 12.    MR ERKIN SVANBAYEV                                                     240,000                 0.16                 
 13.    MR SCOTT MISON                             207,038                 0.13                 
 14.    SOUTHAM INVESTMENTS 2003 PTY LTD          179,511                 0.12                 
 15.    MR IAN SHERWOOD LOVE + MRS ANNE MARGARET LOVE                          166,667                 0.11                 
 16.    DR NEIL TANUDISASTRO + MRS YANI SUTANIMAN   154,667                 0.10                 
 17.    R & L EVANS PTY LTD                              150,000                 0.10                 
 18.    MR YERKIN SVANBAYEV                                                    150,000                 0.10                 
 19.    NATIONAL NOMINEES LIMITED                                              148,335                 0.10                 
 20.    DALY SF PTY LTD                                   146,668                 0.10                 
 TOTAL  142,603,644                                                            92.98                   
                                                                                                       
 
 
"The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation
596/2014." 
 
This information is provided by RNS
The company news service from the London Stock Exchange

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