Melbana Energy Limited Annual Report 2022

Key Audit Matters (continued) Key Audit Matter How Our Audit Addressed the Key Audit Matter Exploration and evaluation assets As at 30 June 2022, the carrying value of exploration and evaluation assets was $10,709,762. In accordance with AASB 6 Exploration for and Evaluation of Mineral Resources, the Group is required to assess at each reporting date if there are any triggers for impairment which may suggest the carrying value is in excess of the recoverable value. The process undertaken by management to assess whether there are any impairment triggers in each area of interest involves an element of management judgement. This area is a key audit matter due to the significant judgement involved in determining the existence of impairment triggers. Our procedures included:  Reviewing managements reconciliation of capitalised exploration and evaluation expenditure and ensuring it agrees to the general ledger;  Assessing the impact of farm-out agreements including recovery of prior exploration expenditure in relation to Cuba Block 9;  Evaluating costs capitalised during the period and testing on a sample basis;  Enquiring of management regarding their intentions to carry out exploration and evaluation activity in the relevant exploration areas;  Determining whether any data exists to suggest that the carrying value of these exploration and evaluation assets are unlikely to be recovered through development or sale;  Assessing management judgement in impairment assessment; and  Reviewing the appropriateness of the related disclosures within the financial statements. There were no restrictions on our reporting of Key Audit Matters. Information Other than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2022, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 53 53 Melbana Energy Limited Annual Report 2022