Note 26. Interest in subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in Note 2: Ownership interest Principal place of business / Country of incorporation 30-June-23 % 30-June-22 % Methanol Australia Pty Ltd Australia 100 100 LNG Australia Pty Ltd Australia 100 100 MEO International Pty Ltd Australia 100 100 Finniss Offshore Exploration Pty Ltd Australia 100 100 Melbana Operations Pty Ltd Australia 100 100 Melbana Energy AC/P70 Pty Ltd Australia 100 100 Melbana Exploration Pty Ltd Australia 100 – Note 27. Interest in Farm-out arrangements Name Principal place of business / Country of incorporation Block 9 PSC Cuba On 25 May 2020 the Consolidated Entity entered into a Farm-in Agreement (FIA) with Sonangol Pesquisa E Produção S.A (Sonangol). Under the terms of the FIA, Sonangol agreed to fund 85% of the cost of two exploration wells in Block 9 in return for receiving a 70% interest (Promote). The FIA provides Sonangol with a priority in recovery of the initial consideration it paid the Company (approximately equal to the Company’s historic costs related to Block 9 at that point) and the Promote it agreed to pay for the initial two exploration wells. On 17 August 2020, the Company announced that formal Cuban regulatory approvals had been received for Sonangol to acquire this 70% interest. Group Commitments and contingent liabilities The work commitments for the current exploration sub-period of Block 9 were met in full by the drilling of the two exploration wells, Alameda-1 and Zapato-1. The next exploration sub-period (the fourth and final), should the Company choose to enter it, has a work commitment of two exploration wells. The Company intends to apply to have the current two well appraisal program (Alameda-2 and Alameda-3) credited against this future period work commitment. The Cuban regulator has informally agreed to produce its formal consent for this proposal. The expected expenditure towards meeting primary term commitments for permits WA-544-P, NT/P87 and AC/P70 up to the end of the next fiscal year is forecast to be $1,000,000, subject to the regulator approving the suspension and extension of permits WA-544-P and NT/P87 discussed in Exploration Commitments earlier in this report. If the regulator does not approve the application for a suspension and extension the Company is not obligated to enter the secondary period. 61 Melbana Energy Limited Annual Report 2023
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