Note 1. General information The financial statements cover Melbana Energy Limited as a Consolidated Entity consisting of Melbana Energy Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Melbana Energy Limited’s functional and presentation currency. Melbana Energy Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are disclosed on the Corporate Summary accompanying these financial statements. A description of the nature of the Consolidated Entity’s operations and its principal activities are included in the Directors’ report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of Directors, on 27 September 2024. The Directors have the power to amend and reissue the financial statements. Note 2. Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. Going concern The financial report has been prepared on the going concern basis, which assumes that the Consolidated Entity will be able to discharge its liabilities. At 30 June 2024, the Consolidated Entity: – had, for the financial year ending on that date, incurred a net profit after tax of $3,259,760 (2023: loss of $1,001,999); – had, for the financial year ending on that date, net cash outflows from operating, investing and financing activities of $22,336,970 (2023: outflows of $723,476); – had cash and cash equivalents of $12,322,890 (2023: $34,976,625); and – had a net working capital position of $10,910,423 (2023: 33,859,932) The Consolidated Entity is involved in the exploration and evaluation of oil and gas tenements. Further expenditure will be required on these tenements to ascertain whether they contain economically recoverable reserves. The cash reserves as at 30 June 2024 may not be sufficient to meet the Consolidated Entity’s planned exploration, field evaluation and field development commitments and activities for the 12 months from the date of this report. To meet its funding requirements the Consolidated Entity will rely on taking appropriate steps, including: – Continuing to advance discussions with potential new partners and credit providers who have demonstrated interest in participating in the development of Block 9 – Sale of its entitlement to oil production, subject to the regulator accepting contemplated declaration of commerciality – Raising capital by one or a combination of the following: placement of shares, pro-rata issue to shareholders, and/or further issue of shares to the public; – In some circumstances, subject to negotiation and approval, minimum work requirements may be varied or suspended, and/or permit may be surrendered or cancelled; or – Other avenue that may be available to the Consolidated Entity. This financial report has been prepared on a going concern basis which contemplates the continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. In the event these steps do not provide sufficient funds to meet the Consolidated Entity’s exploration commitments, the interest in some or all of the Consolidated Entity’s tenements may be affected. No adjustments have been made relating to the recoverability and reclassification of recorded asset amounts and classification of liabilities that might be necessary should the Consolidated Entity not continue as a going concern, particularly the write-down of capitalised exploration expenditure should the exploration permits be ultimately surrendered or cancelled. Having assessed the potential uncertainties relating to the Consolidated Entity’s ability to effectively fund exploration activities and operating expenditures, the Directors believe that the Consolidated Entity will continue to operate as a going concern for the foreseeable future. Therefore, the Directors consider it appropriate to prepare the financial statements on a going concern basis. Notes to the Consolidated Financial Statements for the year ended 30 June 2024 42 Melbana Energy Limited Annual Report 2024
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