Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the year ended 30 June 2024. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How Our Audit Addressed the Key Audit Matter Farm-out arrangement - Cuba Block 9 As at 30 June 2024 the Group recognised a receivable of $31,967,395 in relation to the Farm-out arrangement along with other receivables of $6,671,414 from Sonangol. In addition, the Group received $46,632,398 in cash payments as proceeds of the Farm-out arrangement. This area is a key audit matter due to the significant judgement involved in determining the recoverability of these balances and its impact to going concern assumptions. During our audit, we analysed agreements in respect to the transactions, assessed internal reporting and substantiated transactions on a sample basis. We questioned management on treatment and challenged their assessment. Our audit included performing the following: • Assessed accounting treatment of significant transactions; • Reviewed disclosures within the financial report; • Reviewed mathematical accuracy of calculations. • Reviewed farm-out reporting and communication between Melbana and Sonongol; • Completed substantive tests of detail on expenditure incurred during the period; and • Reviewed subsequent receipts of receivables. 71 Melbana Energy Limited Annual Report 2024
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