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 29 September 2026. 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 the continuation of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. At 30 June 2026, the Consolidated Entity: – incurred a net loss after tax of $50,220,823 (2025: $4,151,446); – had, net cash outflows from operating, investing and financing activities of $4,216,914 (2025: $7,420,297); – had cash and cash equivalents of $472,504 (2025: $ 5,115,674); and – had a net current assets of $7,824,820 (2025: 6,726,659) The loss was significantly affected by non-cash impairment charges associated with Block 9. The net current asset position also included material amounts receivable from the Consolidated Entity’s joint operation partner and therefore did not wholly represent immediately available cash. Subsequent to year-end, the Consolidated Entity received an aggregate of $14,458,712 from its former joint operation partner in partial settlement of outstanding amounts. These receipts have strengthened the Consolidated Entity’s liquidity and have been incorporated in the Directors’ going concern assessment. The Directors have prepared cash flow forecasts covering at least 12 months from the date of this report. These forecasts incorporate the post-year-end receipts and forecast corporate and asset-preservation expenditure. All current work commitments for Block 9 have been satisfied and there is no current commitment to undertake further appraisal or development activities. While operations remain suspended, expenditure will be limited to that necessary to preserve the value of the asset. Further appraisal and development will, however, be required to advance Block 9 towards commercial development and realise its potential value. Any further work program will proceed only when the necessary funding and approvals have been secured. Potential funding sources include: – recovery of further amounts from the joint operation partner; – participation by new project partners, including through a farm-out or partial disposal of the Consolidated Entity’s interest; – debt, project or strategic investor funding; – additional equity through a placement, entitlement offer or other issue of securities; – asset-level or broader corporate transactions; and – monetisation of the Consolidated Entity’s share of future oil production, subject to the required regulatory approvals. The timing and outcome of these funding initiatives are not wholly within the Consolidated Entity’s control. Together with the loss and cash outflows incurred during the year, the low cash balance at 30 June 2026 and the need for additional funding to progress Block 9, these conditions give rise to a material uncertainty that may cast significant doubt on the Consolidated Entity’s ability to continue as a going concern and, therefore, to realise its assets and discharge its liabilities in the ordinary course of business. Notwithstanding this material uncertainty, the Directors consider the going concern basis appropriate, having regard to the post-year-end receipts, net current asset position, satisfaction of all current work commitments, ability to defer discretionary expenditure and range of funding options available. The Directors therefore have a reasonable expectation that the Consolidated Entity will be able to meet its obligations as and when they fall due for at least 12 months from the date of this report. Notes to the Consolidated Financial Statements for the year ended 30 June 2026 50 Melbana Energy Limited Annual Report 2026
RkJQdWJsaXNoZXIy MjE2NDg3