IPB PETROLEUM LIMITED AND CONTROLLED ENTITIES … · financial report for the year ended 30 June 2012 and any public announcements made by IPB Petroleum Limited during the half-year

IPB PETROLEUM LIMITED

ABN: 52 137 387 350

AND CONTROLLED ENTITIES

FINANCIAL REPORT

FOR THE HALF-YEAR ENDED

31 DECEMBER 2012

This half-year financial report is to be read in

conjunction with the financial report for the

year ended 30 June 2012

IPB PETROLEUM LIMITED AND CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED

31 DECEMBER 2012

TABLE OF CONTENTS

Page

Directors’ Report 3

Auditor’s Independence Declaration 5

Financial Report for the half year ended 31 December 2012

Condensed Consolidated Statement of Comprehensive Income 6

Condensed Consolidated Statement of Financial Position 7

Condensed Consolidated Statement of Changes in Equity 8

Condensed Consolidated Statement of Cash Flows 9

Notes to the Financial Statements 10

Directors’ Declaration 13

Independent Auditor’s Review Report 14


ABN: 52 137 387 350

DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

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The directors present their report together with the condensed financial report of the consolidated

entity consisting of IPB Petroleum Limited and the entities it controlled, for the half-year ended 31

December 2012 and independent review report thereon. This financial report has been prepared in

accordance with Australian Accounting Standards.

Directors names

The names of the directors in office at any time during or since the end of the half-year are:

Name Period of directorship

Brendan Brown

Philip Smith

Shane Tanner

Terry White

Craig Mathieson

Geoffrey King

Resigned 26 November 2012

Appointed 15 August 2012

Appointed 5 February 2013

The directors have been in office since the start of the financial period to the date of this report unless

otherwise stated.

Review of operations

The consolidated loss of the group for the half-year after providing for income tax amounted to

$1,195,390.

Over the past six months to 31 December 2012, IPB has:

• Continued ongoing studies and analysis on both WA-424-P and WA-471-P permits exploration,

prospects and leads.

• Completed a Farmout Agreement with CalEnergy Resources:

On September 28th

2012, IPB, signed a binding farmout agreement with Cal Energy

Resources (Australia) Ltd, a 100% owned subsidiary of MidAmerican Energy Holdings

Company. All conditions precent to the Farmout agreement were satisfied by the 27th

November 2012. Cal Energy will fund 100% of the cost of drilling the Pryderi Prospect

Exploration well in the WA-424-P permit (estimated cost $15m) in exchange for a 25%

interest in the whole Permit and 60% interest in a new sub-block area within WA-424-P

which includes the current Gwydion Discovery and the neighbouring

Mathonwy/Gilfaithwy structures.

The Pryderi-1 well will satisfy the WA-424-P Year 2 exploration well commitment,

which is required to be drilled before 12th

July 2013. As part of this agreement Cal

Energy has become the operator of WA-424-P.

• Progressed plans and activities towards a planned target listing date first half 2013, subject to

market conditions on ASX.


ABN: 52 137 387 350

The accompanying notes form part of these financial statements. - 6 -

CONDENSED CONSOLIDATED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

Half-year

2012 2011

Revenue

Interest income 34,792 46,444

Reimbursement income 109,067 -

143,859 46,444

Less: Expenses

Legal fees 93,622 9,518

Consulting fees 353,543 43,100

Employee benefits 586,992 468,846

Occupancy expenses 29,207 28,148

Depreciation and amortisation 8,637 15,177

Foreign exchange (gains)/losses 350 (2,328)

Travel and entertainment 38,581 67,655

Finance costs 256 -

Other expenses 228,061 221,337

1,339,249 851,453

Profit (loss) before income tax expense (1,195,390) (805,009)

Income tax expense (income tax benefit) - -

Profit (loss) from continuing operations (1,195,390) (805,009)

Profit (loss) from discontinued operations - -

Total comprehensive income for the half-year (1,195,390) (805,009)


ABN: 52 137 387 350


CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2012

Note: if activities are cyclical include a third column with prior financial year comparison

NOTE NOTE 31 Dec 30 June

2012 2012

CURRENT ASSETS

Cash and cash equivalents 1,178,388 2,417,637

Receivables 69,312 376,996

Other current assets 70,120 32,465

TOTAL CURRENT ASSETS 1,317,820 2,827,098

NON-CURRENT ASSETS

Property, plant and equipment 58,415 60,222

Other non-current assets 3 4,070,937 4,004,824

TOTAL NON-CURRENT ASSETS 4,129,352 4,065,046

TOTAL ASSETS 5,447,172 6,892,144

CURRENT LIABILITIES

Payables 72,437 345,412

Provisions 83,137 63,854

Other Liabilities 5,343 -

TOTAL CURRENT LIABILITIES 160,917 409,266

TOTAL LIABILITIES 160,917 409,266

NET ASSETS 5,286,255 6,482,878

EQUITY

Contributed capital 8,570,748 8,571,981

Reserves - -

Retained earnings (3,284,493) (2,089,103)

Equity attributable to owners of IPB Petroleum Limited 5,286,255 6,482,878

Non-controlling interest - -

TOTAL EQUITY 5,286,255 6,482,878


ABN: 52 137 387 350


CONDENSED CONSOLIDATED

STATEMENT OF CHANGES IN EQUITY


Consolidated

Contributed

equity Reserves

Retained

earnings

Non-

controlling

interest

Total

Equity

Balance as at 1 July 2011 6,117,632 - (406,169) - 5,711,463

Profit for the half-year - - (805,010) - (805,010)

Total comprehensive income for

the half-year - - (805,010) - (805,010)

Transactions with owners in

their capacity as owners:

Employee share scheme 56,350 - - - 56,350

- - - - -

Balance as at 31 December 2011 6,173,982 - (1,211,179) - 4,962,803

Consolidated

Contributed

equity Reserves

Retained

earnings

Non-

controlling

interest Total Equity

Balance as at 1 July 2012 8,571,981 - (2,089,103) - 6,482,878

Profit for the half-year - - (1,195,390) - (1,195,390)

Total comprehensive income

for the half-year - - (1,195,390) - (1,195,390)

Transactions with owners in

their capacity as owners:

Employee share scheme (1,233) - - - (1,233)

- - - - -

Balance as at 31 December

2012 8,570,748 - (3,284,493) - 5,286,255


ABN: 52 137 387 350


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS


Note: if activities are cyclical include a third column with prior financial year comparison.

Half-year

2012 2011

CASH FLOW FROM OPERATING ACTIVITIES

Receipts from customers 119,974 -

Payments to suppliers and employees (1,518,195) (1,094,816)

Interest received 34,536 46,444

Net cash provided by operating activities (1,363,685) (1,048,372)

CASH FLOW FROM INVESTING ACTIVITIES

Payment for property, plant and equipment (6,830) -

Payment for investments - (58,531)

Payment for other non-current assets (146,113) (337,679)

Net cash provided by investing activities (152,943) (396,210)

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from share issue 275,591 165,392

Net cash provided by financing activities 275,591 165,392

Net increase in cash and cash equivalents (1,241,037) (1,279,190)

Foreign exchange differences on cash holdings - -

Cash and cash equivalents at beginning of half-year 2,419,425 2,622,823

Cash and cash equivalents at end of the half-year 1,178,388 1,343,633


ABN: 52 137 387 350

NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS 31 DECEMBER 2012

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NOTE 1: BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT

This half-year financial report does not include all the notes of the type usually included in an

annual financial report.

It is recommended that this half-year financial report be read in conjunction with the annual

financial report for the year ended 30 June 2012 and any public announcements made by IPB

Petroleum Limited during the half-year in accordance with any continuous disclosure obligations

arising under the Corporations Act 2001.

IPB Petroleum Limited is a for-profit entity for the purpose of preparing the financial statements.

The half-year financial report was authorised for issue by the directors as at the date of the

directors’ report.

(a) Basis of preparation

This financial report is a general purpose half-year financial report that has been prepared in

accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and the

Corporations Act 2001.

The half-year financial report has been prepared under the historical cost convention, as modified

by revaluations to fair value for certain classes of assets as described in the accounting policies.

The accounting policies applied in this half-year financial report are consistent with those of the

annual financial report for the year ended 30 June 2012 and the corresponding half-year.

(b) Summary of the significant accounting policies

All accounting policies applied in this half-year financial report are the same as those used in the

annual financial report for the year ended 30 June 2012.


ABN: 52 137 387 350


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NOTE 2: CAPITAL COMMITMENTS

a) Permit WA-424-P

A binding farm-out agreement was entered into on 28 September 2012 with Cal Energy Resources

(Australia) Limited in relation to area WA-424-P and the contract previously entered into with AGR

Petroleum Services for drilling of the Pryderi Prospect exploration well. Cal Energy Resources

(Australia) Limited are to find 100% of the cost of drilling the Pryderi Prospect exploration well

previously disclosed as a capital commitment to IPB Petroleum Limited in return for a 25% interest

in the permit.

b) Permit WA-471-P

As part of the binding farm-out agreement entered into on 28 September 2012 with Cal Energy

Resources (Australia) Limited, an Option exists for a 25% interest in permit WA-471-P, available to

be exercised for a nominal cost at any point within 3 months of the date of the Pryderi Prospect

well being drilled. IPB Petroleum Limited would remain operator of this permit should the Option

be exercised.

NOTE 3: OTHER NON-CURRENT ASSETS

Other non-current assets refers to expenses held as capital under AASB 6 – Exploration for and

evaluation of mineral resources. Expenditure held as such is vastly due to seismic exploration and

study in area WA-424-P.

a) Farm-out agreement with Cal Energy

As part of the binding farm-out agreement entered into on 28 September 2012 with Cal Energy

Resources (Australia) Limited, IPB Petroleum Limited received reimbursement of expenditure taken

up as capital in nature per AASB 6 (exploration for and evaluation of mineral resources). As this

standard acts to hold expenditure that would be capital in nature should successful development of

the asset occur, $80,000 previously included in this value has been removed as it has not been

incurred by IPB Petroleum Limited or its consolidated entities in exploration and evaluation of

permit WA-424-P.

b) Capitalisation of items previously written off

During the financial year ended 30 June 2012, $322,790 was written off as consultancy expenditure.

During the 6 months to 31 December 2012 it became apparent these items were capital in nature and

have thus been correctly transferred from retained earnings to other non-current assets. The value of

capitalised consultancy expenditure for the 6 months ended 31 December 2012 was $146,113.

$

Exploration & Evaluation Asset (30 June 2012) 3,682,034

Expenditure previously written off 322,790

Exploration & Evaluation Asset (30 June 2012 Re-stated) 4,004,824

Reimbursement from Cal Energy -80,000

Capital consultancy expenditure to 31 December 2012 146,113

Exploration & Evaluation Asset (31 December 2012) 4,070,937


ABN: 52 137 387 350


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NOTE 4: SHARE SUBDIVISION

A subdivision of Ordinary shares was conducted on the 2nd

of November 2012 resulting in a 5:1 offer to

existing shareholders at that date. The effect was an issuance of an additional 74,400,000 shares for nil

contribution.

Number $

Opening shares held (Ordinary) at 1 July 2012 18,600,000 8,571,981

Additional shares by Subdivision on 2 November 2012 74,400,000 -

Ordinary shares in IPB Petroleum at 31 December 2012 93,000,000 8,571,981

NOTE 5: CHANGE OF NAME OF THE COMPANY

On 2 November 2012 the shareholders of the company voted to change the operating name of IPM

Petroleum Limited to IPB Petroleum Limited. This change in name was effective from that date.

NOTE 6: SUBSEQUENT EVENTS

It is noted that Geoffrey King was appointed as a non-executive director effective 5 February 2013.

There has been no matter or circumstance, which has arisen since 31 December 2012 that has

significantly affected or may significantly affect:

a) The operations, in financial years subsequent to 30 June 2012, of IPB Petroleum Limited, or

b) The results of those operations, or

c) The state of affairs, in financial years subsequent to 30 June 2012, of IPB Petroleum Limited.

Documents

IPB PETROLEUM LIMITED AND CONTROLLED ENTITIES … · financial report for the year ended 30 June 2012 and any public announcements made by IPB Petroleum Limited during the half-year