RNS Number:5265R
Hardman Resources Limited
31 October 2003
HARDMAN RESOURCES LTD
Ground Floor, 5 Ord Street, West Perth
PO Box 869, West Perth
Western Australia 6872
Tel: +61 8 9321 6881 Fax: +61 8 9321 2375
ABN 98 009 210 235
STOCK EXCHANGE / MEDIA RELEASE
RELEASE DATE: 31 October 2003
CONTACT: Ted Ellyard (08 9321 6881)
RE: SEPTEMBER 2003 QUARTERLY REPORT
Please find attached September 2003 Quarterly Activities and Cash Flow Report
for Hardman Resources Ltd.
TED ELLYARD
MANAGING DIRECTOR
HARDMAN RESOURCES LTD
ABN 98 009 210 235
REPORT TO SHAREHOLDERS
FOR THE QUARTER ENDED 30 SEPTEMBER 2003
This report summarises the activities of Hardman Resources Ltd and its
controlled entities ("Hardman" or "the Company") during the quarter ended 30
September 2003.
ACTIVITY HIGHLIGHTS
* Guyane (French Guiana): Technical evaluation and mapping of the
new 2D seismic survey has confirmed the presence of large prospects and a
thicker sedimentary sequence than previously recognised.
* Mauritania (Chinguetti Field): The Chinguetti 4-5 Early
Development Well intersected 38 metres of net oil bearing sandstones.
Production testing of the high quality reservoir section has flowed oil at rates
of up to 15,680 bopd.
* Mauritania (Chinguetti Financing): Following the success in
drilling and testing of the Chinguetti 4-5 well, technical and legal due
diligence work by the ANZ and IFC banking groups is progressing well and is
expected to be completed in the fourth quarter 2004 when loan arrangements are
expected to be finalised.
* Mauritania (2003 Drilling Plans): Two (2) exploration wells are
to be drilled in PSC Area B (Hardman 21.6%) using the drillship "West Navigator
". The first well, which is on the Tiof Prospect, spudded on 28 October 2003
and will be followed by an exploration well on the Poune Prospect. In addition
a third exploration well, Pelican-1, is being planned in the Dana operated PSC
Block 7.
* North Perth Basin, Australia:
- EP413: The drilling and completion of the Jingemia-2 and Jingemia-3
wells were undertaken. These wells successfully defined the oil/water contact
in the south of the field and confirmed previous estimates of field reserves.
The Jingemia-3 well was then completed as a water injection well to maintain
reservoir pressure in the field. A second three month Extended Production Test
on the Jingemia-1 oil production well is to commence in the fourth quarter 2003.
- Woodada Production Licence: The Woodada Gas Field continued gas
production during the quarter at an average rate of 4,273 Gj per day. The
Leafcutter-1 exploration well was plugged and abandoned as a dry well after
encountering only residual oil shows.
* Timor Sea, Australia: The Company completed the acquisition of
three offshore permits in the Timor Sea, being the purchase of AC/P25 (95%), AC/
P26 (49.375%) and AC/RL1 (100%) covering the underdeveloped Talbot Oil Field,
plus an option to acquire 100% of permit WA-316P.
* New Zealand: Hardman and its joint venture partners in the
PEP38215 licence have agreed to farm-out a 25% interest to Electro Silica plc in
return for funding a 2,000 km seismic survey in 2004. Electro Silica will then
earn an additional 50% interest for funding 100% of an offshore well.
* Uganda: Acquisition of the planned 1,600 kilometre 2D seismic
survey on Lake Albert (approximately 850 kms to be shot in Block 2) commenced in
September after mobilising a larger vessel from the Lake Victoria region. The
survey is nearing completion with very high quality data being recorded in the
Block 2 licence area.
CORPORATE ACTIVITY
During July 2003, the Company completed a capital raising in the United Kingdom
of #9.4 million (approximately AU$23.5 million), before costs, to provide
additional funds for ongoing exploration programmes on the Company's projects,
predominantly in Mauritania, and for working capital. A total of 42,727,270 new
ordinary shares were issued at a price of 22 pence (approximately AU$0.55) per
share.
The placement was made solely to UK Institutions in order to expand the UK
shareholder base and create an enhanced market presence in the UK and Europe. It
was arranged by Oriel Securities Limited, one of the two firms recently
appointed as UK Corporate Broker to the Company.
The Annual General Meeting of shareholders (AGM) is to be held at the Burswood
Convention Centre, Perth on Friday, 28 November 2003, commencing at 9:30 am.
All shareholders, potential investors, stockbrokers and the press are invited to
attend.
GAS PRODUCTION
During the September quarter the Woodada Gas Field produced 397,154 Gj of
natural gas and 372 bbls of condensate for sales to contracted customers. The
average daily production of natural gas for the quarter was 4,273 Gj.
Sales made to industrial customers in the Perth region from the Woodada Field
were 553,363 Gj of natural gas for the quarter. Additional gas was purchased
under a purchase agreement with Origin Energy Limited and CMS Gas Limited to
meet sales contract levels.
Hardman's share of gross revenue from gas and condensate sales for the quarter
from the Woodada Field (75%) was AU$1,227,337.
OIL PRODUCTION
During the September quarter the Jingemia-1 well produced 52,290 bbls of oil
under an extended production test, which was completed on 5 August 2003. The
average oil production rate was 1,452 bopd (net to Hardman of 325 bopd).
Hardman's share of gross revenue from Jingemia Field oil sales for the quarter
was AU$470,484.
REVIEW OF OPERATIONS
MAURITANIA - WEST AFRICA
Hardman has interests in Production Sharing Contracts ("PSCs") in eight offshore
blocks in Mauritania, with the first PSC being signed in 1996. These blocks
cover approximately 67,000 square kilometres, along 540 kilometres of coastline
and include the majority of the prospective offshore basin area, offshore
Mauritania.
Two joint venture groups were established by Hardman. Blocks 2, 3, 4, 5 and 6
which cover the central, deep water salt basin were divided into Areas A, B and
C under the terms of Farmin Agreements with Woodside Mauritania Pty Ltd ("
Woodside") and ENI-Agip ("Agip"), signed in 1998. Hardman also holds three PSCs
over Blocks 1, 7 and 8 which straddle the Woodside joint venture areas. These
PSCs are in joint venture with Dana Petroleum plc ("Dana"), an oil production
company listed on the London Stock Exchange.
Woodside Joint Venture Areas:
Background: During the period 1998 to 2000 Woodside, as Operator, shot large 2D
and 3D seismic surveys over the joint venture areas at a cost exceeding AU$50
million. Initial exploration interest was focussed in the deep water portion of
Blocks 3, 4 and 5 (PSC Areas A and B) where mature source rocks, turbidite sand
reservoirs and salt dome anticlines were identified from the seismic data.
The drilling of the Chinguetti-1 and Courbine-1 wells by Woodside and Agip
during 2001 completed the farmin obligations for PSC Areas A and B with Hardman
retaining an interest of 24.3% and 21.6% respectively. The first well,
Chinguetti-1, was a significant oil discovery which intersected a 120 metre
gross oil column in basal Tertiary sandstones ("A Sand") overlying a salt
structure.
The 2002 drilling programme resulted in three highly successful wells out of the
four wells drilled. Two successful appraisal wells were drilled on the
Chinguetti Field (Chinguetti 4-2 and 4-4) and resulted in a significant increase
in the oil reserve estimates. The Banda exploration well resulted in a large
gas and oil discovery in PSC Area A.
Chinguetti Oil Field: The Chinguetti Oil Field is a typical salt dome structure
with a vertical relief at the target depth of over 300 metres. The primary oil
zone is contained within Miocene aged deep water turbidite sandstones which were
deposited prior to the salt uplift. The structure is faulted with a downthrown
southern flank (Chinguetti-1) and an upthrown northern flank, tested by
Chinguetti 4-2.
An early development well was drilled on the Chinguetti Field in September 2003
to evaluate the expected production rate and completion procedures for future
production wells. The results of this well, including production testing, will
be incorporated into the final Development Plan which is then expected to lead
to a decision on commerciality in December 2003. Field development work would
then be expected to proceed through a number of steps from contract tendering
and negotiation, the drilling of development wells, installation of subsea
facilities and commissioning of a floating, production, storage and off-take
vessel ("FPSO") to achieve first oil production during late 2005 or early 2006.
The Chinguetti 4-5 Appraisal-Early Development Well (A-EDW) was spudded on 4
September 2003 using the drillship "Jack Ryan". The well is located 900 metres
northwest of Chinguetti-1 in 820 metres water depth. Chinguetti 4-5 A-EDW has
now been completed for production after intersecting a gross hydrocarbon
interval of approximately 100 metres of which approximately 38 metres were net
oil bearing sandstones of excellent reservoir quality.
The highly porous nature of the oil bearing sandstones in the Chinguetti Field
(typical of West African deep-water fields), requires the use of specialised
completion techniques for control of sand influx. The Chinguetti 4-5 A-EDW was
successfully completed for production on 19 October 2003 after minor operational
delays and production testing of the well is currently in progress. Following
the initial clean-up flows, the well has been produced at a stabilised rate of
approximately 11,500 barrels oil per day (bopd) on a 72/64 inch choke size for a
period of several days. During this main flow period the well was tested on a
112/64 inch choke size and during a 9 hour period flowed oil at an average rate
of 14,097 bopd, flowing at a rate of up to 15,680 bopd plus 6.6 million standard
cubic feet of gas per day. On completion of the main flow period the well will
be shut-in to measure reservoir pressure build-up to complete the testing
operation.
Chinguetti Development Financing: Initial indications are that a leased FPSO
will be used and that at least six production wells (possibly more) will be
drilled to achieve a production rate of approximately 75,000 bopd. Additional
wells will be drilled for water and gas re-injection.
Hardman is seeking a financing facility for its share of the Chinguetti
development of up to US$100 million which would allow for contingencies and cost
overruns. In November 2002, Hardman appointed ANZ Investment Bank ("ANZIB"),
based in London, to advise on the loan facility required for Hardman's share of
the Chinguetti Field development capital. The ANZIB's role includes detailed
due diligence work to prepare an information memorandum and loan documentation
to meet the needs of commercial banks to enable them to provide lending
commitments to the project.
In addition to the commercial banking arrangements, Hardman has signed a
preliminary banking mandate with the International Finance Corporation ("IFC"),
a member of the World Bank Group. The mandate agreement will enable the IFC to
evaluate the Chinguetti project and Hardman's other assets with a view to
providing a financing facility package of up to US$25 million.
As part of the due diligence required by both the commercial banks and IFC, the
Chinguetti Field reserves need to be certified and the field development plan
validated. To undertake this work, Hardman engaged the US-based consulting firm
Netherland, Sewell and Associates Inc. ("NSAI") in April 2003. NSAI is expected
to complete the Chinguetti Field reserve certification in December 2003 after
evaluating the production test results of the Chinguetti 4-5 well.
2003 Drilling Programme: The drilling of two exploration wells is planned in
addition to the Chinguetti 4-5 well in the Woodside operated PSC Area B (Hardman
21.6%) as follows:
- Tiof Exploration Well: Targeting Miocene channel sandstones
within structural closure, adjacent to a salt dome and located approximately 25
kilometres north of the Chinguetti Field.
- Poune Exploration Well: An Upper Cretaceous structural closure
with a shallower Miocene channel sandstone target also to be tested by the well.
These two exploration wells are to be drilled by the Smedvig Offshore AS
drillship "West Navigator", which arrived in Mauritanian waters on 27 October
2003. The Tiof exploration well was spudded on 28 October 2003.
In addition, a third exploration well to be named Pelican-1 is planned for
drilling in the Dana operated PSC Block 7. The Pelican-1 well may be drilled by
the "West Navigator" drillship as part of the current programme or deferred
until a later time.
2003 Seismic Acquisition: The Tichit 2D Seismic Survey commenced in September.
This survey of approximately 3,400 km will be used to assess prospects and leads
beyond the current 3D coverage in PSC Areas A & B and PSC Block 6.
Dana Joint Venture Blocks 1, 7 & 8:
The Dana Joint Venture comprises three PSC areas which are situated immediately
to the north and south of the Woodside/Agip acreage. Under the terms of the
Joint Venture, Dana Petroleum plc ("Dana") is Operator, while Hardman has an 18%
interest in all blocks.
* Block 1: A number of prospects have been identified on the 3D
seismic acquired in late 2002 but more work is required before selection of the
well to meet the drilling commitment. The date for a commitment to proceed into
the drilling phase has been deferred until January 2004.
* Block 7: The joint venture is preparing to drill the Pelican-1
well, which will test a large structural closure with multiple objectives. The
well is to be drilled to approximately 3,800 metres total depth (mean sea level)
in 1,700 metres water depth.
* Block 8: A request for a twelve month extension of this PSC has
been approved by the government. This extension will allow the results of the
Block 7 well to be included in a reassessment of Block 8's potential.
GABON - WEST AFRICA
Hardman holds a 12.86% working interest in two PSCs offshore Gabon awarded in
November 1999 and referred to as Iris Marin and Themis Marin. The PSCs have a
combined area of approximately 1,500 square kilometres and are located in a
proven and well established petroleum province.
The operator, Fusion Oil & Gas plc, has agreed to farmout 18% of each of Iris
Marin and Themis Marin to Premier Oil in exchange for funding 36% of Fusion's
costs to drill four exploration wells. Premier Oil has the option to withdraw
from each PSC after the first well. This farmout demonstrates the industry view
of the potential high value of Hardman's Gabon acreage.
3D seismic surveys totalling 630 square kilometres were acquired in late 2002/
early 2003 and are currently being processed. Final data is now expected in
fourth quarter 2003 and will be used to select locations for two wells planned
for drilling in 2004. The 3D seismic processing is expected to provide a
greatly improved image of the targets beneath complex salt bodies.
UGANDA - EAST AFRICA
Hardman is the Operator and holds a 50% interest in a Production Sharing
Agreement ("PSA") over Block 2, Uganda. The Block covers an area of
approximately 4,700 square kilometres over the northern part of Lake Albert in
north-western Uganda.
The Lake Albert Seismic Survey commenced recording in September after the vessel
"Victoria III" was transported overland and equipped with seismic recording
instruments. The survey, totalling approximately 1,600 line kilometres of data,
is being conducted by Hardman in conjunction with the adjacent Block 3 parties.
Early results from Block 2 are encouraging with the data being of high quality.
GUYANE (FRENCH) - SOUTH AMERICA
Hardman is Operator and holds 97.5% equity in the Exclusive Exploration Licence
("EEL") offshore Guyane, which was awarded on 1 June 2001. The licence covers
the major part of the offshore basin of Guyane and extends from the twelve-mile
coastal limit to the 3,000 metre water depth contour with a total area of
approximately 65,000 square kilometres.
Acquisition of 7,500 km of new 2D seismic was completed in mid-February 2003,
and the fully processed dataset was delivered towards the end of June. This
data is now being mapped and interpreted by Hardman's technical team. The new
seismic is of excellent quality and has confirmed the existence of a thicker
sedimentary section in the basin and indicated structuring in these deeper
sediments which was not visible on the 1970s seismic data. The technical work
has confirmed the major structural trends of the area and a number of leads have
been identified.
During October, company representatives met with the relevant authorities in
Paris and Cayenne (Guyane) to update them on Hardman's progress on the seismic
acquisition and interpretation work. Presentations were also made to various
interest groups in Guyane. The project has also been presented to a limited
number of potential farmin partners and several are now undertaking a technical
evaluation.
FALKLANDS - SOUTH ATLANTIC
Hardman holds a 30% interest in a joint venture which holds a large offshore
exploration permit covering ten licence blocks, with a total area of
approximately 57,000 square kilometres, in the South Falklands Basin.
The basin is geographically and geologically distinct from the northern basin
which was the focus of exploration activity during 1996-98. The southern basin
is under-explored and is covered with a sparse grid of seismic dating from 1993.
The joint venture purchased the majority of this data (totalling 4,340
kilometres) from seismic contracting firms. Hardman staff then undertook
seismic mapping of this data on Hardman's in-house computer work stations on
behalf of the operator, Global Petroleum Limited.
A number of leads and prospective play types were identified from this work,
resulting in a decision by the joint venture to reprocess 1,118 kms of the
seismic data to better delineate the leads. The seismic reprocessing was
completed during the quarter and re-interpretation of the area is now in
progress by Hardman's technical staff.
NEW ZEALAND
Hardman was awarded Petroleum Exploration Permit 38215 in the Great South Basin
in August 2001. The Company holds 55% interest in the licence.
During the quarter detailed mapping of reprocessed seismic in the permit area
was completed. This technical work has confirmed the major structural trends in
the area and a number of leads have been identified. The project is currently
being presented to potential farmin partners with some early interest shown.
Subsequent to the end of the quarter, Hardman and its joint venture partners
have farmed out a 25% interest in the permit to Electro Silica plc. The
agreement provides for Electro Silica to fund the acquisition, processing and
interpretation of 2,000 km of seismic to earn a 25% interest in the permit and
to earn a further 50% interest by funding the drilling of an exploration well.
Currently the new seismic survey is scheduled to take place in the first half of
2004.
Electro Silica is a UK-based company specialising in the application of new
energy technologies. It provides technical services in the field of oil and gas
exploration through its subsidiary, Electro Silica Oil and Gas Ltd, which also
has direct interests in petroleum projects in Oman and Mongolia. The farmin by
Electro Silica will now give extra impetus to the exploration programme in PEP
38215. Once Electro Silica has completed the seismic programme and drilled the
exploration well, Hardman's interest will reduce to 13.75%
AUSTRALIA
Woodada Gas Field:
The Woodada Gas Field is located 280 kilometres north of Perth, Western
Australia and is connected via the Parmelia Pipeline to customers in the Perth
area. Hardman holds a 75% interest in the field, the gas treatment plant and
existing sales contracts.
The Woodada Gas Field has produced about 44 billion cubic feet (BCF) of gas
since 1982 at rates up to 20 MCFD. Prior to drilling Woodada-19 gas production
had decreased to about 2.7 MCFD from seven partially depleted wells. The
drilling of new wells was therefore a priority to increase gas production from
the field. Woodada-19 was drilled during 2002 and was connected to the field
gathering pipeline in February 2003.
The Leafcutter-1 well was drilled during the quarter as a shallow exploration
well to test the upthrown block (high block) to the west of the Woodada Gas
Field. The well was drilled by the 100% Hardman owned Logue Drilling Rig,
thereby reducing the drilling costs. Leafcutter-1 encountered hydrocarbon shows
at several zones, but these were shown to be only residual oil shows and the
well was plugged and abandoned on 19 September 2003 at a depth of 1,300 metres.
North Perth Basin Exploration Permits:
Hardman currently holds the following equity in three exploration permits:
TP15 - 30.0%
EP368 - 22.5%
EP413 - 22.376%
* TP15: The permit covers the narrow three nautical mile wide
State Territorial water zone along the coastline opposite the Jingemia Oil Field
and the Woodada Gas Field. The permit adjoins offshore permit WA-286-P where
ROC Oil drilled the Cliff Head oil discovery in December 2001.
Following the drilling of the Twins Lions-1 dry well, the joint venture has
agreed to acquire additional 2D seismic data to more fully delineate potential
leads in the area.
A total of 102 kms of new seismic data will be acquired in the Lilian MSS 2D
seismic survey which commenced in late October. The focus of this survey is to
provide a broader coverage over several leads in the northern area of the
permit. It is hoped that the new 2D seismic may mature one or more leads as
potential 2004/ 2005 drilling prospects.
* EP368: Recent interpretation work has focussed along the
Allanooka Fault zone, attempting to more accurately map the structural leads
where data quality is fair to poor. A reprocessing project was carried out on
five seismic lines in the Murrumbah-East Heaton area during the quarter.
The joint venture is continuing to review technical data in the permit and is
awaiting the results of drilling in nearby permits before making a decision on
the future exploration programme.
* EP413: The permit adjoins the Woodada production licences to
the north and TP15 to the west and covers the prospective area between the
Woodada and Dongara Fields.
During October 2002, the EP413 Joint Venture announced that the Jingemia-1
exploration well had successfully encountered an approximate 30 metre gross oil
column in the Dongara Sandstone. The initial well data indicates potential
reserves at Jingemia are in excess of 5 million barrels of oil recoverable.
A three month Extended Production Test ("EPT") on the Jingemia-1 oil discovery
well was completed on 4 August 2003. Oil production during the EPT ranged from
a constrained 1,000 bopd to 1,900 bopd and in excess of 123,000 barrels of oil
was produced with no water. The well is now shut-in to measure pressure build
up in the oil reservoir.
Hardman's net 22.376% share of oil produced was 27,716 barrels which has been
sold to the BP Refinery at Kwinana.
Following the encouraging results from the EPT, the EP413 Joint Venture agreed
to drill the Jingemia-2 well to appraise the southern flank of the field.
Jingemia-2 intersected the reservoir low to prediction and the well was
sidetrack drilled updip as Jingemia-3. This well encountered the oil-water
contact and indicated that there may be 3 metres of additional oil column in the
field.
Jingemia-3 will now be completed as a water injection well to maintain field
pressure. Meanwhile, the Jingemia-1 well will shortly commence oil production
during a second EPT period following approval by government authorities.
Timor Sea Permits:
Subsequent to the quarter period Hardman completed a purchase from West Oil NL
of two permits AC/RL1 (100% equity) and AC/P26 (49.375% equity) in the
productive Timor Sea region, offshore Western Australia for AU$100,000. Hardman
also holds an option over 100% equity in WA-316P, to the northeast of the Talbot
Field, for a further cost of AU$10,000. Hardman is to make certain bonus
payments to West Oil NL in the event of a commercial discovery in WA-316P.
Following the West Oil acquisition, Hardman completed a further transaction with
Bounty Oil & Gas NL ("Bounty") to acquire a 95% interest in AC/P25 in return for
funding Bounty's remaining 5% interest through the acquisition of 400 kilometres
of new 2D seismic and payment of AU$50,000. AC/P25 adjoins the AC/RL1 and AC/
P26 permits to the north and east.
As a result of these transactions Hardman now holds the following equity:
AC/RL1 (Talbot) 100%
AC/P25 95%
AC/P26 49.375%
WA-316P Option to assume 100%
AC/RL1 encompasses the Talbot Field which was discovered in 1989 by Santos with
the Talbot-2 appraisal well drilled in 1990. Hardman's initial estimate of
recoverable reserves ranges from 4 to 6 million barrels which is currently
deemed uneconomic for a "stand alone" development. The adjoining AC/P26 permit
was granted in 1998 and is covered by extensive 2D and 3D seismic data. Several
leads have been identified in the AC/P26 permit although a decision to drill is
not required until May 2004. The acquisition of new seismic data in AC/P25 is
also expected to delineate further drilling prospects in this area, adjoining
the Talbot Field.
The WA-316P permit lies in the eastern Timor Sea area within Western Australian
waters, 12 kilometres south of the producing Laminaria Field. The licence has a
well drilling obligation to be satisfied by December 2004. The option held by
Hardman will enable it to undertake detailed technical studies of the area
before being required to commit to drilling.
The Timor Sea area has been a challenging exploration frontier for many
companies, which has yielded some small and occasionally large discoveries (e.g.
Woodside's Laminaria Field). The Timor Sea permit acquisitions have enabled
Hardman to increase its asset base in Australia at a low entry cost. It also
provides Hardman with upside potential in the event of a commerciality decision
for the Talbot Field, which could be driven by the discovery of additional
reserves in either of the three adjoining permits AC/RL1, AC/P25 or AC/P26.
Hardman intends to take a fresh technical look at this area in preparation for
drilling a well next year on one of the prospects close to the Talbot Field
HARDMAN RESOURCES LTD
TED ELLYARD
MANAGING DIRECTOR
31 October 2003
Note: In accordance with Australian Stock Exchange Limited listing
requirements, the geological information supplied in this report has been based
on information provided by geologists who have had in excess of five years
experience in their field of activity.
FOR FURTHER INFORMATION PLEASE CONTACT
HARDMAN RESOURCES LTD
Ground Floor, 5 Ord Street
West Perth Western Australia 6005
TELEPHONE +61 (0) 8 9321 6881
FACSIMILE +61 (0) 8 9321 2375
EMAIL office@hdr.com.au
WEB SITE www.hdr.com.au
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
HARDMAN RESOURCES LTD
ABN Quarter ended ("current quarter")
98 009 210 235 30 SEPTEMBER 2003
Consolidated statement of cash flows
------------- -------------
Current Year to date
quarter
Cash flows related to operating activities $A'000 (3 months)
$A'000
------------- -------------
1.1 Receipts from product sales and 2,384 2,384
related debtors
1.2 Payments for
(a) exploration and evaluation (3,649) (3,649)
(b) development (3,865) (3,865)
(c) production (1,029) (1,029)
(d) administration (1,161) (1,161)
(e) other operating expenses not (276) (276)
included above
1.3 Dividends received - -
1.4 Interest and other items of a similar 258 258
nature received
1.5 Interest and other costs of finance - -
paid
1.6 Income taxes paid - -
1.7 Other (provide details if material) - -
----- ---------------------- ------------- -------------
Net Operating Cash Flows (7,338) (7,338)
Cash flows related to investing
activities
1.8 Payment for purchases of: (8) (8)
(a) prospects
(b) equity investments - -
(c) other fixed assets (35) (35)
1.9 Proceeds from sale of: - -
(a) prospects
(b) equity investments - -
(c) other fixed assets - -
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other (provide details if material) - -
------------- -------------
Net investing cash flows (43) (43)
----- ---------------------- ------------- -------------
1.13 Total operating and investing cash
flows
(carried forward) (7,381) (7,381)
----- ---------------------- ------------- -------------
1.13 Total operating and investing cash flows
(brought forward) (7,381) (7,381)
------------- -------------
Cash flows related to financing
activities
1.14 Proceeds from issues of shares, options, 22,249 22,249
etc. (Net)
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings - -
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other (provide details if material) - -
----- --------------------- ------------- -------------
Net financing cash flows 22,249 22,249
------------- -------------
Net increase (decrease) in cash held 14,868 14,868
1.20 Cash at beginning of quarter/year to 30,804 30,804
date
1.21 Exchange rate adjustments to item 1.20 - -
----- --------------------- ------------- -------------
1.22 Cash at end of quarter 45,672 45,672
----- --------------------- ------------- -------------
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related
entities
------------
Current
quarter
$A'000
------------
1.23 Aggregate amount of payments to the parties included in 192
------ item 1.2 ------------
1.24 Aggregate amount of loans to the parties included in -
item 1.10 ------------
1.25 Explanation necessary for an understanding of the transactions
-------------------------------------------
Payments in item 1.23 are consulting and related costs (excluding GST)
paid during the quarter to directors of the entity and their
associates.
-------------------------------------------
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material
effect on consolidated assets and liabilities but did not involve cash
flows
--------------------------------------------
Nil
--------------------------------------------
2.2 Details of outlays made by other entities to establish or increase their
share in projects in which the reporting entity has an interest
--------------------------------------------
Nil
--------------------------------------------
Financing facilities available
Add notes as necessary for an understanding of the position.
------------- -------------
Amount available Amount used
$A'000 $A'000
------------- -------------
3.1 Loan facilities - -
------------- -------------
3.2 Credit standby arrangements - -
----- --------------------- ------------- -------------
Estimated cash outflows for next quarter
$A'000
------------------
4.1 Exploration and evaluation 15,000
------------------
4.2 Development 10,500
----- --------------------------- ------------------
Total 25,500
----- --------------------------- ------------------
Reconciliation of cash
------------------------ ------------- -------------
Reconciliation of cash at the end of the quarter Current Previous
(as shown in the consolidated statement of cash quarter quarter
flows) to the related items in the accounts is as
follows.
$A'000 $A'000
------------------------ ------------- -------------
-------------
5.1 Cash on hand and at bank 1,035 1,306
------------- -------------
5.2 Deposits at call 44,637 29,498
------------- -------------
5.3 Bank overdraft - -
------------- -------------
5.4 Other (provide details) - -
----- --------------------- ------------- -------------
Total: cash at end of quarter (item 1.22) 45,672 30,804
----- --------------------- ------------- -------------
Changes in interests in mining tenements
------------- ---------- -------- --------
Tenement Nature of Interest at Interest
reference interest beginning of at end of
quarter quarter
(note (2))
------------- -------- --------
----------
6.1 Interests in mining
tenements
relinquished, reduced
or lapsed
------------- ---------- -------- --------
6.2 Interests in mining AC/RL1 (Timor Working - 100%
tenements acquired or Sea)
increased
AC/P25 (Timor Working - 95.0%
Sea)
AC/P26 (Timor Working - 49.375%
Sea) ---------- -------- --------
-------------
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights
together with prices and dates.
Total Number Issue price Amount paid
-------------- number quoted per security up per
---------- ---------- (see note 3) security (see
(cents) note 3)
----------- (cents)
-----------
-----------
7.1 +Preference - -
securities
(description)
---------- ---------- ----------- -----------
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases - -
through returns
of capital,
buy-backs,
redemptions
- -
---------- ---------- ----------- -----------
7.3 +Ordinary
securities 467,660,028 467,660,028 - -
----- ----------- ---------- ---------- ----------- -----------
7.4 Changes during
quarter
(a) Increases
through issues
(b) Decreases 42,727,270 42,727,270 55c 55c
through returns
of capital,
buy-backs
200,000 200,000 60c 60c
----- ----------- ---------- ---------- ----------- -----------
7.5 +Convertible debt - -
securities
(description)
---------- ---------- ----------- -----------
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
----- through ---------- ---------- ----------- -----------
securities
matured,
converted
-----------
7.7 Options Exercise Expiry date
(description and price
conversion
factor)
12,800,000 - 60c 20/12/03
1,000,000 - 60c 27/02/04
14,700,000 - $1.10 31/12/04
---------- ---------- ----------- -----------
7.8 Issued during - - - -
quarter ---------- ---------- ----------- -----------
7.9 Exercised during
quarter
200,000 - 60c 20/12/03
---------- ---------- ----------- -----------
7.10 Cancelled during - - - -
----- quarter ---------- ---------- ----------- -----------
-----------
7.11 Debentures - -
(totals only)
----- ----------- ---------- ----------
7.12 Unsecured notes - -
(totals only)
---------- ----------
Compliance statement
1 This statement has been prepared under accounting policies which
comply with accounting standards as defined in the Corporations Act or other
standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
Sign here:
Date:
Company secretary
Print name: KATHRYN DAVIES
Notes
1 The quarterly report provides a basis for informing the market how
the entity's activities have been financed for the past quarter and the effect
on its cash position. An entity wanting to disclose additional information is
encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in
respect of interests in mining tenements acquired, exercised or lapsed during
the reporting period. If the entity is involved in a joint venture agreement and
there are conditions precedent which will change its percentage interest in a
mining tenement, it should disclose the change of percentage interest and
conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for
Extractive Industries and AASB 1026: Statement of Cash Flows apply to this
report.
5 Accounting Standards ASX will accept, for example, the use of
International Accounting Standards for foreign entities. If the standards used
do not address a topic, the Australian standard on that topic (if any) must be
complied with.
== == == == ==
This information is provided by RNS
The company news service from the London Stock Exchange
END
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