6 May 2020 07:00
Appendix 5B
Mining exploration entity or oil and gas exploration entityquarterly cash flow report
Name of entity | ||
OILEX LTD | ||
ABN |
| Quarter ended ("current quarter") |
50 078 652 632 |
| 31 MARCH 2020 |
Consolidated statement of cash flows | Current quarter$A'000 | Year to date (9months)$A'000 | |
1. | Cash flows from operating activities | - | - |
1.1 | Receipts from customers | ||
1.2 | Payments for | (353) | (787) |
| (a) exploration & evaluation (if expensed) | ||
| (b) development | - | - |
| (c) production | (47) | (154) |
| (d) staff costs | (203) | (618) |
| (e) administration and corporate costs | (334) | (712) |
1.3 | Dividends received (see note 3) | - | - |
1.4 | Interest received | 0 | 1 |
1.5 | Interest and other costs of finance paid | (2) | (23) |
1.6 | Income taxes paid | - | - |
1.7 | Government grants and tax incentives | - | - |
1.8 | Other (provide details if material) | - | - |
1.9 | Net cash from / (used in) operating activities | (939) | (2,293) |
| |||
2. | Cash flows from investing activities | - | - |
2.1 | Payments to acquire: | ||
| (a) entities | ||
| (b) tenements | - | (122) |
| (c) property, plant and equipment | (2) | (4) |
| (d) exploration & evaluation (if capitalised) | - | - |
| (e) investments | - | - |
| (f) other non-current assets | - | - |
2.2 | Proceeds from the disposal of: | - | - |
| (a) entities | ||
| (b) tenements | - | - |
| (c) property, plant and equipment | - | - |
| (d) investments | - | - |
| (e) other non-current assets | - | - |
2.3 | Cash flows from loans to other entities | - | - |
2.4 | Dividends received (see note 3) | - | - |
2.5 | Other (provide details if material) | - | - |
2.6 | Net cash from / (used in) investing activities | (2) | (126) |
| |||
3. | Cash flows from financing activities | 330 | 2,315 |
3.1 | Proceeds from issues of equity securities (excluding convertible debt securities) | ||
3.2 | Proceeds from issue of convertible debt securities | - | - |
3.3 | Proceeds from exercise of options | - | - |
3.4 | Transaction costs related to issues of equity securities or convertible debt securities | (40) | (181) |
3.5 | Proceeds from borrowings | 381 | 381 |
3.6 | Repayment of borrowings | - | (330) |
3.7 | Transaction costs related to loans and borrowings | - | - |
3.8 | Dividends paid | - | - |
3.9 | Other (provide details if material) | - | - |
3.10 | Net cash from / (used in) financing activities | 671 | 2,185 |
| |||
4. | Net increase / (decrease) in cash and cash equivalents for the period |
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4.1 | Cash and cash equivalents at beginning of period | 402 | 358 |
4.2 | Net cash from / (used in) operating activities (item 1.9 above) | (939) | (2,293) |
4.3 | Net cash from / (used in) investing activities (item 2.6 above) | (2) | (126) |
4.4 | Net cash from / (used in) financing activities (item 3.10 above) | 671 | 2,185 |
4.5 | Effect of movement in exchange rates on cash held | 1 | 9 |
4.6 | Cash and cash equivalents at end of period | 133 | 133 |
5. | Reconciliation of cash and cash equivalentsat the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts | Current quarter$A'000 | Previous quarter$A'000 |
5.1 | Bank balances | 133 | 402 |
5.2 | Call deposits | - | - |
5.3 | Bank overdrafts | - | - |
5.4 | Other (provide details) | - | - |
5.5 | Cash and cash equivalents at end of quarter (should equal item 4.6 above) | 133 | 402 |
6. | Payments to related parties of the entity and their associates | Current quarter$A'000 |
6.1 | Aggregate amount of payments to related parties and their associates included in item 1 | 99 |
6.2 | Aggregate amount of payments to related parties and their associates included in item 2 | - |
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments | ||
Director's fees, consulting fees and superannuation.
7. | Financing facilitiesNote: the term "facility' includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. | Total facility amount at quarter end$A'000 | Amount drawn at quarter end$A'000 |
7.1 | Loan facilities | 950 | 640 |
7.2 | Credit standby arrangements | - | - |
7.3 | Other (please specify) | - | - |
7.4 | Total financing facilities | 950 | 640 |
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7.5 | Unused financing facilities available at quarter end | 310 | |
7.6 | Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. | ||
Loan facility details: · Series B facility $A250,000: Lender- Republic Investment Management Pte Ltd, fully drawn 26 September 2018, interest rate 5%, unsecured, repayment date extended to 31 July 2020. · Series C facility GBP£125,000: Lender- Republic Investment Management Pte Ltd, amount drawn at quarter end GBP£60,000, interest rate 5%, unsecured, repayment date 1 August 2020. · Series D facility GBP£225,000: Lender- Lombard Bank Malta plc, amount drawn at quarter end GBP£135,000, interest rate 5%, unsecured, repayment date extended from 1 August 2020 to 1 March 2021. | |||
8. | Estimated cash available for future operating activities | $A'000 |
8.1 | Net cash from / (used in) operating activities (Item 1.9) | (939) |
8.2 | Capitalised exploration & evaluation (Item 2.1(d)) | - |
8.3 | Total relevant outgoings (Item 8.1 + Item 8.2) | (939) |
8.4 | Cash and cash equivalents at quarter end (Item 4.6) | 133 |
8.5 | Unused finance facilities available at quarter end (Item 7.5) | 310 |
8.6 | Total available funding (Item 8.4 + Item 8.5) | 443 |
8.7 | Estimated quarters of funding available (Item 8.6 divided by Item 8.3) | 0.5 |
8.8 | If Item 8.7 is less than 2 quarters, please provide answers to the following questions: | |
| 1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? | |
| Answer: Following the onset of Covid-19, the Company has substantially restructured its operating overheads whereby forecast cash outflows for the June quarter have been substantially reduced to approximately AUD325,000.
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| 2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? | |
| Answer: Following the end of the quarter, the Company has already arranged an equity capital raising of GBP250,000. Further equity capital raisings will be considered in the September quarter, if required.
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| 3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? | |
| Answer: Yes. The Company has limited operating expenditure planned for the next two quarters as summarised below:
India - The Company is in the final stages of implementing its Cambay settlement agreement with GSPC with field activities suspended pending completion of this settlement. UKCS - The Company is awaiting government approval for the transfer of the Doyle-Peel licences by the OGA with no activities are planned pending the transfer. Cooper- The Company is presently in detailed discussions for the proposed sale of its Cooper Basin assets.
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Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Date: 5 May 2020
Authorised by: Mark Bolton - Executive Director
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.