Page 28 - Sun Resources Annual Report 2013

DIRECTORS’ REPORT
Company Secretary
Craig Basson
Mr Basson is a Fellow of the Institute of Chartered
Accountants, a Fellow of the Institute of Chartered
Secretaries Australia, a Graduate of the Australian Institute
of Company Directors and holds a B.Com (Hons) degree
in Accounting and Finance. Mr Basson also serves as
the Chief Financial Officer of the consolidated entity and
has over 20 years experience in auditing, accounting and
financial management of resource and other companies.
Principal Activities of the Consolidated
Entity
The principal activities of the consolidated entity during the
financial year were oil and gas exploration and investment.
There was no significant changes in these activities during
the year.
The consolidated entity’s exploration and production
activities are summarised in the “Review of Activities”
preceding this report.
Operation Results
The net loss of the consolidated entity for the financial year
after income tax was ($10,247,996) 2012 ($4,419,084).
Dividends
No dividends were paid or declared during the financial
year or subsequent to the year end.
Review of Operations
A review of the oil and gas operations of the Company
and the consolidated entity is set out in the “Review of
Activities” section of the Annual Report.
Likely Developments and expected Results
of Operations
The consolidated entity intends to continue the present
range of activities during the forthcoming year. In
accordance with its objectives, the consolidated entity
may participate in exploration and appraisal wells and
new projects and may grow its exploration effort and
production base by farm-in or new lease acquisitions.
Certain information concerning the future activity is set out
in the Review of Operations Section. Other information
on the likely developments and the expected results have
been included where they can be reasonably anticipated.
Changes in the State of Affairs
In the opinion of the Directors, there were no significant
changes in the state of affairs of the Company that
occurred during the financial year under review.
Matters subsequent to the end of the
Financial Year
Capital Raising of $13.5 million
On 8 August 2013 the Company completed a successful
capital raising of $13.5 million via private placement with a
wholly-owned subsidiary of Hancock Prospecting Pty Ltd,
representing an 18.48% interest in Sun Resources’ share
capital upon completion of the placement.
The private placement of 450 million new shares at an
issue price of $0.03 was completed under the Company’s
25% placement capacity.
Exit from Flour Bluff, East Flour Bluff and
Pita Island Fields
Subsequent to 30 June 2013, Sun Resources gave formal
notice to the Operator of the Flour Bluff area of interest that
the Company intended to withdraw as a participant in the
joint venture in terms of the Joint Operating Agreement
which has been accepted by the Operator.
Environmental and Occupational Health
and Safety Regulations
The Company’s environmental and occupational health
and safety (“OHS”) obligations are regulated under both
State and Federal Law or in the case of the Company’s
overseas interests, by the governing laws of that country.
All environmental and OHS performance obligations are
monitored by the Board and subjected from time to time
to Government agency audits and site inspections. The
Company has a policy of complying, and in most cases
exceeding its performance obligations. The Company
ensures that it complies with all necessary conditions
while exploring its permits, which is governed by the
terms of respective joint operating agreements. The
consolidated entity did not operate any of its exploration
or producing assets. The Company has established
Environmental and OHS Board Policies under which
all exploration is carried out. Both Policies ensure all
employees, contractors and other service providers are
fully acquainted with the Company’s environment and
OHS programs. The Company’s primary goal in the
environmental management of exploration activities is to
prevent unnecessary environmental impact and reinstate
sites where disturbance cannot be avoided, whilst its goal
in OHS is to provide and foster a culture of carrying out
exploration activities in a safe working environment at best
exploration practice.
The Directors have considered compliance with the
National Greenhouse and Energy Reporting Act 2007,
which requires entities to report annual greenhouse gas
emissions and energy use. For the measurement period 1
July 2012 to 30 June 2013 the Directors have assessed
that there are no current reporting requirements, but may
be required to do so in the future.
SUN RESOURCES ANNUAL REPORT 2013 26