Page 24 - Sun Resources 2014 Annual Report

Matters Subsequent to the End of the
Financial Year
Resignation of Managing Director
Dr Govert van Ek resigned for personal reasons on the
9 July 2014. Mr Matthew Battrick has agreed to be the
Company’s Acting Chief Executive Officer while a search is
conducted for a new Managing Director.
Expansion of Lease Position in the Southern Woodbine
The Company expanded its lease position in the Southern
Woodbine in August 2014 by acquiring the rights to oil
and gas leases covering approximately 1,980 gross acres
in Southern Leon County targeting the Lower Woodbine
Formation at a cost of $1,822,168.
Capital Raising of $10 million
On 28 August 2014 the Company announced a $10 million
Capital Raising. The Capital Raising comprised a $4 million
institutional placement and a $6 million renounceable rights
issue. Net proceeds from the Capital Raising are to be
used to fund the imminent drilling, multi-stage fraccing and
subsequent flow testing of Jack Howe #1H Lateral, procure
further leases in the Southern Woodbine Oil Project areas
and fund working capital requirements.
The institutional placement has been completed and the
renounceable rights issue is planned to be completed on
the 10 October 2014. The renounceable rights issue is lead
managed and partially underwritten by Patersons Securities
Limited up to $5,250,000.
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
programmes. 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 2013 to 30 June 2014
the Directors have assessed that there are no current reporting
requirements, but may be required to do so in the future.
Remuneration Report (audited)
Voting and comments made at the
Company’s 2013 Annual General Meeting
Sun Resources NL received more than 99% of ‘yes’ votes
on its remuneration report for 2013 financial year. The
Company did not receive any specific feedback at the AGM
or throughout the year on its remuneration practices.
This report details the nature and amount of remuneration
for each Director of Sun and specified executives (Executive
Officers) involved in the management of the Company who
were not Directors.
The remuneration report is set out under the following main
headings:
A Principles used to determine the nature and amount of
remuneration (audited)
B Details of remuneration (audited)
C Service agreements (audited)
D Share-based compensation (audited)
E Additional information (audited)
A Principles used to determine the nature
and amount of remuneration (audited)
The performance of Sun Resources depends upon the
quality of its Directors, executives and staff. To achieve its
financial and operating activities, the Company must attract,
motivate and retain highly skilled Directors and executives.
The Company embodies the following principles in its
remuneration framework:
Provide competitive awards to attract high calibre executives;
- Structure remuneration at a level and mix
commensurate with their position and responsibilities
within the Company so as to reward executives for
Company and individual performance;
- Align executive incentive rewards with the creation of
value for shareholders.
Executive Remuneration Policy
The policy is for executives to be remunerated on terms that
are competitive with those offered by entities of a similar size
within the same industry. Packages are reviewed annually by
the remuneration committee with any recommendation of
this committee reviewed and approved by the Board.
DIRECTORS’ REPORT
22  SUN RESOURCES ANNUAL REPORT 2014