Announcement PDF STRIKE ENERGY LIMITED QUARTERLY REPORT For the period ending 30 June 2015 Strike Energy Limited - Quarterly Report: September 2014 June Quarter Performance Summary Key Achievements Australia Increasing gas flows measured at the Klebb 1 and Le Chiffre 1 wells Establishment of gas flows from the Klebb 3 well Southern Cooper Basin Gas Project Sustained reservoir pressure reductions at Klebb and Le Chiffre locations confirmed Initial contingent resource estimate independently certified by leading international petroleum consultants DeGolyer and MacNaughton (as announced on 27 April 2015) Klebb 2 and 3 frac program commenced and successfully completed post quarter end with encouraging initial flows Cash of $11.7 million on hand at the end of the quarter – fully funded to meet current forward program Strong Funding Position Prepayment funding received during the quarter under the terms of the respective gas off take agreements with Orica and Orora FY15 ATO R&D rebate estimated to be in excess of $8.2 million Continued strong interest in additional gas offtake USA Operations Strike Energy Limited - Quarterly Report: June 2015 US asset portfolio net operating cash flow positive No further US investment planned 1 Managing Director’s Comments I am pleased to report on another active quarter for Strike. We continued to achieve increased gas flows at the Le Chiffre and Klebb wells and, towards the end of the quarter, commenced work on the upgrade of the three Klebb wells ahead of the Phase 3 testing program. In addition, during the quarter DeGoyler and MacNaughton certified 1C, 2C and 3C Contingent Resource estimates around the Le Chiffre and Klebb locations with gas sales prepayments also being received from Orica and Orora. The results of the flow testing program to date have been extremely encouraging, with early sustained gas flows confirming high gas saturations. Further, reservoir pressure data confirms that sustained reservoir pressure reductions have been achieved at both the Le Chiffre and Klebb locations. A direct relationship between reservoir pressure reduction and increasing gas flow exists and therefore the objective of the next phase of flow testing is to accelerate reservoir pressure reduction focused at the Klebb location to demonstrate the commercial flow potential of the formation. By the end of the quarter, Klebb 2 had been fracture stimulated and was awaiting recompletion with the workover at Klebb 3 underway. The necessary site preparation works have been undertaken for the installation of a beam-pump at Klebb 1, which is expected to be commissioned by the end of July 2015. The improved productivity of the stimulated Klebb 2 and Klebb 3 wells, in combination with a revised well completion and pump for Klebb 1, is designed to shorten the period required to satisfy the resource contingency of sustained commercial gas flows. Le Chiffre 1 was shut in for pressure build up measurement. Strike Energy Limited - Quarterly Report: June 2015 During the quarter, the Company was pleased to announce the results of the independent review of the Phase 1 testing program by DeGolyer and MacNaughton who certified 1C, 2C and 3C Contingent Resources with limited contingencies remaining to be satisfied for these resources to be reclassified as reserves. Orica and Orora made prepayments under their respective Gas Sales Agreements – to date the Company has received a total of $17 million in funding from our gas offtakers. Planning and conceptual design work has advanced for a demonstration gas processing facility that will be designed to produce sales gas. The deployment of a modular, demonstration processing and compression facility will provide invaluable information to support the development of a commercial scale project within PEL 96 that will deliver gas through existing pipeline networks into the innovative offtake agreements already in place with Orica, Orora and Brickworks. At quarter end, the Company reported cash on hand of $11.7 million and is currently estimating a rebate for eligible Research & Development (R&D) expenditure incurred during the 2015 financial year of in excess of $8.2 million which in part will be used to repay the Macquarie facility. As a result, the Company is well funded to complete its planned activities. We are right on track to achieve our near term objective of commercial gas flows. Below: Klebb 3 frac operations 2 Southern Cooper Basin Gas Project: Strike’s Strategic Objectives Strategic objectives Timing Supply targets 2020/21 Production FID Cost competitive third party gas supply for LNG exporters Development ~5 Tcf over 20 years Equivalent to gas supply for one LNG train Expanded resource delineation across STX acreage 2017/18 Production New source of affordable gas supply for east coast domestic customers ~1 Tcf over 20 years FID Initial development Equivalent to 35% of NSW gas supply Current PEL 96 Appraisal/ Commercialisation Strike is positioning the Southern Cooper Gas Project as a long-life resource for domestic and export gas supply Strike Energy Limited - Quarterly Report: June 2015 3 Southern Cooper Basin Gas Project: Quarterly Achievements Field operations at PEL 96 (STX 66.7%, EWC 33.3%) during the quarter were focused on improving the performance of the Klebb wells, with enhanced flow management procedures being implemented and the fracture stimulation of Klebb 2 being completed. Le Chiffre 1 was shut-in for an extended pressure build-up to determine the average reservoir pressure reduction achieved to date. At the end of the quarter, Klebb 2 had been fracture stimulated and was awaiting recompletion, the workover had commenced at Klebb 3 and Klebb 1 was awaiting conversion to a beam-pump. During the quarter, DeGolyer and MacNaughton (D&M) completed an independent review of the historical PEL 96 flow test data and assessed an initial ‘2C’ Contingent Resource of 155.4 Bcf (103.6 Bcf Net to STX) for the producing zones only in limited areas around the Le Chiffre 1 and Klebb 1 wells. A small number of contingencies remain to be satisfied to reclassify this contingent resource estimate to a reserve, with further testing and the establishment of sustained commercial gas flow rates from the Patchawarra Vu coals necessary to better define gas and water production rates and volumes; and the well drainage pattern and spacing. Importantly, the project already satisfies a range of other typical resource contingencies including low well costs, gas sales agreements, proximity to pipeline infrastructure and market pricing. Using actual cost data, D&M also estimated the minimum volume of gas required to underpin a commercial development or ‘threshold economic field size’ (TEFS) as being 150 Bcf of sales gas (gross). Le Chiffre Flow Testing Flow testing operations at Le Chiffre 1 commenced on 8 November 2014. During the quarter flow test operations continued with sustained gas flows and a cumulative 87,000 bbls of water being recorded prior to shutting-in the well late in April for an extended pressure-build-up. The purpose of the shut-in was to confirm the decrease in average reservoir pressure realised to date. Strike Energy Limited - Quarterly Report: June 2015 The reservoir pressure build-up data combined with nearly four months of flow test data confirms that a sustained average reservoir pressure reduction has been achieved at Le Chiffre and that the well is connected to a large reservoir volume. The sustained decrease in average reservoir pressure confirms that the well is not directly connected to external aquifers, while the large drainage area means that fewer wells will likely be required to develop the resource and a high per well ultimate gas recovery is possible. Klebb Flow Testing Flow testing operations at Klebb 1 commenced on 31 October 2014 and a cumulative five months of flow test data and 60,000 bbls of water had been produced from the well at the end of the quarter. Gas continued to be measured and flared during the quarter. Modified well start-up and ramp-up procedures resulted in significant performance improvements during the quarter, with daily rates consistently above previous peak rates. Pressure build-up data acquired during the period also confirmed that a sustained average reservoir pressure reduction has been achieved. The Klebb 2 well was flow tested intermittently during the period prior to pulling the completion and fracture stimulating the existing 35m thick Patchawarra Vu Upper. Pressure data has confirmed that Klebb 2 is in pressure communication with Klebb 1. Klebb 3 productivity continued to improve during the period, with maximum water flow in excess of 400 bbls/d being repeatedly achieved and gas production being initiated and sustained prior to the shut-in for workover and fracture stimulation. Results from Klebb 3 have confirmed that unstimulated wells can be productive. Workover and fracture stimulation activities were completed following the end of the quarter and the well will be returned to flow test in the near future. The improved productivity of the stimulated Klebb 2 and Klebb 3 wells, in combination with a revised well completion and pump for Klebb 1, is designed to shorten the period required to satisfy the resource contingency of sustained commercial gas flows. 4 Southern Cooper Basin Gas Project: Phase 3 Program Update Klebb pilot production test schematic Flow testing of the three Klebb wells over the coming months is a critical step towards confirmation of the commercial potential of the SCBGP. Phase 3 Program Objective K1 K3 Testing to date has clearly established a direct relationship between pressure reduction and increased gas flows, but the relationship between pressure and gas volumes recovered from coal reservoirs is not linear. While modest pressure reductions have been achieved to date, we know that more than 50% of the gas stored by these coals will only be recovered at pressures in the 500-1,000 psi range (or less than 20-30% of the initial reservoir pressure). K2 The objective of the Phase 3 program is therefore to accelerate reduction of reservoir pressure to maximise the volume of gas able to desorb from the coal. The Klebb wells are designed to facilitate a close spaced, confined flow test of the Patchawarra Vu Upper coal horizon centred on Klebb 1. Program The larger fracs now completed at Klebb 2 and 3 are designed to increase the productivity of these offset wells to compete with Klebb 1. This will constrain the Klebb 1 drainage volume allowing a more rapid pressure decline. Vu Upper (35m seam) Klebb 3 Klebb 1 Klebb 2 Proppant pumped 104,000 lbs 59,000 lbs 125,800 lbs Fluid pumped 1,780 bbls 460 bbls 1,803 bbls PUMP TYPE Jet Beam Jet FRAC DETAILS Strike Energy Limited - Quarterly Report: June 2015 Vu Upper frac Following completion of the workover program, we expect the combined flow capacity of the Klebb wells to be more than double the maximum flow rate achieved to date of 800 – 900 bbls water per day. Klebb 1 has also been re-configured for downhole gas and water separation so that much lower bottom hole flowing pressures can be maintained. A controlled flow rate ramp up will be implemented based on the procedures developed over the last 6 months, which have proved effective in optimising the long-term productivity of the formation. Re-commissioning of the Klebb wells and pumps is scheduled over the coming week. 5 Southern Cooper Basin Gas Project: PEL 96 Commercialisation Strategy Objective Funding (1) (2) Commence Q3 2015 Frac Klebb 2 & 3 Install new pumps at Klebb 1, 2 & 3 Phase 3 Klebb pilot test Funded (1) Phase 1 Commence Q4 2015 Objective Pre-development activities Funding (1) Funded (1) Increased reserves and resources Le Chiffre pilot wells + testing Continue Klebb pilot production Phase 4 Phase 2 Infill wells Commence Q1 2015 Continue testing Le Chiffre 1 and Klebb 1-3 Install new pump at Klebb 1 Understand multi-well pressure drawdown effects Dec 2014 Single well tests Le Chiffre 1 and Klebb 1 Drill and complete Klebb 2 and 3 Demonstration project Planning Objective Commercial gas flows Initial reserves In progress Objective Build gas flows (in progress) Objective Sustained gas flows Technical feasibility Commercial feasibility (1) Funded from existing cash resources (2) Activities will be refined based on outcomes of Phase 3 planned activity A disciplined, capital efficient and funded appraisal program is being followed to establish commerciality Strike Energy Limited - Quarterly Report: June 2015 6 US Operations: Production and Operations Update US Exploration and Evaluation Activities The Company continues to hold its interests in the Permian Basin, Eagle Ford Shale and Eagle Landing Joint Ventures with no exploration and development activity occurring during the quarter. EAGLE LANDING JOINT VENTURE The Company has no plans for further investment in these projects in the near term. US Production Strike currently produces oil and gas from three independent assets. Total oil production for the quarter was 4,166 bbls down 11% on the prior quarter and gas production was 73,298 Mcf down 2% on the prior quarter. JUN QTR 2015 MAR QTR 2015 QUARTERLY CHANGE Gas (Mcf) 68,073 71,736 (5%) Oil (Bbl) 1,486 1,306 14% Total Revenue (USD’000) 258 264 (2%) PERMIAN BASIN – MB CLEARFORK PROJECT Gas (Mcf) 4,586 2,392 92% Oil (Bbl) 1,986 2,669 (26%) The Eagle Landing Joint Venture (Strike 40% WI) produced 68,073 Mcf of gas and 1,486 bbls of oil net to Strike during the quarter, down 5% for gas and up 14% for oil on the previous quarter. Total Revenue (USD’000) 106 138 (23%) Gas (Mcf) 639 1,016 (37%) The MB Clearfork Project (Strike 25% WI) produces oil from 20 conventional Permian Basin wells in Martin County, Texas. During the quarter, the MB Clearfork Project produced 4,586 Mcf of gas and 1,986 bbls of oil net to Strike, up 92% for gas and down 26% for oil from the previous quarter.* Oil (Bbl) 694 691 - Total Revenue (USD’000) 39 34 15% The Eagle Ford shale project (Strike 27.5% WI) produces oil and gas from the Bigham 1H well in Fayette County, Texas. The well produced 639 Mcf of gas and 694 bbls of oil net to Strike during the quarter, down 37% for gas and no change for oil on the previous quarter. The decrease in gas production for the quarter is as a result of the well’s normal expected decline. Gas (Mcf) 73,298 75,144 2% Oil (Bbl) 4,166 4,666 (11%) Total Revenue (USD’000) 403 436 (8%) Total Revenue (AUD’000) 531 571 (7%) EAGLE FORD SHALE – BIGHAM 1H TOTAL Based on industry convention energy equivalence 6 Mcf of gas = 1 Bbl of oil Average realised prices during the quarter were US$50.89/Bbl, up 9% from US$46.72/ Bbl in the previous quarter for oil and US$2.61/Mcf, down 10% from US$2.90/Mcf for gas in the previous quarter. * Gas revenue for the Quarter includes 2,197 Mcf of gas in relation to production in prior quarters received in the quarter. Strike Energy Limited - Quarterly Report: June 2015 7 Finance, Commercial and Corporate Update Corporate Office 120B Underwood Street Paddington NSW 2021 T: +61 2 9397 1420 E: strike@strikeenergy.com.au W: www.strikeenergy.com.au During the June quarter the Company continued to advance a number of its financial and commercial initiatives in support of the appraisal and accelerated development and commercialisation of the SCBGP. • 120B Underwood Street Paddington NSW 2021 T: +61 2 9397 1420 • ASX : STX Securities on Issue Shares: 833,330,946 Options: 11,700,000 Performance Rights: 28,650,000 Analyst Coverage Firm Analyst Euroz Michael Skinner Ord Minnett John Young Bell Potter Peter Arden The Company continues to advance its planning for an initial development project within PEL 96. During the quarter, work has continued to scope and assess the feasibility of a demonstration scale modular gas processing facility that will be designed to process, compress and deliver sales gas produced from the multi-well testing program into the Moomba to Adelaide pipeline. Discussions to date continue to yield significant interest and support from engineering groups and equipment suppliers. • Discussions with commercial and industrial gas users regarding further offtake are ongoing. These discussions continue as part of the Company’s strategic planning initiatives and in response to the successful achievement of all of the key objectives for the current appraisal program with the SCBGP. • The Company accessed the remaining tranche of funding under the terms of the previously announced $5.9 million R&D Financing facility with Macquarie Bank (the Macquarie Facility). The Macquarie Facility is collateralised in full by the proceeds of the Company’s 2015 ATO R&D refund which is expected to be received by November 2015, at which time the facility will be repaid in full. Based on eligible R&D activities undertaken during the FY15 year, the Company estimates that a rebate in excess of $8.2 million will be received. • The Company completed the quarter with $11.7 million cash on hand and together with the forecast net proceeds from the R&D refund, the Company is well placed to continue its’ field operations and demonstration scale processing facility planning and preliminary design. Key highlights include: Registered Office Securities Exchange • • As outlined in the Company’s ASX announcement on 27 April 2015 and following the completion of the Independent Review by DeGolyer and MacNaughton (Independent Review), the notice for the final tranche of prepayment funding under the terms of the 45PJ Orora Gas Sales Agreement was issued. On 6 May 2015, the Company received the final tranche of prepayment funding from Orora. On 27 April 2015, Orica was provided with a copy of the Independent Review and also notified that the 30 day period to elect to make their first gas pre-payment under their 250PJ Gas Sales Agreement had commenced. As outlined in the Company’s ASX announcement on 27 May 2015, the Company received notification from Orica that it had elected to make the first pre-payment of $7.5 million under the terms of the Orica GSA. These funds were received by the Company on 27 May 2015. In connection with the above notification, Orica elected to not exercise the Orica Option, (which was approved by Shareholders at a General Meeting of the Company on 28 May 2014) which would have enabled Orica to subscribe for up to 20.833 million new shares in the Company at a minimum price of $0.12 per share for a payment of $2.5 million. As a result, the Orica Option lapsed on 27 May 2015. Strike Energy Limited - Quarterly Report: June 2015 8 Southern Cooper Basin Gas Project: Asset summary Moomba Prospective Resource PEL 96 4,492 Bcf* PEL 96 Phase One Area 1,123Bcf* 2C Marsden 1 104 Bcf Davenport 1 PEL 94 STX 35% PEL 95 STX 50% Mount Isa Gladstone Le Chiffre 1 Klebb production testing area Moomba PELA 640 STX 100% Brisbane PEL 96 STX 66.67% 0 20 Sydney Adelaide Kilometers PEL 96 Phase One Area Strike Phase One Area wells drilled Gas Pipeline Strike Wells Drilled Oil Pipeline PEL 96 Offset Wells Strzelecki Track PEL 96 and PELA - STX Operated Hobart * Mean estimate (net to Strike determined on a probalistic basis) per ASX announcement dated 19 Feb 2014 and adjusted for announced contingent resource estimate per ASX announcement dated 27 April 2015. PEL Net STX Acres PEL 94 77,925 PEL 95 160,248 PEL 96 443,880 ** The estimated quantities of petroleum that may potentially be recovered by the application of a future develpment project relate to PELA 640 undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Futher exploration appraisal and evaluation is required to determine the existence of a significant quanity of potentially moveable hydrocarbons. Total 850,786 1,532,839 Strike has an ideally positioned long-life multi-Tcf resource to supply into ~40 Tcf Eastern Australian gas demand over the next twenty years Strike Energy Limited - Quarterly Report: June 2015 9 Important Notice This presentation does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security and neither this presentation nor anything contained in it shall form the basis of any contract or commitment. Reliance should not be placed on the information or opinions contained in this presentation. This presentation does not take into consideration the investment objectives, financial situation or particular needs of any particular investor. Any decision to purchase or subscribe for any shares in Strike Energy Limited should only be made after making independent enquiries and seeking appropriate financial advice. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, Strike Energy Limited and its affiliates and related bodies corporate, and their respective officers, directors, employees and agents disclaim liability (including without limitation, any liability arising from fault or negligence) for any loss arising from any use of or reliance on this presentation or its contents or otherwise arising in connection with it. Contingent Resource Estimate DeGolyer and MacNaughton was engaged by Strike to undertake an Independent Review of the gas resource in PEL 96 based on the data and information acquired to date by Strike from the drilling and flow testing programs carried out at the Le Chiffre 1 and Klebb 1, Klebb 2 and Klebb 3 wells. DeGolyer and MacNaughton has estimated a contingent gas resource on a probalistic basis for the initial zones that have been flow tested within the Le Chiffre 1 and Klebb 1 wells. As these zones only represent a portion of the net coal encountered at these locations, successful flow testing of additional zones will enable an increased contingent resource to be booked. The table below summarises the Contingent Resource Estimates. Contingent Gas Resource Estimates - PEL 961 Well 1C2 2C2 3C2 Statements contained in this presentation, including but not limited to those regarding the possible or assumed future costs, performance, dividends, returns, production levels or rates, oil and gas prices, reserves, potential growth of Strike Energy Limited, industry growth or other projections and any estimated company earnings are or may be forward looking statements. Productive area (acres) 2,171 2,938 3,931 Le Chiffre 1 - Patchawarra Vu Upper and Vu Lower zones (bcf) 62.9 93.2 132.4 Klebb 1 - Patchawarra Vu Upper zone 9 (bcf) 42.1 62.2 93.3 Such statements relate to future events and expectations and as such involve known and unknown risk and uncertainties, many of which are outside the control of Strike Energy Limited. Actual results, actions and developments may differ materially from those expressed or implied by the statements in this presentation. Total Gross Contingent Resource (bcf) 105.00 155.4 225.7 1. Subject to any continuing obligations under applicable law and the Listing Rules of ASX Limited, Strike Energy Limited does not undertake any obligation to publicly update or revise any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such statement is based. Contingent Resource Estimates have been prepared in accordance with the Petroleum Resources Management System “PRMS”. Contingent Resource Estimates are those quantities of gas (produced gas less carbon dioxide and fuel gas) that are recoverable from known accumulations but which are not yet considered commercially recoverable. 2. 1C, 2C and 3C estimates in this table are P90, P50 and P10 respectively for each well and have been summed arithmetically 3. Net to Strike’s 66.7% interest in PEL 96 Strike Energy Limited - Quarterly Report: June 2015 10 Important Notice: continued Competent Persons Statement The information in this presentation that relates to the PEL 96 contingent resources estimate has been taken from the independent reports as prepared by DeGolyer and MacNaughton, a leading independent international petroleum industry consultancy firm, and has been reviewed by Mr Chris Thompson (Chief Operating Officer of the Company). All other reported resource and or reserves information in this presentation is based on, and fairly represents, information prepared by, or under the supervision of Mr Thompson. Mr Thompson holds a Graduate Diploma in Reservoir Evaluation and Management and Bachelor of Science Degree in Geology. He is a member of the Society of Petroleum Engineers and has worked in the petroleum industry as a practicing reservoir engineer for over 20 years. Mr Thompson is a qualified petroleum reserves and resources evaluator within the meaning of the ASX Listing Rules and consents to the inclusion in this release of the resource and or reserves information in the form and context in which that information is presented. About DeGolyer and MacNaughton The information contained in this release pertaining to the PEL 96 contingent resources estimate is based on, and fairly represents, information prepared under the supervision of Mr Paul Szatkowski, Senior Vice President of DeGolyer and MacNaughton. Mr Szatkowski holds a Bachelor of Science degree in Petroleum Engineering from Texas A&M, has in excess of 40 years of relevant experience in the estimation of reserves and contingent resources, and is a member of the International Society of Petroleum Engineers and the American Association of Petroleum Geologists. Mr Szatkowski is a qualified petroleum reserves and resources evaluator within the meaning of the ASX Listing Rules and consents to the inclusion of the contingent resource estimate related information in the form and context in which that information is presented. Strike Energy Limited - Quarterly Report: June 2015 11 Appendix 5B Mining exploration entity quarterly report Rule 5.3 Appendix 5B Mining exploration entity quarterly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10 Name of entity STRIKE ENERGY LIMITED ABN Quarter ended (“current quarter”) 59 078 012 745 30 June 2015 Consolidated statement of cash flows Current quarter $A’000 Year to date (12 months) $A’000 Receipts from product sales and related debtors (1) Payments for (a) exploration & evaluation (b) development (c) production (2) (d) administration Dividends received Interest and other items of a similar nature received Interest and other costs of finance paid Income taxes paid Other (3) 10,765 (3,410) ‐ (312) (1,710) ‐ ‐ ‐ ‐ ‐ 281 13,811 (21,651) (71) (2,411) (4,534) ‐ ‐ ‐ ‐ ‐ 6,787 Net operating cash flows 5,614 (8,069) ‐ ‐ (7) ‐ ‐ (11) ‐ ‐ ‐ ‐ ‐ ‐ 5,032 ‐ ‐ ‐ ‐ ‐ (7) 5,021 5,607 (3,048) Cash flows related to operating activities 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Cash flows related to investing activities 1.8 1.9 1.10 1.11 1.12 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets Proceeds from sale of: (a) prospects (4) (b) equity investments (c) other fixed assets Loans to other entities Loans repaid by other entities Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward) (1) Receipts from product sales include prepayment amounts received under the terms of the Groups various off take arrangements. (2) Production payments include prepayments made for gas transmission rights for the Groups US assets. (3) Other for YTD includes the receipt of $ 5.8 million from the ATO relating to the FY14 R&D return. (4) As announced on 11 July 2014 the Group entered into a Purchase and Sale Agreement with Penn Virginia Oil & Gas to sell 1,617 of its net acres in Lavaca County Texas (USA). Proceeds of US$ 4.6 million were initially received on 29 August 2014 with a second completion payment being received on 7 November 2014. + See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 1 Appendix 5B Mining exploration entity quarterly report 1.13 Total operating and investing cash flows (brought forward) 5,607 (3,048) Cash flows related to financing activities 1.14 1.15 1.16 1.17 1.18 1.19 Proceeds from issues of shares, options (net of costs) Proceeds from sale of forfeited shares Proceeds from borrowings (2) Repayment of borrowings Dividends paid Other: a. Interest and other cost of financing paid b. Interest & other items of a similar nature received ‐ ‐ 800 (255) ‐ ‐ ‐ 5,872 (1,043) ‐ (325) 26 (1,048) 202 Net financing cash flows 246 3,983 Net increase in cash held 5,853 935 1.20 1.21 Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20 5,809 32 10,624 135 1.22 Cash at end of quarter 11,694 11,694 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 item 1.2 (a) 1.24 Aggregate amount of loans to the parties included in item 1.10 1.25 278 ‐ Explanation necessary for an understanding of the transactions (a) In addition to the respective salary and fee payments made to Directors, during the quarter the Group also made payments to: ‐ M H Carnegie & Co Pty Ltd (a director related entity via Mr M Carnegie) under the terms of an office leasing agreement ($28,807). ‐ Mr D Baker for consulting services for the period from March to June 2015 ($63,800). ‐ Rowe Strategic Management Group Pty Ltd (a director related entity via Ms J Rowe) for procurement consulting costs ($3,825). Non‐cash financing and i