0.002 Stack Cleared - here we go!, page-19

Perspective required before getting too excited about the long road ahead.

DIRECTORS’ REPORT continued
Changes in Capital
On 9 October 2015 the Company:
 Issued 50,000,000 unlisted options exercisable at $0.001 expiring on 9 October 2017 to Mac Equity Partners as a capital raising fee pursuant to the mandate for the capital raising completed in March 2015; and,
 Issued 50,000,000 ordinary shares to a consultant as fees.
On 30 November 2015 the Company:
 Issued 104,061,089 shares to Directors after approval from shareholders at the 2015 Annual General Meeting as outlined in the Notice of Annual General Meeting dated 12 October 2015; and
 Cancelled all of the 54,500,000 Unlisted Share Rights under TEG Employee Rights Plan with Performance Vesting Criteria.
As at 31 December 2015 the Company had 1,080 shareholders and 3,349,023,471 ordinary fully paid shares on issue with the top 20 shareholders holding 60.2% of the total issued capital.
Operating results
The net profit of the Consolidated Entity after income tax for the period ended 31 December 2015 was $0.230M (2014 stated net loss: $1.845M). The net profit consisted mostly of:
 Oil and gas sales revenues reduced to nil (2014: $0.831M) due to decline of well production and ceasing of production in October 2014;
 Operating expenses decreased to $0.192M (2014: $0.944M) again due to decline of well production and ceasing of production in October 2014;
 Share based payments expenses of $1.788M were reversed in the half year due to participants in the Company’s employee rights Plan not meeting non-market vesting conditions. As a result the share based payments expense decreased to ($1.588M) (2014: ($0.071M)) thereby having a significant effect on the overall profit position of the Company.
Financial position
The net assets of the Consolidated entity at 31 December 2015 decreased to ($2.908M) (June 2015: ($1.534M)). This resulted mostly from a reduction in current assets $0.297M (June 2015: $0.436M) and an increase in trade and other payables to $2.860M (June 2015: $1.626M).
The consolidated net assets consisting largely of the following:
 $0.080M (June 2015: $0.238M) held in cash assets;
 $2.055M (June 2015: $1.959M) of PSC interest;
 $2.860M (June 2015: $1.626M) being trade payables;
 $2.055M (June 2015: $1.959M) of Pase PSC payable.
At 31 December 2015 the Consolidated Group had cash of $0.080M (June 2015: $0.238M) and no debt.
Dividends
During the period the Company did not pay a dividend (2014: nil).