"This is mainly as a result of accounting for 3D Oil’s share of...

"This is mainly as a result of accounting for 3D Oil’s share of the remaining cash calls due in relation to the Sea Lion exploration well of approximately $US3.5million. These cash calls were not called upon prior to 31 December 2015 however subsequent to period end the Company made an advance payment to the Joint Venture. In consideration for this advance payment to the Joint Venture, 3D Oil has been provided an indemnity by Hibiscus Petroleum Berhad (parent Company of the Operator) against all Joint Venture creditors that have not been settled by this advance payment."