Annual Report 2024

Synergia Energy Ltd

30 September 2024

 

http://www.rns-pdf.londonstockexchange.com/rns/1019G_1-2024-9-27.pdf

SYNERGIA ENERGY LTD

ABN 50 078 652 632

ANNUAL REPORT

Year Ended 30 June 2024

 

CHAIRMAN'S REVIEW

Dear Shareholder,

Over the last year the Company has continued to deliver on its carbon reduction strategy focusing on the production of gas as a key transition energy source and carbon capture and sequestration ("CCS").

The Company's goal of monetising it's significant gas reserves at the Cambay field in India received a major boost via the signing of a farm-out agreement with Selan Exploration Technology Limited ("Selan") on 14 February 2024. Government of India approval for the Selan JV was gained on 19 July 2024. The aim of the 18‑month, US$20 million work program in which Synergia is being carried by Selan in exchange for a 50% interest in the Cambay production sharing contract is increased production, and on completion of the work program, sufficient cash flow to self-fund the full field development.

Gas production from the Cambay field can help displace coal as fuel for power stations in India, thereby reducing carbon emissions.

CCS is central to global CO₂ emissions reduction strategies and the Company is actively engaged in CCS in both the UK and India.

In the UK, Synergia are operators of the CS019 Camelot carbon storage license in the Southern North Sea which is central to its Medway Hub CCS project. Together with JV partners, Wintershall Dea, the Company has been progressing the NSTA-defined work program on the license as part of the early risk assessment and site characterisation phase of the project. The Medway Hub Camelot CCS project has the goal to permanently store 6.5 million tonnes of CO₂ per annum from 2029/2030.

In India the Company is progressing its Cambay CCS scheme which seeks to store CO₂ emissions from gas- and coal-fired power stations in the vicinity into the extensive Olpad formation that underlies the hydrocarbon reservoirs in the Cambay PSC. The Company aims to be in the vanguard of CCS development in India.

Synergia's management team's experience and expertise in gas storage projects and field development projects has given the Company an advantage in progressing its CCS and Cambay field development projects. The team is being expanded to incorporate additional technical resources.

Corporate development continues with emphasis on shareholder interaction and marketing activities to AIM institutional investors aided by the Company's brokers, Panmure Liberum.

The tangible progress made by the Company over the last 12 months would not have been possible without the ongoing support of its long-term shareholders, who have provided the management team the scope to transform the Company towards its goal of being a significant transition-orientated company in the energy sector. The outlook for the Company remains positive and Synergia's management team and the board of directors are committed to demonstrating added value to its shareholders. 

On behalf of the Board, I wish to thank our staff, contractors, local communities, shareholders and stakeholders for their ongoing support of the Company.

Mr J Salomon

Non-Executive Chairman

30 September 2024

BUSINESS REVIEW

Industry Overview

The global energy sector has adapted to the new geo-political realities with sustained high oil and gas prices caused by multiple conflict zones and the need to reduce fossil fuel reliance to address climate change concerns being the overriding factors.

In the UK and in Europe in general, the trend towards renewable energy continues to gain momentum with the realisation that natural gas for flexible power generation will be required for at least the next few decades. European governments, including the new UK government, seek to reduce fossil fuel production via licensing restrictions and higher taxation. This will result in increased reliance on imported oil and gas, the latter in the form of both pipeline gas and LNG.

In India, the Directorate of Hydrocarbons ("DGH") has publicly announced the urgent need for increased domestic production of oil and gas to address the current high levels of imports. The DGH seeks to reduce the 80% level of oil imports and the high cost of imported LNG that has driven the use of coal-fired power stations to even higher levels.

Carbon Capture and Storage ("CCS") has been adopted by most of the major industrial nations' governments as the primary method to reduce CO₂ emissions. The new UK government is believed to wish to continue the momentum for CCS developments in the UK. In India, the DGH has underlined its commitment to CCS.

The supply chain for energy sector services and equipment appears to be improving as suppliers adapt to the Covid pandemic hiatus. The cost of equipment and services is nonetheless significantly higher than pre-pandemic levels.

Synergia Energy Strategy

The Company's overarching strategy is one of carbon reduction, and we have positioned ourselves at the forefront of some very exciting initiatives. The development of the Cambay gas field in India has the potential to displace LNG imports and to reduce the reliance on coal-fired power stations thereby reducing overall CO₂ emissions. Furthermore, the Company's two CCS projects (one in the UK and one in India) have the potential to affect a material reduction in CO₂ emissions from power stations and other significant industrial CO₂ emitters.

The Synergia management team has proven in-depth experience concerning gas storage in the UK, which directly informs our strategy. Three of the Synergia team were instigators of the last commercial gas storage facility to be built in the UK - the Humbly Grove gas storage facility in Hampshire. The same three team members were founders of Star Energy, which in addition to oil and gas production and power generation, became a leading gas storage development company. Star Energy studied most of the UKCS depleted reservoirs for gas storage suitability and had multiple gas storage projects under development. This provides us with an excellent opportunity to assist in the development of the CCS industry in the UK.

In the year to 30 June 2024, the Company maintained its focus on the development of the significant reserves in its Cambay gas field in India, and also the positioning of the Company as a CCS developer via its Medway Hub Camelot CCS project in the UK and the Cambay CCS scheme in India.

In order to de-risk projects with significant capital requirements, the Company decided to farm out a 50% share of its Cambay field in India and also its UK CCS project. A successful farm out was achieved for the former whilst we continue to progress the latter.

Cambay Field, Onshore Gujarat, India

(Synergia Energy: Joint Operator and 50% Participating Interest at Report Date)

The Cambay licence area is located onshore in the state of Gujarat. Located close to gas infrastructure, the field production was resumed in April 2022 after a 3.5-year hiatus, with production of both gas and condensate from two gas wells (C-77H and C-73) in addition to oil from several intermittent legacy oil wells.

The Cambay field's 206 BCF of P50 reserves are centred on the Eocene EP-IV reservoir which extends across the field and has been penetrated by over 30 wells. The EP-IV reservoir comprises low permeability ("tight") siltstones and requires fracture stimulation to provide economic gas production rates.

Since the resumption of production in 2022, the Company has expended considerable effort in de-risking the full field development of the Cambay field.

In July 2022, the C-77H well was re-fracked to demonstrate plateau production using a heavily-revised fracking methodology; the re-fracked zones have been on continuous production demonstrating the efficacy of the revised fracking approach.

In Q3 2023, the Company commissioned a jet pump to lift the gas condensate produced in association with the gas from the reservoir.

The successful re-fracturing operation gave the Company confidence that new wells can be drilled and fracked with initial production rates of circa 4 mmscfd of gas in conjunction with the jet pump artificial lift.

Safety and Environmental Responsibility

The Company has emphasised the importance of safety and environmental responsibility relating to all aspects of its operations.

The Company has enjoyed an enviable safety record, with the last Lost Time Incident ("LTI") being recorded in 2014. The cumulative LTI rate is currently 0.82.

The Company aims to maintain excellent relationships with stakeholders and neighbours in proximity to its operations on the Cambay PSC.

Cambay PSC Production

Production on the Cambay field combined gas and gas condensate production from two Eocene gas wells, C-73 and C-77H with intermittent oil production from legacy oil wells, C-8, C-19z, C-20, C-63, C-64, C-70, C-72 and C-74.

The primary producing well, C-77H (a horizontal well drilled in 2014), produced gas and gas condensate continuously after the re-frack operation in July 2022. Since the re-frack, the well has produced at rates up to 275,000 scfd despite severe fluid loading from the associated gas condensate. In Q3 2023 a jet pump was installed in the well and the bridge plug isolating the original 4 fracked zones was removed. After the jet pump installation, increased water influx was noticed, thought to originate from the re-connected 4 original frack zones, with gas production of 150,000 scfd. Echometer surveys showed the continued presence of a liquid column in the wellbore and a workover is planned as part of the Selan JV work program to improve jet pump efficiency by increasing the diameter of the production tubing.

Oil production from legacy oil wells has made a contribution to cash flow and indicates potential "low hanging fruit" for the Selan JV work program. None of the legacy oil wells have artificial lift and the installation of pumps in selected wells could lead to continuous material production.

Selan Joint Venture

In February 2024 the Company signed a joint venture agreement with Selan Exploration Technology Limited ("Selan"), which was approved by the Government of India on 19 July 2024. The farm-out agreement with Selan was closed on 1 August 2024.

Selan is an Indian oil and gas operator listed on the Bombay Stock Exchange and the National Stock Exchange of India. Selan has currently entered into a scheme of amalgamation with Antelopus Energy Private Limited, another highly respected Indian oil and gas operator, which is currently awaiting regulatory approvals.

The terms of the joint venture agreement are summarised as follows:

·    The Company agreed to farm out 50% of the 100% interest held by the Synergia Group in the Cambay PSC to Selan.

·    Synergia and Selan will be joint operators of the Cambay PSC with Selan to be appointed as Lead Joint Operator.

·    Both Synergia and Selan are focussed on developing the Cambay PSC Eocene gas and gas condensate reservoir which contains independently certified 2P gas reserves of 206 BCF (as at 1 June 2022).

·    Synergia and Selan have executed a joint operating agreement for the Cambay PSC.

·    In exchange for the 50% interest, Synergia will be carried by Selan through an agreed US$20 million work programme ("WP") comprising 3 new wells focussed on the Eocene reservoir and at least 3 well work-overs.

·    The WP is to be completed within 18 months of the close of the farm-out agreement, extendable by a further six months in certain circumstances.

·    Synergia received a cash payment of US$2.5 million immediately following the close of the farm-out agreement.

·    Synergia retains a 50% interest in the Cambay PSC and a 50% share of the future production and revenues.

·    Synergia will be entitled to bonuses of up to US$9 million, linked to future cumulative gas sales thresholds being achieved as follows:

o  US$0.5 million, if cumulative gross gas sales from the Cambay PSC exceeds 5 Bcf;

o  US$1.0 million, if cumulative gross gas sales from the Cambay PSC exceeds 10 Bcf;

o  US$1.5 million, if cumulative gross gas sales from the Cambay PSC exceeds 15 Bcf;

o  US$2 million, if cumulative gross gas sales from the Cambay PSC exceeds 35 Bcf; and

o  US$4 million, if cumulative gross gas sales from the Cambay PSC exceeds 70 Bcf.

·    Selan has the option to participate in the Cambay CCS scheme on terms to be agreed.

The Company anticipates the incremental production and cash flow resulting from the WP will self-finance a full field development of the Cambay PSC beyond the 18-month WP period.

The work programme will commence in Q3/Q4 2024 with workovers on a number of legacy wells followed by the drilling of two new vertical wells. The drilling of a new horizontal, fracked Eocene well will comprise the final part of the WP. In addition, the WP will include an upgrading of the surface facilities on the Cambay PSC, including additional artificial lift equipment and process equipment.

Carbon Capture and Storage ("CCS")

United Kingdom Continental Shelf

Medway Hub Camelot CCS Project

The Company, together with its joint venture partner Wintershall Dea Carbon Management Solutions UK, was formally awarded a Carbon Dioxide Appraisal and Storage Licence (the "CS019 Camelot licence") by the UK Government's North Sea Transition Authority on 17 August 2023.

Under the terms of the joint venture with Wintershall Dea Carbon Management Solutions UK, the Company is the operator of the joint venture and the CS019 license.

The CS019 licence award, which covers the former Camelot gas field, marks a significant milestone for the Company's Medway Hub CCS project. The Medway Hub CCS project provides for the capture and transportation of CO₂ emissions from coastal Combined-Cycle Gas Turbine power stations in liquid form by marine tanker to a Floating Injection, Storage and Offloading vessel (FISO) from which the CO₂ would be injected into depleted gas fields and saline aquifers, which are situated in the UK Continental Shelf, for permanent sequestration. In addition, the FISO will be able to accept CO₂ cargoes transported by marine tankers originating from Continental European locations.

On 21 December 2023 Wintershall DEA's parent company BASF and key shareholder LetterOne announced that it had reached agreement with UK-listed company Harbour Energy, for the latter to acquire the majority of Wintershall DEA's Exploration and Production global assets. The deal completed on 3 September 2024.

The CS019 licence has a work program that incorporates an appraisal phase comprising seismic re-processing, technical evaluations and risk assessment, a contingent FEED study leading to the potential storage license application in 2028 following the final investment decision ("FID"). The Camelot license also includes a contingent appraisal well. First CO₂ injection is anticipated for 2029/2030. The Company's share of the initial work phase is subject to funding as would be the FID, to be made in due course.

The Company aims to permanently store up to 6.5 million tonnes per annum (MTa) of CO₂ when the project is fully operational.

Since the CS019 licence award in August 2023, the Company has managed the NSTA work programme including the delivery of an Early Risk Assessment report and re-processing and interpretation of the 3D seismic dataset on the licence. Currently a number of separate workstreams are underway including static and dynamic modelling, legacy well integrity, geochemical and geomechanical analyses as part of the site characterisation process.

India

Cambay CCS Scheme

The Company has developed the Cambay CCS scheme which comprises the transportation of CO₂ from emissions from the many significant gas- and coal-fired power stations surrounding the Cambay gas field, via onshore pipeline, to a CCS hub located at the Cambay field. The CO₂ would then be injected into the regionally extensive Olpad formation which underlies the Cambay Eocene gas reservoir. The initial goal is to provide a "Transportation and Storage" service to power stations and other significant CO₂ emitters such as refineries. CO₂ emissions from the currently targeted power stations in the proximity of the Cambay field total circa 45 MTa.

The Cambay CCS scheme is being given support by the key Government of India regulator, the DGH but its viability is contingent on, inter alia, the development of a regulatory framework that incentivises the CO₂ emitter customers. Synergia plans to assist the regulators in the development of such a framework based on its UK CCS experience.

As an initial stage of the project, the Company has proposed a proof-of-concept pilot project comprising the drilling of an appraisal well and CO₂ injectivity testing in the Olpad Formation. The pilot project is subject to funding.

JPDA 06-103, Timor Sea

In August 2020, on behalf of its Joint Venture Participants, Synergia Energy Ltd announced a Deed of Settlement and Release ("Deed") with the Autoridade Nacional Do Petroleo E Minerais ("ANPM"). Under the terms of the Deed, Synergia Energy committed to a settlement of US$800,000 payable up to the financial year 2024. This obligation was fully met when the Group made its final instalment on 7 September 2022.

To fund the settlement to ANPM, Synergia Energy entered into an unsecured loan facility agreement with two of the JPDA joint venture partners, Japan Energy E&P JPDA Pty Ltd ("JX") and Pan Pacific Petroleum (JPDA 06 103) Pty Ltd ("PPP"). The portion which was owing to PPP was fully repaid in December 2021. The portion which was owing to JX was fully repaid on 10 August 2023 when the Company made its final repayment of US$228,324 to JX, to settle the balance of the loan to nil. The details and movement in the loan payable during the current period are detailed in Note 16(a) of the Notes to the Consolidated Financial Statements.

On 13 October 2022, the non-defaulting parties to the JPDA joint venture agreed to terminate the Joint Operating Agreement. During the year, Synergia Energy continued the process of progressing the final closure of the joint venture accounts to conclude this matter.

Financial

Treasury Policy

The funding requirements of the Group are reviewed on a regular basis by the Group's Chief Financial Officer and reported to the Board to ensure the Group can meet its financial obligations as and when they fall due. Internal cash flow models are used to review and test investment decisions. Until sufficient operating cash flows are generated from its operations, the Group remains reliant on equity or debt funding, as well as assets divestiture or farmouts to fund its expenditure commitments.

Formal control over the Group's activities is maintained through a budget and cash flow monitoring process with annual budgets considered in detail and monitored monthly by the Board and forming the basis of the Company's financial management strategy.

Cash flows are tested under various scenarios to ensure that expenditure commitments can be met under all reasonably likely scenarios. Expenditures are also carefully monitored against the budget. The Company continues to actively develop funding options in order to meet its expenditure commitments and its planned future discretionary expenditure.

During the year, the following took place in relation to the Company's debt and equity capital raisings undertaken to provide working capital for the Company's activities:

September 2023 quarter

·    Placement of 704,545,454 ordinary shares ("July Placement") at an issue price of £0.0011 (A$0.0021) per share for gross proceeds of £775k (A$1.5 million);

·    The last instalment of the US$800k loan facility which was owing to JX was fully repaid in August 2023.

December 2023 quarter

·    Placement of 1,375,000,000 ordinary shares ("December Placement") at an issue price of £0.0008 (A$0.0015) per share for gross proceeds of £1.1 million (A$2.07 million);

March 2024 quarter

·    1,070 of the 6,500 convertible notes, plus interest, were converted into 140,455,821 shares at £0.0008 (A$0.0015) per share effective March 2024;

·    3,680 of the 6,500 convertible notes, plus interest, were redeemed in cash and repaid to their convertible note holders effective March 2024. The remaining 1,750 convertible notes, plus interest, had their repayment date extended to 30 September 2024 as requested by their convertible note holders;

·    The Company also obtained short-term loans of £400,000 which bore interest at a fixed rate of 17.5% for the period of the loan (three months) and penalty interest at a fixed rate of 8% per month applicable from 11 June 2024; and

June 2024 quarter

·    The Company obtained a short-term loan of £200,000 which bears interest at a fixed rate of 23.87% for the period to 11 September 2024, and penalty interest at a fixed rate of 8% per month from 11 September 2024.

After the end of the financial year, the Company obtained another short-term loan of £140,000, which bears interest at a fixed rate of 23.87% for the period to 11 September 2024 and penalty interest at a fixed rate of 8% per month thereafter.

The short-term loans obtained in March 2024 (£400,000), plus interest, were repaid after year-end on 11 September 2024.

Corporate

Following the Company's delisting on the Australian Securities Exchange ("ASX") in the previous financial year, the Company is now solely listed on the Alternative Investment Market ("AIM").

As at 30 June 2024 the Company had:

·    Available cash resources of A$1,069,782;

·    Borrowings of A$1,739,983 (refer to Note 16 of the Notes to the Consolidated Financial Statements); and

·    Issued capital of 10,637,791,979 fully paid ordinary shares and 1,865,854,839 unlisted options.

Executive and Board Changes

On 24 January 2024, Mr Peter Schwarz, one of the Company's independent non-executive directors, was appointed as Deputy Chairman. On 24 January 2024, Mr Ashish Khare, the Company's Head of India Assets, was appointed as Executive Director. Mr Khare's appointment was finalised effective on 2 April 2024. There were no other board changes during the year.

Risk Management

The full Board undertakes the function of the Audit and Risk Committee and is responsible for the Group's internal financial control system and the Company's risk management framework. Management of business risk, particularly exploration, evaluation and appraisal, development and operational risk is essential for success in the oil and gas business. The Group manages risk through a risk identification and risk management system.

Health, Safety, Security and Environment

Synergia Energy is committed to protecting the health and safety of everybody who plays a part in our operations or lives in the communities where we operate. Wherever we operate, we will conduct our business with respect and care for both the local and global, natural and social environment and systematically manage risks to drive sustainable business growth. We will strive to eliminate all injuries, occupational illness, unsafe practices and incidents of environmental harm from our activities. The safety and health of our workforce and our environmental stewardship are just as important to our success as operational and financial performance and the reputation of the Company.

Synergia Energy respects the diversity of cultures and customs that it encounters and endeavours to incorporate business practices that accommodate such diversity and that have a beneficial impact through our working involvement with local communities. We strive to make our facilities safer and better places in which to work and our attention to detail and focus on safety, environmental, health and security issues will help to ensure high standards of performance. We are committed to a process of continuous improvement in all we do and to the adoption of international industry standards and codes wherever practicable. Through implementation of these principles, Synergia Energy seeks to earn the public's trust and to be recognised as a responsible corporate citizen.

Qualified Person The technical information contained in the above disclosure has been prepared by or under the supervision of Mr Roland Wessel (BSc (Hons) Geology), CEO and Executive Director employed by Synergia Energy Ltd. Mr Wessel has over 45 years' experience in the oil and gas industry and is a member of the Society of Petroleum Engineers. Mr Wessel meets the requirements of and acts as the Qualified Person under the Alternative Investment Market Rules - AIM Note for Mining and Oil & Gas Companies, and consents to the inclusion of this information in this report in the form and context in which it appears.

PETROLEUM AND CCS PERMIT SCHEDULE

PETROLEUM AND CCS PERMIT SCHEDULE - 30 JUNE 2024
ASSET	LOCATION	ENTITY	CHANGE IN INTEREST DURING THE YEAR %	EQUITY %	OPERATOR
Cambay Field PSC (1)	Gujarat, India	Synergia Energy Ltd	-	85	Synergia Energy Ltd
		Oilex N.L. Holdings (India) Limited	-	15
CS019 - SNS Area 4 (Camelot Area) (2)	Southern North Sea (United Kingdom)	Synergia Energy CCS Limited	50	50	Synergia Energy CCS Limited

⁽¹⁾    Subsequent to year-end on 19 July 2024, the Government of India Ministry of Petroleum and Natural Gas approved the transfer of assignment of 50% participating interest in the Cambay Field Production Sharing Contract (35% originally held by the Synergia Energy Ltd entity and 15% originally held by the Oilex N.L. Holdings (India) Limited entity) to Selan Exploration Technology Limited. After the transfer of the 50%, Synergia Energy Ltd now holds 50% equity at the date of this report.

⁽²⁾    The NSTA granted the CS019 licence for the Camelot area to Synergia Energy CCS Limited and its 50% joint venture partner, Wintershall Dea Carbon Management Solutions UK, with Synergia Energy CCS Limited as operator. The licence was effective from 1 August 2023.

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 JUNE 2024

For the Year Ended 30 June 2024

The directors of Synergia Energy Ltd present their report (including the Remuneration Report) together with the consolidated financial statements of the group comprising Synergia Energy Ltd (the "Company" or "Synergia Energy") and its subsidiaries (together collectively referred to as the "Group") for the financial year ended 30 June 2024 and the auditors' report thereon. Unless otherwise indicated, the directors' report is presented in Australian dollars ("A$"), which is the Company's functional and presentation currency (refer to Note 2(e) of the Notes to the Consolidated Financial Statements).

DIRECTORS

The directors of the Company at any time during the year and until the date of this report are detailed below. All directors were in office for this entire period unless otherwise stated.

Mr Jonathan Salomon	Non-Executive Chairman
Mr Peter Schwarz	Independent Non-Executive Director and Deputy Chairman (appointed Deputy Chairman from 24 January 2024)
Mr Roland Wessel	Chief Executive Officer ("CEO") and Executive Director
Mr Colin Judd	Chief Financial Officer ("CFO") and Executive Director
Mr Mark Bolton	Non-Executive Director
Mr Paul Haywood	Independent Non-Executive Director
Mr Ashish Khare	Head of Indian Assets and Executive Director (appointed Executive Director on 24 January 2024 with  appointment finalising effective 2 April 2024)

DIRECTORS' information

Mr Jonathan Salomon (B App Sc (Geology), GAICD) (Non-Executive Chairman)

Mr Salomon was appointed as a Non-Executive Director in November 2015, Managing Director on 18 March 2016, and Interim Chairman on 5 May 2020. Mr Salomon continued as Managing Director and Interim Chairman until he was appointed as Executive Chairman on 16 June 2021. Mr Salomon moved to a Non-Executive Chairman role on 29 June 2023.

Mr Salomon has a Bachelor Degree in Applied Science and is a member of the American Association of Petroleum Geologists and the Society of Petroleum Engineers, and has over 38 years of experience working for upstream energy companies. Mr Salomon has worked for a number of oil and gas companies in various senior positions including General Manager Exploration and New Ventures at Murphy Oil Corporation and Global Head of Geoscience at RISC PL, in addition to a number of Executive Director roles including Strategic Energy Resources, Norwest Energy and Nido Petroleum. At several times in his career, Mr Salomon has acted as an independent consultant for various oil and gas companies, including New Standard Energy and Pacrim Energy. Mr Salomon first worked on Indian projects in 1994 while at Ampolex and since that time has maintained a connection with the Indian industry, at various times bidding in India's exploration and field development rounds and working with Indian companies as joint venture partners, both in India and internationally.

During the last three financial years and up to the date of this report, Mr Salomon has not been a director of any other listed companies.

Mr Peter Schwarz (B Sc (Geology), M Sc (Petroleum Geology))

(Independent Non-Executive Director and Deputy Chairman)

(Appointed Deputy Chairman from 24 January 2024)

Mr Schwarz was appointed as a Non-Executive Director in September 2019. A former director of BG Exploration and Production Limited and CEO of independent exploration company Virgo Energy Ltd, Mr Schwarz is an AAPG Certified Petroleum Geologist and business development professional with over 45 years' experience in the oil and gas industry. Mr Schwarz has previously held various senior management roles with Amerada Hess, BG, and Marubeni and is currently a director of Finite Energy Limited, an oil and gas consultancy business he founded over 16 years ago, specialising in strategy and business development advice in the UK and Europe.

During the last three financial years and up to the date of this report, Mr Schwarz has not been a director of any other listed companies.

Mr Roland Wessel (CEO and Executive Director)

Mr Wessel was appointed as CEO and Executive Director on 16 June 2021. Mr Wessel is a geologist with over 45 years' experience in all of the world's major oil and gas regions. Mr Wessel founded and built Star Energy, the UK onshore operator of 25 oil and gas fields, through to its listing on AIM in 2004 and its sale to Petronas in 2008. During its evolution, Star Energy grew rapidly through acquisitions and diversification, culminating in it becoming a major gas storage developer and operator. During his career, Mr Wessel founded and managed a drilling services company and has help to develop several key oilfield technologies. He has extensive experience in both project and corporate management.

During the last three financial years and up to the date of this report, Mr Wessel has not been a director of any other listed companies.

Mr Colin Judd (CFO and Executive Director)

Mr Judd was appointed as CFO on 1 July 2021 and as Executive Director on 27 January 2022. Mr Judd is a chartered accountant with over 41 years' experience in corporate financial management. He qualified as a chartered accountant with Price Waterhouse in 1979, where he fulfilled various professional accounting positions in the UK, Europe and the Far East. Mr Judd joined Christian Salvesen plc in 1987, undertaking senior financial management roles culminating in the position of European Financial Controller. In 1994, Mr Judd moved to Aberdeen where he undertook CFO roles for two private-equity-backed oil service businesses. In 1999, Mr Judd joined Star Energy Limited as a founder member and CFO and was instrumental in the company's successful listing on AIM in 2004, various subsequent share placings and the company's ultimate sale to Petronas. Mr Judd co-founded Trans European Oil & Gas Limited, a company backed by KKR, with the strategy to develop a pan-European oil and gas business.

During the last three financial years and up to the date of this report, Mr Judd has not been a director of any other listed companies.

Mr Mark Bolton (B Business) (Non-Executive Director)

Mr Bolton joined the Company as an executive on 3 June 2016 and subsequently an Executive Director before transitioning to a Non-Executive Director on 1 July 2021. Mr Bolton has significant experience in the resource sector in Australia, having worked as CFO and Company Secretary for a number of resource companies since 2003. Prior to this, Mr Bolton worked with Ernst & Young as an Executive Director in Corporate Finance. Mr Bolton has experience in the areas of commercial management and the financing of resource projects internationally. He also has extensive experience in capital and equity markets in a number of jurisdictions including ASX, AIM and the TSX. Mr Bolton has significant experience in the development and financing of new resources projects, particularly in emerging economies.

Mr Bolton is the Managing Director of Panthera Resources PLC (AIM:PAT) and a Non-Executive Director of West Cobar Metals Limited (ASX:WC1). During the last three financial years and up to the date of this report, Mr Bolton has not been a director of any other listed company.

Mr Paul Haywood (Independent Non-Executive Director)

Mr Haywood was appointed as Non-Executive Director in May 2017. Mr Haywood has over 20 years of international experience in delivering value for his investment network through a blended skill set of corporate and operational experience, including more than six years in the Middle East, building early stage and growth projects. More recently, Mr Haywood has held senior management positions with UK and Australian public companies in the natural resource and energy sectors including oil and gas exploration and development in UK, EU and Central Asia. Mr Haywood's expertise stretches across UK and Australian public markets, with a cross-functional skill set encompassing research, strategy, implementation, capital and transactional management. Mr Haywood is currently Director and CEO of Block Energy Plc.

Mr Haywood is the Director and CEO of Block Energy plc (AIM:BLOE). During the last three financial years and up to the date of this report, Mr Haywood has not been a director of any other listed companies.

Mr Ashish Khare
(Bachelor of Engineering (BE in Chemical Engineering, including Petroleum Management))

(Head of India Assets and Executive Director)

(Appointed Executive Director on 24 January 2024 with appointment finalising effective 2 April 2024)

Mr Khare was appointed Head of India Assets on 8 November 2016 and Executive Director on 24 January 2024 (with his appointment finalising effective 2 April 2024). Mr. Khare is based in India. Mr Khare has over 23 years of experience in the petroleum industry. Mr Khare's area of expertise include upstream oil and gas, as well as midstream and downstream project implementation and operations management. Mr Khare originally worked for Synergia Energy Ltd as GM Operations & Business Development; and has experience working for various Indian companies including Cairn India Ltd and Reliance Petroleum.

He possesses a wealth of knowledge and expertise accumulated over more than two decades in the India petroleum industry. Since 2015, Mr Khare has steered the Company's Indian business through various challenges with skill and determination. Mr Khare was instrumental in securing 100% PI at Cambay PSC from GSPC and in the resumption of Cambay field production in 2022. He has recently assisted in farming out of 50% PI at Cambay PSC to Selan Exploration Technology Limited.

During the last three financial years and up to the date of this report, Mr Khare has not been a director of any other listed companies.

COMPANY SECRETARY

Mr Jack Rosagro was the Company Secretary from the beginning of the financial year until the appointment of Synergia Energy's current Company Secretary, Ms Anshu Raghuvanshi, on 8 September 2023.

Ms Raghuvanshi leads the company secretarial services for Computershare Governance Services, Melbourne, Australia. She has over 13 years' experience in company secretarial roles, working with listed companies to ensure their compliance with annual and ad-hoc reporting, and to guide them in their governance processes. Ms Raghuvanshi supports clients with the administration of their board, committee, and annual general meetings, including notices, agendas and minutes.

CORPORATE GOVERNANCE STATEMENT

During the year, the Company adopted the recommendations of the Quoted Companies Alliance Corporate Governance Code for Small and Mid-Size Quoted Companies ("QCA Code").

To the extent they are applicable to the Company, and to the extent possible, the Board considers that the Company has complied with each recommendation of the QCA Code during the year.

The Company's Corporate Governance Statement, which reports on Synergia Energy's key governance principles and practices, and provides detailed information on the Board and committee structure, diversity and risk management, is available on the Synergia Energy website in the "Corporate Governance" section (see https://www.synergiaenergy.com/about-us/corporate-governance).

DIRECTORS' MEETINGS

Directors in office and directors' attendance at meetings during the financial year ended 30 June 2024 are as follows:

	Board Meetings (1)		Remuneration Committee Meetings (1)
	Held (2)	Attended	Held (2)	Attended
Non-Executive Directors
J Salomon (3)	13	8	-	-
P Schwarz	13	13	2	2
M Bolton	13	13	2	2
P Haywood	13	11	2	2
Executive Directors
R Wessel	13	13	-	-
C Judd	13	13	-	-
A Khare (4)	7	6	-	-

⁽¹⁾       The full Board performs the role of the Audit and Risk Committee. The Company does not have a Nomination Committee.

⁽²⁾       Held indicates the number of meetings available for attendance by the director during the tenure of each director.

⁽³⁾       Mr Salomon attended two board meetings as an observer during a period of sick leave.

⁽⁴⁾       Mr Khare was appointed as Executive Director on 24 January 2024. Mr Khare's appointment was finalised effective 2 April 2024. Prior to his appointment as Executive Director, Mr Khare also attended four Board meetings upon Board invitation.

EXECUTIVE MANAGEMENT

The executive management of the Group consists of Executive Directors, Messrs Wessel, Judd and Khare. The details of their qualifications and experience can be found in the Directors' Information section of the Director's Report.

PRINCIPAL ACTIVITIES

The principal activities of the consolidated entity during the financial year included:

·    appraisal and development of oil and gas prospects;

·    production and sale of oil and gas; and

·    development of CCS projects.

There were no significant changes in the nature of the activities during the year.

FINANCIAL AND OPERATING RESULTS

Income Statement

The Group incurred a consolidated loss after income tax of A$2,798,511 (2023: A$5,382,902) for the year.

During the year, the Group recognised total revenues from gas and oil sales of A$638,457 (2023: A$1,296,150). These revenues are recognised net of royalties and levies imposed by the Government of India directly on gas and oil sales. Net revenues from gas sales were A$442,948 (2023: A$755,589) which were from 37,847.23 MMBTU of energy supplied at an average price of US$8.45 per MMBTU (2023: from 66,285.93 MMBTU of energy supplied at an average price of US$8.12 per MMBTU). Net revenues from oil sales were A$195,509 (2023: A$540,561) which were from 2,748.642 barrels sold at an average price of US$67.819 per barrel (2023: from 7,554.05 barrels sold at an average price of US$69.976 per barrel).

Cost of sales for the year were A$1,048,993 (2023: A$2,563,873) which included A$nil (2023: A$1,850,991) refraccing costs. This resulted in the Group incurring a gross loss of A$410,536 (2023: A$1,267,723) during the year.

Net expected credit losses ("ECLs") incurred during the year were A$288,424 (2023: reversal of A$34,853), mainly due to a A$420,094 increase recorded to recognise the ECL on a total of US$247,835 of bank guarantees which was put in place by the Group during the year (refer to footnote (1) of Note 8). This was offset by A$131,670 due to amounts the Company received during the year from the ex-defaulting parties of the now terminated JPDA joint venture (refer to footnote (4) of Note 8).

An impairment of A$34,593 (2023: A$nil) was recorded on the Company's investment in Armour Energy Limited ("Armour"), to bring this investment down to nil. The impairment assessment was based on Armour's circumstances during the year, having gone into receivership and administration in November 2023, and currently in the process of liquidation (refer to Note 13 of the Notes to the Consolidated Financial Statements).

Net finance costs, not including net foreign exchange gains and losses, was A$466,662 (2023: A$626,433). These net finance costs included interest charges (including amortised effective interest charges) on borrowings totalling A$1,196,355 (2023: A$78,494), as well as the unwinding of discount on provisions of A$233,985 (2023: A$289,540). The interest charges on borrowings and the unwinding of discount was offset by a gain of A$866,382 (2023: loss of A$227,668) resulting from the fair value revaluation of the derivative liability component of the Group's convertible notes at year-end.

Net foreign exchange gains were A$1,355,302 (2023: net foreign exchange losses of A$143,548). The net foreign exchange gains included A$1,325,636 (2023: nil) of foreign exchange gains recognised on the reclassification of part of the foreign currency exchange reserve ("FCTR"). The A$1,325,636 related to accumulated exchange differences on currency translation for one of the Group's subsidiaries, Oilex (JPDA 06-103) Ltd. The amount was reclassified from FCTR to profit or loss upon its deregistration on 1 February 2024.

Cash Flow

Net cash used in operating activities for the period was A$2,752,579 (2023: A$5,374,071). The decrease was primarily due to there being no refraccing costs to be paid during the year, when compared to the previous year.

Net cash used in investing activities was A$608,954 during the year (2023: A$3,227). Out of the A$608,954, A$411,477 was invested into an artificial lift system which was installed at the Cambay field in September 2023 and A$81,430 was paid for costs related to the expected farm out of 50% participating interest in the Cambay PSC. The remaining A$116,047 was for payments (net of 50% recoveries from the Group's CCS joint venture partner) relating to the CS019 licence for the Camelot area since NSTA granted the Group the licence effective 1 August 2023.

During the year, the Company raised funds net of costs of A$3,359,697 (2023: A$502,210) from the issue of 2,079,545,454 shares (2023: 174,831,394 shares) during the year (excluding from conversion of convertible notes). 704,545,454 shares were from the July Placement, issued at £0.0011 (A$0.0021) per share, and 1,375,000,000 shares were from the December Placement, issued at £0.0008 (A$0.0015) per share.

During the year, the Company made total principal repayments of A$1,051,173 (2023: A$488,984). The repayments were for the final loan repayment to JX (A$337,374) and for the redemption of certain convertible notes into cash (A$713,799). The Company then obtained unsecured short-term loan funding from existing investors of A$1,161,226 in March and in June 2024.

Financial Position

The net assets of the Group totalled A$9,955,839 at 30 June 2024 (2023: A$10,337,516) and included the following balances:

·    Cash and cash equivalents of A$1,069,782 (2023: A$938,589);

·    Trade and other payables of A$2,373,587 (2023: A$485,968) , of which A$353,588 was overdue at 30 June 2024 (2023: nil). Subsequent to balance date, A$117,096 of this amount has been paid;

·    Borrowings of A$1,739,983 (2023: A$774,666) and

·    Derivative liabilities from convertible notes of A$167,726 (2023: A$1,050,334).

MATERIAL UNCERTAINTY RELATED TO GOING CONCERN

The independent auditor's report contains a statement of material uncertainty regarding the Company's ability to continue as a going concern. The Consolidated Financial Report has been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.

The funding requirements of the Group are reviewed on a regular basis by the Group's Executive Directors and are reported to the Board at each board meeting to ensure the Group can meet its financial obligations as and when they fall due.

Until sufficient operating cash flows are generated from its operations, the Group remains reliant on equity raisings, joint venture contributions or debt funding, as well as asset divestitures or farmouts to fund its expenditure commitments.

The Group will require additional funding in due course to continue its activities, including CCS, meet its ongoing working capital requirements (including any loans payable), and for any new business opportunities that the Group may pursue.

Further information on the Group's going concern basis of preparation is provided in Note 2(c) of the of the Notes to the Consolidated Financial Statements.

DIVIDENDS

No dividend was paid or declared during the year and the directors do not recommend the payment of a dividend.

REVIEW OF OPERATIONS

A review of the operations of the Group during the financial year and the results of those operations are set out in the Review of Operations on pages 3 to 9 of this report.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

The Review of Operations details those changes that have had a significant effect on the Group.

Other than those matters, there have been no other significant changes in the state of affairs of the Group that occurred during the financial year.

LIKELY DEVELOPMENTS

Additional comments on expected results on operations of the Group are included in the Review of Operations on pages 3 to 9.

Further disclosure as to likely developments in the operations of the Group and expected results of those operations have not been included in this report as, in the opinion of the Board, these would be speculative and as such, disclosure would not be in the best interests of the Group.

ENVIRONMENTAL ISSUES

The Group's oil and gas evaluation, production and CCS development activities are subject to environmental regulation under the legislation of the respective states and countries in which they operate. The majority of the Group's activities involve low level disturbance associated with its drilling programmes and production from existing wells. The Board actively monitors compliance with these regulations and as at the date of this report is not aware of any material breaches in respect of these regulations.

The Group also has an active program of education, monitoring and reporting within the Group's business to identify and mitigate any other environmental risks.

SIGNIFICANT EVENTS AFTER BALANCE DATE

During July and August 2024, the Company obtained further short-term loan funding from existing investors of £140,000. The loans bear interest at a fixed rate of 23.87% for the period to 11 September 2024 and penalty interest at a fixed rate of 8% per month after 11 September 2024.

Effective on 19 July 2024, the Government of India Ministry of Petroleum and Natural Gas approved the transfer of assignment of the 50% PI in the Cambay field PSC held by the Group to Selan Exploration Technology Limited ("Selan"). Following the ratification, the farm-out agreement closed on 1 August 2024, and US$2.5 million, net of withholding taxes, was paid by Selan to the Group on 1 August 2024. The portion that was withheld is expected to be received in the coming weeks, in accordance with an agreement the Company entered into on 24 September 2024 to indemnify Selan against any liability for withholding tax effective from 1 August 2024 until 1 April 2035 (refer to Note 20 of the Notes to the Consolidated Financial Statements for further details of the indemnity agreement).

This receipt of the initial cash payment from the closing of the Cambay farm-out agreement (net of withholding taxes) enabled the Group to repay the first tranche of its short-term borrowings (which was obtained in March 2024) on 11 September 2024. The repayment was £566,000, which was based on principal of £400,000 plus interest of £166,000. The second and third tranches of the short-term borrowings, totalling £340,000 plus interest, remain outstanding at the date of this report. The balance outstanding of those loans at the date of this report is £448,358.

In August 2024, the Company received a notice from one of the Extended Notes holders indicating his intention to convert his 750 notes and interest totalling £80,866 into 101,083,050 shares effective 30 September 2024. These shares are expected to be issued and admitted to trading on AIM on or around 30 September 2024. The remainder of the Extended Notes, at the face value of 1,000 notes plus interest totalling £107,822, will also be repaid in cash to their holders on 30 September 2024.

There were no other significant subsequent events occurring after the year-end.

CAPITAL STRUCTURE AND TREASURY POLICY

As at 30 June 2024 the Group had unsecured borrowings at face value A$1,739,983 (2023: A$774,666). Refer to Note 16 of the Notes to the Consolidated Financial Statements for details of the carrying amount, terms and conditions, repayment schedule, and options attached to the borrowings.

Details of transactions involving ordinary shares during the financial year are as follows:

	Shares Issued (No.)	Value of Shares (A$)	Gross Amount Raised (A$)
August 2023 ·    Share Placements (July Placement)	704,545,454	-	1,500,194
December 2023 ·    Share Placements (December Placement)	1,375,000,000	-	2,071,563
March 2024 ·    Conversion of certain Convertible Notes	140,455,821	217,298	-
Total	2,220,001,275	217,298	3,571,757

As at the date of this report the Company had a total issued capital of 10,637,791,979 ordinary shares and 1,865,854,839 unlisted options exercisable at weighted average price of £0.0015 (A$0.0029) per option.

DIRECTORS' INTERESTS

The relevant interest of each director in shares and unlisted options issued by the Company at the date of this report is as follows:

	Number of Ordinary Shares		Number of Unlisted Options Over Ordinary Shares
	Direct Interest	Indirect Interest	Direct Interest	Indirect Interest
Non-Executive Directors
J Salomon	-	14,987,013	-	96,626,905(1)
P Schwarz	10,611,250	10,611,250	-	-
M Bolton	-	-	-	-
P Haywood	12,933,513	-	-	-
Executive Directors
R Wessel	-	-	163,636,363(2)	-
C Judd	-	-	118,200,000(3)	-
A Khare	-	-	16,255,208(4)	-

⁽¹⁾       88,311,688 options exercisable at £0.0022, expiring 12 August 2027. All of these options were exercisable at report date; and

8,315,217 options exercisable at nil cost, expiring 1 April 2028. All of these options were exercisable at report date.

⁽²⁾       136,363,636 options exercisable at £0.0022, expiring 12 August 2027. All of these options were exercisable at report date; and

27,272,727 options exercisable at nil cost, expiring 1 April 2028.  All of these options were exercisable at report date.

⁽³⁾       100,000,000 options exercisable at £0.0022, expiring 12 August 2027. All of these options were exercisable at report date; and

18,200,000 options exercisable at nil cost, expiring 1 April 2028.  All of these options were exercisable at report date.

⁽⁴⁾       16,255,208 options exercisable at nil cost, expiring 1 April 2028.  All of these options were exercisable at report date.

SHARE OPTIONS

Unissued Shares under Option

At the date of this report, unissued ordinary shares of the Company under option are:

Expiry Date	Number of Shares Under Option	Exercise Price
Unlisted Options
Granted and Issued in 2023:
12 August 2027	324,675,324	£0.0022 (A$0.0043)
1 April 2028	70,043,152	£0.0000 (A$0.0000)
Granted and Issued in 2024:
31 July 2026	13,636,363	£0.0011 (A$0.0021)
31 December 2026	1,375,000,000	£0.0014 (A$0.0027)
31 December 2026	82,500,000	£0.0014 (A$0.0027)
Total	1,865,854,839

These options do not entitle the holder to participate in any share issue of the Company or any other body corporate.

Unissued Shares under Option that Expired

During or since the end of the financial year, the following unlisted options expired:

Date Lapsed	Number	Exercise Price
30 April 2024	(30,000,000)	£0.00200 (A$0.00383)
31 May 2024	(25,210,084)	£0.00238 (A$0.00457)
Total	(55,210,084)

Shares Issued on Exercise of Unlisted Options

No ordinary shares were issued, during or since the end of the financial year, as a result of the exercise of unlisted options.

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

During the financial year, the Group paid a premium in respect of insurance cover for the directors and officers of the Group. The Group has not included details of the nature of the liabilities covered or the amount of the premium paid in respect of the directors' liability and legal expense insurance contracts, as such disclosure is prohibited under the terms of the insurance contract.

PROCEEDINGS ON BEHALF OF THE COMPANY

No proceedings have been brought on behalf of the Company, nor has any application been made in respect of the Company under Section 237 of the Corporations Act 2001.

NON-AUDIT SERVICES

The Company may decide to employ the Auditor on assignments additional to their statutory audit duties where the Auditor's expertise and experience with the Group is important.

The Board has considered the non-audit services provided during the year and is satisfied that the provision of the non-audit services is compatible with, and did not compromise, the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the provision of non-audit services by the auditor, as set out below, did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:

·    all non-audit services were subject to the corporate governance procedures adopted by the Group and these have been reviewed by the Board to ensure they do not impact the impartiality and objectivity of the auditor; and

·    the non-audit services provided do not undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the Group, acting as an advocate for the Group or jointly sharing risks and rewards.

Refer to Note 31 of the Notes to the Consolidated Financial Statements for details of the amounts paid to the auditors of the Group, PKF Perth and their network firms for audit and non-audit services provided during the year.

ROUNDING OF AMOUNTS

The Company is a company of the kind referred to in ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191 and therefore the amounts contained in this report and in the financial report have been rounded to the nearest dollar, unless otherwise indicated.

LEAD AUDITOR'S INDEPENDENCE DECLARATION

The Lead Auditor's Independence Declaration for the year ended 30 June 2024 has been received and can be found on page 34.

REMUNERATION REPORT - AUDITED

This remuneration report covers the following key management personnel ("KMP") of the Group:

Non-Executive Directors	Position
Joe Salomon (1)	Non-Executive Chairman
Peter Schwarz (2)	Independent Non-Executive Director and Deputy Chairman
Mark Bolton	Non-Executive Director
Paul Haywood	Independent Non-Executive Director
Executive Directors	Position
Roland Wessel	Chief Executive Officer and Executive Director
Colin Judd	Chief Financial Officer and Executive Director
Ashish Khare (3)	Head of India Assets and Executive Director

⁽¹⁾    Mr Salomon's role changed from Executive Chairman to Non-Executive Chairman on 29 June 2023.

⁽²⁾    Mr Schwarz was appointed as Deputy Chairman on 24 January 2024.

⁽³⁾    Mr Khare was appointed as Executive Director on 24 January 2024 with appointment finalising effective 2 April 2024.

On 24 November 2021, the Board established a Remuneration Committee, in accordance with the Company's Remuneration Committee Charter, comprising Messrs Paul Haywood, Peter Schwarz and Mark Bolton. The Remuneration Committee is responsible for the review and recommendation to the Board, of the Company's Remuneration Policy, senior executives' remuneration and incentives, the remuneration framework for directors, superannuation arrangements, incentive plans and remuneration reporting.

1.   PRINCIPLES OF COMPENSATION

Remuneration is referred to as compensation throughout this report. The Remuneration Report explains the remuneration arrangements for directors and senior executives of Synergia Energy Ltd ("key management personnel" or "KMP") who have authority and responsibility for planning, directing and controlling the activities of the Group

The compensation structures explained below are designed to attract, retain and motivate suitably qualified candidates, reward the achievement of strategic objectives and achieve the broader outcome of the creation of value for shareholders. The compensation structures consider:

·    the capability and experience of the KMP;

·    the ability of KMP to control the performance of the relevant segments;

·    the current downturn and uncertainty within the resources industry;

·    the Company's performance including the Group's earnings;

·    the growth in share price and delivering constant returns on shareholder wealth; and

·    development of projects.

Compensation packages include a mix of fixed compensation and long-term performance-based incentives. In specific circumstances, the Group may also provide short-term cash incentives based upon the achievement of Company performance hurdles or in recognition of specific achievements.

1.1 Fixed Compensation

Fixed compensation consists of base compensation and employer contributions to superannuation funds. Compensation levels are reviewed annually through a process that considers individual, sector and overall performance of the Group. In addition, reviews of available data on oil and gas industry companies provide comparison figures to ensure the directors' and senior executives' compensation is competitive in the market.

Compensation for senior executives is separately reviewed at the time of promotion or initial appointment.

1.2 Performance Linked Compensation

Performance linked compensation includes both short-term and long-term incentives designed to reward KMP for growth in shareholder wealth. The short-term incentive ("STI") is an "at risk" bonus provided in the form of cash or shares, while the long-term incentive plan ("LTI") is used to reward performance by granting options over ordinary shares of the Company.

Short-Term Incentives

In the prior year, the Group introduced a short-term incentive scheme for KMP with effect from 1 January 2022.

The short-term incentive scheme has been designed by the Remuneration Committee and approved by the Board, having regard to the business plans as well as the achievement of performance targets as determined by the Board. These targets include a combination of key strategic, financial and personal performance measures which have a major influence over company performance in the short term.

No short-term incentive options were issued to KMP or other staff during the year ended 30 June 2024.

Employee Incentive Plan

The primary objectives of the Employee Incentive Plan are to:

·    establish a method by which eligible participants can participate in the future growth and profitability of the Company;

·    to provide an incentive and reward for eligible participants for their contribution to the Company; and

·    attract and retain a high standard of managerial and technical personnel for the benefit of the Company.

Under the Employee Incentive Plan, an award (i.e. options or performance rights, etc.) may be awarded to an eligible participant.

The Board, at its sole and absolute discretion, may invite an eligible person selected by it to complete an application relating to a specified number of awards allocated to that eligible person by the Board. The Board may offer an award (as applicable) to any eligible person it elects and determine the extent of that person's participation in the Employee Incentive Plan (Participant).

An offer by the Board is required to specify, among other things, the type of award offered, the date and total number of awards granted, the exercise price and exercise period and any other matters the Board determines necessary, including the exercise conditions and disposal restrictions attaching to the awards.

No Employee Incentive Plan options were issued to KMP or other staff during the year ended 30 June 2024.

1.3 Non-Executive Directors

Total compensation for all Non-Executive Directors is based on a comparison with external data with reference to fees paid to Non-Executive Directors of comparable companies. Directors' fees cover all main Board activities and membership of committees, if applicable.

The annual fee for Mr Salomon was renegotiated to A$105,000 plus statutory superannuation per annum effective from the date of his appointment as Non-Executive Chairman on 29 June 2023. All other terms and conditions from Mr Salomon's previous employment contract were not changed, and as such, the following terms and conditions still apply to Mr Salomon's remuneration:

·    Mr Salomon is required to provide 3 months' resignation notice;

·    if terminated by the Company, the Company is required to provide 3 months' notice, and in which case the Company is also required to pay three months' directors' fees plus any accrued leave entitlements; and

·    where applicable, any unvested options are forfeited upon Mr Salomon's resignation.

The annual fee for Mr Schwarz, the Company's UK-based Non-Executive Director was set at £30,000 per annum on commencement in September 2019.

The annual fee for Mr Bolton was set at A$55,381 plus statutory superannuation per annum effective from 1 July 2021 when he was appointed as Non-Executive Director.

The annual fee for Mr Haywood, the Company's UK-based Non-Executive Director was set at £30,000 per annum on commencement in May 2017.

The aggregate maximum fixed annual amount of remuneration available for Non-Executive Directors of A$500,000 per annum was approved by Shareholders on 9 November 2011.

In addition to the fixed component, the Company can remunerate any director called upon to perform extra services or undertake any work for the Company beyond their general duties. This remuneration may either be in addition to, or in substitution for, the director's share of remuneration approved by Shareholders.

1.4 Clawback Policy

The Board has adopted the following Clawback Policy applicable from August 2015.

In relation to circumstances where an employee acts fraudulently or dishonestly, or wilfully breaches his or her duties to the Company or any of its subsidiaries, the Board has adopted a clawback policy in relation to any cash performance bonuses (including deferred share awards) or LTIs. The Board reserves the right to take action to reduce, recoup or otherwise adjust an employee's performance-based remuneration in circumstances where in the opinion of the Board, an employee has acted fraudulently or dishonestly or wilfully breached his or her duties to the Company or any of its subsidiaries. The Board may:

·    deem any bonus payable, but not yet paid, to be forfeited;

·    require the repayment by the employee of all or part of any cash bonus received;

·    determine that any unvested and/or unexercised LTIs will lapse;

·    require the repayment of all or part of the cash amount received by the employee following vesting and subsequent sale of a LTI;

·    reduce future discretionary remuneration to the extent considered necessary or appropriate to take account of the event that has triggered the clawback;

·    initiate legal action against the employee; and/or

·    take any other action the Board considers appropriate.

1.5 Remuneration Consultants

There were no remuneration recommendations made in relation to KMP by remuneration consultants in the financial year ended 30 June 2024.

1.6 Adoption of Year Ended 30 June 2023 Remuneration Report

At the AGM held 15 November 2023 shareholders adopted the 30 June 2023 Remuneration Report with 93,550,936 votes in favour, being 86.34% of the votes cast.

2.   EMPLOYMENT CONTRACTS

The following table summarises the terms and conditions of contracts between key executives and the Company:

Executive	Position	Annual Remuneration	Contract Start Date	Contract Termination Date	Resignation Notice Required	Unvested Options on Resignation	Termination Notice Required from the Company (1)	Termination Payment
R Wessel	CEO and Director	£150,000 per annum	15 June 2021	n/a	3 months	Forfeited	3 months	For termination by the Company, 1 month's salary plus any accrued leave entitlement.
C Judd	CFO and Director	£110,000 per annum	1 July 2021	n/a	3 months	Forfeited	3 months	For termination by the Company, 1 month's salary plus any accrued leave entitlement.
A Khare	Head of India Assets and Director	INR 13,567,656	1 May 2015	n/a	90 days	Forfeited	90 days	For termination by the Company, 1 month's salary plus any accrued leave entitlement.

⁽¹⁾        The Company may terminate the contract immediately if serious misconduct has occurred. In this case the termination payment is only the fixed remuneration earned until the date of termination and any unvested options will immediately be forfeited.

3.   KMP REMUNERATION

Details of the nature and amount of each major element of remuneration of each KMP of the Group are:

	Year	Short-Term				Post-Employment Super-annuation Benefits	Other Long-Term Benefits (1)	Termination Benefits	Share-Based Payments	Total	Proportion of Remuneration Performance Related (2)
		Salary & Fees	STI Cash Bonus	Benefits (Including Non-Monetary)	Total				Shares, Options and Rights (2)
		A$	A$	A$	A$	A$	A$	A$	A$	A$	%
Non-Executive Directors
J Salomon	2024	105,000	-	-	105,000	11,681	6,058	-	45,747	168,486	-
Non-Executive Chairman	2023	134,213	-	2,233	136,446	17,861	15,423	-	60,028	229,758	6%
P Schwarz	2024	57,523	-	-	57,523	-	-	-	-	57,523	-
Non-Executive Director and Deputy Chairman	2023	53,589	-	-	53,589	-	-	-	-	53,589	-
M Bolton	2024	55,381	-	-	55,381	6,161	-	-	-	61,542	-
Non-Executive Director	2023	55,381	-	-	55,381	5,815	-	-	-	61,196	-
P Haywood	2024	57,523	-	-	57,523	-	-	-	-	57,523	-
Non-Executive Director	2023	53,589	-	-	53,589	-	-	-	-	53,589	-
Executive Directors
R Wessel	2024	288,023	-	-	288,023	-	-	-	70,639	358,662	-
CEO and Executive Director	2023	273,386	-	-	273,386	-	-	-	117,478	390,864	12%
C Judd	2024	211,217	-	-	211,217	-	-	-	51,802	263,019	-
CFO and Executive Director	2023	200,483	-	-	200,483	-	-	-	83,059	283,542	11%
A Khare	2024	243,099	-	-	243,099	5,866	-	-	-	248,965	-
Head of India Assets and Executive Director	2023	202,472	-	-	202,472	4,121	-	-	27,918	234,511	12%
Total	2024	1,017,766	-	-	1,017,766	23,708	6,058	-	168,188	1,215,720
Total	2023	973,113	-	2,233	975,346	27,797	15,423	-	288,483	1,307,049	-

The KMP of the Company may be directors or executives of the Company's subsidiaries. No remuneration is received for directorships of subsidiaries. All KMP other than Mr Wessel, Mr Judd and Mr Khare are employed by the parent entity. Refer to the explanatory notes on the following pages for additional information.

Notes in Relation to KMP Remuneration

⁽¹⁾     Includes, where applicable, accrued employee leave entitlement movements.

⁽²⁾     Includes the vesting during the year, of options granted to certain directors in previous periods (see "4.1 Rights and Options Over Equity Instruments Granted as Compensation"). At the General Meeting held on 13 July 2022, the shareholders approved the issue of 324,675,324 unlisted options under the Employee Incentive Plan to the KMP. The options were vested with the holder over a period of three (3) years, with the options being fully vested on 30 June 2024. No further short-term or Employee Incentive Plan options were granted or issued to KMP or other staff during the year ended 30 June 2024.

Analysis of Bonuses Included in Remuneration

There were no short-term incentive cash bonuses awarded as remuneration to KMP during the financial year.

4.   Equity Instruments

All unlisted options refer to unlisted options over ordinary shares of the Company, which are exercisable on a one-for-one basis.

4.1 Options Over Equity Instruments Granted as Compensation

a)   At the General Meeting held on 13 July 2022, shareholders approved the issue of:

·    88,311,688 options to Mr Salomon (and/or his nominee(s));

·    136,363,636 options to Mr Wessel (and/or his nominee(s)); and

·    100,000,000 options to Mr Judd (and/or his nominee(s)).

The above options were issued on 12 August 2022, with one third (1/3) of the options vesting on 30 June 2022, one third (1/3) of the options vesting on 30 June 2023 and one third (1/3) of the options vesting on 30 June 2024. The fair value of the options issued were calculated at A$0.0016 each using the Black-Scholes valuation model, based on the following inputs:

Grant Date	Expiry Date	Fair Value Per Option	Exercise Price	Price of Shares on Grant Date	Expected Volatility	Risk Free Interest Rate	Dividend Yield
13 July 2022	12 August 2027	£0.0009 (A$0.0016)	£0.0022 (A$0.0039)	£0.0016 (A$0.0028)	75.15%	1.35%	-

Based on the above, the value of the options granted, as well as the number and percentages of options vested (or otherwise) were as follows:

	No. Options Granted	Value of Options Granted at Grant Date	No. Options Vested on 30 June 2024	% of Granted Options Vested on 30 June 2024	% of Granted Options Forfeited
J Salomon	88,311,688	A$137,241	88,311,688	100%	Nil
R Wessel	136,363,636	A$211,916	136,363,636	100%	Nil
C Judd	100,000,000	A$155,405	100,000,000	100%	Nil

b)   On 3 April 2023, the Company issued unlisted nil-cost options over 70,043,152 shares as a non-cash settlement of amounts due to certain KMP in accordance with the Company's short-term incentive plan and recommendations by the Company's Remuneration Committee for the 12‑month period ended 31 December 2022; as follows:

·    8,315,217 options to Mr Salomon (and/or his nominee(s));

·    27,272,727 options to Mr Wessel (and/or his nominee(s));

·    18,200,000 options to Mr Judd (and/or his nominee(s)); and

·    16,255,208 options to Mr Khare (and/or his nominee(s)).

The above options were issued as fully vested on 3 April 2023. The fair value of the options issued were calculated at A$0.0017 each using the Black-Scholes valuation model, based on the following inputs:

Grant Date	Expiry Date	Fair Value Per Option	Exercise Price	Price of Shares on Grant Date	Expected Volatility	Risk Free Interest Rate	Dividend Yield
2 April 2023	1 April 2028	£0.0009 (A$0.0017)	£0.0000 (A$0.0000)	£0.0009 (A$0.0017)	97.92%	3.60%	-

Based on the above, the value of the options granted, as well as the number and percentages of options vested (or otherwise) were as follows:

	No. Options Granted	Value of Options Granted at the Grant Date	No. Options Vested on 30 June 2023 and on 30 June 2024	% of Granted Options Vested on 30 June 2023 and on 30 June 2024	% of Granted Options Forfeited
J Salomon	8,315,217	A$14,281	8,315,217	100.00%	Nil
R Wessel	27,272,727	A$46,840	27,272,727	100.00%	Nil
C Judd	18,200,000	A$31,258	18,200,000	100.00%	Nil
A Khare	16,255,208	A$27,918	16,255,208	100.00%	Nil

c)   No further short-term or long-term incentive options were granted or issued to KMP during the year ended 30 June 2024, or since the end of the financial year.

4.2 Modification of Terms of Equity-Settled Share-based Payment Transactions

No terms of equity-settled share-based payment transactions (including options granted as compensation to KMP) have been altered or modified by the issuing entity during the financial year.

4.3 Exercise of Options Granted as Compensation

During the financial year no shares were issued on the exercise of options previously granted as compensation.

4.4 KMP Shareholdings

The movement during the financial year in the number of ordinary shares in the Company held, directly, indirectly or beneficially, by each KMP, including their related parties, is as follows:

	Held at 1 July 2023	Received as Part of Remuneration	Received on Exercise of Options	Other Changes (1)	Held at 30 June 2024
Non-Executive Directors
J Salomon	14,987,013	-	-	-	14,987,013
P Schwarz	21,222,500	-	-	-	21,222,500
M Bolton	-	-	-	-	-
P Haywood	12,933,513	-	-	-	12,933,513
Executive Directors
R Wessel	-	-	-	-	-
C Judd	-	-	-	-	-
A Khare	-	-	-	-	-
(1)       Other changes represent shares that were granted, purchased or sold during the year.

4.5 KMP Optionholdings

The movement during the financial year in the number of options in the Company held, directly, indirectly or beneficially, by each KMP, including their related parties, is as follows:

	Held at 1 July 2023	Granted During the Year	Exercised During the Year	Held at 30 June 2024	Vested and Exercisable at 30 June 2024
Non-Executive Directors
J Salomon	96,626,905	-	-	96,626,905	96,626,905(1)
P Schwarz	-	-	-	-	-
M Bolton	-	-	-	-	-
P Haywood	-	-	-	-	-
Executive Directors
R Wessel	163,636,363	-	-	163,636,363	163,636,363(2)
C Judd	118,200,000	-	-	118,200,000	118,200,000(3)
A Khare	16,255,208	-	-	16,255,208	16,255,208(4)

⁽¹⁾       88,311,688 options exercisable at £0.0022, expiring 12 August 2027. All these options were exercisable at report date; and

8,315,217 options exercisable at nil cost, expiring 1 April 2028. All these options were exercisable at report date.

⁽²⁾       136,363,636 options exercisable at £0.0022, expiring 12 August 2027. All these options were exercisable at report date; and

27,272,727 options exercisable at nil cost, expiring 1 April 2028. All these options were exercisable at report date.

⁽³⁾       100,000,000 options exercisable at £0.0022, expiring 12 August 2027. All these options were exercisable at report date; and

18,200,000 options exercisable at nil cost, expiring 1 April 2028. All these options were exercisable at report date.

⁽⁴⁾       16,255,208 options exercisable at nil cost, expiring 1 April 2028. All these options were exercisable at report date.

5.   AMOUNTS PAYABLE TO KMP

At year-end, the following amounts were owing from the Group to the Directors:

	2024 A$	2023 A$
Non-Executive Directors
J Salomon	29,269	-
P Schwarz	14,302	-
M Bolton	15,438	-
P Haywood	14,302	-
Executive Directors
R Wessel	71,510	-
C Judd	52,441	-
A Khare	38,486	-
Total	235,748	-

6.   OTHER KMP TRANSACTIONS

There were no other transactions with entities associated with KMP during the year ended 30 June 2024 (2023: nil).

END OF REMUNERATION REPORT - AUDITED

Signed in accordance with a resolution of the Directors made pursuant to section 298(2)(a) of the Corporations Act 2001.

Mr Peter Schwarz Deputy Chairman	Mr Roland Wessel Chief Executive Officer and Director

Perth

Western Australia

30 September 2024

PKF Perth

ABN 64 591 268 274

Dynons Plaza,

Level 8, 905 Hay Street,

Perth WA 6000

PO Box 7206,

Cloisters Square WA 6850

Australia

[phone]

[e-mail]

pkf.com.au

AUDITOR'S INDEPENDENCE DECLARATION

TO THE DIRECTORS OF SYNERGIA ENERGY LTD

In relation to our audit of the financial report of Synergia Energy Ltd for the year ended 30 June 2024, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

PKF Perth

Shane Cross

Partner

30 September 2024

Perth, Western Australia

PKF Perth is a member of PKF Global, the network of member firms of PKF International Limited, each of which is a separately owned legal entity and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm(s). Liability limited by a scheme approved under Professional Standards Legislation.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2024

		2024	2023
	Note	A$	A$
Revenue	4(a)	638,457	1,296,150
Cost of sales	4(b)	(1,048,993)	(2,563,873)
Gross Loss		(410,536)	(1,267,723)
Other income	4(c)	10,474	-
Exploration, evaluation and appraisal expenditure		(773,213)	(608,592)
Administration expense	4(d)	(2,017,142)	(2,473,982)
Expected credit losses (expense)/reversal	8	(288,424)	34,853
Share-based payments expense	24	(168,187)	(288,484)
Impairment of equity securities	13	(34,593)
Other expenses	4(e)	(5,530)	(8,993)
Results from Operating Activities		(3,687,151)	(4,612,921)
Finance income	4(f)	963,678	3,862
Finance costs	4(g)	(1,430,340)	(630,295)
Net foreign exchange gains/(losses)	4(h)	1,355,302	(143,548)
Net Finance Income/(Costs)		888,640	(769,981)
Loss Before Tax		(2,798,511)	(5,382,902)
Income tax expense	5	-	-
Loss After Tax		(2,798,511)	(5,382,902)
Other Comprehensive (Loss)/Income
Items that May be Reclassified Subsequently to Profit or Loss
Exchange differences on currency translation of subsidiaries		(2,712)	187,425
Reclassification to Profit or Loss
Reclassification of exchange differences on currency translation on deregistration of subsidiary	22(a)	(1,325,636)	-
Other Comprehensive (Loss)/Income, Net of Tax		(1,328,348)	187,425
Total Comprehensive Loss		(4,126,859)	(5,195,477)
Loss per Share from Continuing Operations
Basic loss per share (cents per share)	6	(0.03)	(0.06)
Diluted loss per share (cents per share)	6	(0.03)	(0.06)

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024

		2024	2023
	Note	A$	A$
Assets
Cash and cash equivalents	7	1,069,782	938,589
Trade and other receivables	8	116,688	220,331
Prepayments		95,101	89,507
Inventories	9	78,693	113,819
Total Current Assets		1,360,264	1,362,246
Development assets	10	17,336,721	17,558,182
Exploration, evaluation and appraisal asset	11	1,154,230	-
Plant and equipment	12	18,701	24,217
Investments	13	-	34,593
Total Non-Current Assets		18,509,652	17,616,992
Total Assets		19,869,916	18,979,238
Liabilities
Trade and other payables	14	2,373,587	485,968
Provisions	15	333,088	174,116
Borrowings	16	1,739,983	774,666
Derivative financial liability	17	167,726	1,050,334
Total Current Liabilities		4,614,384	2,485,084
Provisions	15	5,299,693	6,156,638
Total Non-Current Liabilities		5,299,693	6,156,638
Total Liabilities		9,914,077	8,641,722
Net Assets		9,955,839	10,337,516
Equity
Issued capital	21	196,252,167	192,817,143
Reserves	22	7,203,449	8,299,925
Accumulated losses	23	(193,499,777)	(190,779,552)
Total Equity		9,955,839	10,337,516

The above Consolidated Statement of Financial Position is to be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2024

		Attributable to Owners of the Company
		Issued Capital	Share-Based Payments Reserve	Foreign Currency Translation Reserve ("FCTR")	Accumulated Losses	Total Equity
	Note	A$	A$	A$	A$	A$
Balance at 1 July 2023		192,817,143	534,957	7,764,968	(190,779,552)	10,337,516
Comprehensive Loss
Loss after tax		-	-	-	(2,798,511)	(2,798,511)
Other comprehensive loss		-	-	(1,328,348)	-	(1,328,348)
		-	-	(1,328,348)	(2,798,511)	(4,126,859)
Transactions with Owners of the Company
Contributions of equity, net of transaction costs and tax	21	3,435,024	-	-	-	3,435,024
Share-based payment transactions	24	-	310,158	-	-	310,158
Options expired	22(b)	-	(78,286)	-	78,286	-
		3,435,024	231,872	-	78,286	3,745,182
Balance at 30 June 2024		196,252,167	766,829	6,436,620	(193,499,777)	9,955,839
Balance at 1 July 2022		192,181,384	221,321	7,577,543	(185,396,650)	14,583,598
Comprehensive Income/(Loss)
Loss after tax		-	-	-	(5,382,902)	(5,382,902)
Other comprehensive income		-	-	187,425	-	187,425
		-	-	187,425	(5,382,902)	(5,195,477)
Transactions with Owners of the Company
Contributions of equity, net of transaction costs and tax	21	635,759	-	-	-	635,759
Share-based payment transactions	24	-	313,636	-	-	313,636
		635,759	313,636	-	-	949,395
Balance at 30 June 2023		192,817,143	534,957	7,764,968	(190,779,552)	10,337,516

The above Consolidated Statement of Changes in Equity is to be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2024

		2024	2023
	Note	A$	A$
Cash Flows from Operating Activities
Cash receipts from customers		904,825	1,462,911
Recovery of prior period operating cost		131,670	94,923
Payments to suppliers and employees		(3,003,601)	(5,678,985)
Repayment of JPDA 06-103 PSC termination penalty		-	(372,523)
Cash Outflow from Operations		(1,967,106)	(4,493,674)
Payments for exploration, evaluation and appraisal expenses		(743,699)	(831,797)
Interest received		5,498	3,862
Interest paid		(47,272)	(52,462)
Net Cash Used in Operating Activities	7	(2,752,579)	(5,374,071)
Cash Flows from Investing Activities
Payments for capitalised development assets		(492,907)	-
Payments for capitalised exploration, evaluation and appraisal assets		(116,047)	-
Acquisition of plant and equipment		-	(3,227)
Net Cash Used in Investing Activities		(608,954)	(3,227)
Cash Flows from Financing Activities
Proceeds from issue of share capital	21	3,571,757	608,378
Payment for share issue costs		(212,060)	(106,168)
Proceeds from borrowings		1,161,226	1,530,101
Repayment of borrowings		(1,051,173)	(488,984)
Net Cash from Financing Activities		3,469,750	1,543,327
Net Increase in Cash and Cash Equivalents		108,217	(3,833,971)
Cash and cash equivalents at 1 July		938,589	4,838,459
Effect of exchange rate fluctuations on cash held		22,976	(65,899)
Cash and Cash Equivalents at 30 June	7	1,069,782	938,589

The above Consolidated Statement of Cash Flows is to be read in conjunction with the accompanying notes.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

ABOUT THIS REPORT - OVERVIEW

1.   REPORTING ENTITY

Synergia Energy Ltd (the "Company") is a for-profit entity domiciled in Australia. These consolidated financial statements comprise the Company and its subsidiaries (collectively the "Group" and individually "Group Entities"). Synergia Energy Ltd is a company limited by shares incorporated in Australia whose shares are publicly traded on the Alternative Investment Market ("AIM") of the London Stock Exchange ("LSE").

The principal activities of the Group during the financial year included:

·    appraisal and development of oil and gas prospects;

·    production and sale of oil and gas; and

·    development of CCS projects.

There were no significant changes in the nature of the activities during the year.

Unless otherwise indicated, these financial statements are presented in Australian dollars ("A$"), which is the Company's functional and presentation currency (refer to Note 2(e)) and are rounded to the nearest Australian dollar.

Parent Entity Information

In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in Note 26.

2.   BASIS OF PREPARATION

(a)  Statement of Compliance

The consolidated financial statements are general purpose financial statements which have been prepared in accordance with Australian accounting standards, interpretations and other authoritative pronouncements of the Australian Accounting Standards Board ("AASB") and the Corporations Act 2001. The AASB include Australian equivalents of the international financial reporting standards adopted by the International Accounting Standards Board ("IFRS"). Compliance with the AASB ensures compliance with the IFRS as issued by the International Accounting Standards Board.

The consolidated financial statements were authorised for issue by the Board of Directors on 30 September 2024.

(b) Basis of Measurement

The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities (including derivative financial liabilities) at fair value through profit or loss, share-based payment arrangements measured at fair value and the foreign currency translation reserve.

A number of the Group's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for some measurement and/or disclosure purposes and where applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

(c)  Going Concern Basis

The Directors believe it is appropriate to prepare the consolidated financial statements on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. In adopting the going concern basis, the Directors have considered business operations as set out on pages 3 to 9, the financial performance and financial position of the Group, its cash flows and liquidity position, and the Group's financial risk management objectives and exposures to liquidity and other financial risks as set out in Note 30.

During the year, the Group incurred a loss of A$2,798,511 (2023: A$5,382,902) and had cash outflows from operating and investing activities of A$3,361,533 (2023: A$5,377,298). The Group concluded the year at 30 June 2024 with net current liabilities of A$3,254,120 (2023: A$1,122,838) which included:

·    cash and cash equivalents of A$1,069,782 (2023: A$938,589);

·    trade and other payables of A$2,373,587 (2023: A$485,968), of which A$353,588 was overdue at 30 June 2024 (2023: nil). Subsequent to balance date, A$117,096 of this amount has been paid;

·    borrowings outstanding (being for the first and second tranches of the short-term borrowings and convertible notes extended to 30 September), of A$1,739,983 (2023: A$774,666); and

·    derivative liabilities of A$167,726 (2023: A$1,050,334).

Since 30 June 2024, the Company obtained a third tranche of short-term loan funding from existing investors of £140,000 in July and August. The loans bear interest at a fixed rate of 23.87% for the period to 11 September 2024 and penalty interest at a fixed rate of 8% per month after 11 September 2024.

Effective on 19 July 2024, the Government of India provided their approval of the farm out of 50% of the Group's interest in the Cambay PSC. On 1 August 2024, the farm-out agreement closed and US$2.5 million, being the initial cash payment due on the farm-out, net of withholding taxes, was paid by Selan Exploration Technology Limited ("Selan") to the Group on 1 August 2024. The portion that was withheld is expected to be received in the coming weeks, in accordance with an agreement the Company entered into on 24 September 2024 to indemnify Selan against any liability for withholding tax effective from 1 August 2024 until 1 April 2035 (refer to Note 20 for further details of the indemnity agreement).

The receipt of the initial cash payment from the closing of the Cambay farm-out agreement (net of withholding taxes) enabled the Group to repay the first tranche of its short-term borrowings on 11 September 2024. The repayment was £566,000 (A$1,079,329 ⁽¹⁾), which was based on principal of £400,000 plus interest of £166,000.

The Group will also use the initial net funds received from the Cambay farm-out to repay part of the convertible notes extended to 30 September 2024. The repayment that will be made on 30 September 2024 will be £107,822 (A$205,610 ⁽¹⁾), based on face values of £100,000 and interest of £7,822. The remainder of the extended convertible notes of £80,866 (A$154,208 ⁽¹⁾), based on face values of £75,000 and interest of £5,866, will be converted to shares based on the notice received from one of the extended convertible note holders' intention to do so.

The second and third tranches of the short-term borrowings, which have specified "repayment dates" of 11 September 2024, remain outstanding at the date of this report. The balance outstanding of those loans at the date of this report is £448,358 (A$854,992 ⁽¹⁾), which is based on principal of £340,000 plus interest of £108,358.

This scenario that is the Group's current situation indicates that the Group would not have sufficient funds to ensure the Group is able continue its activities, meet its ongoing working capital requirements, and repay its borrowings and other amounts payable for at least the 12-month period from the end of September 2024. However, the Directors have assessed the Group's cash flow forecasts which incorporate the mitigating actions set out below, which indicates that under such a scenario the Group would meet its liquidity requirements and continue as a going concern for the foreseeable future.

Mitigating actions taken by the Group after balance sheet date to secure this outcome will include:

·    engaging in discussions with lenders of its remaining short-term borrowings to negotiate a planned repayment date in December 2024; and

·    engaging in discussions with its brokers for future fundraisings.

To this end, the Directors believe that the Group will be able to secure this additional funding to meet the Group's requirements to continue as a going concern, due to its history of previous capital raisings. However, the Directors acknowledge that the structure and timing of any capital raising is dependent upon investor support, prevailing capital markets, shareholder participation, oil and gas prices and the outcome of planned exploration, evaluation and appraisal activities. If funds are not able to be raised or realised, then it may be necessary for the Group to sell or farmout more of its interests in its exploration, evaluation and appraisal and development assets and to reduce discretionary administrative expenditure.

Based on the above indications the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis. However, this material uncertainty may cast significant doubt on the Group's ability to continue as a going concern and, therefore, to continue realising its assets and discharging its liabilities in the normal course of business. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.

⁽¹⁾       When translated at year-end AUD to GBP foreign exchange rate of 0.5244.

(d) Basis and Principles of Consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Synergia Energy Ltd (the "Company" or "parent entity") as at 30 June 2024 and the results of all subsidiaries for the year then ended. Synergia Energy Ltd and its subsidiaries together are referred to in these financial statements as the "consolidated entity" or the "Group".

Subsidiaries

Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.

Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity of the Group. Losses incurred by the Group are attributed to the non-controlling interest in full, even if that results in a deficit balance.

Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.

The list of entities controlled by the Group is contained in Note 25.

Joint Ventures and Joint Arrangements for Joint Operations

Joint ventures are those entities over whose activities the Group has joint control, established by contractual agreement.

The interests of the Group in unincorporated joint operations and jointly controlled assets are brought to account by recognising, in its consolidated financial statements, the assets it controls, the liabilities that it incurs, the expenses it incurs and the share of income that it earns from the sale of goods or services by the joint operations.

The interests of the Group in unincorporated joint operations and jointly controlled assets are contained in Note 27.

(e)  Currency and Foreign Currency Translation

The financial statements are presented in Australian dollars, which is the Company's functional and presentation currency. The functional currency of the Company's subsidiaries are United States dollars or the United Kingdom pound sterling.

Foreign currency transactions are translated into Australian dollars (or the respective functional currencies of the Group entities) using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using historical exchange rates or the average exchange rate which approximate the rates at the dates of the transactions for the period. All resulting foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity. The foreign currency reserve is recognised in profit or loss when foreign operations or net investment are disposed of.

(f)  Critical Accounting Judgements, Estimates and Assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

A key assumption underlying the preparation of the financial statements is that the entity will continue as a going concern. An entity is a going concern when it is considered to be able to pay its debts as and when they fall due, and to continue in operation, without any intention or necessity to liquidate or otherwise wind up its operations.

Judgement has been required in assessing whether the entity is a going concern as set out in Note 2(c).

Other judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as listed below (and discussed in the respective notes as indicated below):

·    Income tax (refer to Note 5)

·    Trade and other receivables (refer to Note 8)

·    Development assets (refer to Note 10)

·    Exploration, evaluation and appraisal assets (refer to Note 11)

·    Plant and equipment (refer to Note 12)

·    Provisions (refer to Note 15);

·    Derivative financial liability (refer to Note 17); and

·    Share-based payments (refer to Note 24).

(g) Rounding of Amounts

The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest dollar, unless otherwise indicated.

(h) Material Accounting Policies

Other than as listed in Notes 2(i) and 2(j), material accounting policies that are relevant to the understanding of the consolidated financial statements have been provided throughout the notes to the financial statements. Accounting policies that are determined to be not material have not been included in the consolidated financial statements.

The accounting policies disclosed have been applied consistently to all periods presented in these consolidated financial statements and have been applied consistently by Group entities, except where there have been any changes in accounting policies.

Changes in Material Accounting Policies

The Group has adopted all new or amended accounting standards, interpretations and other accounting pronouncements issued by the AASB that are effective for reporting periods beginning on or after 1 January 2023 and therefore mandatory for the current reporting period. The adoption of these accounting standards, interpretations and other accounting pronouncements did not have any material impact on the financial performance or position of the Group.

Any new or amended accounting standards, interpretations and other accounting pronouncements issued by the AASB that are not yet mandatory for the current reporting period have not been early adopted.

Accounting Standards and Interpretations Issued But Not Yet Effective

A number of new or amended accounting standards, interpretations and other accounting pronouncements issued by the AASB (as applicable to the Group) are effective for reporting periods beginning on or after 1 January 2024, and are as follows:

Title	Application Date of Standard	Issue Date
AASB 2014-10 Amendments to AASs - Sale or Contributions of Assets between an Investor and its Associate or Joint Venture	1 January 2025	December 2014
AASB 2020-1 Amendments to AASs - Classification of Liabilities as Current or Non-current	1 January 2024	March 2020
AASB 2021-7c Amendments to Australian Accounting Standards - Effective Date of Amendments to AASB 10 and AASB 128 and Editorial Corrections [deferred AASB 10 and AASB 128 amendments in AASB 2014-10 apply]	1 January 2025	December 2021
AASB 2023-1 Amendments to Australian Accounting Standards - Supplier Finance Arrangements	1 January 2024	June 2023

The above new or amended accounting pronouncements are not yet effective, with early application permitted. However, at the date of authorisation of these financial statements, the Group has not early adopted the above accounting pronouncements in preparing these consolidated financial statements.

The Group has not yet assessed the impact of these new or amended accounting pronouncements, however, none of the above accounting pronouncements are expected to have a material impact on the financial performance or position of the Group in the current or future financial periods.

(i)   Current and Non-Current Classification

Assets and liabilities are presented in the statement of financial position based on current and non‑current classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non‑current.

Deferred tax assets and liabilities (if any) are always classified as non-current.

(j)   Goods and Services Tax ("GST"), Value Added Tax ("VAT") and Other Similar Taxes

Revenues, expenses and assets are recognised net of the amount of associated GST or VAT, unless the GST or VAT incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST or VAT receivable or payable. The net amount of GST or VAT recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST or VAT components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST or VAT recoverable from, or payable to, the tax authority.

SYNERGIA'S RESULTS FOR THE YEAR

This section focuses on the results and performance of the Group.

3.   OPERATING SEGMENTS

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group's other components.

Operating segments are presented using the "management approach", where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ("CODM"). The CODM is responsible for the allocation of resources to operating segments and assessing their performance.

The operating segments identified by management are generally based on the geographical location of the business. Each segment has responsible officers that are accountable to the Chief Executive Officer ("CEO") (the Group's chief operating decision maker). The operating results of all operating segments are regularly reviewed by the Group's CEO to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available. Segment results that are reported to the CEO include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

The Group's executive management team evaluates the financial performance of the Group and its segments principally with reference to revenues, production costs, expenditure on exploration, evaluation and appraisal assets and development costs. Financing requirements, finance income and expenses are managed at a Group level.

Corporate items include administration costs comprising personnel costs, head office occupancy costs and investor and registry costs. It may also include expenses incurred by non-operating segments, such as new ventures and those undergoing relinquishment. Assets and liabilities not allocated to operating segments and disclosed are corporate, and mostly comprise cash, plant and equipment, receivables as well as accruals for head office liabilities.

(a)  Major Customers

The Group's most significant customers are:

·    Enertech Fuel Solutions Pvt Limited, with net gas sales representing 69% of the Group's total revenues (2023: 58%); and

·    Navkar Enterprise, with net oil sales representing 31% of the Group's total revenues (2023: 42%).

(b) Material Accounting Policies

(i)   Revenue

The Group recognises revenue as follows:

Revenue from Contracts with Customers

Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Group: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.

Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the "expected value" or "most likely amount" method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability.

Sale of Goods

Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the goods, which is generally at the time of delivery.

Interest

Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Other Revenue

Other revenue is recognised when it is received or when the right to receive payment is established.

(ii)  Expenses

The Group recognises expenses as follows:

·    Amortisation (refer to Note 10)

·    Employee benefits (refer to Note 15); and

·    Leases (refer to Note 18)

·    Expected credit losses (refer to Note 8)

·    Impairment (refer to Notes 10, 11and 13)

·    Depreciation (refer to Note 12)

	India		JPDA		Indonesia		United Kingdom		Corporate (1)		Consolidated
	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
	A$	A$	A$	A$	A$	A$	A$	A$	A$	A$	A$	A$
Revenue
External revenue	638,457	1,296,150	-	-	-	-	-	-	-	-	638,457	1,296,150
Cost of Sales
Production costs	(1,009,827)	(2,250,046)	-	-	-	-	-	-	-	-	(1,009,827)	(2,250,046)
Amortisation of development assets	(4,552)	(24,112)	-	-	-	-	-	-	-	-	(4,552)	(24,112)
Movement in oil stocks inventory	(34,614)	(289,715)	-	-	-	-	-	-	-	-	(34,614)	(289,715)
Total Cost of Sales	(1,048,993)	(2,563,873)	-	-	-	-	-	-	-	-	(1,048,993)	(2,563,873)
Gross Loss	(410,536)	(1,267,723)	-	-	-	-	-	-	-	-	(410,536)	(1,267,723)
Other income	10,474	-	-	-	-	-	-	-	-	-	10,474	-
Exploration, evaluation and appraisal expenditure	(755,716)	(537,047)	-	-	-	-	(17,497)	(71,545)	-	-	(773,213)	(608,592)
Administration expenses	(28,984)	(27,528)	(4,081)	(15,916)	-	52,807	(10,994)	(28,726)	(1,973,083)	(2,456,156)	(2,017,142)	(2,475,519)
Expected credit losses (expense)/reversal	(420,094)	(13,191)	-	11,255	-	-	-	-	131,670	36,789	(288,424)	34,853
Share-based payments expense	-	-	-	-	-	-	-	-	(168,187)	(288,484)	(168,187)	(288,484)
Impairment of equity securities	-	-	-	-	-	-	-	-	(34,593)	-	(34,593)	-
Depreciation	(1,336)	(1,051)	-	-	-	-	-	-	(4,194)	(6,405)	(5,530)	(7,456)
Reportable Segment (Loss)/Profit Before Income Tax	(1,606,192)	(1,846,540)	(4,081)	(4,661)	-	52,807	(28,491)	(100,271)	(2,048,387)	(2,714,256)	(3,687,151)	(4,612,921)
Net finance costs											(466,662)	(626,433)
Foreign exchange gains/(losses)											1,355,302	(143,548)
Income tax expense											-	-
Net Loss for the Year											(2,798,511)	(5,382,902)
Segment Assets	17,626,989	18,501,114	-	414	-	-	1,786,958	-	455,969	477,710	19,869,916	18,979,238
Segment Liabilities	6,045,320	6,436,301	-	9,199	-	-	1,098,062	15,568	2,770,695	2,180,654	9,914,077	8,641,722

⁽¹⁾ "Corporate" represents a reconciliation of reportable segment revenues, profit or loss, assets and liabilities to the consolidated figure. There were no significant inter-segment transactions during the year.

4.   REVENUE AND EXPENSES

Loss from ordinary activities before tax has been determined after the following revenues and expenses:

		2024	2023
	Note	A$	A$
(a) Revenue
Gas sales		442,948	755,589
Oil sales		195,509	540,561
		638,457	1,296,150
(b) Cost of Sales
Production costs		(1,009,827)	(2,250,046)
Amortisation of development assets		(4,552)	(24,112)
Movement in oil stocks inventory		(34,614)	(289,715)
		(1,048,993)	(2,563,873)
(c) Other Income
Profit from disposal of other assets		10,474	-
		10,474	-
(d) Administration Expenses
Employee benefits expense		(1,098,348)	(1,226,601)
Administration expense		(918,794)	(1,247,381)
		(2,017,142)	(2,473,982)
(e) Other Expenses
Depreciation expense	12	(5,530)	(7,456)
Loss on disposal of plant and equipment		-	(1,537)
		(5,530)	(8,993)
(f)  Finance Income
Interest income		5,498	3,862
Extended notes (net change in fair value)	16(c)	91,798	-
Derivative liability (net change in fair value)	17(d)	866,382	-
		963,678	3,862
(g) Finance Costs
Interest on closed US$ loan facility	16(a)	(4,487)	(54,525)
Interest on previously convertible notes	16(b)	(854,403)	(19,178)
Interest on extended notes	16(c)	(51,653)	-
Interest on unsecured short-term borrowings	16(d)	(285,812)	-
Interest on other borrowings		-	(4,791)
Unwinding of discount on site restoration provision	15	(233,985)	(289,540)
Equity securities designated at FVTPL (net change in fair value)		-	(34,593)
Derivative liability (net change in fair value)	17(c)	-	(227,668)
		(1,430,340)	(630,295)

 

(h) Net Foreign Exchange Gains/(Losses)
Realised foreign exchange losses		(113,917)	(44,647)
Unrealised foreign exchange gains/(losses)		143,583	(98,901)
Foreign exchange gains recognised on reclassification of part of FCTR	22(a)	1,325,636	-
		1,355,302	(143,548)

The Group's revenue policy is outlined in Note 3(b)(i).

5.   INCOME TAX EXPENSE

Numerical reconciliation between tax expense and pre-tax accounting loss:

	2024	2023
	A$	A$
Loss before tax	(2,798,511)	(5,382,902)
Tax using the domestic corporation tax rate of 25% (2023: 25%)	(699,628)	(1,345,726)
Effect of tax rate in foreign jurisdictions	(275,941)	(932,253)
Non-deductible expenses
Share-based payments	42,047	72,121
Foreign expenditure non-deductible	253,335	777,723
Other non-deductible expenses	45,025	1,329
Non assessable income
Other non-assessable income	-	(12,500)
Tax losses not brought to account as a deferred tax asset	635,162	1,439,307
	-	-
Unrecognised deferred tax assets ("DTA") generated during the year and not brought to account at reporting date as realisation is not regarded as probable	-	-
Tax expense	-	-
Tax losses utilised not previously brought to account	-	-
Impact of reduction in future tax rates	-	-
Unrecognised DTA not brought to account	-	-
Tax Expense for the Year	-	-

Tax Assets and Liabilities

	2024	2023
	A$	A$
Unrecognised Deferred Tax Assets Not Brought to Account at Reporting Date as Realisation is Not Regarded as Probable - Temporary Differences
Other	18,435,810	20,348,421
Losses available for offset against future taxable income	10,531,842	9,496,896
Deferred Tax Asset Not Brought to Account	28,967,652	29,845,317

Indian-based tax losses are available to offset against future Indian-based assessable income for a period of up to 8 years, upon which they expire. All other deductible temporary differences and tax losses do not expire under current tax legislation.

The deferred tax asset not brought to account during the financial year will only be realised if:

·      It is probable that future assessable income will be derived of a nature and of an amount sufficient to enable the benefit to be realised;

·      The conditions for deductibility imposed by the tax legislation continue to be complied with; and

·      The companies are able to meet the continuity of ownership and/or continuity of business tests.

The foreign component of the deferred tax asset not brought to account during the financial year will only be realised if the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit to be realised and the Group continues to comply with the deductibility conditions imposed by the Income Tax Act 1961 (India) and there is no change in income tax legislation adversely affecting the utilisation of the benefits.

Tax Consolidation

In accordance with tax consolidation legislation the Company, as the head entity of the Australian tax-consolidated group, has assumed the deferred tax assets initially recognised by wholly-owned members of the tax-consolidated group with effect from 1 July 2004.

Material Accounting Policy

The income tax expense (or benefit) for the period is the tax payable (or receivable) on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:

·    When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or

·    When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled, and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset.

Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.

Synergia Energy Ltd (the "head entity") and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under the tax consolidation regime. The head entity and each subsidiary in the tax consolidated group continue to account for their own current and deferred tax amounts. The tax consolidated group has applied the "separate taxpayer within group" approach in determining the appropriate amount of taxes to allocate to members of the tax consolidated group.

In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each subsidiary in the tax consolidated group.

Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement ensures that the intercompany charge equals the current tax liability or benefit of each tax consolidated group member, resulting in neither a contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries to the head entity.

Critical Accounting Judgements, Estimates and Assumptions

The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The consolidated entity recognises liabilities for anticipated tax audit issues based on the consolidated entity's current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made.

Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

6.   LOSS PER SHARE

(a)  Basic Loss Per Share

		2024 A$ cents	2023 A$ cents
Basic and Diluted Loss per Share
Total basic and diluted loss per share		(0.03)	(0.06)
		2024 A$	2023 A$
Loss Used in Calculating Loss per Share
Loss attributable to ordinary shareholders		(2,798,511)	(5,382,902)
	Note	2024 Number	2023 Number
Weighted Average Number of Ordinary Shares
Issued ordinary shares at 1 July	21	8,417,790,704	8,242,959,310
Effect of shares issued		1,360,221,063	161,036,479
Effect of conversion of convertible notes		36,457,112	-
Weighted average number of ordinary shares at 30 June		9,814,468,879	8,403,995,789

(b) Diluted Loss Per Share

The Company's potential ordinary shares, being its options granted, are not considered dilutive as the conversion of these instruments would result in a decrease in the net loss per share.

Material Accounting Policy

Basic earnings or loss per share is calculated by dividing the profit or loss attributable to the owners of Synergia Energy Ltd, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.

Diluted earnings per share adjusts the figures used in the determination of basic earnings or loss per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares (which may comprise outstanding options, warrants, or their equivalents) and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

ASSETS AND LIABILITIES

This section provides information on the assets employed to develop value for shareholders and the liabilities incurred as a result.

7.   CASH AND CASH EQUIVALENTS

	2024	2023
	A$	A$
Cash at bank and on hand	1,069,782	938,589

The Group's exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in Note 30(d)(ii).

Material Accounting Policy

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Reconciliation of Cash Flows from Operating Activities

	2024	2023
	A$	A$
Loss after tax for the year	(2,798,511)	(5,382,902)
Amortisation of development assets	4,552	24,112
Depreciation	5,530	7,456
Interest expense accrued (including unwinding of discount on site restoration provision and effective interest amortisation)	1,383,070	315,571
Expected credit losses expense/(reversal) (refer to Note 8)	420,094	(34,853)
Equity securities designated at FVTPL (net change in fair value)	-	34,593
Impairment of equity securities	34,593	-
Extended notes (net change in fair value)	(91,798)	-
Derivative liability (net change in fair value)	(866,382)	227,668
Loss on disposal of plant and equipment	-	1,537
Equity settled share-based payments	168,187	288,484
Net foreign exchange (gains)/losses	(1,355,302)	143,548
Operating Loss Before Changes in Working Capital and Provisions	(3,095,967)	(4,374,786)
Movement in trade and other receivables	(272,776)	(48,483)
Movement in prepayments	(5,594)	(73,890)
Movement in inventories	34,614	289,715
Movement in trade and other payables	650,982	(1,159,916)
Movement in employee benefits and other current provisions	(63,838)	(6,711)
Net Cash Used in Operating Activities	(2,752,579)	(5,374,071)

8.   TRADE AND OTHER RECEIVABLES

	2024	2023
	A$	A$
Current
Allocation of Receivables
Operating receivables	12,454	16,205
Corporate receivables	104,234	204,126
	116,688	220,331
Operating Receivables
Operating receivables (1)	460,515	49,371
Less: Provision for expected credit losses (2)	(448,061)	(33,166)
	12,454	16,205
Corporate Receivables
Corporate receivables	139,391	234,903
Less: Provision for expected credit losses	(35,157)	(30,777)
	104,234	204,126

⁽¹⁾       During the year, the Group submitted bank guarantees totalling US$247,835 in favour of the Ministry of Petroleum and Natural Gas ("MOPNG") of the Government of India. The bank guarantees fulfil Cambay PSC requirements, which are detailed in Note 19. The amounts guaranteed include a 15% portion which was guaranteed on behalf of Oilex N.L. Holdings (India) Limited ("OHIL") for OHIL's share of the bank guarantee.

⁽²⁾       A corresponding increase in expected credit losses was recorded as the bank guarantee is to remain in place and will not be received back by the Group as long as the Group holds the Cambay PSC.

The Group considers that there is evidence of impairment if any of the following indicators are present: financial difficulties of the debtor, probability that the debtor will dispute amounts owing and default or delinquency in payment (more than one year old). Each receivable has been assessed individually for recovery, and those deemed to have a low chance of recovery have been fully provided for in the current period. The movement in the Group's provision for expected credit losses ("ECLs") are detailed below.

	2024	2023
	A$	A$
Movement in Provision for Expected Credit Losses
Balance at 1 July	(63,943)	(388,142)
ECLs incurred/(reversed) on current receivables (3)	(420,094)	34,853
Write-off of receivables previously provided for	-	323,715
Effect of movements in exchange rates	819	(34,369)
Balance at 30 June	(483,218)	(63,943)

Allocation of Provision for Expected Credit Losses
Operating receivables	(448,061)	(33,166)
Other receivables	(35,157)	(30,777)
	(483,218)	(63,943)

⁽³⁾       See footnote (2) above.

The carrying value of trade and other receivables approximates their fair value due to the assessment of recoverability. Details of the Group's credit risk are disclosed in Note 30(b).

	2024	2023
	A$	A$
Reconciliation of ECL Expense/(Reversal)
ECLs incurred/(reversed) on current receivables	420,094	(34,853)
ECL expense reduced due to receipt of cash call balances previously written off (4)	(131,670)	-
Balance at 30 June	288,424	(34,853)

⁽⁴⁾       During the year the Company received some amounts from one of the ex-defaulting parties of the now terminated JPDA joint venture, relating to overhead charges and cash call balances on this joint venture.

Material Accounting Policy

Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days. Other receivables are recognised at amortised cost, less any allowance for expected credit losses.

Trade and other receivables are derecognised when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off.

Impairment of Receivables and Expected Credit Losses ("ECLs")

The Group recognises loss allowances for "expected credit losses" ("ECLs") on trade and other receivables measured at amortised cost. The amount of ECLs is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective receivable.

The Group always recognises lifetime ECLs for trade and other receivables. The ECLs on these assets are estimated using a provision matrix based on the Group's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate.

Lifetime ECL represents the ECLs that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a receivable that are possible within 12 months after the reporting date.

In assessing whether the credit risk on a receivable has increased significantly since initial recognition, the Group compares the risk of a default occurring on the receivable at the reporting date with the risk of a default occurring on the receivable at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort.

The Group assumes that the credit risk on a receivable has increased significantly if it is more than 30 days past due. The Group considers a financial asset to be in default when the financial asset is more than 90 days due past.

Measurement and ECL Assessment

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive). ECL's are discounted at the effective interest rate of the financial asset.

The Group uses its allowance schedule to measure the ECLs of trade and other receivables. The allowance schedule is based on actual credit loss experience over the past years. The ECLs computed are purely derived from historical data; management is of the view that historical conditions are representative of the conditions prevailing at the reporting date.

Critical Accounting Judgements, Estimates and Assumptions

The allowance for ECLs assessment requires a degree of estimation and judgement. It is based on the lifetime ECLs, grouped based on days overdue, and makes assumptions to allocate an overall expected credit loss rate for each group. These assumptions include recent sales experience, historical collection rates and forward-looking information that is available. The allowance for ECLs, as disclosed above, is calculated based on the information available at the time of preparation. The actual credit losses in future years may be higher or lower.

9.   INVENTORIES

	2024	2023
	A$	A$
Oil on hand - net realisable value	12,037	47,223
Drilling inventory - net realisable value	66,656	66,596
	78,693	113,819

Material Accounting Policy

Inventories comprising materials and consumables and petroleum products are measured at the lower of cost and net realisable value, on a "weighted average" basis. Costs comprises direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate portion of variable and fixed overhead expenditure based on normal operating capacity. Given that oil activities have not achieved commercial levels of production, oil on hand is recognised at net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

10. DEVELOPMENT ASSETS

	2024 A$	2023 A$
Non-Current
Allocation of Development Assets
Cambay development asset	12,481,500	11,832,652
Cambay restoration asset	4,855,221	5,725,530
	17,336,721	17,558,182
Cambay Development Asset
Cost
Balance at 1 July	33,391,443	33,617,561
Additions during the period (1)	411,477	-
Costs directly attributable to the farm out of 50% of the participating interest in the Cambay PSC (2)	246,024	-
Effect of movements in foreign exchange rates	(5,107)	(226,118)
Balance at 30 June	34,043,837	33,391,443
Less: Amortisation and Impairment Losses
Balance at 1 July	(21,558,791)	(22,021,708)
Amortisation charge for the year	(4,552)	(9,170)
Effect of movements in foreign exchange rates	1,006	472,087
Balance at 30 June	(21,562,337)	(21,558,791)
Carrying Amount - Cambay Development Asset	12,481,500	11,832,652

¹⁾         During the year, A$411,477 was invested into an artificial lift system which was installed in September 2023.

²⁾         During the year, the Group incurred costs of A$246,024 directly attributable to the farm out of 50% of the participating interest in the Cambay PSC. These costs have been capitalised at year-end as the Government of India provided their approval of the farm out effective on 19 July 2024. These costs will count towards the calculation of gain or loss on the farm out transaction in the subsequent financial year ending 30 June 2025.

	2024 A$	2023 A$
Cambay Restoration Asset
Cost
Balance at 1 July	5,740,472	8,714,761
Reduction due to reassessment of restoration provision	-	(3,314,730)
Movements in economic assumptions and timing of cash flows (3)	(862,152)	-
Effect of movements in foreign exchange rates	(8,144)	340,441
Balance at 30 June	4,870,176	5,740,472
Less: Amortisation
Balance at 1 July	(14,942)	-
Amortisation charge for the year	-	(14,942)
Effect of movements in foreign exchange rates	(13)	-
Balance at 30 June	(14,955)	(14,942)
Carrying Amount - Cambay Restoration Asset	4,855,221	5,725,530

³⁾         During the year, a reassessment was made of the restoration asset and provision due to changes in interest rates during the year, resulting in the reduction of the restoration asset and provision by A$862,152 (refer to Note 15, footnote (1)).

 

	2024 A$	2023 A$
Carrying Amounts - Total
At 1 July	17,558,182	20,310,614
At 30 June	17,336,721	17,558,182

Cambay Field Development Assets

Development assets are reviewed at each reporting date to determine whether there is any indication of impairment or reversal of impairment. Indicators of impairment can include changes in market conditions, future oil and gas prices and future costs.

No impairment indicators were identified during 2023 or during 2024. Upon minimum annual impairment testing at both year ends, no impairment was found necessary and therefore no impairment charges were applied to the Cambay Field development assets for the financial year ended 30 June 2024 (30 June 2023: A$nil).

Subsequent Event

On 14 February 2024, the Group entered into an agreement to farm out 50% of the Group's participating interest in the Cambay PSC to Selan Exploration Technology Limited ("Selan"), in exchange of an agreed US$20 million work programme as well as a cash payment of US$2.5 million. The agreement also entitles the Group to bonuses of up to US$9 million, linked to certain future cumulative gas sales thresholds being achieved. The agreement was subject to Government of India approval, which was received subsequent to year-end on 19 July 2024. Consequently, 50% of the development assets transferred to Selan effective on 19 July 2024. The farm-out agreement closed on 1 August 2024, and US$2.5 million, net of withholding taxes, was paid by Selan to the Group on 1 August 2024. The portion that was withheld is expected to be received in the coming weeks, in accordance with an agreement the Company entered into on 24 September 2024 to indemnify Selan against any liability for withholding tax effective from 1 August 2024 until 1 April 2035 (refer to Note 20 for further details of the indemnity agreement).

Material Accounting Policy

Development expenditure is recognised at cost less accumulated amortisation and any impairment losses. Where commercial production in an area of interest has commenced, the associated costs are amortised over the estimated economic life of the field, based on the field's economically recoverable reserves, on a units-of-production basis.

Development expenditure includes past EEA costs, pre-production development costs, development drilling, development studies and other subsurface expenditure pertaining to that area of interest. Costs related to surface plant and equipment and any associated land and buildings are accounted for as property, plant and equipment.

The definition of an area of interest for development expenditure is narrowed from the permit for EEA expenditure to the individual geological area where the presence of an oil or natural gas field exists, and in most cases will comprise an individual oil or gas field.

Restoration costs expected to be incurred are provided for as part of development mine assets that give rise to the need for restoration.

Impairment of Development Assets

The carrying value of development assets are assessed on a cash generating unit ("CGU") basis at each reporting date to determine whether there is any indication of impairment or reversal of impairment. Indicators of impairment can include changes in market conditions, future oil and gas prices and future costs. Where an indicator of impairment exists, the assets recoverable amount is estimated.

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. A CGU is the smallest identifiable asset group that generates cash flows that are largely independent from other assets and groups. The CGU is the Cambay Field, India. Impairment losses are recognised in profit or loss.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell ("FVLCS"). As a market price is not available, FVLCS is determined by using a discounted cash flow approach. In assessing FVLCS, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Valuation principles that apply when determining FVLCS are that future events that would affect expected cash flows are included in the calculation of FVLCS.

Impairment losses are reversed when there is an indication that the loss has decreased or no longer exists and there has been a change in the estimate used to determine the recoverable amount. Such estimates include beneficial changes in reserves and future costs, or material increases in selling prices. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of amortisation, if no impairment loss had been recognised.

Critical Accounting Judgements, Estimates and Assumptions

Development costs are amortised on a units of production basis over the life of economically recoverable reserves, so as to write off costs in proportion to the depletion of the estimated reserves. The estimation of reserves requires the interpretation of geological and geophysical data. The geological and economic factors which form the basis of reserve estimates may change over reporting periods. There are a number of uncertainties in estimating resources and reserves, and these estimates and assumptions may change as new information becomes available.

11. EXPLORATION, EVALUATION AND APPRAISAL ("EEA") ASSET

	2024	2023
Non-Current	A$	A$
Allocation of EEA Asset
Relating to CS019 licence for the Camelot area (1)	1,154,230	-
Total Carrying Amount	1,154,230	-
Movement in EEA Asset
Balance at 1 July	-	-
Capitalised EEA expenditure, net of recovery (1)	1,154,675	-
Effect of movements in exchange rates	(445)	-
Balance at 30 June	1,154,230	-

¹⁾         Effective on 1 August 2023, the NSTA granted the CS019 licence for the Camelot area ("CS019 - SNS Area 4") to Synergia Energy CCS Limited and its 50% joint venture partner, Wintershall Dea Carbon Management Solutions UK ("Wintershall Dea"), with Synergia Energy CCS Limited as operator. Prior to 1 August 2023, all costs incurred pertaining to obtaining the licence were expensed.

EEA assets are reviewed at each reporting date to determine whether there is any indication of impairment. When EEA expenditure does not result in the successful discovery of potentially economically recoverable reserves or other assets, or if sufficient data exists to indicate the carrying amount of the EEA asset is unlikely to be recovered in full, either by development or sale, it is impaired. Based on a review of key assumptions, no impairment indicators were identified as at 30 June 2024. As such no impairment charges were applied to the EEA asset during the year.

Material Accounting Policy

EEA expenditures in relation to each separate area of interest are recognised as EEA assets in the year in which they are incurred where the following conditions are satisfied:

·    The rights to tenure of the area of interest are current; and

·    At least one of the following conditions is also met:

o  The EEA expenditures are expected to be recouped through successful development and exploration of the area of interest, or alternatively, by its sale; or

o  EEA activities in the area of interest have not, at the reporting date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing.

Expenditure incurred prior to securing legal rights to explore or appraise an area is expensed. Once legal rights are obtained, exploration and appraisal costs are capitalised. The costs of drilling exploration and appraisal wells are initially capitalised pending the results of the well. Costs are expensed where the well does not result in a successful outcome.

An area of interest is an individual geological area that is considered to constitute a favourable environment for the presence of hydrocarbon resources, has been proven to contain such resources or is considered to be a suitable reservoir for CO₂ storage.

EEA assets are initially measured at cost and include acquisition of rights to explore, studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortisation of assets used in EEA activities. General and administrative costs are only included in the measurement of EEA costs where they are related directly to operational activities in a particular area of interest.

EEA assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an EEA asset may exceed its recoverable amount. The recoverable amount of the EEA asset (or the cash-generating unit(s) to which it has been allocated, being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years.

Where a decision is made to proceed with development in respect of a particular area of interest, the relevant EEA asset is tested for impairment and the balance is then reclassified as development assets.

Impairment of EEA Expenditure

The carrying value of EEA assets are assessed at each reporting date to see if any of the following indicators of impairment exist:

·      The Group's right to explore or appraise in the specific area has expired during the reporting period or will expire in the near future, and is not expected to be renewed;

·      Substantive expenditure on further EEA in the specific area is neither budgeted nor planned;

·      EEA in the specific area have not led to the discovery of commercially viable quantities of resources or the discovery of suitable reservoirs for CO₂ injection and storage, or the entity has decided to discontinue such activities in the specific area; or

·      Sufficient data exist to indicate that, regardless of whether a development in the specific area is likely to proceed or not, the carrying amount of the EEA asset is unlikely to be recovered in full, either from successful development or by sale.

Critical Accounting Judgements, Estimates and Assumptions

The application of the Group's accounting policy for EEA expenditure necessarily requires management to make certain estimates and assumptions as to future events and circumstances, particularly the assessment of whether economic quantities of resources have been found, or that the sale of the respective areas of interest will be achieved. Critical to this assessment are estimates and assumptions as to contingent and prospective resources, the timing of expected cash flows, exchange rates, commodity prices and future capital requirements. These estimates and assumptions may change as new information becomes available. If, after having capitalised expenditure under this policy, it is determined that the expenditure is unlikely to be recovered by future exploitation or sale, then the relevant capitalised amount will be written off to the consolidated statement of profit or loss and other comprehensive income.

12. PLANT AND EQUIPMENT

	Motor Vehicles A$	Plant and Equipment A$	Office Furniture A$	Total A$
Cost
Balance at 1 July 2022	18,331	604,363	12,093	634,787
Additions	-	3,227	-	3,227
Disposals	-	(217,765)	(12,093)	(229,858)
Currency translation differences	716	8,505	-	9,221
Balance at 30 June 2023	19,047	398,330	-	417,377
Currency translation differences	17	206	-	223
Balance at 30 June 2024	19,064	398,536	-	417,600
Depreciation and Impairment Losses
Balance at 1 July 2022	18,331	575,393	11,233	604,957
Depreciation charge for the year	-	7,062	394	7,456
Disposals	-	(216,694)	(11,627)	(228,321)
Currency translation differences	716	8,352	-	9,068
Balance at 30 June 2023	19,047	374,113	-	393,160
Depreciation charge for the year	-	5,530	-	5,530
Currency translation differences	17	192	-	209
Balance at 30 June 2024	19,064	379,835	-	398,899
Carrying Amounts
At 1 July 2023	-	24,217	-	24,217
At 30 June 2024	-	18,701	-	18,701

Material Accounting Policy

Plant and equipment is stated at historical cost less accumulated depreciation and impairment. The cost of self-constructed assets includes the cost of materials, direct labour, the initial estimate, where relevant, of the costs of dismantling and removing the items and restoring the site on which they are located and an appropriate proportion of overheads.

An item of plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Group. Gains and losses on disposal are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net in the consolidated statement of profit or loss and other comprehensive income.

Depreciation is calculated using the reducing balance or straight-line method over the estimated useful life of the assets, with the exception of software which is depreciated at prime cost. The estimated useful lives in the current and comparative periods are as follows:

·   Motor vehicles	4 to 7 years
·   Plant and equipment	2 to 8 years
·   Office furniture	2 to 10 years

Depreciation methods, useful lives and residual values are reviewed and adjusted, if appropriate, at each reporting date.

Impairment of Property, Plant and Equipment

The carrying value of assets are assessed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assets recoverable amount is estimated.

Critical Accounting Judgements, Estimates and Assumptions:
Estimation of Useful Lives of Assets

The Group determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.

13. INVESTMENTS

	2024 A$	2023 A$
Non-Current Investments
Equity securities in Armour Energy Limited ("Armour")	-	34,593
	-	34,593

In November 2023, Armour stopped trading its shares and went into receivership and administration. Armour's creditors also resolved to liquidate Armour on 19 January 2024. The ownership of Armour's underlying business was then transitioned to ADZ Energy Pty Ltd on 22 January 2024. Armour is still in the process of liquidation at year-end. Due to these events it is considered that the value of the Armour shares is not recoverable and as such, the carrying amount of the Armour investment was fully impaired to A$nil during the year.

Material Accounting Policy

Investments are initially measured at fair value.

Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off.

Financial Assets at FVTPL

Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial assets at FVTPL. Typically, such financial assets will be either: (i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.

14. TRADE AND OTHER PAYABLES

	2024	2023
	A$	A$
Trade payables	1,288,715	78,481
Other payables	329,392	-
Accruals	755,480	407,487
	2,373,587	485,968

Trade and Other Payables

The carrying value of trade and other payables is considered to approximate its fair value due to the short-term nature of these financial liabilities. At 30 June 2024, A$353,588 of the trade payables amount was overdue (2023: nil). Subsequent to balance date, A$117,096 of this amount has been paid.

Material Accounting Policy

Trade and other payables are recorded at the value of the invoices received and subsequently measured at amortised cost and are non-interest bearing. The liabilities are for goods and services provided before year end, that are unpaid and arise when the Group has an obligation to make future payments in respect of these goods and services. The amounts are unsecured. Financial assets and liabilities are offset and the net amount is presented in the statement of financial position when and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

15. PROVISIONS

	2024	2023
	A$	A$
Current
Employee benefits	188,259	174,116
Site restoration and well abandonment	144,829	-
	333,088	174,116
Non-Current
Site restoration and well abandonment	5,299,693	6,156,638
	5,299,693	6,156,638

 

Provision for Site Restoration and Well Abandonment
Current	144,829	-
Non-current	5,299,693	6,156,638
	5,444,522	6,156,638
Movement in Provision for Site Restoration and Well Abandonment
Balance at 1 July	6,156,638	8,833,483
Unwinding of discount on site restoration provision	233,985	289,540
Payments made into site restoration fund account	(77,982)	-
Reduction of provision due to reassessment of restoration asset and provision	-	(3,314,730)
Movements in economic assumptions and timing of cash flows (1)	(862,152)	-
Effect of movements in exchange rates	(5,967)	348,345
Balance at 30 June	5,444,522	6,156,638

¹⁾     An adjustment was made during the period due to updates in underlying discount and inflation rates. There were no other adjustments to the key assumptions on estimated expenditures required by the Company to settle its site restoration and well abandonment obligations.

Subsequent Event

Refer to the "Subsequent Event" header under Note 10 with regards to the Government of India approval of the farm out of 50% of the Group's participating interest in the Cambay PSC to Selan on 19 July 2024. Consequently, 50% of the provision for site restoration and well abandonment transferred to Selan effective on 19 July 2024.

Material Accounting Policy

Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost.

Provision for Employee Benefits

Liabilities for wages and salaries, superannuation and other short-term benefits (including non-monetary benefits), annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.

The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments (including relevant on-costs) to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels (including through pay increases and inflation), experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Provision for Site Restoration and Rehabilitation

A provision for restoration and rehabilitation is recognised when there is a present obligation as a result of exploration, development, production or other related activities undertaken, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the provision can be measured reliably. The estimated future obligations include the costs of plug and abandonment operations (the field plant closure phase), site preparation, removing equipment, structures and debris, establishment of compatible contours and drainage, replacement of topsoil, re-vegetation, slope stabilisation, in-filling of excavations, monitoring activities and other site restoration activities.

The provision for future restoration costs is the best estimate of the present value of the expenditure required to settle the restoration obligation at the reporting date, based on current legal, technological and other requirements. Future restoration costs are reviewed annually and any changes in the estimate are reflected in the present value of the restoration provision at each reporting date.

The initial estimate of the restoration and rehabilitation provision relating to exploration, development, and production facilities is capitalised into the cost of the related asset and amortised on the same basis as the related asset, unless the present obligation arises from the production of inventory in the period, in which case the amount is included in the cost of production for the period. Changes in the estimate of the provision for restoration and rehabilitation are treated in the same manner, except that the unwinding of the effect of discounting on the provision is recognised as a finance cost rather than being capitalised into the cost of the related asset.

Key Estimates and Assumptions

In relation to restoration and rehabilitation provisions, the Group estimates the future removal costs of onshore oil and gas production facilities, wells and pipelines at the time of installation of the assets. In most instances, the removal of assets occurs many years into the future. This requires judgemental assumptions regarding removal date, future environmental legislation, the extent of reclamation activities required, the engineering methodology for estimating the cost, future removal technologies in determining the removal cost, and discount rates to determine the present value of these cash flows.

16. BORROWINGS

	Note	2024 A$	2023 A$
Current
Unsecured loan (US$800,000 loan facility)	16(a)	-	339,902
Convertible notes (debt component)	16(b)	-	434,764
Extended notes	16(c)	310,269	-
Unsecured short-term borrowings	16(d)	1,429,714	-
		1,739,983	774,666

Terms and Conditions of Borrowings

				2024 A$		2023 A$
Unsecured Borrowings	Currency	Nominal Interest Rate	Year of Maturity	Face Value	Carrying Amount	Face Value	Carrying Amount
US$800,000 loan facility	USD	11.00%	2023-2024	-	-	324,942	339,902
Convertible notes (debt component) *	GBP	5.00%	2023-2024	-	-	1,238,095	434,764
Extended notes **	GBP	5.00%	2024-2025	333,715	310,270	-	-
Unsecured short-term borrowings ***	GBP	Fixed at 17.50%	2023-2024	762,778	957,287	-	-
Unsecured short-term borrowings ****	GBP	Fixed at 23.87%	2024-2025	381,388	472,426	-	-
				1,477,881	1,739,983	1,563,037	774,666

*      The carrying amount of convertible notes (debt component) were lower than their face value at reporting date due to fair value revaluations (refer to Note 16(b) and Note 17(b)).

**     The carrying amount of the extended notes were lower than their face value at reporting date due to fair value revaluations (refer to Note 16(c)).

***   The short-term loan agreement for these unsecured borrowings state a "repayment date" of 11 June 2024, after which, additional interest will be charged on these borrowings at a penalty interest rate of 8% per month.

**** The short-term loan agreement for these unsecured borrowings state a "repayment date" of 11 September 2024, after which, additional interest is charged on these borrowings at a penalty interest rate of 8% per month.

(a)  US$800,000 Loan Facility

This unsecured loan related to an unsecured loan facility agreement for US$800,000 at an interest rate of 11%, which the Company entered into during the financial year ended 30 June 2021 with two of its JPDA joint venture partners, JX and PPP. The loan was restricted to fund the settlement of the termination penalty to ANPM, which was fully paid by 7 September 2022. The portion which was owing to PPP was fully repaid in December 2021. The balance of the loan was fully repaid to JX on 10 August 2023.

Movement in US$800,000 Loan Facility	2024 A$	2023 A$
Balance at 1 July	339,902	451,355
Amounts drawn down to pay termination penalty	-	372,523
Repayments made to lenders	(348,853)	(536,656)
Interest on facility balance	4,487	54,525
Effect of movements in exchange rates	4,464	(1,845)
Balance at 30 June	-	339,902

(b) Convertible Notes (Debt Component)

Movement in		2024	2023
Convertible Notes (Debt Component)	Note	A$	A$
Balance at 1 July		434,764	-
Proceeds from issue of convertible notes	16(b)(i)	-	1,157,578
Derivative liability at inception of convertible notes	17(b)	-	(774,570)
		434,764	383,008
Interest on convertible notes at 5%	16(b)(i)	43,200	19,178
Additional amortised effective interest charge		811,203	-
Convertible notes redeemed in cash	16(b)(ii)	(749,590)	-
Remaining balance of convertible notes extended to 30 September 2024	16(b)(iii)	(355,187)	-
Convertible notes converted into shares	16(b)(iv)	(217,298)	-
Effect of movements in exchange rates		32,908	32,578
Balance at 30 June		-	434,764

(i)   Effective 9 March 2023, the Company issued 6,500 unsecured convertible notes, each having a face value of £100, for total proceeds of £650,000. The maturity date of the notes was 9 March 2024. The conversion rights and other terms associated with the notes were as follows:

·      Interest is accrued on the face value of the notes at a rate of 5% per annum until such time as the interest is either converted into shares or redeemed in cash;

·      The holder of the notes had the option to convert the face value of the notes and interest accrued into shares at any time between 9 December 2023 and 9 March 2024 at a conversion price of £0.0008 per share;

·      If conversion not elected, holders were able to elect to redeem their notes in cash no earlier than the maturity date of 9 March 2024;

·      All holders' had to notify the Company of their intention to convert or redeem their notes by 26 February 2024, 10 business days before the maturity date. If no notice was received by the holders by 26 February 2024, the notes and interest accrued were automatically convert into shares on the maturity date.

(ii)   In line with the 9 March 2024 maturity date of the notes, the Company received notices from five of the seven note holders that indicated their intention to redeem their notes and interest accrued into cash. Those holders had a total of 5,430 notes, and requested for 3,680 of its notes, plus interest accrued, to be redeemed in cash effective on the maturity date of 9 March 2024. These repayments amounted to £386,451 (A$749,590).

(iii)  The holders requested for the other 1,750 notes, plus interest accrued, to be extended to 30 September 2024. There ability to convert these "Extended Notes" into shares remain until the extended maturity date of 30 September 2024. The value of the Extended Notes at the 9 March 2024 maturity date was £183,774 (A$355,187). The repayment value of the Extended Notes will amount to £188,688 (equivalent of A$359,818 at 30 June 2024). The terms of the Extended Notes, being the extension of the maturity date to 30 September 2024, were assessed to be substantially different from the original terms of the convertible notes. As such, this portion has been recognised as a separate financial liability. Refer to Note 16(c) for further information.

(iv)  The Company also received a notice from another of the convertible note holders indicating his intention to convert his 320 notes and interest into 42,005,479 shares effective 9 March 2024. The remaining convertible note holder did not provide any option or exercise notice to the Company by 26 February 2024 and, as such, in accordance with the convertible note agreement, the remainder of the 750 notes plus interest automatically converted into 98,450,342 shares effective 9 March 2024. The value of the notes converted into shares amounted to £112,365 (A$217,172).

(c)  Extended Notes

		2024	2023
Movement in Extended Notes	Note	A$	A$
Balance at 1 July		-	-
Balance of previously convertible notes extended to 30 September 2024	16(b)(iii)	355,187	-
Effect of fair valuation on Extended Notes	16(c)(i)	(91,798)	-
Initial Recognition of Extended Notes		263,389	-
Interest on Extended Notes at 5%		5,197	-
Additional amortised effective interest charge		46,456	-
Effect of movements in exchange rates		(4,773)	-
Balance at 30 June	16(c)(ii)	310,269	-

(i)   The fair value of the Extended Notes were determined to be £135,635 (A$263,389) at the date of the extension of the previously convertible notes. This was based on an annualised fair value borrowing rate of 80%.

(ii)   The amortised balance of the Extended Notes at 30 June 2024 was £162,706 (A$310,269). The final repayment value effective 30 September 2024 will be £188,688 (A$359,818 when translated at year-end AUD to GBP foreign exchange rate of 0.5244).

Subsequent Events

In August 2024, the Company received a notice from one of the Extended Notes holders indicating his intention to convert his 750 notes and interest totalling £80,866 into 101,083,050 shares effective 30 September 2024. These shares are expected to be issued and admitted to trading on AIM on or around 30 September 2024. The remainder of the Extended Notes, at the face value of 1,000 notes plus interest totalling £107,822, will also be repaid in cash to their holders on 30 September 2024.

(d) Unsecured Short-Term Borrowings

		2024	2023
Movement in Unsecured Short-Term Borrowings	Note	A$	A$
Balance at 1 July		-	-
Proceeds (first tranche)	16(d)(i)	776,166	-
Proceeds (second tranche)	16(d)(ii)	385,060
Interest		285,812	-
Effect of movements in exchange rates		(17,324)	-
Balance at 30 June		1,429,714	-

During the year, the Company obtained unsecured short-term loan funding from existing investors of £600,000:

(i)   The first tranche of £400,000 of was received in March 2024 and bears interest at a fixed rate of 17.50% for the period of the loan (approximately 3 months) and specified a "repayment date" of 11 June 2024. As this tranche was not repaid at year-end, additional interest was charged on this tranche of borrowings at a fixed penalty interest rate of 8% per month.

(ii)   The second tranche of £200,000 was received in June 2024 and bears interest at a fixed rate of 23.87% for the period of the loan (approximately 3 months) and specified a "repayment date" of 11 September 2024. This tranche of borrowings is still outstanding as at the date of this report, and as such additional interest has been charged on this tranche of borrowings at a fixed penalty interest rate of 8% per month.

Subsequent Events

Subsequent to year end, a third tranche of £140,000 was received in July and August 2024. This third tranche bears interest at a fixed rate of 23.87% for the period of the loan until a specified "repayment date" of 11 September 2024, and penalty interest at a fixed rate of 8% per month thereafter.

Additionally, the first tranche of short-term loans plus interest were repaid on 11 September 2024. The total repayment including interest was £566,000 (A$1,079,329 when translated at year-end AUD to GBP foreign exchange rate of 0.5244). The second and third tranches of the short-term borrowings, totalling £340,000 plus interest, remain outstanding at the date of this report. The balance outstanding of those loans at the date of this report is £448,358 (A$854,992 when translated at year-end AUD to GBP foreign exchange rate of 0.5244).

Material Accounting Policy

All borrowings are initially recognised when the Group becomes a party to the contractual provisions of the lending instrument. All borrowings are initially recognised at fair value less transaction costs. Borrowings are subsequently carried at amortised cost using the effective interest method.

The component of the convertible notes that exhibits characteristics of a liability is recognised as a liability in the statement of financial position, net of transaction costs. This is calculated net of the valuation of the option to convert the notes (refer to Note 17).

The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire. The Group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.

On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.

17. DERIVATIVE FINANCIAL LIABILITY

		2024	2023
	Note	A$	A$
Current
Convertible notes (derivative liability on conversion option component)	17(a)	167,726	1,050,334
		167,726	1,050,334
Movement in Convertible Notes
(Derivative Liability Component)
Balance at 1 July		1,050,334	-
Derivative liability at inception of convertible notes	17(b)	-	774,570
Net increase in fair value	17(c)	-	227,668
Net decrease in fair value	17(d)	(866,382)	-
Effect of movements in exchange rates		(16,226)	48,096
Balance at 30 June	17(c) 17(d)	167,726	1,050,334

(a)  The holders of the convertible notes had the option to convert the notes into ordinary share capital of the Company. This option was effective on 9 December 2023 and expired on 9 March 2024. See Note 16(b)(i) for further details.

(b)  The fair value of the option component of the convertible notes on their effective date of issue of 9 March 2023 was determined to be £431,900 (A$774,570) and was calculated using the Black Scholes Model with the following factors and assumptions:

Valuation Date	Expiry Date	No. of "Options"	Fair Value Per "Option"	"Exercise" Price	Share Price on Effective Issue Date	Expected Volatility	Risk Free Interest Rate	Dividend Yield
9 Mar 2023	9 Mar 2024	812,500,000	£0.0005 (A$0.0010)	£0.0008 (A$0.0014)	£0.0011 (A$0.0020)	96.35%	3.60%	-

(c)  The fair value of the option component of the convertible notes as at the previous year-end on 30 June 2023 was determined to be £551,425 (A$1,050,334) and was calculated using the Black Scholes Model with the following factors and assumptions:

Valuation Date	Expiry Date	No. of "Options"	Fair Value Per "Option"	"Exercise" Price	Share Price on 30 Jun 2023	Expected Volatility	Risk Free Interest Rate	Dividend Yield
30 Jun 2023	9 Mar 2024	812,500,000	£0.0007 (A$0.0013)	£0.0008 (A$0.0015)	£0.0013 (A$0.0025)	100%	4.10%	-

(d)  As detailed in Note 16(b)(ii), 3,680 notes were redeemed in cash, and as detailed in Note 16(b)(iv), 1,070 notes were redeemed in shares. The ability to convert remained on the remaining 1,750 Extended Notes, as detailed in Note 16(b)(iii). The fair value of the derivative liability of this option component on the Extended Notes was determined to be £87,956 (A$167,726) at 30 June 2024. This was calculated using the Black Scholes Model with the following factors and assumptions:

Valuation Date	Expiry Date	No. of "Options"	Fair Value Per "Option"	"Exercise" Price	Share Price on 30 Jun 2024	Expected Volatility	Risk Free Interest Rate	Dividend Yield
30 Jun 2024	30 Sep 2024	218,750,000	£0.0004 (A$0.0008)	£0.0008 (A$0.0015)	£0.0012 (A$0.0022)	86.36%	4.35%	-

Fair Value Measurement

The fair value measurement of the derivative liability component has been determined using a three-level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:

Level 1:	Quoted prices (unadjusted) in active markets for identical assets that the Group can access at the measurement date;
Level 2:	Inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly; and
Level 3:	Unobservable inputs for the liability.

The derivative liability is determined to be Level 2 and has been valued using quoted market prices at the end of the reporting period. This valuation technique maximises the use of observable market data where it is available and relies as little as possible on entity specific estimates.

Material Accounting Policy

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

On the issue of the convertible notes the fair value of the derivative liability component is determined using observable quoted market prices. The derivative liability is then subsequently remeasured to its fair value at each reporting date.

Critical Accounting Judgements, Estimates and Assumptions

When the fair values of financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using the Black-Scholes model valuation technique taking into account the terms and conditions upon which the instruments were granted. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

18. LEASES

Short-Term Rental Lease Commitments

Non-cancellable operating lease rentals are payable as follows:

	2024	2023
	A$	A$
Within one year	13,971	29,626
One year or later and no later than five years	-	-
	13,971	29,626

During the year the Group continued its lease at its Indian office premises in Vadodara, Gujarat. The lease's lock-in period ended during the year on 11 December 2023, and continues on a 3-month rolling basis until 11 December 2025. After 11 December 2025, the Group has the option to negotiate an extension to the lease at a 12% rent increment, with other terms yet to be determined between the Group and the lessor should this option be taken up.

	2024	2023
	A$	A$
Expenses Related to Short-Term Leases
Operating lease rentals expensed during the financial year	56,845	71,067

Material Accounting Policy

Definition of a Lease

The Group assesses whether a contract is, or contains, a lease if the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. At inception or on the reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease and non-lease component on the basis of their stand-alone prices. However, for leases of properties in which it is a lessee, the Group has elected not to separate non-lease components and will instead account for the lease and non-lease components as a single lease component.

As a Lessee

As a lessee, the Group recognises right-of-use assets and lease liabilities for most leases - i.e. these leases are on the balance sheet. However, the Group has elected not to recognise right-of-use assets and lease liabilities for some leases of low-value assets and short-term leases (lease term of 12 months or less). The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the term lease.

For leases of medium to large-value assets and long-term leases, the Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses; and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payment made.  It is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is certainly reasonable certain to be exercised or a termination option is reasonably certain not to be exercised.

The Group shall apply judgement to determine the lease term for some lease contracts in which it is a lessee that includes renewal options. The assessment of whether the Group is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognised.

Leases of Low-Value Assets and Short-Term Leases

The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases, including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

19. EXPENDITURE COMMITMENTS

Exploration, Evaluation and Appraisal Expenditure Commitments

In order to maintain rights of tenure to exploration, evaluation and appraisal permits, the Group is required to perform exploration, evaluation and appraisal work to meet the minimum expenditure requirements specified by various state and national governments. These obligations are subject to renegotiation when an application for an exploration, evaluation and appraisal permit is made and at other times. These obligations are not provided for in the financial report. The expenditure commitments are currently estimated to be A$nil at year end (30 June 2023: A$nil).

When obligations expire, are re-negotiated or cease to be contractually or practically enforceable, they are no longer considered to be a commitment.

Further expenditure commitments for subsequent permit periods are contingent upon future exploration, evaluation and appraisal results. These cannot be estimated and are subject to renegotiation upon the expiry of the existing exploration, evaluation and appraisal leases.

Cambay Field

For the extended Cambay PSC period (which started from September 2019), the operators of the Cambay PSC are required to submit a bank guarantee equivalent to 10% of total estimated annual expenditure in respect to the work programme approved by the Ministry of Petroleum and Natural Gas ("MOPNG") of the Government of India. During the year, the Company submitted bank guarantees totalling US$247,835 in favour of MOPNG, thereby satisfying these requirements. The US$247,835 bank guarantees include a 15% portion which is guaranteed on behalf of OHIL for its share of the bank guarantee.

Required bank guarantee amounts are reassessed every year according to aspects of the work programme that have been fulfilled during the year, and according to aspects of the work programme that is planned to be fulfilled for the relevant upcoming year.

There are no other commitments for the Cambay PSC that is not disclosed elsewhere in this report.

Subsequent Event

Refer to the "Subsequent Event" header under Note 10 with regards to the Government of India approval of the farm out of 50% of the Group's participating interest in the Cambay PSC to Selan on 19 July 2024. As Selan will be lead joint operator under the farm-out agreement, the required total bank guarantees to be submitted in favour of MOPNG may change pending any updated work programmes that will be submitted by Selan. At the date of this report, Selan has not yet submitted any updated work programmes and there are no additional obligations to be fulfilled by the Group in this regard.

CCS Licence on Camelot Area

Effective on 1 August 2023, the NSTA granted the CS019 licence for the Camelot area ("CS019 - SNS Area 4") to Synergia Energy CCS Limited and its 50% joint venture partner, Wintershall Dea Carbon Management Solutions UK ("Wintershall Dea"), with Synergia Energy CCS Limited as operator. The carbon storage licence has a work program that incorporates an appraisal phase comprising seismic re-processing, technical evaluations and risk assessment, and a contingent FEED study leading to a potential storage licence application in 2028, following the final investment decision ("FID"). The CS019 licence also includes a contingent appraisal well.

Capital Expenditure Commitments

The Group had no capital expenditure commitments as at 30 June 2024 (30 June 2023: A$nil).

20. CONTINGENT ASSETS, CONTINGENT LIABILITIES AND GUARANTEES

Contingent Assets and Contingent Liabilities at Reporting Date

The Directors are of the opinion that there were no contingent assets or contingent liabilities as at 30 June 2024 and as at 30 June 2023.

Subsequent Event

With reference to the "Subsequent Event" header under Note 10 with regards to the Government of India approval of the farm out of 50% of the Group's participating interest in the Cambay PSC to Selan on 19 July 2024, on 24 September 2024, the Company entered into an agreement to indemnify Selan against any liability for withholding tax on the US$2.5 million cash payment under the farm-out agreement. The indemnity agreement is effective from 1 August 2024 until 1 April 2035.

Guarantees

Synergia Energy Ltd has issued a guarantee in relation to corporate credit cards. The bank guarantee amounts to A$15,000 at year-end (30 June 2023: A$15,000).

As referred to in Note 19, during the year, the Company submitted bank guarantees in favour of MOPNG totalling US$247,835, relating to the Cambay field. 15% of these guarantees were entered into on behalf of OHIL for its share of the bank guarantee.

EQUITY, GROUP STRUCTURE AND RISK MANAGEMENT

This section addresses the Group's capital structure, the Group structure and related party transactions, as well as including information on how the Group manages various financial risks.

21. ISSUED CAPITAL

	2024		2023
Ordinary Shares	Number of Ordinary Shares	Issued Capital A$	Number of Ordinary Shares	Issued Capital A$
On issue at 1 July - fully paid	8,417,790,704	192,817,143	8,242,959,310	192,181,384
Issue of share capital
Shares issued for cash (2) (3)	2,079,545,454	3,571,757	174,831,394	608,378
Shares issued on conversion of convertible notes (4)	140,455,821	217,298	-	-
Capital raising costs (1) (2) (3)	-	(354,031)	-	27,381
Balance at 30 June - fully paid	10,637,791,979	196,252,167	8,417,790,704	192,817,143

The Company does not have authorised capital or par value in respect of its issued shares. The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

Refer to the following notes for additional information and Note 24 for details of unlisted options issued:

⁽¹⁾       Capital raising costs include cash payments of A$212,060 and fair value of options granted to Novum Securities Limited ("Novum") of A$141,971. For details of the options granted to Novum, see footnotes (2) and (3) below.

⁽²⁾       On 7 August 2023, the Company issued 704,545,454 shares at £0.0011 (A$0.0021) per share pursuant to the July Placement announced on 25 July 2023.

As part of this placement, the Company issued 13,636,363 unquoted options to Novum pursuant to the capital raising advisory agreement relating to this placement ("July Fee Options"). These options were issued on 26 September 2023, are exercisable at £0.0011 per share on or before 31 July 2026. The fair value of the July Fee Options was A$20,902. Refer to Note 24 (footnote (2)) to see the factors and assumptions used to determine the fair value of the July Fee Options.

⁽³⁾       On 19 December 2023, the Company issued 1,375,000,000 shares at £0.0008 (A$0.0015) per share pursuant to the December Placement announced on 5 December 2023. These shares were ratified by shareholders at a General Meeting held by the Company on 15 February 2024.

As part of this placement, the Company also issued 1,375,000,000 unquoted options to the participants of this placement ("Placement Options") and 82,500,000 unquoted options to Novum pursuant to the capital raising advisory agreement relating to this placement ("December Fee Options").

Both the Placement Options and the December Fee Options are exercisable at £0.0014 per share on or before 31 December 2026. The options were issued on 27 February 2024 following shareholder approval at the General Meeting on 15 February 2024.

The fair value of the December Fee Options was A$121,069. Refer to Note 24 (footnote (3)) to see the factors and assumptions used to determine the fair value of the December Fee Options.

⁽⁴⁾       The Company received a notice from one of the convertible note holders indicating his intention to convert his 320 notes and interest into 42,005,479 shares, effective on the maturity date of the notes on 9 March 2024. The 320 notes plus interest of £33,604 (A$64,986) was converted into the 42,005,479 shares at £0.0008 (A$0.0015) per share on 27 March 2024, in accordance with the terms of the notes.

Another convertible note holder who held 750 notes did not provide any option or exercise notice to the Company by the maturity date of the notes on 9 March 2024. As such, in accordance with the terms of the convertible notes, the 750 notes plus interest of £78,760 (A$152,311) was automatically converted into 98,450,342 shares at £0.0008 (A$0.0015) per share. The shares were issued on 27 March 2024.

Material Accounting Policy

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

22. RESERVES

	2024	2023
	A$	A$
Foreign currency translation reserve	6,436,620	7,764,968
Share-based payments reserve	766,829	534,957
	7,203,449	8,299,925

(a)  Foreign Currency Translation Reserve ("FCTR")

The FCTR is comprised of all foreign currency differences arising from the translation of the financial statements of foreign operations from their functional currency to Australian dollars.

The assets and liabilities of foreign operations are translated to Australian dollars at exchange rates at the reporting date. The income and expenses of foreign operations are translated to Australian dollars at exchange rates at the dates of the transactions.

Foreign currency differences are recognised in other comprehensive income and accumulated in the FCTR. When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net investment in a foreign operation and are recognised in other comprehensive income and are presented within equity in the FCTR.

	2024	2023
Movement in FCTR	A$	A$
Balance at 1 July	7,764,968	7,577,543
Exchange differences on currency translation of subsidiaries	(2,712)	187,425
Reclassification of exchange differences on currency translation to profit or loss on deregistration of Oilex (JPDA 06‑103) Ltd (1)	(1,325,636)	-
Balance at 30 June	6,436,620	7,764,968

⁽¹⁾       On 1 February 2024, one of the Group's subsidiaries, Oilex (JPDA 06-103) Ltd was deregistered under section 601AA(4) of the Corporations Act 2001 (refer to Note 25). Accordingly, the cumulative amount of the exchange differences on currency translation relating to Oilex (JPDA 06-103) Ltd has been reclassified from the FCTR to profit or loss.

(b) Share-Based Payments Reserve

The share-based payments reserve recognises the fair value of options issued but not exercised. Upon the exercise, lapsing or expiry of options, the balance of the share-based payments reserve relating to those options is transferred to accumulated losses. Refer to Note 24 for further information on share-based payments incurred during the year.

	2024	2023
Movement in Share-Based Payments Reserve	A$	A$
Balance at 1 July	534,957	221,321
Share-based payments expenses (1)	168,187	288,484
Share-based payments recognised directly in equity (1)	141,971	25,152
Options expired (2)	(78,286)	-
Balance at 30 June	766,829	534,957

⁽¹⁾       Refer to Note 24.

⁽²⁾       No options were exercised, and 55,210,084 options lapsed during the year. The balance of unlisted options at year-end was 1,865,854,839 (30 June 2023: 449,928,560 options). See "Balance of Unlisted Options at Year-End" schedule below.

Balance of Unlisted Options at Year-End

		Exercise	Balance at 1 July 2023	Issued During the Period (3) (4)	Options Expired	Balance at 30 June 2024
Issue Date	Expiry Date	Price	No.	No.	No.	No.
19 Jan 2022	31 May 2024	£0.0024	25,210,084	-	(25,210,084)	-
12 Aug 2022	12 Aug 2027	£0.0022	324,675,324	-	-	324,675,324
13 Sep 2022	30 Apr 2024	£0.0020	30,000,000	-	(30,000,000)	-
3 Apr 2023	1 Apr 2028	£0.0000	70,043,152	-	-	70,043,152
26 Sep 2023	31 Jul 2026	£0.0011	-	13,636,363	-	13,636,363
27 Feb 2024	31 Dec 2026	£0.0014	-	1,375,000,000	-	1,375,000,000
27 Feb 2024	31 Dec 2026	£0.0014	-	82,500,000	-	82,500,000
			449,928,560	1,471,136,363	(55,210,084)	1,865,854,839

⁽³⁾       Refer to Note 24, footnotes (2) and (3) for further information on the 13,636,363 options and 82,500,000 options issued on 26 September 2023 and 27 February 2024 respectively.

⁽⁴⁾       In addition to the share-based payment transactions as listed in Note 24, on 27 February 2024, the Company issued 1,375,000,000 unquoted December Placement Options, as part of the December Placement detailed in Note 21 (footnote (3)). The December Placement Options were offered to subscribers of the December Placement, who were offered one free-attaching unquoted option per each December Placement share subscribed for, resulting in the issue of the 1,375,000,000 December Placement Options. The December Placement Options are exercisable at £0.0014 (A$0.0027) per share on or before 31 December 2026; and were approved by shareholders at a general meeting of Synergia Energy shareholders held on 15 February 2024.

Number and Weighted Average Exercise Prices ("WAEP") of Unlisted Options

The number and weighted average exercise prices (WAEP) of unlisted share options are as follows:

	WAEP	Number	WAEP	Number
	2024	2024	2023	2023
Outstanding at 1 July	A$0.0031	449,928,560	A$0.0050	736,505,236
Lapsed during the year	A$0.0041	(55,210,084)	A$0.0050	(711,295,152)
Exercised during the year	-	-	-	-
Granted during the year
-       Granted as part of placements	A$0.0027	1,375,000,000	-	-
-       Granted to brokers and advisors	A$0.0026	96,136,363	A$0.0034	30,000,000
-       Granted to executive directors and management	-	-	A$0.0030	394,718,476
Outstanding at 30 June	A$0.0028	1,865,854,839	A$0.0031	449,928,560
Exercisable at 30 June	A$0.0028	1,865,854,839	A$0.0030	341,703,452

The unlisted options outstanding at year-end have the following minimum and maximum prices, and a weighted average remaining contractual life as follows:

	2024	2023
Minimum exercise price of unlisted options outstanding at 30 June	Nil	Nil
Maximum exercise price of unlisted options outstanding at 30 June	£0.0022 (A$0.0042)	£0.0024 (A$0.0045)
Weighted average remaining contractual life	2.65 years	3.82 years

23. ACCUMULATED LOSSES

Movements in accumulated losses during the year were as follows:

	2024	2023
	A$	A$
Balance at 1 July	(190,779,552)	(185,396,650)
Loss after tax for the year	(2,798,511)	(5,382,902)
Options expired (refer to Note 22(b), footnote (2))	78,286	-
Balance at 30 June	(193,499,777)	(190,779,552)

24. SHARE-BASED PAYMENTS

	2024	2023
	A$	A$
Shares and Rights - Equity Settled
Executive Directors - options (1)	168,187	168,187
Executive Management - nil cost options	-	120,297
Total share-based payments expense and amount recognised in the Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income	168,187	288,484
Share-Based Payments Recognised Directly in Equity
Options granted to brokers and advisors during the period (2) (3)	141,971	25,152
Total share-based payments recognised directly in equity	141,971	25,152
Total Share-Based Payment Transactions	310,158	313,636

Additional information on share-based payment transactions during the period:

⁽¹⁾       Relates to the issue of 324,675,324 unlisted options to Executive Directors (Messrs Salomon, Wessel and Judd) on 12 August 2022 following shareholder approval at the General Meeting held on 13 July 2022. The options are exercisable at £0.0022 and expire on 12 August 2027, with one third (1/3) vesting on 30 June 2022, one third (1/3) vesting on 30 June 2023 and one third (1/3) vesting on 30 June 2024.

The total fair value of the unlisted options issued to Executive Directors of A$504,562 was calculated at the grant date of 13 July 2022 using the Black-Scholes Model. Expected volatility was estimated by considering historical volatility of the Company's share price over the period commensurate with the expected term. The following factors and assumptions were used to determine the fair value of the 324,675,324 unlisted options granted to Executive Directors on 13 July 2022:

Grant Date	Vesting Date	Expiry Date	Fair Value Per Option	Exercise Price	Price of Shares on Grant Date	Expected Volatility	Risk Free Interest Rate	Dividend Yield
13 July 2022	As indicated above	12 August 2027	£0.0009 (A$0.0016)	£0.0022 (A$0.0039)	£0.0016 (A$0.0028)	75.15%	1.35%	-

The whole fair value of the options of A$504,562 have been expensed, with A$168,188 expensed at 30 June 2022, A$168,187 expensed during the year ended 30 June 2023, and A$168,187 expensed during the current year ended 30 June 2024.

⁽²⁾       On 26 September 2023, the Company issued 13,636,363 unquoted July Fee Options to Novum pursuant to the capital raising advisory agreement relating to the July Placement. The options are exercisable at £0.0011 per share and expire on 31 July 2026.

The fair value of the unquoted options of A$20,902 was calculated at the grant date of 7 August 2023 (being the issue date of the July Placement shares) using the Black-Scholes Model. Expected volatility was estimated by considering historical volatility of the Company's share price over the period commensurate with the expected term. The following factors and assumptions were used to determine the fair value of the July Fee Options granted to Novum during the period:

Grant Date	Vesting Date	Expiry Date	Fair Value Per Option	Exercise Price	Price of Shares on Grant Date	Expected Volatility	Risk Free Interest Rate	Dividend Yield
7 Aug 2023	7 Aug 2023	31 July 2026	£0.0008 (A$0.0015)	£0.0011 (A$0.0021)	£0.0012 (A$0.0022)	110.67%	4.10%	-

⁽³⁾       On 27 February 2024, following shareholder approval on 15 February 2024, the Company issued 82,500,000 unlisted December Fee Options to Novum, exercisable at £0.0014 (A$0.0027) per share on or before 31 December 2026, pursuant to a capital raising advisory agreement related to the December Placement.

The fair value of the December Fee Options of A$121,069 was calculated at the grant date of 15 February 2024 using the Black-Scholes Model. Expected volatility was estimated by considering historical volatility of the Company's share price over the period commensurate with the expected term. The following factors and assumptions were used to determine the fair value of the 82,500,000 December Fee Options granted to Novum:

Grant Date	Vesting Date	Expiry Date	Fair Value Per Option	Exercise Price	Price of Shares on Grant Date	Expected Volatility	Risk Free Interest Rate	Dividend Yield
15 Feb 2024	15 Feb 2024	31 Dec 2026	£0.0008 (A$0.0015)	£0.0014 (A$0.0027)	£0.0013 (A$0.0024)	100%	4.35%	-

Material Accounting Policy

Options allow directors, employees and advisors to acquire shares of the Company. The fair value of options granted to employees is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees become unconditionally entitled to the options. The fair value of the options granted is measured using the Black-Scholes Model, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of share options that vest except where forfeiture is only due to share prices not achieving the threshold for vesting.

Options may also be provided as part of the consideration for services by brokers and underwriters. Any unlisted options issued to the Company's AIM broker are treated as a capital raising cost.

When the Group grants options over its shares to employees of subsidiaries, the fair value at grant date is recognised as an increase in the investments in subsidiaries, with a corresponding increase in equity over the vesting period of the grant.

The fair value of unlisted options is calculated at the date of grant using the Black-Scholes Model. Expected volatility is estimated by considering the historical volatility of the Company's share price over the period commensurate with the expected term.

Critical Accounting Judgements, Estimates and Assumptions:
Share-Based Payment Transactions

The Group measures the cost of equity-settled transactions with directors, employees, financiers and advisors by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using either the Binomial or Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity.

25. CONSOLIDATED ENTITIES

	Country of Incorporation	Ownership Interest %
		2024	2023
Parent Entity
Synergia Energy Ltd	Australia
Subsidiaries
Oilex (JPDA 06-103) Ltd (1)	Australia	-	100
Merlion Energy Resources Private Limited	India	100	100
Oilex N.L. Holdings (India) Limited	Cyprus	100	100
Oilex (West Kampar) Limited	Cyprus	100	100
Synergia Energy CCS Limited	United Kingdom	100	100
Synergia Energy Services UK Limited	United Kingdom	100	100

Additional information regarding the changes in the composition of the Group:

¹⁾     On 1 February 2024, Oilex (JPDA 06-103) Ltd was deregistered under section 601AA(4) of the Corporations Act 2001.

Material Accounting Policy

The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. 

26. PARENT ENTITY DISCLOSURE

As at, and throughout, the financial year ended 30 June 2024 the parent entity of the Group was Synergia Energy Ltd.

	2024 A$	2023 A$
Result of the Parent Entity
Loss for the year	(4,168,243)	(5,923,850)
Other comprehensive (loss)/income	(4,515)	80,854
Total Comprehensive Loss for the Year	(4,172,758)	(5,842,996)
Financial Position of the Parent Entity at Year End
Current assets	329,088	1,134,924
Total assets	17,541,991	17,806,486
Current liabilities	(3,829,951)	(2,938,467)
Total liabilities	(8,334,690)	(8,171,609)
Net Assets	9,207,301	9,634,877
Total Equity of the Parent Entity Comprising Of:
Issued capital	196,252,167	192,817,143
Foreign currency translation reserve	(1,142,135)	(1,137,620)
Share-based payments reserve	766,829	534,957
Accumulated losses	(186,669,560)	(182,579,603)
Total Equity	9,207,301	9,634,877

Parent Entity Contingent Assets, Contingent Liabilities and Guarantees

The Directors are of the opinion that Synergia Energy Ltd has no contingent assets or contingent liabilities as at 30 June 2024 and as at 30 June 2023.

Synergia Energy Ltd has issued a guarantee in relation to corporate credit cards. The bank guarantee amounts to A$15,000 (2023: A$15,000). An equal amount is held in cash and cash equivalents as security by the bank.

During the year, Synergia Energy Ltd also submitted bank guarantees totalling US$247,835 in favour of MOPNG in relation to DGH approved budgeted activity on the Cambay field. 15% of the amounts are guaranteed by Synergia Energy Ltd on behalf of OHIL for OHIL's share of the bank guarantee. Refer to Note 19, "Cambay Field" heading for further details on the bank guarantee requirements by MOPNG.

Parent Entity Capital Commitments for Acquisition of Property Plant and Equipment

Synergia Energy Ltd had no capital commitments as at 30 June 2024 (2023: A$nil).

Parent Entity Guarantee (in Respect of Debts of its Subsidiaries)

As noted above, 15% of the bank guarantees totalling US$247,835 were guaranteed by Synergia Energy Ltd on behalf of OHIL for OHIL's share of the bank guarantees.

Synergia Energy Ltd has issued no other guarantees in respect of the debts of its subsidiaries.

27. JOINT ARRANGEMENTS

The Group's interests in joint arrangements at year end are detailed below. The principal activities of the joint arrangements is the development of CCS projects.

(a)  Joint Operations Interest

Permit	Location	2024 %	2023 %
OFFSHORE (CCS LICENcE)
CS019 - SNS Area 4 (1)	UK (Camelot Area)	50	-

⁽¹⁾       The NSTA granted the CS019 licence for the Camelot area to Synergia Energy CCS Limited and its 50% joint venture partner, Wintershall Dea Carbon Management Solutions UK, with Synergia Energy CCS Limited as operator. The licence was effective from 1 August 2023.

(b) Joint Operations Assets

The aggregate of the Group's interests in all joint operations is as follows:

	2024 A$	2023 A$
Non-Current Assets
Exploration, evaluation and appraisal assets	1,154,230	-
Net Assets	1,154,230	-

(c)  Joint Operations Commitments

In order to maintain the rights of tenure to exploration, evaluation and appraisal permits, the Group is required to perform exploration, evaluation and appraisal work to meet the minimum expenditure requirements specified by various state and national governments. These obligations are subject to renegotiation when an application for an exploration, evaluation and appraisal permit is made and at other times. These obligations are not provided for in the financial report. The expenditure commitments attributable to joint operations are currently estimated to be A$nil at year end (30 June 2023: A$nil).

Effective on 1 August 2023, the NSTA granted the CS019 licence for the Camelot area ("CS019 - SNS Area 4") to Synergia Energy CCS Limited and its 50% joint venture partner, Wintershall Dea, with Synergia Energy CCS Limited as operator. The carbon storage licence has a work program that incorporates an appraisal phase comprising seismic re-processing, technical evaluations and risk assessment, and a contingent FEED study leading to a potential storage licence application in 2028, following the final investment decision ("FID"). The CS019 licence also includes a contingent appraisal well.

(d) Material Accounting Policy

Joint arrangements are arrangements in which two or more parties have joint control. Joint control is the contractual agreed sharing of control of the arrangements which exists only when decisions about the relevant activities required unanimous consent of the parties sharing control. Joint arrangements are classified as either a joint operation or joint venture, based on the rights and obligations arising from the contractual obligations between the parties to the arrangement.

To the extent the joint arrangement provides the Group with rights to the individual assets and obligations arising from the joint arrangement, the arrangement is classified as a joint operation and as such, the Group recognises its:

·      Assets, including its share of any assets held jointly;

·      Liabilities, including its share of any liabilities incurred jointly;

·      Revenue from the sale of its share of the output arising from the joint operation;

·      Share of revenue from the sale of the output by the joint operation; and

·      Expenses, including its share of any expenses incurred jointly.

The Group's interest in unincorporated entities are classified as joint operations.

Joint ventures provide the Group a right to the net assets of the venture and are accounted for using the equity method.

28. ASSETS AND LIABILITIES RELATED TO THE CAMBAY PSC

During the years ended 30 June 2023 and 30 June 2024, the Group owned 100% PI in the Cambay PSC for the Cambay field which is located in the Cambay Basin of India.

The aggregate of the Group's interests in the Cambay PSC is as follows:

	2024 A$	2023 A$
Current Assets
Cash and cash equivalents	28,175	188,976
Trade and other receivables (1)	60,692	163,794
Inventories	78,695	113,821
Prepayments	51,567	51,408
Total Current Assets	219,129	517,999
Non-Current Assets
Development assets	17,336,720	17,558,182
Plant and equipment	2,739	4,059
Total Non-Current Assets	17,339,459	17,562,241
Total Assets	17,558,588	18,080,240
Current Liabilities
Trade and other payables	(2,542,989)	(1,603,710)
Provision for site restoration and well abandonment	(144,829)	-
Total Current Liabilities	(2,687,818)	(1,603,710)
Non-Current Liabilities
Provision for site restoration and well abandonment	(5,299,693)	(6,156,638)
Total Non-Current Liabilities	(5,299,693)	(6,156,638)
Total Liabilities	(7,987,511)	(7,760,348)
Net Assets	9,571,077	10,319,892

⁽¹⁾       The balance of trade and other receivables of the joint operations is before any impairment and provisions.

(a)  Cambay PSC Commitments

For the extended Cambay PSC period (which started from September 2019), the operators of the Cambay PSC are required to submit a bank guarantee equivalent to 10% of total estimated annual expenditure in respect to the work programme approved by MOPNG. During the year, the Group submitted bank guarantees totalling US$247,835 in favour of MOPNG, thereby satisfying MOPNG requirements. The US$247,835 bank guarantees include a 15% portion which is guaranteed on behalf of OHIL for its share of the bank guarantee.

Required bank guarantee amounts are reassessed every year according to aspects of the work programme that have been fulfilled during the year, and according to aspects of the work programme that is planned to be fulfilled for the relevant upcoming year.

There are no other commitments for the Cambay PSC joint operation at year-end.

(b) Subsequent Event

Refer to the "Subsequent Event" header under Note 10 with regards to the Government of India approval of the farm out of 50% of the Group's participating interest in the Cambay PSC to Selan on 19 July 2024. Consequently, 50% of the development assets and 50% of the provision for site restoration and well abandonment transferred to Selan effective on 19 July 2024 with the agreement closing on 1 August 2024. The other net liabilities related to the Cambay PSC incurred up to 1 August 2024 remain the responsibility of the Group. The Group and Selan will share the responsibilities of net liabilities incurred from 1 August and onwards.

In addition, as Selan will be lead joint operator under the farm-out agreement, the required total bank guarantees to be submitted in favour of MOPNG may change pending any updated work programmes that will be submitted by Selan. At the date of this report, Selan has not yet submitted any updated work programmes and there are no additional obligations to be fulfilled by the joint operation in this regard.

29. RELATED PARTIES

(a)  Identity of Related Parties

The Group has a related party relationship with its subsidiaries (refer to Note 25), joint operations (refer to Note 27) and with its key management personnel ("KMP").

(b) Key Management Personnel ("KMP")

The following were KMP of the Group at any time during the current and previous financial years and, unless otherwise indicated, were KMP for the entire period:

Non-Executive Directors	Position
Joe Salomon (1)	Non-Executive Chairman
Peter Schwarz (2)	Independent Non-Executive Director and Deputy Chairman
Mark Bolton	Non-Executive Director
Paul Haywood	Independent Non-Executive Director
Executive Directors	Position
Roland Wessel	Chief Executive Officer and Executive Director
Colin Judd	Chief Financial Officer and Executive Director
Ashish Khare (3)	Head of India Assets and Executive Director

⁽¹⁾    Mr Salomon's role changed from Executive Chairman to Non-Executive Chairman on 29 June 2023.

⁽²⁾    Mr Schwarz was appointed as Deputy Chairman on 24 January 2024.

⁽³⁾    Mr Khare was appointed as Executive Director on 24 January 2024, with his appointment being finalised effective on 2 April 2024.

(c)  KMP Compensation

KMP compensation comprised the following:

	2024 A$	2023 A$
Short-term employee benefits	1,017,766	973,113
Other long-term benefits	6,058	15,423
Non-monetary benefits	-	2,233
Post-employment benefits	23,708	27,797
Equity compensation benefits	168,188	288,483
	1,215,720	1,307,049

(d) Individual KMP Compensation Disclosures

Information regarding individual KMP compensation is provided in the Remuneration Report section of the Directors' Report. Apart from the details disclosed in this note or in the Remuneration Report, no Director has entered into a material contract with the Company since the end of the previous financial year and there were no material contracts involving Directors' interests existing at year end.

(e)  Amounts Payable to KMP

At year-end, the following amounts were owing from the Group to the Directors:

	2024 A$	2023 A$
Non-Executive Directors
J Salomon	29,269	-
P Schwarz	14,302	-
M Bolton	15,438	-
P Haywood	14,302	-
Executive Directors
R Wessel	71,510	-
C Judd	52,441	-
A Khare	38,486	-
Total	235,748	-

(f)  Other KMP Transactions with the Company or its Controlled Entities

There were no other transactions in the current or prior years between the Group and entities controlled by KMP.

30. FINANCIAL INSTRUMENTS

(a)  Financial Risk Management

The Group has exposure to the following risks arising from financial instruments.

(i)   Credit risk

(ii)  Liquidity risk

(iii) Market risk

This note presents qualitative and quantitative information in relation to the Group's exposure to each of the above risks and the management of capital.

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework and the development and monitoring of risk management policies. Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group's activities.

(b) Credit Risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations; and arises principally from the Group's receivables from customers and joint ventures.

The Group's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the Group's customer base, including the default risk of the industry and country in which customers operate, has less of an influence on credit risk.

The maximum exposure to credit risk is represented by the carrying amount of each financial asset. The maximum exposure to credit risk at the reporting date was:

	2024 A$	2023 A$
Cash and cash equivalents	1,069,782	938,589
Trade and other receivables - current	116,688	220,331
	1,186,470	1,158,920

The credit risk on the Group's liquid funds is limited because the majority of funds are held with counterparties which are major banks and financial institutions with high credit ratings assigned by international credit rating agencies across Australia, India and United Kingdom.

Impairment Losses

The aging of the trade and other receivables at the reporting date was:

	2024	2023
	A$	A$
Consolidated Gross
Not past due	556,668	234,903
Past due 0-30 days	2,713	-
Past due 31-120 days	-	-
Past due 121 days to one year	-	-
More than one year	40,525	49,371
	599,906	284,274
Provision for expected credit losses	(483,218)	(63,943)
Trade and Other Receivables Net of Provision	116,688	220,331

Receivable balances are monitored on an ongoing basis. The Group may at times have a high credit risk exposure to its joint venture partners arising from outstanding cash calls.

The Group considers an allowance for ECLs for all debt instruments. The Group applies a simplified approach in calculating ECLs. The Group bases its ECL assessment on its historical credit loss experience, adjusted for factors specific to the debtors and the economic environment including, but not limited to, financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation and delinquency in payments.

(c)  Liquidity Risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due without incurring unacceptable losses or risking damage to the Group's reputation.

The Group manages liquidity by monitoring present cash flows and ensuring that adequate cash reserves, financing facilities and equity raisings are undertaken to ensure that the Group can meet its obligations.

The table below analyses the Group's financial liabilities by relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

			Contractual Cash Flows
	Carrying Amount A$	Face Value A$	Total A$	2 Months    or Less A$	2 to 12   Months A$	Greater Than 1 Year   A$
2024
Trade and other payables(1)	2,373,587	2,373,587	2,373,587	2,373,587	-	-
Borrowings	1,739,983	1,739,983	1,739,983	957,287	782,696	-
Total Financial Liabilities	4,113,570	4,113,570	4,113,570	3,330,874	782,696	-
2023
Trade and other payables(1)	485,968	485,968	485,968	485,968	-	-
Borrowings	774,666	774,666	774,666	339,902	434,764	-
Total Financial Liabilities	1,260,634	1,260,634	1,260,634	825,870	434,764	-

 

⁽¹⁾   At 30 June 2024, A$353,588 of the trade payables amount was overdue (2023: nil). Subsequent to balance date, A$117,096 of this amount has been paid.

(d) Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(i)   Currency Risk

An entity is exposed to currency risk on sales and purchases that are denominated in a currency other than the functional currency of the entity. The currencies giving rise to this risk are the United States dollar ("USD"), Indian rupee ("INR"), the British pound ("GBP") and the European euro ("EUR").

The amounts in the table below represent the Australian dollar equivalent of balances in the entities within the Synergia Energy Group that are held in a currency other than the functional currency in which they are measured in those entities. The exposure to currency risk at balance date was as follows:

In Australian Dollar Equivalents

	USD	INR	GBP	EUR
	A$	A$	A$	A$
2024
Cash and cash equivalents	7,546	85,988	962,864	-
Trade and other receivables (1)	76,422	474,903	29,389	-
Trade and other payables	(327,019)	(548,962)	(333,923)	(995,279)
Loans	-	-	(1,739,983)	-
Net Balance Sheet Exposure	(243,051)	11,929	(1,081,653)	(995,279)
2023
Cash and cash equivalents	171,131	403,695	180,359	-
Trade and other receivables (1)	170,558	87,815	-	-
Trade and other payables	71,470	(392,398)	(45,773)	(2,809)
Loans	(339,902)	-	(434,764)	-
Net Balance Sheet Exposure	73,257	99,112	(300,178)	(2,809)

⁽¹⁾        Trade and other receivable balances listed here are before any impairment and provisions.

The following significant exchange rates applied during the year:

	Average Rate		Reporting Date Spot Rate
AUD	2024	2023	2024	2023
USD	0.6560	0.6736	0.6624	0.6630
INR	54.4963	54.9359	55.2442	54.3859
GBP	0.5208	0.5595	0.5244	0.5250
EUR	0.6063	0.6430	0.6196	0.6099

Foreign Currency Sensitivity

A 10% strengthening/weakening of the Australian dollar against the following currencies at 30 June would have (increased)/ decreased the loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.

	2024 A$	2023 A$
10% Strengthening
United States dollars (USD)	22,096	(6,660)
Indian rupees (INR)	(1,084)	(9,010)
British pounds (GBP)	98,332	27,289
European euros (EUR)	90,480	255
10% Weakening
United States dollars (USD)	(27,006)	8,140
Indian rupees (INR)	1,325	11,012
British pounds (GBP)	(120,184)	(33,353)
European euros (EUR)	(110,587)	(312)

(ii)  Interest Rate Risk

At the reporting date the interest rate profile of the Group's interest-bearing financial instruments were:

	Carrying Amount
	2024 A$	2023 A$
Fixed Rate Instruments
Financial assets (short-term deposits included in trade receivables)	15,000	15,000
Financial liabilities (borrowings)	(1,739,983)	(774,666)
	(1,724,983)	(759,666)
Variable Rate Instruments
Financial assets (cash and cash equivalents)	1,069,782	938,589

Cash Flow Sensitivity Analysis for Variable Rate Instruments

An increase of 100 basis points in interest rates at the reporting date would have decreased the loss by the amounts shown below. A decrease of 100 basis points in interest rates at the reporting date would have had the opposite impact by the same amount. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.

	2024 A$	2023 A$
Impact on profit or loss	10,698	9,386

(iii) Equity Price Risk

Exposure

The Group's equity securities were publicly traded on the ASX until November 2023, with the balance considered not recoverable (refer to Note 13). As such, the balance of the equity securities was fully impaired to nil and as such, the Group's exposure to equity securities price risk ceased to exist after that impairment.

(e)  Capital Risk Management

The Board's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The capital structure of the Group consists of equity attributable to equity holders of the Company, comprising issued capital, reserves and accumulated losses as disclosed in the consolidated statement of changes in equity.

(f)  Fair Values of Financial Assets and Liabilities

The net fair values of financial assets and liabilities of the Group approximate their carrying values. The Group has no off-balance sheet financial instruments, and no amounts are offset.

OTHER DISCLOSURES

This section provides information (not already disclosed) on items that are required to be disclosed to comply with Australian Accounting Standards, other regulatory pronouncements and the Corporations Act 2001.

31. AUDITORS' REMUNERATION

	2024 A$	2023 A$
Audit and Review Services
Auditors of the Company - PKF Perth
Audit and review of financial reports	101,614	114,166
	101,614	114,166
Other Auditors
Audit and review of financial reports (India Statutory)	18,903	7,635
Audit and review of financial reports (Cyprus Statutory)	23,149	22,905
	42,052	30,540
Total Audit and Review Services	143,666	144,706
Other Services
Auditors of the Company - PKF Perth
Taxation compliance services	11,100	7,000
	11,100	7,000
Other Auditors
Taxation compliance services (India Statutory)	434	13,389
Other consulting services	-	3,788
	434	17,177
Total Other Services	11,534	24,177
total AUDITORS' REMUNERATION	155,200	168,883

32. SUBSEQUENT EVENTS

During July and August 2024, the Company obtained further short-term loan funding from existing investors of £140,000. The loans bear interest at a fixed rate of 23.87% for the period to 11 September 2024 and penalty interest at a fixed rate of 8% per month after 11 September 2024.

Effective on 19 July 2024, the Government of India Ministry of Petroleum and Natural Gas approved the transfer of assignment of the 50% PI in the Cambay field PSC held by the Group to Selan Exploration Technology Limited ("Selan"). Following the ratification, the farm-out agreement closed on 1 August 2024, and US$2.5 million, net of withholding taxes, was paid by Selan to the Group on 1 August 2024. The portion that was withheld is expected to be received in the coming weeks, in accordance with an agreement the Company entered into on 24 September 2024 to indemnify Selan against any liability for withholding tax effective from 1 August 2024 until 1 April 2035 (refer to Note 20 for further details of the indemnity agreement).

This receipt of the initial cash payment from the closing of the Cambay farm-out agreement (net of withholding taxes) enabled the Group to repay the first tranche of its short-term borrowings (which was obtained in March 2024) on 11 September 2024. The repayment was £566,000, which was based on principal of £400,000 plus interest of £166,000. The second and third tranches of the short-term borrowings, totalling £340,000 plus interest, remain outstanding at the date of this report. The balance outstanding of those loans at the date of this report is £448,358.

In August 2024, the Company received a notice from one of the Extended Notes holders indicating his intention to convert his 750 notes and interest totalling £80,866 into 101,083,050 shares effective 30 September 2024. These shares are expected to be issued and admitted to trading on AIM on or around 30 September 2024. The remainder of the Extended Notes, at the face value of 1,000 notes plus interest totalling £107,822, will also be repaid in cash to their holders on 30 September 2024.

Other than the above disclosure, there has not arisen in the interval between the end of the financial year and the date of this report an item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years.

CONSOLIDATED ENTITY DISCLOSURE STATEMENT AS AT 30 JUNE 2024

The following entities were part of the consolidated entity as at 30 June 2024:

Entity Name	Type of Entity	Parent Entity's Ownership Interest %	Partner or Participant in Joint Venture	Country of Incorporation	Place of Business	Australian or Foreign Resident	Foreign Jurisdictions of Foreign Residents
Parent Entity
Synergia Energy Ltd (1)	Body Corporate	N/A	Yes	Australia	Australia	Australian	N/A
Subsidiaries
Merlion Energy Resources Private Limited	Body Corporate	100	No	India	India	Foreign	India
Oilex N.L. Holdings (India) Limited (1)	Body Corporate	100	Yes	Cyprus	Cyprus	Foreign	Cyprus
Oilex (West Kampar) Limited	Body Corporate	100	No	Cyprus	Cyprus	Foreign	Cyprus
Synergia Energy CCS Limited	Body Corporate	100	No	United Kingdom	United Kingdom	Foreign	United Kingdom
Synergia Energy Services UK Limited	Body Corporate	100	No	United Kingdom	United Kingdom	Foreign	United Kingdom

BASIS OF PREPARATION

The consolidated entity disclosure statement ("CEDS") has been prepared in accordance with subsection Section 295(3A) of the Corporations Act 2001. The entities listed in the statement are Synergia Energy Ltd and all the entities it controls in accordance with AASB 10 Consolidated Financial Statements.

KEY ASSUMPTIONS AND JUDGEMENTS

Determination of Tax Residency

Section 295(3A) of the Corporations Act 2001 requires that the tax residency of each entity which is included in the CEDS be disclosed. In the context of an entity which was an Australian resident, "Australian resident" has the meaning provided in the Income Tax Assessment Act 1997 (Cth). The determination of tax residency involves judgment as the determination of tax residency is highly fact dependent and there are currently several different interpretations that could be adopted, and which could give rise to a different conclusion on residency.

In determining tax residency, the Group has applied the following interpretations:

Australian Tax Residency

The Group has applied current legislation and judicial precedent, including having regard to the Commissioner of Taxation's public guidance in Tax Ruling TR 2018/5.

Foreign Tax Residency

The Group has applied current legislation and where available judicial precedent in the determination of foreign tax residency.

⁽¹⁾    The parent entity, Synergia Energy Ltd, and one of its subsidiaries, Oilex N.L. Holdings (India) Limited, have project offices in India. The project offices are tax residents of India, and any income earned and expenditures incurred by those project offices are subject to Indian income tax.

DIRECTORS' DECLARATION

(1)  In the opinion of the Directors of Synergia Energy Ltd (the "Company"):

(a)  the consolidated financial statements and notes thereto, as set out on pages 36 to 97, and the Remuneration Report in the Directors' Report, as set out on pages 23 to 33, are in accordance with the Corporations Act 2001, including:

(i)  complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

(ii) giving a true and fair view of the Group's financial position as at 30 June 2024 and of its performance for the financial year ended on that date; and

(b)  there are reasonable grounds to believe that the Company and Group will be able to pay its debts as and when they become due and payable; and

(c)  the information disclosed in the consolidated entity disclosure statement on page 98 is true and correct; and

(2)  The Directors draw attention to Note 2(a) to the consolidated financial statements, which includes a statement of compliance with the International Financial Reporting Standards as issued by the International Accounting Standards Board.

(3)  The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2024.

Signed in accordance with a resolution of the Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.

Mr Peter Schwarz Deputy Chairman	Mr Roland Wessel Chief Executive Officer and Director

Perth

Western Australia

30 September 2024

PKF Perth

ABN 64 591 268 274

Dynons Plaza,

Level 8, 905 Hay Street,

Perth WA 6000

PO Box 7206,

Cloisters Square WA 6850

Australia

[phone]

[e-mail]

pkf.com.au

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF SYNERGIA ENERGY LTD

Report on the Financial Report

Opinion

We have audited the financial report of Synergia Energy Ltd (the "Company"), which comprises the consolidated statement of financial position as at 30 June 2024, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information, the consolidated entity disclosure statement, and the directors' declaration of the Company and the consolidated entity comprising the Company and the entities it controlled at the year's end or from time to time during the financial year.

In our opinion the accompanying financial report of Synergia Energy Ltd is in accordance with the Corporations Act 2001, including:

i)      Giving a true and fair view of the consolidated entity's financial position as at 30 June 2024 and of its performance for the year ended on that date; and

ii)     Complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

Without modifying our opinion, we draw attention to the financial report which indicates the consolidated entity has incurred a loss of $2,798,511 and operating cash outflows of $2,752,579 for the year ended 30 June 2024. These conditions along with other matters in note 2(c), indicate the existence of a material uncertainty that may cast significant doubt about the consolidated entity's ability to continue as a going concern and therefore, the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business.

The financial report of the consolidated entity does not include any adjustments in relation to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should the consolidated entity not continue as a going concern.

Independence

We are independent of the consolidated entity in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined the matters described below to be the key audit matters to be communicated in our report.

1 - Valuation of Convertible Note

Why significant		How our audit addressed the key audit matter
On 9 March 2023, the Company had issued 6,500 convertible notes effective 9 March 2023 at a face value of £100 each totalling £650,000 with a fixed interest rate of 5% pa. The maturity date of the notes was 9 March 2024. In accordance with the terms of the notes issued the investors have an option from 9 December 2023 to convert the loan and interest payable to shares in the Company at a fixed conversion rate of £0.0008 per share. The Company received notices from note holders that indicated their intention as below: ·  The note holders for 3,680 had requested their principal outstanding plus interest accrued, to be redeemed in cash effective on the maturity date of 9 March 2024. These repayments amounted to £386,451 (A$749,590). ·  The note holder for 320 had requested his principal outstanding plus interest accrued to be converted into 42,005,479 shares effective 9 March 2024. One convertible note holder did not provide any option or exercise notice to the Company by 26 February 2024 and, as such, in accordance with the convertible note agreement, thus 750 notes plus interest automatically converted into 98,450,342 shares effective 9 March 2024. The value of the notes converted into shares amounted to £112,365 (A$217,172). ·  The note holders for the other 1,750 notes, plus interest accrued, to be extended to 30 September 2024. The value of the Extended Notes at the 9 March 2024 maturity date was £183,774 (A$355,187) Refer to notes 16 and 17 in the consolidated financial statements. These conversion features, and the fact that the notes were issued in Great British Pounds (which differs from the Group's functional Australian dollar functional currency) mean that the notes are a compound financial instrument with embedded derivatives which must be separated from the underlying debt component of the issue and accounted for on an individual basis. Accounting for embedded derivatives is complex and requires the use of valuation methodologies that rely upon observable and unobservable inputs and assumptions. This creates estimation uncertainty for the amounts recognised in the financial statements. For these reasons, we consider the valuation of convertible notes to be a key audit matter.		Our work included, but was not limited to, the following procedures: ·     Reviewed the subscription agreement and other documents related to the convertible notes to obtain an understanding of the underlying terms and conditions. ·     Reviewing and challenging management's position paper in relation to their assessment of the recognition of the compound financial instrument as a financial liability and/or equity in accordance with the relevant suite of Financial Instrument Accounting Standards. ·     Reviewing and challenging the valuation methodology utilised, and the key assumptions adopted for appropriateness and reasonableness. ·     Test of repayments and conversion of convertible notes in accordance with terms of the agreement ·     Reviewing the accounting treatment of recognition and de-recognition of derivative liability. ·     Assessing the appropriateness of the related disclosures in Notes 16 and 17.

2 - Carrying value of mine development assets

Why significant		How our audit addressed the key audit matter
At 30 June 2024 the carrying value of development assets was $17,336,721 (2023: $17,558,182), as disclosed in Note 10. This amount is comprised by the Project development assets of $12,481,500 (2023: $11,832,852) and Restoration Asset of $4,855,221 (2023: $5,725,530). Each year management is required to assess whether there are any indicators that the total project may be impaired in accordance with AASB 136 Impairment of Assets. Management's impairment assessment indicated that no impairment was required. There is a level of judgement applied in determining the treatment of the development asset in accordance with AASB 138 Intangible Assets and whether the asset is impaired in accordance with AASB 136 Impairment of Assets.		Our work included, but was not limited to, the following procedures: ·    Reviewing and challenging management's assessment of the indicators of impairment as at the reporting date; ·    Reviewing and challenging management's fair value less cost to sell assessment of impairment of the Project; ·    Ensuring current and valid legal documentation is held for the Project including environmental clearance and government approval obtained; and ·    Assessing the appropriateness of the related disclosures in Note 10.

Other Information

Those charged with governance are responsible for the other information. The other information comprises the information included in the consolidated entity's annual report for the year ended 30 June 2024, but does not include the financial report and our auditor's report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon, with the exception of the Remuneration Report.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Directors' for the Financial Report

The Directors of the Company are responsible for the preparation of:-

a)     the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and

b)    the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act2001; and

for such internal control as the Directors determine is necessary to enable the preparation of:-

i)       the financial report (other than the consolidated entity disclosure statements) that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and

ii)      the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error.

In preparing the financial report, the Directors are responsible for assessing the consolidated entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the consolidated entity or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

·    Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

·    Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the consolidated entity's internal control.

·    Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.

·    Conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the consolidated entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the consolidated entity to cease to continue as a going concern.

·    Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

·    Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the consolidated entity to express an opinion on the group financial report. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on the Remuneration Report

Opinion

We have audited the Remuneration Report included in the Directors' Report for the year ended 30 June 2024.

In our opinion, the Remuneration Report of Synergia Energy Ltd for the year ended 30 June 2024, complies with section 300A of the Corporations Act 2001.

Responsibilities

The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

PKF Perth

Shane Cross

Partner

30 September 2024

Perth, Western Australia

PKF Perth is a member of PKF Global, the network of member firms of PKF International Limited, each of which is a separately owned legal entity and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm(s). Liability limited by a scheme approved under Professional Standards Legislation.

DEFINITIONS

Associated Gas	Natural gas found in contact with or dissolved in crude oil in the reservoir. It can be further categorised as Gas-Cap Gas or Solution Gas.
Barrels/Bbls	Barrels of oil or condensate - standard unit of measurement for all oil and condensate production. One barrel is equal to 159 litres or 35 imperial gallons.
BBO	Billion standard barrels of oil or condensate.
BCF	Billion cubic feet of gas at standard temperature and pressure conditions.
BCFE	Billion cubic feet equivalent of gas at standard temperature and pressure conditions.
BOE	Barrels of Oil Equivalent.  Converting gas volumes to the oil equivalent is customarily done on the basis of the nominal heating content or calorific value of the fuel. Common industry gas conversion factors usually range between 1 barrel of oil equivalent ("BOE") = 5,600 standard cubic feet ("scf") of gas to 1 BOE = 6,000 scf. (Many operators use 1 BOE = 5,620 scf derived from the metric unit equivalent 1 m³ crude oil = 1,000 m³ natural gas).
BOEPD	Barrels of oil equivalent per day.
BOPD	Barrels of oil per day.
CCGT	Combined cycle gas turbines.
CCS	"Carbon Capture and Sequestration" or "Carbon Capture and Storage".
CO2	Carbon dioxide.
Contingent Resources	Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingent Resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality.  Contingent Resources are further categorised in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterised by their economic status.
Discovered in place volume	Is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production.
FEED	Front End Engineering Design.
FISO	Floating injection, storage and offloading.
GOI	The Government of India.
GOR	Gas to oil ratio in an oil field, calculated using measured natural gas and crude oil volumes at stated conditions. The gas/oil ratio may be the solution gas/oil, symbol Rs; produced gas/oil ratio, symbol Rp; or another suitably defined ratio of gas production to oil production. Volumes measured in scf/bbl.
KMP	Key Management Personnel.
LNG	Liquefied natural gas.
mD	Millidarcy - unit of permeability.
MD	Measured Depth.
MMbbls	Million barrels of oil or condensate.
MMBO	Million standard barrels of oil or condensate.
MMscfd	Million standard cubic feet (of gas) per day.
MOPNG	Ministry of Petroleum and Natural Gas, Government of India.
MSCFD	Thousand standard cubic feet (of gas) per day.
MTa	Million tonnes per annum.
NSTA	North Sea Transition Authority.
PI	Participating Interest.
Prospective Resources	Those quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations.
PSC	Production Sharing Contract.
Reserves	Reserves are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Proved Reserves are those quantities of petroleum, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods and government regulations. Probable Reserves are those additional Reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves. Possible Reserves are those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recoverable than Probable Reserves. Reserves are designated as 1P (Proved), 2P (Proved plus Probable) and 3P (Proved plus Probable plus Possible). Probabilistic methods: ·    P90 refers to the quantity for which it is estimated there is at least a 90% probability the actual quantity recovered will equal or exceed. ·    P50 refers to the quantity for which it is estimated there is at least a 50% probability the actual quantity recovered will equal or exceed. ·    P10 refers to the quantity for which it is estimated there is at least a 10% probability the actual quantity recovered will equal or exceed.
SCF/BBL	Standard cubic feet (of gas) per barrel (of oil).
SCFD	Standard cubic feet (of gas) per day.
TCF	Trillion cubic feet of gas at standard temperature and pressure conditions.
Tight Gas Reservoir	The reservoir cannot be produced at economic flow rates or recover economic volumes of natural gas unless the well is stimulated by a large hydraulic fracture treatment, a horizontal wellbore, or by using multilateral wellbores.
UKCS	The United Kingdom Continental Shelf.
Undiscovered in place volume	Is that quantity of petroleum estimated, as of a given date, to be contained within accumulations yet to be discovered.

CORPORATE INFORMATION

Directors Jonathan Salomon (B APP SC (Geology), GAICD) Non-Executive Chairman Peter Schwarz (B Sc (Geology), M Sc (Petroleum Geology)) Independent Non-Executive Director and Deputy Chairman) Roland Wessel Chief Executive Officer and Executive Director Colin Judd Chief Financial Officer and Executive Director Mark Bolton (B Business) Non-Executive Director Paul Haywood Independent Non-Executive Director Ashish Khare (BE in Chemical Engineering) Head of India Assets and Executive Director		Stock Exchange Listings Synergia Energy Ltd's shares are listed under the code SYN on the Alternative Investment Market ("AIM") of the London Stock Exchange ("LSE"). AIM Nominated Adviser Strand Hanson Limited 26 Mount Row London W1K 3SQ United Kingdom AIM Joint Brokers Novum Securities Limited 2nd Floor, 7-10 Chandos Street London W1G 9DQ United Kingdom Panmure Liberum Ropemaker Place Level 12 25 Ropemaker Street London EC2Y 9LY United Kingdom
Company Secretary Ms Anshu Raghuvanshi (FCS, FGIA, LLB) Registered and Principal Office Level 24, 44 St Georges Terrace Perth, Western Australia 6000 Australia Ph. [phone] Fax [phone] Postal Address PO Box 255, West Perth, Western Australia 6872 Australia India Operations Gujarat Project Office 2nd Floor, Shreeji Complex Next to Rituraj Complex Vasna Road, Village Akota Vadodara - 390015 Gujarat, India.		Share Registries The Office of the Depositary Computershare Investor Services PLC The Pavilions, Bridgwater Road Bristol BS13 8AE United Kingdom Ph. [phone] Website: www.computershare.com/uk Computershare Investor Services Pty Limited Level 17, 221 St Georges Terrace Perth, Western Australia 6000 Australia Ph: 1300 850 505 (within Australia) Ph: [phone] (outside Australia) Website: www.computershare.com/au Auditors PKF Perth Dynons Plaza, Level 8 905 Hay Street, Perth, Western Australia 6000 Australia
Synergia Energy Ltd ACN 078 652 632 ABN 50 078 652 632		Website www.synergiaenergy.com Email [e-mail]

 

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