DIGITALX LIMITED — Annual Report 2013

Aug 29, 2013

Appendix 4E Preliminary final Report

Rules 4.3A

Appendix 4E

Preliminary Final Report

Name of entity

MACRO ENERGY LIMITED

	ABN or equivalent company reference 59 009 575 035 For announcement to the market	Financial year ended (‘current period’) 30 June 2013 $A	Financial year ended (‘current period’) 30 June 2013 $A	Financial year ended (‘current period’) 30 June 2013 $A
			30 June 2013
	Revenue from ordinary activities Loss from ordinary activities after tax attributable to members Net loss for the period attributable to members		Down 100% to Nil Down 40% to 3,769,440 Down 40% to 3,769,440
	Dividends (distributions)		Amount per security	Franked amount per security
	Final dividend Interim dividend		None	- ¢
	Previous corresponding period		None	-¢
	+Record date for determining entitlements to the dividend, (in the case of a trust,distribution)		N/A
			N/A

The above results should be read in conjunction with the notes and commentary contained in this report.

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Appendix 4E Preliminary final Report

Management Discussion and Analysis

1. Commentary

The consolidated loss after tax for the financial year ended 30 June 2013 was $3,769,440 (2012: $6,243,932). The loss is impacted mainly by an impairment charge of around $3.4 million in relation to some of the Company’s oil and gas investments, further details of which are provided later in this report.

Review of Operations

Sidi Dhaher Oil Discovery 10% Working Interest (WI) Operator: ADX Energy Limited (ASX code: ADX)

As a result of disappointing test results this interest has been sold.

Fausse Point (sidetrack) 72% (WI)

Operator: Golden Gate Petroleum Ltd (ASX Code: GGP)

The Company and its partners have decided to Plug and Abandon the well.

Bullseye 10% WI Operator: Golden Gate Petroleum Ltd (ASX Code: GGP) Producing Wells – Jumonville #1 (J1) and Jumonville #2 (J2)

Due to declining production and limited upside potential this interest has been sold.

Corporate

The Company also announced the resignation of Mr Craig Nelmes as the Company Secretary, replaced by Ms Sylvia Moss with effect 5 July 2012.

The Company completed a partially underwritten and pro rata non-renounceable right issue on 5 October 2012, raising $1,016,625.

In March 2013, it was announced that Mr. Brett Lawrence would take up the position of Managing Director for Macro Energy, effective 21 March 2013.

On 21 March 2013, Mr. Scott Jones was appointed a director and Mr. Greg Lee and Mr. Sam Russotti resigned as directors.

On 27 May 2013 the Company completed a consolidation of its securities on a 50:1 basis.

In April and May 2013 the Company raised a further $507,500 through private placements.

On 19 July 2013 the company name changed from Verus Investment Ltd to Macro Energy Ltd.

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Appendix 4E Preliminary final Report

On 12 August 2013 the Company advised that it was undertaking a renounceable entitlement issue of 2 Shares for every 1 Share held by those Shareholders registered at the Record Date at an issue price of 1.8 cents per Share to raise up to $2,611,292 before costs. The Offer is underwritten up to $2,381,908.

2. Principal activities

The principal activity of the economic entity during the financial year was the identification, evaluation and possible execution of investment opportunities thought to be worthwhile for any short, medium or long term purposes, to whatever degree or magnitude deemed appropriate whether or not such opportunities relate to securities listed on a Security Exchange or directly owned assets of any type, including investments in the mineral exploration sector.

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Appendix 4E Preliminary final Report

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the Year ended 30 June 2013

	Notes	30 June 2013 $	30 June 2013 $	30 June 2012 $
Revenue Oil and Gas Sales Interest Income Net Sale of Assets Other Income	2 2 2	- 20,017 356,916 -		227,823 12,576 - 3,209
Expenses Loss before tax Income tax benefit Loss for the year Attributable to: Members of the Parent entity Other comprehensive (loss)income Exchange differences arising on translation of foreign operations Total comprehensive loss of the year	2	376,933		243,608
		(4,146,373)		(6,487,540)
		(3,769,440) -		(6,243,932) -
		(3,769,440)		(6,243,932)
		(3,769,440) (17,932)		(6,243,932) 191,962
		(3,787,372)		(6,051,970)
Earnings per share			30 June 2013 $	30 June* 2012 $**
Basic earnings / (loss) per share from continuing operations			(5.2) cents	(19.5) cents (19.5) cents
Diluted earnings / (loss) per share from continuing operations			(5.2) cents

*30 June 2012 EPS has been adjusted to reflect the 50:1 share consolidation

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Appendix 4E Preliminary final Report

Condensed Consolidated Statement of Financial Position

As at 30 June 2013

As at 30 June 2013
	Notes	30 June 2013 $	30 June 2012 $
Current assets Cash and cash equivalents Receivables	1	1,420,650 21,796	525,505 64,220
Total current assets		1,442,446	589,725
Non-current assets Prepayments Exploration & Evaluation Assets Oil & Gas Properties Plant and Equipment	4	97,122 - - 3,615	127,571 3,331,131 15,909 515
Total non-current assets		100,737	3,475,126
Total assets		1,543,183	4,064,851
Current liabilities Trade and otherpayables		97,504	253,881
Total current liabilities		97,504	253,881
Non-current liabilities
Restoration Provision		113,692	116,904
Total Non-current liabilities		113,692	116,904
Total liabilities		211,196	370,785
Net assets		1,331,987	3,694,066
Equity Contributed equity Reserves Accumulated losses	5	26,508,519 1,491,242 (26,667,774)	25,060,385 1,502,015 (22,898,334)
Total equity		1,331,987	3,694,066

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Appendix 4E Preliminary final Report

Condensed Consolidated Statement of Cash Flows

For the Year ended 30 June 2013

For the Year ended 30 June 2013
	30 June 2013 $	30 June 2012 $
Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received	- (779,979) 20,017	43,050 (647,549) 12,576
Net cash flows used in operating activities	(759,961)	(591,949)
Cash flows from investing activities Payments on Oil & Gas Exploration prospects (Note 4) Bonds Payments for plant and equipment Net Proceeds on sale of assets	(125,842) 7,380 (3100) 356,097	(2,326,895) - - -
Net cash flows used in investing activities	240,736	(2,326,895)
Cash flows from financing activities Proceeds from issue of securities (Note 5) Securities issue costs	1,531,625 (105,991)	1,814,000 (100,720)
Net cash flows from financing activities	1,425,634	1,713,280
Net increase (decrease) in cash held Net foreign exchange difference Cash and cash equivalents at beginningofperiod	906,408 (11,263) 525,505	(1,205,565) (8,949) 1,740,019
Cash and cash equivalents at end ofperiod(Note 1)	1,420,650	525,505

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Appendix 4E Preliminary final Report

Condensed Consolidated Statement of Changes in Equity Year ended 30 June 2013

	Issued Capital $	Issued Capital $	Accumulated losses $	Reserves $	Total equity $
At 30 June 2011	23,347,487		(16,654,402)	1,310,053	8,003,138
Loss for the period Foreign currency translation Total Comprehensive Income(Loss) Share issues (net of costs) Share based payments – employee benefits expense	- -		(6,243,932) -	- 191,962	(6,243,932) 191,962
	- 1,742,898 -		(6,243,932) - -	191,962 - -	(6,051,970) 1,742,898 -
At 30 June 2012	25,090,385		(22,898,334)	1,502,015	3,694,066
	Issued Capital $		Accumulated losses $	Reserves $	Total equity $
At 30 June 2012	25,090,385		(22,898,334)	1,502,015	3,694,065
Loss for the period Divesture of foreign operations Foreign currency translation Total Comprehensive Income(Loss) Share issues (net of costs) Share based payments – employee benefits expense Equitysettled share basedpayments	- - -		(3,769,440) - -	- - (17,932)	(3,769,440) - (17,932)
	- 1,418,134 -		(3,769,440) - - -	(17,932) - - -	(3,787,372) 1,418,134 7,159 -
At 30 June 2013	26,508,519		(26,667,774)	1,491,242	1,331,987

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Appendix 4E Preliminary final Report

1 CASH BALANCES

(a) Reconciliation of cash

Reconciliation of cash at the end of the period (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows:	30 June 2013 $	30 June 2012 $
Cash on hand and at bank Deposits at call	1,420,650 -	525,505 -
Total cash at end of period	1,420,650	525,505

(b) NTA backing

	30 June 2013 $	*** 30 June 2012 $**
Net tangible asset backing per ordinary security	2.54 cents	11.91 cents

*30 June 2012 has been adjusted to reflect the 50:1 share consolidation

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Appendix 4E Preliminary final Report

2 REVENUE AND EXPENSES

2 REVENUE AND EXPENSES
Consolidated Other Income Oil and gas sales Interest received Sale of Asset Other Income	30 June 2013 $	30 June 2012 $
	- 20,017 356,097 -	227,823 12,576 3,209
	376,933	243,608
Expenses Production and operating costs Administration expenses Share based payments Restoration Provision Impairment – exploration & evaluation asset (Note 4) Bad Debt Written Off Other	- (719,743) (7,159) 14,432 (3,401,829) (22,500) (9,574)	(227,620) (697,966) - (115,146) (5,475,261) - 28,453
	(4,146,373)	(6,487,540)

3 DIVIDENDS PAID AND PROPOSED

No dividends have been paid or proposed during the year.

4 EXPLORATION & EVALUATION ASSETS

Consolidated Exploration and evaluation – at cost (i) (i) The ultimate recoupment of costs carried forward for exploration and evaluation of hydrocarbon areas of interest is dependent on the successful development and commercial exploitation and sale of the respective interests.	30 June 2013 $	30 June 2012 $
	- 3,331,131 125,842 (3,401,829) (55,144)	3,331,131 5,497,530 3,276,312 (5,475,261) 178,736
(ii) Movement for the year Opening balance Additions Impairment expense Movement in carrying value as a result of foreign currency variations
	-	3,331,129

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Appendix 4E Preliminary final Report

5 ISSUED CAPITAL

Ordinary shares Issued and fully paid	30 June 2013 $	30 June 2012 $
	72,535,888	1,885,158,563
Opening balance Shares issued during the year Balance before Consolidation Balance after Consolidation	Number of shares	Number of shares
	1,885,158,563 1,451,892,422 3,337,050,985	1,495,908,563 389,250,000 1,885,158,563
	66,741,238	-
Shares issued afterConsolidation	5,794,650	-
Closingbalance	72,535,888	1,885,158,563

6 LISTED OPTIONS

	Options As at 30 June 2009 Options issued 26 November 2009 Options expired 30 June 2010 As at 30 June 2010 Options issued 15 February 2011 Options issued 7 June 2011 (Note 1 (b)(ii)) As at 30 June 2011 Options Expired 30 June 2012 As at 30 June 2012	Number of options No. 164,196,107
		75,000,000 (239,196,107)
		-
		250,000,000 66,000,000
		316,000,000
		(316,000,000)
		Nil

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Appendix 4E Preliminary final Report

7 SEGMENT REPORTING

Business Segments

The following tables present the revenue and loss information regarding segments for the years ended 30 June 2013 and 30 June 2012.

	Continuing operations Oil and Gas Exploration Net Sale of Assets Interest income Other income Corporate and administration costs Loss before tax Oil and Gas Exploration – USA Oil and Gas Exploration – Africa Total segment assets Unallocated assets Total Assets	Revenue Year ended	Revenue Year ended		Segment Loss / (Profit) Year ended	Segment Loss / (Profit) Year ended
		30-Jun 2013 $ -	30-Jun 2012 $ (227,823)		30-Jun 2013 $ 4,139,214	30-Jun 2012 $ 5,818,027
					4,139,214 (356,916) (20,017) - 699,513	5,818,027 - (12,576) (3,209) 699,513
					3,769,440	6,243,932
				Group Assets by Reportable Operating Segment
				30-Jun 2013 $ 114,369 -		30-Jun 2012 $ 3,514,557 -
				114,369 1,428,814		3,514,557 520,294
				1,543,183		4,064,851

8 AFTER BALANCE DAY EVENTS

There were no matters or circumstances other than disclosed below that have arisen since 30 June 2013 that has significantly affected, or may significantly affect the Group’s operations in future financial years, the results of those operations in future financial years or the Group’s state of affairs in those future financial years.

On 12 August 2013 the Company advised that it was undertaking a renounceable entitlement issue of 2 Shares for every 1 Share held by those Shareholders registered at the Record Date at an issue price of 1.8 cents per Share to raise up to $2,611,292 before costs. The Offer is underwritten up to $2,381,908.

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Appendix 4E Preliminary final Report

Annual meeting

(Preliminary final report only)

The annual meeting will be held as follows:

Place Date Time Approximate date the[+] annual report will be available

To be confirmed To be confirmed To be confirmed 29[th] September 2013

Compliance statement

• 1 This report has been prepared in accordance with AASB Standards, other AASB authoritative pronouncements and Urgent Issues Group Consensus Views or other standards acceptable to ASX.

• 2 This report, and the[+] accounts upon which the report is based (if separate), use the same accounting policies.

• 3 This report does give a true and fair view of the matters disclosed.

• 4 This report is based on[+] accounts to which one of the following applies. (Tick one)

 The +accounts have been  The +accounts have been audited. subject to review.  The +accounts are in the  The[+] accounts have not yet process of being audited or been audited or reviewed. subject to review.

Sign here : Date: 30[th] August 2013

Print name : Mark Freeman Director

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