ENEGEX LIMITED — Interim / Quarterly Report 2015

Mar 5, 2015

ENEGEX NL

ABN 28 160 818 986

HALF YEAR FINANCIAL REPORT

31 DECEMBER 2014

Enegex NL ABN 28 160 818 986

CORPORATE DIRECTORY

BOARD OF DIRECTORS

G.A. Menzies (Chairman) R.J. Coppin B.D. Maltz

COMPANY SECRETARY

R.J. Wright

Registered Office

and Principal Administration Office Level 21, 500 Collins Street Melbourne, Victoria 3000, Australia Telephone: +61 (0)3 8610 4713 Facsimile: +61 (0)3 8610 4799 Email: admin@enegex.com.au

CONTENTS

Directors’ Report ......................................... 2 Directors’ Declaration .................................. 5 Statement of Profit or Loss and Other Comprehensive Income ................................ 6 Statement of Financial Position ..................... 7 Statement of Changes in Equity ................... 8 Statement of Cash Flows............................... 9 Notes to the Financial Statements ................10 Independent Auditor’s Review Report ..........13 Auditor’s Independence Declaration .............15

Website: www.enegex.com.au

CURRENCY

Auditor

The company’s functional and presentation currency is Australian Dollars.

Grant Thornton Audit Pty Ltd GPO Box 4736 Melbourne, Victoria 3001

Share Registry

Link Market Service Limited Level 1, 333 Collins Street, Melbourne, Victoria 3000, Australia Telephone: +61 (0)3 9615 9947 Facsimile: +61 (0)3 9633 8495 Website: www.linkmarketservices.com.au

Stock Exchange Listing

ASX Ltd Level 4, North Tower, Rialto 525 Collins Street Melbourne, Victoria 3000, Australia

ASX Code: ENX Ordinary Shares ENXO 30 June 2015 Options

FORWARD LOOKING STATEMENTS

This report includes certain forward-looking statements that have been based on current expectations about future acts, events and circumstances. These forward-looking statements are, however, subject to risks, uncertainties and assumptions that could cause those acts, events and circumstances to differ materially from the expectations described in such forward-looking statements.

These factors include, among other things, commercial and other risks associated with the meeting of objectives and other investment considerations, as well as other matters not yet known to the company or not currently considered material by the company.

Incorporated in the State of Victoria

17 October 2012

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Enegex NL ABN 28 160 818 986

DIRECTORS’ REPORT

The directors of Enegex NL (Enegex or the company ) submit their report on the results of the company for the half year ended 31 December 2014.

The names of the company’s directors in office during the half year and until the date of this report are as follows:

Graeme A Menzies LL.B – Executive Chairman and Chief Executive Officer

• Robert J Coppin BSc (Hons) – Non–Executive Director

• Brett D Maltz BBus, CA – Non–Executive Director

FINANCIAL RESULTS FOR THE HALF YEAR

The net loss for the half year, after income tax, was $159,612 (2013: $235,516).

DIVIDENDS

No dividend was declared or paid during the half year.

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

There are no significant changes in the state of affairs for the half year ended 31 December 2014 and to the date of signing this report.

REVIEW OF OPERATIONS

The company holds a working interest in a retention lease in offshore Australia; located in the Browse Basin (WA-54-R).

WA-54-R – Cornea Retention Lease

The Cornea Joint Venture consists of the following interests:

Enegex NL 14.875% Octanex Group. ( ASX Code: OXX) 18.750% Others 66.375%

The WA-54-R Retention Lease ( Lease ) was formally granted for an initial 5-year term on 6 May 2014.

The Lease is located in the Caswell Sub-basin of the Browse Basin, offshore from Western Australia, and covers an area of approximately 497 km². The Lease covers six graticular blocks located within the WA342-P permit and incorporates the Cornea oil and gas accumulations ( Greater Cornea Fields ). The Greater Cornea Fields include the Cornea (Central and South), Focus and Sparkle Oil Fields and the Cornea North (Tear) Gas Field – see the Figure 1 Cornea Retention Lease Location Map.

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Enegex NL ABN 28 160 818 986

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Figure 1: Cornea Retention Lease and WA-342-P Location Map

Work Programme designed to achieve early commercial production

The Greater Cornea Fields are seen as an economic value opportunity and the path to early development is to overcome the technical challenges to unlock that value as quickly as possible. The work programme calls for extensive engineering and complementary studies in the first three years. In the main, the studies are a lead up to drilling of a production test well in Year 4.

The studies have been structured to overcome the technical challenges likely to be faced in bringing the Greater Cornea Fields into commercial production. The oil and gas volumes in the Greater Cornea Fields are such that, if threshold production flow rates can be demonstrated, the economics should be immediately attractive and provide a reasonable expectation of commercial development.

Details of Contingent Oil Resources

Table 1 on the next page presents the probabilistically derived In-place and Contingent Oil Resources for the Cornea Central and South Oil Fields , with no development risk having been applied in deriving these volumes.

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Enegex NL ABN 28 160 818 986

Middle Albian B & C Sands	Low Estimate (P90)	Best Estimate (P50)	High Estimate (P10)	Units
Total Oil In-place	298.0	411.7	567.2	mmbbl
Recovery Factor (RF)	2	7	25	%
Contingent Oil Resources	7.9	28.8	101.9	mmbbl
Prospective Enegex Economic Interest*	1.16	4.28	15.16	mmbbl

• Based on Enegex’s 14.875% Participating Interest in WA-54-R.

Table 1: In-place and Contingent Oil Resources for Cornea Central and South Fields

Vic/P47 – Gippsland Basin

The permit interest in Vic/P47 previously held by the company was transferred to Oil Basins Limited; effective 20 November 2014.

WA-409-P – Carnarvon Basin

Enegex withdrew from the Permit, effective 5 February 2015.

SUBSEQUENT EVENTS

There are no significant after balance date events up to the date of signing this report.

AUDITOR’S INDEPENDENCE DECLARATION

We have obtained an independence declaration as required under section 307C of the Corporations Act 2001 from our auditor, Grant Thornton Audit Pty Ltd, a copy of which is included at page 15.

Signed in accordance with a resolution of the directors

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GA Menzies Director

Melbourne, 6 March 2015

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Enegex NL ABN 28 160 818 986

DIRECTORS’ DECLARATION

In accordance with a resolution of the directors of Enegex NL, I state that:

In the opinion of the directors:

• (a) the financial statements of the company, comprising the statement of profit or loss and other comprehensive income, statement of financial position, statement of cash flows, statement of changes in equity and accompanying notes, are in accordance with the Corporations Act 2001 including:

• (i) giving a true and fair view of the financial position of the company as at 31 December 2014 and the performance for the half year ended on that date; and

• (ii) complying with Accounting Standard AASB 134 “Interim Financial Reporting” and the Corporations Regulations 2001; and

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

On behalf of the Board.

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GA Menzies Director Melbourne, 6 March 2015

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Enegex NL ABN 28 160 818 986

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2014

	NOTE	31/12/2014	31/12/2013
		$	$
Interest income		9,751	52
Audit		(10,000)	(11,000)
Consulting		(22,553)	(95,638)
Directors’ remuneration		(49,275)	(24,581)
Exploration costs written off		(39,377)	-
Management fees		16,000	(16,000)
Office costs		(23,058)	(6,000)
Other expenses		(13,558)	(11,095)
Printing		(6,607)	(26,211)
Share registry		(8,366)	(11,747)
Stock exchange		(12,569)	(33,296)
Loss before income tax benefit		(159,612)	(235,516)
Income tax benefit		-	-
Net Loss for the half year		(159,612)	(235,516)
Total comprehensive income for the half year		(159,612)	(235,516)
Basic loss per share (cents per share)		(0.297)	(0.878)
Diluted loss per share (cents per share)		(0.297)	(0.878)

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

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Enegex NL ABN 28 160 818 986

STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2014

	31/12/2014	30/6/2014
	$	$
CURRENT ASSETS
Cash and cash equivalents	572,942	756,812
Trade and other receivables	13,911	2,420
TOTAL CURRENT ASSETS	586,853	759,232
NON-CURRENT ASSETS
Exploration and evaluation assets	52,483	66,383
TOTAL NON-CURRENT ASSETS	52,483	66,383
TOTAL ASSETS	639,336	825,615
CURRENT LIABILITIES
Trade and other payables	75,206	101,873
TOTAL CURRENT LIABILITIES	75,206	101,873
TOTAL LIABILITIES	75,206	101,873
NET ASSETS	564,130	723,742
	=======	=======
EQUITY
Issued capital	1,096,907	1,096,907
Accumulated losses	(532,777)	(373,165)
TOTAL EQUITY	564,130	723,742
	=======	=======

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

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Enegex NL ABN 28 160 818 986

STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2014

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|||||
|---|---|---|---|
|Issued Accumul’d|Total|
|capital|losses|Equity|
|$|$|$|
|At 1 July 2014|1,096,907|(373,165)|723,742|
|Total comprehensive income|
|for the half year|
|Loss for the half year|-|(159,612)|(159,612)|
|_ _|_|
|Total comprehensive income|
|for the half year|-|(159,612)|(159,612)|
|_ _|_|
|At 31 December 2014|1,096,907|(532,777)|564,130|
|======== =========|=======|
|At 1 July 2013|1|-|1|
|Total comprehensive income|
|for the half year|
|Loss for the half year|-|(235,516)|(235,516)|
|__ _|__|
|Total comprehensive income|
|for the half year|-|(235,516)|(235,516)|
|___ _|_|
|Shares issued during the half-year|1,096,906|-|1,096,906|
|_ _|_____|
|At 31 December 2013|1,096,907|(235,516)|861,391|
|======== =========|=======|

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

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Enegex NL ABN 28 160 818 986

STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2014

31/12/2014 3 $ CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers - other (159,303) Interest received 910 Net cash outflow from operating activities (158,393) INVESTING ACTIVITIES Payments to suppliers - exploration (25,477) Cash outflow from investing activities (25,477) FINANCING ACTIVITIES Proceeds from company demerger - Cash inflow from financing activities - Net (decrease) /increase in cash assets (183,870) Cash assets at the beginning of the half year 756,812 Cash assets at the end of the half year 572,942 =======

1/12/2013 $ (168,957) 52 (168,905) (17,478) (17,478) 1,096,906 1,096,906 910,523 1 910,524 =======

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

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Enegex NL ABN 28 160 818 986

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2014

NOTE 1 CORPORATE INFORMATION

Enegex NL (“Enegex” or “the company”) is a for-profit company incorporated and domiciled in Australia with its registered office and principal place of business located at Level 21, 500 Collins Street, Melbourne, Victoria 3000. The financial report of the company for the half year ended 31 December 2014 comprises the company and the company’s interest in joint operations.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The half year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the company as the annual financial report.

The half year financial report should be read in conjunction with the annual financial report of Enegex NL for the year ended 30 June 2014.

It is also recommended that the half year financial report be considered together with any public announcements made by Enegex NL during the six months ended 31 December 2014, made in accordance with the continuous disclosure obligations arising under the Corporations Act 2001 and the Listing Rules of the ASX.

Basis of Preparation

The half year financial report is a general-purpose financial report which has been prepared in accordance with the requirements of the Corporations Act 2001, AASB 134 “Interim Financial Reporting” and other mandatory professional reporting requirements. The half year financial report has been prepared on an historical cost basis.

For the purpose of preparing this financial report, the half year has been treated as a discrete reporting period.

The financial report for the half year ended 31 December 2014 has been prepared on a going concern basis. This basis has been adopted as the directors believe the company will be able to generate sufficient cash flows to satisfy its debts as and when they fall due.

The company has limited financial resources and will need to raise additional capital from time to time. Any such fund raisings will be subject to factors beyond the control of the company and its directors. When Enegex requires further funding for its programs, it is the company’s intention that the additional funds would be raised in a manner deemed most expedient by the directors at the time, taking into account working capital, exploration results, budgets, share market conditions, capital raising opportunities and the interest of industry in co-participation in the company’s programs.

The half year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 30 June 2014 as well as those described in detail on the following page.

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Enegex NL ABN 28 160 818 986

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2014

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

New and revised accounting standards applicable for the first time to the current half-year reporting period

The company has adopted all new and revised Australian Accounting Standards and Interpretations that became effective for the first time and are relevant to the company.

The adoption of the new and revised Australian Accounting Standards and Interpretations has had no significant impact on the company’s accounting policies or the amounts reported during the current half-year period.

NOTE 3 SEGMENT INFORMATION

Segment information is presented using a 'management approach', i.e. segment information is provided on the same basis as information used for internal reporting purposes by the directors.

At regular intervals, the board is provided management information at a company level for the company’s cash position, the carrying values of exploration permits and a company cash forecast for the next twelve months of operation.

On this basis, no segment information is included in these financial statements.

NOTE 4 COMMITMENTS

Expenditure commitments include obligations arising from farm-in arrangements, minimum work obligations for the initial three year period of exploration permits and, thereafter, annually. Minimum work obligations may, subject to negotiation and approval, be varied. They may also be satisfied by farmout, sale, relinquishment or surrender of a permit.

Estimated expenditure to satisfy possible exploration permit work obligations:

	31/12/2014	31/12/2013
	$	$
Not later than 1 year
Vic/P47	-	20,052
WA-54-R	23,313	-
Later than 1 year but not later than 3 years
WA-54-R	193,375	-
	__	__
	216,688	20,052
	=======	========

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Enegex NL ABN 28 160 818 986

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2014

NOTE 5 EVENTS SUBSEQUENT TO BALANCE DATE

There are no significant after balance date events up to the date of signing this report.

NOTE 6 EQUITY SECURITIES ISSUED

Ordinary Shares
	31/12/2014		31/12/2013
	Shares	$	Shares	$
Issues of Ordinary Shares during
Half-Year
Moby Oil & Gas Scheme	-	-	53,666,486	1,096,906
Options over Unissued Shares
		31/12/2014		31/12/2013
		Options		Options
Options issued during the year		-		7,357,105

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The Rialto, Level 30 525 Collins St Melbourne Victoria 3000

Correspondence to: GPO Box 4736 Melbourne Victoria 3001

T +61 3 8320 2222 F +61 3 8320 2200 E info.vic@au.gt.com W www.grantthornton.com.au

Independent Auditor’s Review Report To the Members of Enegex N.L.

We have reviewed the accompanying half-year financial report of Enegex N.L. (“Company”), which comprises the statement of financial position as at 31 December 2014, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a statement or description of accounting policies, other explanatory information and the directors’ declaration.

Directors’ responsibility for the half-year financial report

The directors of Enegex N.L. are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such controls as the directors determine are necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with the Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Enegex N.L. financial position as at 31 December 2014 and its performance for the halfyear ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Enegex N.L., ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

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A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we complied with the independence requirements of the Corporations Act 2001.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Enegex N.L. is not in accordance with the Corporations Act 2001, including:

• a giving a true and fair view of the Company’s financial position as at 31 December 2014 and of its performance for the half-year ended on that date; and

• b complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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Adrian Nathanielsz Partner - Audit & Assurance

Melbourne, 6 March 2015

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Grant Thornton Audit Pty Ltd ACN 130 913 594

The Rialto, Level 30 525 Collins St Melbourne Victoria 3000

Correspondence to: GPO Box 4736 Melbourne Victoria 3001

T +61 3 8320 2222 F +61 3 8320 2200 E info.vic@au.gt.com W www.grantthornton.com.au

Auditor’s Independence Declaration To The Directors of Enegex N.L.

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Enegex N.L. for the half-year ended 31 December 2014, I declare that, to the best of my knowledge and belief, there have been:

• a No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b No contraventions of any applicable code of professional conduct in relation to the review.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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Adrian Nathanielsz Partner - Audit & Assurance

Melbourne, 6 March 2015

Grant Thornton Audit Pty Ltd ACN 130 913 594

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.