PTR MINERALS LTD — Interim / Quarterly Report 2016

Mar 10, 2016

Petratherm Ltd

ACN 106 806 884

Half Year Report

for the half year ended 31 December 2015

	Auditor's Independence Declaration 5
	Interim consolidated statement of profit or loss and other comprehensive income 6
	Interim consolidated statement of financial position 7
	Interim consolidated statement of changes in equity 8
	Interim consolidated statement of cash flows 9
	Notes to the Financial Statements 10
1.	Corporate information 10
2.	Basis of preparation and change to the Group's accounting policies 10
3.	Segment reporting 11
4.	Exploration and evaluation assets 11
5.	Long-term provisions 11
6.	Issued capital 12
7.	Subsequent events 12
8.	Contingent liabilities 12
9.	Commitments 12
	Directors' Declaration 13
	Independent Auditor's Review Report 14

Directors' Report

The directors of Petratherm Ltd ('Petratherm') present their Report together with the financial statements of the consolidated entity, being Petratherm ('the Company') and its controlled entities ('the Group') for the half year ended 31 December 2015 and the Independent Auditor's Review Report thereon.

Director Details

The following persons were directors of Petratherm during or since the end of the reporting period.

Mr. Simon O'Loughlin, Non-Executive Chairman Mr. Terry Kallis, Executive Director Mr. Donald Stephens, Non-Executive Director

Operating Result

The group's loss for the half year ended 31 December 2015 after providing for income tax amounted to $234,952 (2014: $239,253).

Principal Activites

The principal activities of the Company and consolidated entities ('the Group') during the reporting period were:

• · Undertaking of remediation ground works and placement of the Paralana Engineered Geothermal Project on care and maintenance.
• · Exploration for conventional and unconventional oil and gas on the Company's Tasmania Petroleum Exploration Tenement.
• · Explore ways of containing costs whilst reviewing new projects that will be accretive to shareholder value

There have been no significant changes in the nature of those activities during the reporting period.

Review of Operations

During the reporting period exploration and evaluation costs amounted to $67,000 relating to our Spanish and Paralana geothermal projects and the Tasmanian petroleum exploration play. In September 2015, surface rehabilitation works at the Paralana 2 drill site was undertaken.

The drilling sump and water storage ponds were rehabilitated. The drill casing stockpile, a mobile office and other site equipment associated with the drilling and fracture stimulation works were removed from site. The Paralana 2 Well remains under general care and maintenance.

The Company's Tasmanian oil and gas tenement which is 3855 km2 . Is prospective for both conventional and unconventional oil and gas resources. Geochemical assessment during the period from drill core samples has determined that hydrocarbons have migrated from source rocks and therefore there is potential for conventional oil and gas accumulations in hydrocarbon traps which do not require fraccing to develop and exploit commercially.

The Company had ongoing administration costs of $197,000 primarily relating to reporting & compliance, due diligence review and office costs during the period. The Company held $342,000 cash at the end of the reporting period.

During the period a sum of $150,000 (before costs) was received by way of a placement undertaken by Taylor Collison. Concurrently the Company announced a fully underwritten rights issue, at a price of $0.003 per share, to be undertaken by Taylor Collison to raise a total sum of $623,631 before costs. The rights issue was successfully completed in the post reporting period. The monies raised will be applied to working capital and new projects and/or joint ventures.

The Company is continuing to explore ways of containing costs whilst reviewing new projects that will be accretive to shareholder value.

Auditor's independence declaration

The auditor's independence declaration is set out on page 5 and forms part of the directors' report for the half year ended 31 December 2015.

Signed in accordance with a resolution of the directors.

Mr Terry Kallis Managing Director 11 March 2016

Level 1, 67 Greenhill Rd Wayville SA 5034

Correspondence to: GPO Box 1270 Adelaide SA 5001

T 61 8 8372 6666 F 61 8 8372 6677 E info.sa@au.gt.com W www.grantthornton.com.au

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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.

Interim consolidated statement of profit or loss and other comprehensive income

For the half-year ended 31 December 2015

	Consolidated Group
	Half-year ended
	31 Dec 2015$	31 Dec 2014$
Revenue from ordinary activities	5,774	6,870
Loss on sale of Non-Current Assets	-	(34,577)
Impairment of exploration assets	(34,761)	(6,842)
Employee benefits expense	(61,378)	(68,815)
Foreign exchange (losses)/gain	(8,470)	-
Other expenses	(121,186)	(186,844)
Loss before income tax expense	(220,021)	(290,208)
Income tax benefit/(expense)	(14,931)	50,955
Loss attributable to members of the parent entity	(234,952)	(239,253)
Other comprehensive income
Items that may be subsequently reclassified to profit or loss:Exchange differences arising on translation of foreign operations	-	-
Total comprehensive loss for the period attributable to members
of the parent	(234,952)	(239,253)

Earnings per share:	Cents	Cents
Basic earnings per share	(0.04)	(0.09)
Diluted earnings per share	(0.04)	(0.09)

The interim consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the notes to the consolidated interim financial report.

Interim consolidated statement of financial position As at 31 December 2015

		Consolidated Group
		31 December	30 June
		2015	2015
	Note	$	$
CURRENT ASSETSCash and cash equivalentsTrade and other receivablesOther current assets		342,01929,69711,010	475,89810,8231,987
TOTAL CURRENT ASSETS		382,726	488,708
NON-CURRENT ASSETSExploration and evaluation assets	4	91,871	90,705
TOTAL NON-CURRENT ASSETS		91,871	90,705
TOTAL ASSETS		474,597	579,413
CURRENT LIABILITIESTrade and other payables		56,137	41,162
TOTAL CURRENT LIABILITIES		56,137	41,162
NON-CURRENT LIABILITIESLong-term provisions	5	193,076	193,076
TOTAL NON-CURRENT LIABILITIES		193,076	193,076
TOTAL LIABILITIES		249,213	234,238
NET ASSETS		225,384	345,175
EQUITYIssued capitalReservesAccumulated losses	6	33,545,056111,186(33,430,858)	33,429,895154,386(33,239,106)
TOTAL EQUITY		225,384	345,175

The interim consolidated statement of financial position is to be read in conjunction with the notes to the consolidated interim financial report.

Interim consolidated statement of changes in equity

For the half-year ended 31 December 2015

		Consolidated Group
			ShareOption	Accumulated	Total
		Issued
		Capital	Reserve	Losses	Eauity
	Note	$	$	$	$
Balance at 1 July 2014		32,806,049	635,286	(33, 224, 992)	216,343
Total comprehensive (loss)/profit			۰	(239, 253)	(239, 253)
Issue of shares by way of rights issue		151,499			151.499
Transfer from share based payment reserve upon lapse of options			(75,600)	75.600
Balance at 31 December 2014		32,957,548	559,686	(33, 388, 645)	128,589
Balance at 1 July 2015		33.429.895	154.386	(33.239.106)	345 175
Total comprehensive (loss)/profit			$\overline{a}$	(234.952)	(234, 952)
Issue of shares		150,000			150,000
Transaction costs (net of tax)		(34, 839)			(34, 839)
Transfer from share based payment reserve upon lapse of options			(43, 200)	43,200
Balance at 31 December 2015		33,545,056	111,186	(33.430.858)	225,384

The interim consolidated statement of changes in equity is to be read in conjunction with the notes to the consolidated interim financial report.

Interim consolidated statement of cash flows

For the half-year ended 31 December 2015

	Consolidated Group
	Half year	Half year
	ended	ended
	31 Dec 2015	31 Dec 2014
	$	$
CASH FLOWS FROM OPERATING ACTIVITIES
Paym ent s t o suppliers and em ployees	(199,513)	(326,704)
	-
Research & Developm ent Tax of f set received	2,143	50,955
Managem ent Fee		408
Int erest received	3,631	3,202
NET CASH PROVIDED BY/(USED IN) OPERATING
ACTIVITIES	(193,739)	(272,139)
CASH FLOWS FROM INVESTING ACTIVITIES
Pr o ceed s f r o m sale o f p r o p er t y, p lan t an d	-	14,000
Joint Vent ure receipt s	-	2,107
Paym ent s f or explorat ion act ivit ies	(66,752)	(9,199)
NET CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES	(66,752)	6,908
CASH FLOWS FROM FINANCING ACTIVITIES
Pr o ceed s f r o m issue o f sh ar es	150,000	-
Paym en t o f t r an sact io n co st s f o r issue o f sh ar es	(21,493)	-
NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES	128,507	-
Net in cr ease/(d ecr ease) in cash an d cash eq uivalen t s	(131,984)	(265,231)
Net f o r eign exch an ge d if f er en ces	(1,895)	(1)
Cash at t h e b egin n in g o f t h e p er io d	475,898	527,201
CASH AT THE END OF THE PERIOD	342,019	261,969

The interim consolidated statement of cash flows is to be read in conjunction with the notes to the consolidated interim financial report.

Notes to the condensed interim consolidated financial statements

FOR THE HALF YEAR ENDED 31 DECEMBER 2015

1. Corporate information

The interim consolidated financial statements of the Group for the six months ended 31 December 2015 were authorised for issue in accordance with a resolution of the directors on 11 March 2016.

Petratherm Ltd is a for profit entity for the purposes of preparing the financial statements. Petratherm Ltd is a limited company incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange under the symbol PTR.

2. Basis of preparation and change to the Group's accounting policies

Statement of compliance

The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 "Interim Financial Reporting". Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 "Interim Financial Reporting". The half-year report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report.

Basis of preparation

The financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the Company's 2015 annual financial report for the financial year ended 30 June 2015, The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements.

Significant events and transactions

On the 17th December the Company announced a capital raising by way of a share placement and a non-renounceable pro rata rights issue. The share placement will consist of the issue of 50,000,000 fully paid ordinary shares at $0.003 per share to raise $150,000 before costs. The rights issue had an issue price of $0.003 per new share on the basis of two new shares for every five ordinary shares held. Under this offer, a maximum of 207,877,031 shares will be issued to raise approximately $623,631 before costs.

The Directors remain focused on finding a way to provide a commercial outcome in respect of the projects for shareholders.

Notes to the condensed interim consolidated financial statements

FOR THE HALF YEAR ENDED 31 DECEMBER 2015

3. Segment reporting

The Board has considered the requirements of AASB 8 Operating Segments and the internal reports that are reviewed by the chief operating decision maker (the Board) in allocating resources and has concluded at this time that there are no separately identifiable segments.

4. Exploration and evaluation assets

	Consolidated
	As at	As at
	31 Dec 15	30 Jun 15
	$	$
EXPLORATION AND EVALUATION ASSETS
Exploration and evaluation costs carried forward inrespect of Geothermal areas of interest
Exploration and evaluation phases	91,871	90,705
	91,871	90,705
Consolidated entity
Capitalised tenement expenditure movementreconciliation
Balance at the beginning of the period	90,705
Additions through expenditure capitalised	35,927
Impairment of expenditure capitalised	(34,761)
Balance at end of period	91,871

5. Long-term provisions

		Consolidated Group
	31 December2015$	30 June2015$
Environmental rehabilitation	193,076	193,076
	193,076	193,076

Provision of Environmental Rehabilitation at the Paralana Project as agreed by the Group and the JV Partner.

Notes to the condensed interim consolidated financial statements

FOR THE HALF YEAR ENDED 31 DECEMBER 2015

6. Issued capital

Consolidated Group
As at	As at
31 Dec 15	30 Jun 15
$	$
33,545,056	33,429,895
33,545,056	33,429,895
Number	$
519,692,579	33,429,895
50,000,000	150,000
-	(34,839)
569,692,579	33,545,056

7. Subsequent events

On the 21th of January the Company raised a total of $468,515 by way of a non-renounceable rights issue. Taylor Collison Limited (Taylor Collison) are party to an underwriting agreement, under which the Company grants Taylor Collison the right to place all of the Shortfall Shares. The remaining shortfall was placed on the 27th of January completing the rights issue raising a total of $623,631 before costs.

8. Contingent liabilities

There has been no change in contingent liabilities since the last reporting date. The Group has various bank guarantees totaling $130,000 at 31 December 2015 which act as collateral over tenements which Petratherm Ltd operate.

9. Commitments

There has been no material change to the commitments disclosed in the 30 June 2015 annual report.

Directors' Declaration

In the opinion of the directors of Petratherm Ltd:

• (a) the consolidated financial statements and notes of Petratherm Ltd are in accordance with the Corporations Act 2001, including:
  • (i) give a true and fair view of its financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and
  • (ii) comply with Accounting Standard AASB 134 Interim Financial Reporting; 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

Mr Terry Kallis Managing Director

11 March 2016

Level 1, 67 Greenhill Rd Wayville SA 5034

Correspondence to: GPO Box 1270 Adelaide SA 5001

T 61 8 8372 6666 F 61 8 8372 6677 E info.sa@au.gt.com W www.grantthornton.com.au

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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.