Corporate directory 2
Directors' report 3
Auditor's independence declaration 12
Statement of profit or loss and other comprehensive income 13
Statement of financial position 14
Statement of changes in equity 15
Statement of cash flows 16
Notes to the financial statements 17
Directors' declaration 35
Independent auditor's report to the members of Argo Exploration Limited 36
Shareholder information 39
Argo Exploration Limited Corporate directory 30 June 2017Directors Andrew Van Der Zwan (Non-Executive Director) Justin Hondris (Non-Executive Director) Christopher Martin (Non-Executive Director)
Company secretaries Melanie Leydin Justin Mouchacca
Registered office Level 4
100 Albert Road
South Melbourne VIC 3205
Principal place of business Level 4
100 Albert Road
South Melbourne VIC 3205
Share register Advanced Share Registry Ltd 150 Stirling Highway
Nedlands WA 6009
Telephone: (08) 9389 8033
Auditor Grant Thornton Audit Pty Ltd The Rialto
Level 30, 525 Collins Street
Melbourne VIC 3000
Stock exchange listing Argo Exploration Limited shares are listed on the Australian Securities Exchange
(ASX code: AXT)
Websitewww.argoexploration.com.au
Directors' report 30 June 2017The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Argo Exploration Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2017.
DirectorsThe following persons were directors of Argo Exploration Limited during the whole of the financial year and up to the date of this report, unless otherwise stated:
Mr Andrew Van Der Zwan (Non-Executive Director) Mr Justin Hondris (Non-Executive Director)
Mr Christopher Martin (Non-Executive Director)
Principal activitiesDuring the financial year the principal activities of the consolidated entity consisted of reviewing potential exploration and development of resource acquisitions and management of the Company's investments.
DividendsThere were no dividends paid, recommended or declared during the current or previous financial year.
Review of operationsThe loss for the consolidated entity after providing for income tax amounted to $10,762,046 (30 June 2016: profit of
$12,689,459).
The net assets of the consolidated entity decreased by $10,762,046 to $5,921,237 as at 30 June 2017 (2016:
$16,683,283). The consolidated entity's working capital, being current assets less current liabilities decreased by
$12,632,724 to $5,921,237 (2016: $18,553,961).
The year ended 30 June 2017 was a challenging one for Argo Shareholders. Its holding of 7,000,000 shares in AIM Listed Oil & Gas Explorer Pantheon Resources plc ("Pantheon"), being 2.95% of the issued capital in Pantheon, had a weaker performance as compared to previous corresponding period.
Company highlights for Pantheon include;
Drilled 5 transformative conventional wells in East Texas. All were discoveries: VOBM#1, #2H, #3 (Polk County) & VOS#1, VOBM#4 (Tyler County)
Geological potential has increased with the Wilcox discovery
Definitive terms for gas processing agreed. Pathway to near term production & self-funding
Board strengthened with addition of Phillip Gobe as Senior Independent NED
Compelling projected economics: not shale, easy access to market, profitable at low commodity prices
Per well, capex and opex estimated to be below $5.00/boe
Potential 159mmboe recoverable P50 prospective resource attributable to Pantheon from five identified prospects
Significant additional potential in Wilcox Acreage has the potential to greatly exceed predrill resource estimates
July 2017 Pantheon announced a successful fundraising of c.US$12.5m in equity which leaves the company fully funded for operational activities.
Strategy remains - drill enough wells to prove up acreage and sell
The forthcoming 12 months should provide opportunity for regular operational activity and related news flow from Pantheon, and if successful, the potential for further value growth for Argo.
The board of Argo continues to seek and review further opportunities in the natural resources sector. In reviewing such acquisitions the Board always evaluates the potential upside of any acquisition, against the relative potential of its existing Pantheon shareholding. This evaluation requires the Board to recognise that any acquisition of a new project may require some form of dilution, most likely by way of an equity issue in some form, or the divestment of some of its Pantheon shareholding. Whilst the board of Argo gives no guarantee of continued success from Pantheon, it has yet to review a new project with comparable relative risk/reward, and remains committed to its Pantheon investment.
Significant changes in the state of affairsThere were no significant changes in the state of affairs of the consolidated entity during the financial year.
Argo Exploration Limited published this content on 15 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 16 August 2017 07:06:02 UTC.
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