WARREGO ENERGY LIMITED
NOTES TO THE ABBREVIATED ACCOUNTS
FOR THE YEAR ENDED 31 JULY 2014
At 31 July 2014, the company has net assets of £1,129,209 (2013 - £1,101,281).
In the period from 1st August 2013 to the date of signing the accounts, the company has continued to invest monies in the development of its interests in the Southern Hemisphere.
In the absence of income being generated and in order to continue to finance interests in Western Australia, the directors have secured AUS $40m of funding (by way of farm-out of the interest in West Erregulla Field (Licence EP469). The company via its wholly owned Australian subsidiary entered into farm out agreements for licence EP469 with Mazarine Energy Australia PTY Ltd and Dyas Australia PTY Ltd. On the effective date of these agreements Dyas and Mazarine made a payment to reimburse historic costs. They also will pay 100% of exploration and appraisal costs to earn 80% equity in the licence. This expenditure is capped approximately at AUS $40m. After completion of the farm in obligation the company will maintain a 20% holding in the licence. The directors are also engaged in an equity funding process to raise further working capital.
In addition, included in debtors is an amount of £1,266,661 due by a subsidiary undertaking. This debt will only be recoverable if the parent company is successful in its fund raising activities.
Based on the fund raising activities to date, the directors are of the opinion that the company will have adequate working capital to execute its operations and as a result the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements