High Peak Royalties : Half Year Financial Report

For personal use only

High Peak Royalties Limited

ABN: 79 118 065 704

Half-Year Financial Report

31 December 2021

HIGH PEAK ROYALTIES LIMITED

CORPORATE DIRECTORY

High Peak Royalties Limited

ABN: 79 118 065 704

only	Chairman
	David Croll (Non-Executive Director)
	Directors
	James Knowles (Non-Executive Director)
use	Anthony Wooles (Non-Executive Director)
Chief Financial Officer
	Jarrod White
	Company Secretary
personal	Jarrod White
Registered Office
	C/- Traverse Accountants Pty Ltd
	Suite 305, Level 3,
	35 Lime Street
	SYDNEY NSW 2000, AUSTRALIA
	Principal Place of Business
	C/- Traverse Accountants Pty Ltd
	Suite 305, Level 3
	35 Lime Street
	SYDNEY NSW 2000, AUSTRALIA
	Securities Quoted
	Australian Securities Exchange Ltd (ASX)
For	Code: HPR

Share Registry

Computershare Investor Services

Level 11

172 St Georges Terrace

PERTH WA AUSTRALIA, 6000

Website

http://www.highpeak.com.au

Auditors

RSM Australia Partners

Level 13, 60 Castlereagh Street

Sydney NSW 2000

Bankers

National Australia Bank

345 George Street

SYDNEY NSW 2000, AUSTRALIA

Macquarie Bank Limited

1 Martin Place

SYDNEY NSW 2000, AUSTRALIA

Westpac Banking Corporation

109 St Georges Terrace

PERTH WA 6000, AUSTRALIA

High Peak Royalties Limited Group Structure

High Peak Royalties Limited (ACN 118 065 704) has the following subsidiaries:

• Phoenix Oil and Gas Limited
• Oil and Gas Royalties Pty Ltd
• Torrens Energy (SA) Pty Ltd
• Geo Capital Pty Ltd
• HPR USA Inc.
• Planet Gas USA Inc.

HIGH PEAK ROYALTIES LIMITED

CONTENTS

For personal use only

	Page
Directors' Report	2
Auditor's Independence Declaration	5
Consolidated Statement of Profit or Loss and Other Comprehensive Income	6
Consolidated Statement of Financial Position	7
Consolidated Statement of Changes in Equity	8
Consolidated Statement of Cash Flows	9
Condensed notes to the Financial Statements	10
Directors' Declaration	17
Independent Auditor's Review Report	18

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For personal use only

HIGH PEAK ROYALTIES LIMITED

DIRECTORS REPORT CONTINUED

The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of High Peak Royalties Limited (HPR) (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2021.

DIRECTORS

The following persons were directors of High Peak Royalties Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

David Croll	Interim Chairman, appointed 30 November 2021
	Non-Executive Director, appointed 30	August 2021,
Anthony Wooles	Non-Executive Director
James Knowles	Non-Executive Director, appointed 30	August 2021
Geoffrey King	Interim Chairman, Non-Executive Director, resigned as 30 November 2021
Andrew Carroll	Non-Executive Director, resigned as 30 November 2021

Chief Financial Officer

Jarrod White

Joint Company Secretary

Jarrod White

REVIEW OF OPERATIONS

Principal Activities

The Company continually seeks and reviews growth opportunities including the acquisition of additional royalties.

The Company has royalties over 20 oil and gas permits in Australia, over 2,000 wells in the USA and is the operator of four geothermal permit interests. In the HY22 period, 8 royalties were generating income for the Company with some royalties on exploration permits expected to provide income in due course (subject to discovery and development) with the potential for additional revenue from development resulting in increased production on existing areas.

High Peak's Macquarie Bank Facility through wholly owned subsidiary Planet Gas USA Inc. provides a potential source of funding for further growth and acquisitions of scale.

Review of Operations

The net loss for the consolidated entity after providing for income tax for the half year ended 31 December 2021 amounted to $75,128 (2020: $304,880).

Revenue from non-operated royalty income throughout the half-year ended 31 December 2021 increased to $437,375 (2020: $183,824)

The company ended the half year with a cash balance of $735,796 (June 2021: $761,794) after repayment of US$250,000 of principal owed to Macquarie Bank Limited under its financing facility, and following a successful capital raise in October 2021, which included subsequent support from Directors in December 2021 following approval at the November 2021 AGM.

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HIGH PEAK ROYALTIES LIMITED

DIRECTORS REPORT CONTINUED

For personal use only

REVIEW OF OPERATIONS CONTINUED

Royalties

High Peak continued to manage the diverse portfolio of royalty interests which includes the following:

Permit / Location	Royalty Interest (%)	Operated By
PL 171 and ATP 574P	2.50	Queensland Gas/BG Group/
Shell
ATP 299P
Petroleum Leases: PL29, PL38, PL39, PL52, PL57,	3.6/4.0	Santos
PL95, PL169, PL170, PL293, PL294, PL295 and
PL298
Peat Gas Field (PL101)	2.13	Origin Energy
Surprise Oil Field (PL6)	1.00	Central Petroleum
Longtom Gas Field (VIC/L29)	0.30	Seven Group Holdings
WA-90-R /WA-91-R (formerly WA-315-P) Poseidon	0.10	Santos
Field
EP(A)111, EP115, EP(A)120 and EP(A) 124	1.00	Central Petroleum
EP112, EP115NM and EP125	1.00	Santos
WA-482-P	0.20	Santos
EP(A)155	2.00	Mosman Oil and Gas
Planet Gas USA Inc. Royalties	3.00	Empire Energy
United States (East Texas, Permian and Texas Gulf		Sabine Oil and Gas, Pioneer
0.20 to 0.40	Natural Resources and Wagner
Coast Basins)
	Oil Company
United States (East Texas)	1.00	Silver Tusk and New Century
Operating
ML 04/244 and ML 04/249 Admiral Bay, Canning	1.5% GOR	Metalcity Ltd
Basin	1.5% NSR
Royalty over Hydrogen Sales including Catalysts	1%	ScimTek Hydrogen Pty Ltd
Licence/Location	Ownership %	Approximate Area in km2
GEL 571 South Australia	100	1,845.23
GEL 572 South Australia	100	1,764.20
GEL 573 South Australia	100	1,180.49
GEL 574 South Australia	100	1,139.26

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