HALF-YEAR FINANCIAL REPORT 30 June 2023 CORPORATE DIRECTORY ABN: 13 008 694 817 Contents Managing Director’s Report ........................ 3 Directors Peter F Mullins, Chairman Giustino Guglielmo Hector M Gordon Mark L Lindh Managing Director Director’s Report ...................................... 7 Auditor’s Independence Declaration ............. 8 Directors’ Declaration ................................ 9 Consolidated Statement of Profit or Loss and Other Comprehensive Income...... 10 Giustino Guglielmo Consolidated Statement of Financial Position ................................................. 11 Company Secretary Consolidated Statement of Changes in Equity ............................................... .12 Robyn M Hamilton Registered Office and Principal Administration Office Level 5, 11-19 Bank Place Melbourne, Victoria, 3000, Australia Telephone +61 (3) 9927 3000 Facsimile +61 (3) 9614 6533 Email admin@bassoil.com.au Auditors Grant Thornton Australia Ltd Collins Square Tower 5/727 Collins Street Melbourne, Victoria, 3008, Australia Share Registry Link Market Services Limited Tower 4, 727 Collins Street Melbourne, Victoria, 3008, Australia Telephone +61 (3) 9615 9800 Facsimile +61 (3) 9615 9900 Stock Exchange Listing Australian Stock Exchange Ltd 525 Collins Street Melbourne, Victoria, 3000, Australia ASX Codes: BAS – Ordinary Shares Web Site: www.bassoil.com.au Consolidated Statement of Cash Flows ....... 13 Notes to the Financial Statements ............. 14 Independent Auditor’s Review Report ....... 24 Forward Looking Statements This Half Year Financial 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 Group or not currently considered material by the Group. MANAGING DIRECTOR’S REPORT Bass is pleased to present the first half financial results for the 2023 fiscal year. This year, 2023, will be the first year the company has reported its results following the acquisition of its Cooper Basin properties. The Company now has two independent cash generating units, one in Indonesia and of course the Cooper Basin unit here in Australia. Bass has a commitment to provide a safe workplace for its employees and to work harmoniously within the communities in which we operate. I am proud to say that we have recorded over 6-million-man hours without a Lost Time Injury. The Company delivered an EBITDA of $403k down 31% over the previous half year. This result was driven by the accelerated cost recovery for the drilling of Tangai 5 in the previous half year. The NLAT was ($120k) although Bass is expecting to report a NPAT for the full year, this being the first full year of full contributions from the two business units. Bass is committed to maximising the potential of the Company’s assets and has already been able to double production from the Cooper Basin assets since they were acquired. Recent debottlenecking activities in Indonesia has also seen a significant increase in production. Free cash flow generated from these producing assets allows financial flexibility for Bass to pursue its growth strategy. The focus for 2023 and beyond is to grow Bass into a mid-tier oil and gas producer by advancing growth initiatives across its Indonesian and Australian portfolio. Whilst Bass is an oil producer in both Australia and Indonesia, the Company has outlined plans that will see Bass join the ranks of Australian gas producers supplying the East Coast gas market with a successful Extended Production Test at the Kiwi 1 well, currently planned to commence before year end. This is independent of a significant potential ‘company making’ opportunity identified last year that lies in the deep Permian coal gas play in Bass' 100% owned PEL 182. Half Year Summary Sales revenue increased as a result of higher production despite a lower realised oil price in this first half year. The results are summarised below. With no debt and sufficient cash reserves, Bass is wellpositioned to execute its strategy and continue its growth trajectory in 2023. (All amounts are in United States dollars unless otherwise stated) • 25% increase in production to 57,000 barrels (1H CY22 46,000 barrels) including production from the Cooper Basin assets • 13% increase in 1H CY23 sales revenue to $2.88 million (1H CY22 $2.54 million) from higher production • Cash position $1.52 million as at 30 June 2023 • A NPAT of -$0.12 million (1H CY22 approximately $0.16 million) Bass Oil Limited Half Year Report June 2023 3 MANAGING DIRECTOR’S REPORT (cont’d) Financial and Operating Performance Key Performance Metrics 1H CY23 1H CY22 Change Net Production3 (mbbl) 57.37 46.02 24.7% Net Oil Sales3 (mbbl) 52.77 44.69 18.1% Net Entitlement Oil3 (mbbl) 37.11 23.18 60.1% Sales Revenue (US$million) 2.88 2.54 13.4% Cash (US$million) 1.52 1.78 -14.6% Average Realised Oil Price (USD) 77.13 104.45 -26.2% EBITDA1 (US$,000) 403 584 -31.2% NPAT/NLAT2 (US$,000) -120 159 na 1 . Earnings Before Interest, Taxes, Depreciation and Amortisation . Net Profit After Tax 3 . These are Non-IFRS metrics and contain 55% Bass share of Indonesian results and 100% Australian results. Net production, Oil Sales and Entitlement Oil are all components of the Entitlement Calculation Statement that generates Sales revenue and reserves in the Company’s Indonesian business. 2 Bass produced 57,373 barrels of oil (net) during the half year ending 30 June 2023, up 24.7% from the prior comparable period. Half-yearly oil sales were 52,769 barrels of oil net to Bass. The net entitlement oil to Bass was 37,109 barrels for the half-year after Domestic Market Obligation (DMO), up 60%. The Company realised a 13% increase in sales revenue driven by the uplift in production. 1H CY22 vs 1H CY23 Production (kbbl) 15 12 9 6 3 0 January February March CY22 April May June CY23 Figure 1: Bass Monthly Production Bass Oil Limited Half Year Report June 2023 4 MANAGING DIRECTOR’S REPORT (cont’d) Liquidity / Cash Position: At 30 June 2023, Bass cash reserves had increased to $1.52 million from $1.48 million at 31 December 2022. The Company is not carrying any debt and holds US$1.54 million on deposit to support a rehabilitation bond in favor of the South Australian Department for Energy and Mining. Development Planning: Oil Optimisation Since completion of the acquisition of the Cooper Basin assets, the Company has successfully completed a program of optimisation initiatives to increase production, including the workover of the Worrior 11 well. As a result, production from the fields at the end of this half year had increased from 65 bopd to circa 120 bopd. The Company is also adding artificial lift capacity at the Worrior field by installing a second pumping unit. The installation of the second unit will provide additional artificial lift capacity to for wells not currently on pump and provide a backup in the event of the failure of the existing single unit. Gas Development The Kiwi gas development feasibility study has been progressing well. Bass considers there is potential for the existence of a significant stratigraphic upside to the 2003 Kiwi gas discovery. A mapping project aimed at quantifying the stratigraphic upside gas trapping potential, utilising the most recent 3D seismic acquired over the area, is almost complete. Concurrently, Bass is planning to complete the Kiwi 1 well as soon as possible and perform an extended production test in order to confirm the gas composition and potential field size. This work is considered a precursor and enabler to the commercialisation of the deep coal gas resource potential in the Company’s 100% owned PEL 182 licence. See Figure 1. Indonesian Oil After the end of the half year, the Bass announced it had been granted a 10-year extension to the 55% owned and operated Tangai-Sukananti KSO. The license will now expire in September 2035. The extension of the KSO will be of significant benefit to Bass. The increase in tenure will result in a material increase in reserves and is forecast to increase free cash flow from the Indonesian business due to the improved fiscal terms. The extension will also allow the Indonesian based team additional time to take advantage of the upside becoming evident in the Bunian and Tangai fields. An example of the potential upside was the recent 35% increase in oil production after a flowline debottlenecking project was completed. The team in Indonesia have started planning for a future drilling program which will include the Bunian 6 development well, targeting the undrained oil in the southwest of the Bunian field and a potential extension of the Bunian field to Bunian West. The potential for an additional development well in the Tangai field will also be evaluated following the success of Tangai 5. See Figure 2. Bass Oil Limited Half Year Report June 2023 5 MANAGING DIRECTOR’S REPORT (cont’d) Figure 1: Cooper Basin assets Figure 2: Tangai-Sukananti KSO Location Map Business Development: Bass is actively seeking opportunities to expand its operations and grow production. In addition to organic growth contained within Bass’ existing portfolio the Company is focused on acquiring assets with low-risk growth potential that have the are able to deliver above average returns by leveraging its expertise and resources. Bass Oil Limited Half Year Report June 2023 6 DIRECTORS’ REPORT The Directors present their report on the results of Bass Oil Limited consolidated entity (“BAS” or “Bass” or “the Company” or “the Group”) for the half-year ended 30 June 2023. DIRECTORS The names and details of the Company’s directors in office during the half-year and until the date of this report are set out below: Directors were in office for the entire period unless otherwise stated. Peter F Mullins (Chairman) Hector M Gordon Giustino (Tino) Guglielmo (Managing Director) Mark L Lindh PRINCIPAL ACTIVITY The principal activity of the Group during the period was oil production from newly acquired producing assets in the Cooper Basin, South Australia and a 55% Operator interest in the Tangai-Sukananti licence in the prolific South Sumatra Basin. The Company is debt free and committed to creating and maximizing value, leveraging its competitive strengths in both Australia and Indonesia. REVIEW AND RESULTS OF OPERATIONS A review of Group’s operations can be found on page 3. The Group’s operating loss for the half-year ended 30 June 2023 after income tax was $119,799 (30 June 2022: profit of $158,993). SIGNIFICANT EVENTS AFTER BALANCE DATE The Company announced on 10 August 2023 that it had signed a 10 (ten) year extension to its 55% owned and operated Tangai-Sukananti KSO in South Sumatra with the Indonesian state-owned oil company Pertamina EP. The KSO was due to expire 25 July 2025, 15 years after it was granted in 2010. The KSO will now expire 16 September 2035. The extension was granted under improved fiscal terms after a period of constructive negotiations with the Indonesian National Oil Company, Pertamina EP. No other matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years. AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES We have obtained an independence declaration from our auditor, Grant Thornton Audit Pty Ltd, a copy of which is attached to this report. Signed in accordance with a resolution of the Directors Chairman Melbourne, 8 September 2023 Bass Oil Limited Half Year Report June 2023 7 Grant Thornton Audit Pty Ltd Level 22 Tower 5 Collins Square 727 Collins Street Melbourne VIC 3008 GPO Box 4736 Melbourne VIC 3001 T +61 3 8320 2222 Auditor’s Independence Declaration To the Directors of Bass Oil Limited In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Bass Oil Limited for the half-year ended 30 June 2023, 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 audit; and b no contraventions of any applicable code of professional conduct in relation to the review. Grant Thornton Audit Pty Ltd Chartered Accountants T S Jackman Partner – Audit & Assurance Melbourne, 8 September 2023 www.grantthornton.com.au ACN-130 913 594 Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 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 Limited 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 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation. 8 w DIRECTORS’ DECLARATION The directors declare that: (a) in the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; and (b) in the directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the consolidated entity. Signed in accordance with a resolution of the directors made pursuant to s303(5) of the Corporations Act 2001. On behalf of the Directors Peter F Mullins Chairman Melbourne, 8 September 2023 Bass Oil Limited Half Year Report June 2023 9 CONDENSED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the half year ended 30 June 2023 Consolidated 6 months to 30 June 2023 $ 6 months to 30 Jun 2022 $ Oil revenue 2,883,240 2,542,065 Cost of oil sold (2,081,174) (1,100,787) 802,067 1,441,278 Note Revenue Gross profit Other income Interest received 42,264 2,592 Operator fees 37,281 47,109 Total revenue and other income 881,612 1,490,979 (546,232) (769,382) (368,644) (366,959) Finance costs (3,755) (1,828) Profit/(loss) before income tax (37,019) 352,810 Administrative expenses Employee benefits expense Income tax expense 3 (82,780) (193,817) (119,799) 158,993 Foreign currency translation (63,699) - Total comprehensive profit/(loss) for the half year (183,498) 158,993 Basic and diluted (loss)/earnings – cents per share (0.04) 0.09 Profit/(loss) for the half year Other comprehensive loss, net of income tax Items that may be reclassified to profit or loss The above statement of comprehensive income should be read in conjunction with the accompanying notes. Bass Oil Limited Half Year Report June 2023 10 CONDENSED STATEMENT OF FINANCIAL POSITION As at 30 June 2023 Consolidated Note 30 June 2023 $ 31 December 2022 $ ASSETS Current Assets Cash and cash equivalents 4 1,522,014 1,477,074 1,318,956 1,531,519 Other current assets 162,733 317,031 Inventories 268,601 245,663 Other financial assets 3,646 3,726 Total current assets 3,275,950 3,575,013 1,537,638 1,570,666 Property, plant, and equipment 117,103 126,885 Right of use assets 206,510 72,082 Trade and other receivables Non-current assets Other financial assets Oil properties 5 5,872,462 5,916,297 Exploration assets 6 37,791 - Total non-current assets 7,771,504 7,685,930 TOTAL ASSETS 11,047,454 11,260,943 Trade and other payables 906,865 980,126 Provisions 170,828 54,147 LIABILITIES Current Liabilities Lease liabilities 70,615 27,936 Provision for tax 563,444 583,775 1,711,752 1,645,984 2,893,674 3,082,446 Total current liabilities Non-current liabilities Provisions 127,967 34,954 Total non-current liabilities Lease liabilities 3,021,641 3,117,400 TOTAL LIABILITIES 4,733,393 4,763,384 NET ASSETS 6,314,061 6,497,559 31,608,738 31,598,393 3,233,700 3,349,548 (28,528,377) (28,450,382) 6,314,061 6,497,559 EQUITY Contributed equity Reserves Accumulated losses TOTAL EQUITY 7 The above statement of financial position should be read in conjunction with the accompanying notes. Bass Oil Limited Half Year Report June 2023 11 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the half year ended 30 June 2023 At 1 January 2022 Contributed equity Accumulated losses Currency translation reserve Share based payments reserve Total $ $ $ $ $ 28,435,817 (28,492,975) 3,129,996 35,801 3,108,639 Net profit for the year - 42,593 - - 42,593 Foreign currency translation loss - - (42,484) - (42,484) Total comprehensive income for the year - 42,593 (42,484) - 109 Shares issued 3,616,206 - - - 3,616,206 Share buy-back (77,976) - - - (77,976) Transaction cost on share issues (411,502) - - - (411,502) - - - 226,235 226,235 35,848 - - - 35,848 At 31 December 2022 31,598,393 (28,450,382) 3,087,512 262,036 6,497,559 At 1 January 2023 31,598,393 (28,450,382) 3,087,512 262,036 6,497,559 Net loss for the period - (119,799) - - (119,799) Foreign currency translation loss - - (63,699) - (63,699) Total comprehensive income for the period - (119,799) (63,699) - (183,498) 10,345 41,804 - (52,149) - 31,608,738 (28,528,377) 3,023,813 209,887 6,314,061 Share-based payments Tax consequences of share issue costs Transferred to issued capital At 30 June 2023 The above statement of changes in equity should be read in conjunction with the accompanying notes. Bass Oil Limited Half Year Report June 2023 12 CONSOLIDATED STATEMENT OF CASH FLOWS For the half year ended 30 June 2023 Consolidated 30 June 2023 $ 30 June 2022 $ Receipts from customers 3,158,288 1,835,473 Payments to suppliers and employees (2,519,642) (2,069,580) (103,111) (56,740) Interest paid (3,755) (1,828) Interest received 28,387 2,592 560,167 (290,083) Oil properties capital expenditure (441,617) (606,233) Exploration and evaluation assets (37,791) - Net cash (used in)/provided by investing activities (479,408) (606,233) Note Cash flows from operating activities Taxation paid Net cash (used in)/provided by operating activities Cash flows from investing activities Cash flows from financing activities Principal elements of lease payments (20,636) (24,856) Proceeds from share issues - 1,292,391 Payment share issue costs - (8,937) Payment unmarketable parcel buy-back - (77,976) Net cash (used in)/provided by financing activities (20,636) 1,180,622 Net increase in cash and cash equivalents 60,123 284,306 Foreign exchange movement (15,183) - Cash and cash equivalents at the beginning of the year 1,477,074 1,492,646 Cash and cash equivalents at the end of the half year 1,522,014 1,776,952 Some administration and corporate costs included in the 30 June 2023 ASX Quarterly Appendix 5B have been reclassified to oil properties and exploration expenditure from payments to suppliers for production. The above statement of cash flows should be read in conjunction with the accompanying notes. Bass Oil Limited Half Year Report June 2023 13 NOTES TO THE FINANCIAL STATEMENTS For the half year ended 30 June 2023 Note 1. Corporate Information The consolidated financial statements of Bass Oil Limited (“Parent Entity” or “Company”) and its controlled entities (collectively as “Consolidated Entity” or “the Group”) for the half-year ended 30 June 2023 was authorised for issue in accordance with a resolution of the directors on 8 September 2023. Bass Oil Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Stock Exchange. The nature of the operations and principal activities of the Group are oil production. Note 2. Summary of Significant Accounting Policies Basis of Preparation The consolidated financial statements have been prepared on the basis of historical cost. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in United States 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 2022 annual financial report for the financial year ended 31 December 2022. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards. In the application of the Group’s accounting policies, which are described below, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ from these estimates. There has been a change in accounting policies in how the Group recognises the useful life of oil assets for the Cooper Basin oil properties in the calculation of amortisation. There has also been a change in that the Group is now recognising exploration and evaluation assets. Except where indicated otherwise, all amounts are presented in United States dollars. Going Concern The consolidated financial statements have been prepared on the going concern basis, which assumes that the Group will be able to realise its assets and extinguish its liabilities in the normal course of business and at amounts stated in the financial report. For the financial half-year ended 30 June 2023 the Group earned a loss after tax of $119,799 (30 June 2022: profit of $158,993), had a net cash inflow from operating activities of $560,167 (30 June 2022: outflow $290,083), a net cash outflow from investing activities of $479,408 (30 June 2022: $606,233) and had a net cash outflow from financing activities of $20,636 (30 June 2022: inflow $1,180,622). The Directors have prepared a cash flow forecast through to September 2024 which indicates that the Group has sufficient funds to remit the second instalment of the performance bond for the rehabilitation of the Cooper Basin properties in favour of the SA Department for Energy and Mining and invest in further projects to maintain/increase production levels. Bass Oil Limited Half Year Report June 2023 14 NOTES TO THE FINANCIAL STATEMENTS For the half year ended 30 June 2023 Note 2. Summary of Significant Accounting Policies (cont’d) Going concern (cont’d) The Group may be required to secure additional funding (which may be sourced as debt or equity) in the event of unforeseen issues arising including but not limited to a weakness in the price of oil, field production performance or projected cash returns from the Company’s Indonesian subsidiary or to fund drilling and non-drilling projects beyond September 2024. Based on the Group’s cash flow forecast, achieving the funding referred to above and achieving successful results from drilling and non-drilling projects, the Directors believe that the Group will be able to continue as a going concern. Should the Group be unsuccessful in achieving the projected levels of cashflow from initiatives set out above, a material uncertainty would exist that may cast significant doubt on the ability of the Group to continue as a going concern and, therefore, whether it will realise its assets and extinguish its liabilities in the normal course of business. The financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts and the amount and classification of liabilities that might be necessary should the Group not continue as a going concern. (a) Statement of Compliance These financial statements are general purpose financial statements which have been prepared in accordance with the Corporations Act 2001, Accounting Standards and Interpretations, and comply with other requirements of the law. The financial statements comprise the consolidated statements of the Group. For the purpose of preparing the consolidated financial statements, the Company is a forprofit entity. Compliance with Australian Accounting Standards ensures that the financial statements and notes of the Company and the Group comply with International Financial Reporting Standards. (b) New Accounting Standards and Interpretations The Group has adopted all the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for an accounting period that begins on or after 1 January 2023. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted and will not have a material impact on the financial statements. (c) Critical accounting estimates and judgements The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Bass Oil Limited Half Year Report June 2023 15 NOTES TO THE FINANCIAL STATEMENTS For the half year ended 30 June 2023 Note 2. (c) Summary of Significant Accounting Policies (cont’d) Critical accounting estimates and judgements (cont’d) These accounting policies have been consistently applied by each entity with the exception of oil property assets, in the consolidated entity, and the estimates and underlying assumptions are reviewed on an ongoing basis. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying values of assets and liabilities within the next financial year are discussed below. (i) Impairment of Oil Property Assets Oil properties impairment testing requires an estimation of the value in use of the cash generating unit to which deferred costs have been allocated when impairment indicators have been identified. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value. Other assumptions used in the calculations which could have an impact on future years includes available reserves and oil prices. (ii) Useful Life of Oil Property Assets Oil properties are amortised on the Units of Production basis using the latest approved estimate of Proven (1P) Reserves. Amortisation is charged only once production has commenced. No amortisation is charged on areas under development where production has not yet commenced. Estimates of reserve quantities are a critical estimate impacting amortisation of oil property assets. On 1 January 2023 there was a change in accounting policy for the Australian production assets. The Australian production assets are now amortised on Proven and Probable (2P) reserves. The reason for the change is based on the Groups estimate of the forecast life of the field. The oil property assets in the Cooper Basin are late life fields and they were acquired with significant historical production data. The change reduces the amount of amortisation from $346,597 (1P) to $169,988 (2P). There is no change for the Indonesian oil properties. (iii) Estimates of Reserve Quantities The estimated quantities of Proven and Probable hydrocarbon reserves reported by the Company are integral to the calculation of the amortisation expense relating to oil properties, and to the assessment of possible impairment of these assets. Estimated reserve quantities are based upon interpretations of geological and geophysical models and assessments of the technical feasibility and commercial viability of producing the reserves. These assessments require assumptions to be made regarding future development and production costs, commodity prices, exchange rates and fiscal regimes. The estimates of reserves may change from period to period as the economic assumptions used to estimate the reserves can change from period to period, and as additional geological data is generated during the course of operations. Reserves estimates are prepared in accordance with the Company’s policies and procedures for reserves estim