2eeaa3f8-5a05-4e7c-b79e-8dc07b6ae2d1.pdf
TWENTY FIFTEEN
ANNUAL REPORT TWENTYFIFTEEN
CORPORATE DIRECTORY
DIRECTORS
Mr Glenn Featherby
Executive Chairman
Mr Anthony Reilly
Non-Executive Director
Mr Bill Foster
Non-Executive Director
COMPANY SECRETARY
Mr Murray Wylie
REGISTERED OFFICE
Suite 3 / Level 3, 1292 Hay Street, West Perth WA 6005
Phone +61 8 9226 3211
Fax +61 8 9322 4073
Website www.hawkleyoilandgas.com
PRINCIPAL PLACE OF BUSINESS
Suite 3 / Level 3, 1292 Hay Street, West Perth WA 6005
Phone +61 8 9226 3211
Fax +61 8 9322 4073
STOCK EXCHANGE
Hawkley Oil and Gas Limited ASX code - HOG
CORPORATE GOVERNANCE
The Company has adopted the 3rd Edition of the ASX Corporate Governance Recommendations.
A summary statement which has been approved by the Board together with current policies and charters is available on the Company website at www.hawkleyoilandgas.com.
OUR VISION
Hawkley's vision is to create a world-class, multi-billion dollar, independent oil and gas company, with a port- folio of quality assets that will maximise shareholder returns.
AUDITORS
Ernst and Young
11 Mounts Bay Road, Perth WA 6000
Phone +61 8 9429 2222
Fax +61 8 9429 2436
SHARE REGISTRY
Security Transfer Registrars Pty Ltd 770 Canning Highway
Applecross WA 6153
Phone +61 8 9315 2333
Fax +61 8 9315 2233
BANKERS
National Australia Bank
1238 Hay Street, West Perth WA 6000
SOLICITORS
DLA Piper Australia Level 31, Central Park
152-158 St Georges Terrace Perth WA 6000
Phone +61 8 6467 6000
Fax +61 8 6467 6001
Hawkley Oil and Gas Limited
ABN 68 115 712 162
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CONTENTS
Chairman's Report 2
Operations Overview 4
Reserves Summary 6
Financial Report 8
ASX Additional Information 77
PAGE 1
ANNUAL REPORT TWENTYFIFTEEN
CHAIRMAN'S REPORT
DEAR SHAREHOLDERS
On behalf of the Board of Directors, I hereby present the 2015 Annual Report and Financial Statements for Hawkley Oil & Gas Limited.
It has been a difficult and frustrating year for Hawkley and the broader investment market, particularly with the halt in production from the Sorochynska 201 well and the ongoing geo-political events in Ukraine.
OPERATIONS
The political turmoil in Ukraine and the hostilities with Russia and separatist movements in eastern Ukraine have severely impacted on the investment sentiment in the country. Political efforts to resolve the tensions and hostilities continue, with a recent summit meeting including the leaders of Ukraine, Russia, Germany and France reinforcing the February 2015 peace deal, however, investment in the country remains extremely difficult.
In November 2014, the Sorochynska 201 well in Ukraine experienced a sudden significant decrease in production. Investigations identified that the change in performance was due to water influx. Production ceased during December and subsequent efforts to resume production have not been successful.
From July 2014 until production halted in December 2014, there was 0.30 Bcf gas and 5,889 Bbls condensate produced from the Sorochynska 201 well. From the start of production in February 2011, the well's total production has been 5.63 Bcf and 172,887 Bbls of gas and condensate respectively.
CORPORATE ACTIVITIES
During the year, Hawkley actively sought and assessed a number of potential opportunities to grow and diversify its business. Various new projects and corporate transactions were assessed during the year, however, for various reasons no acquisition were concluded.
On 14 October 2014, Hawkley announced the proposed sale of all its subsidiaries, which control all its Ukraine assets, to Black Star Petroleum Limited (ASX: BSP) ('BlackStar'), subject to due diligence and shareholder and regulatory approvals. The transaction failed to complete, with Blackstar withdrawing from the agreement on 24 November 2014.
In efforts to reduce overheads and management costs, the Company closed its London office in October 2014 and implemented a restructure of its Board and Management. On 14 October, Anthony Reilly joined the Board whilst London-based directors Richard Reavley, Lord Risby and Graham Lyon stepped down.
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