Cue Energy Resources Limited Notes to the financial statements 30 June 2023 Note 10. Current assets - trade and other receivables (continued) 18 Accounting policy for trade and other receivables Trade and other receivables are amounts due from customers for goods sold in the ordinary course of business. They are generally due for settlement within 30 days and therefore are all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognised at fair value. Note 11. Non-current assets - production properties Consolidated 2023 2022 $'000 $'000 Net accumulated cost incurred on areas of interest Joint operation production assets Sampang 2,794 3,820 Maari 15,590 13,048 Mahato 10,910 6,131 Palm Valley 6,523 3,127 Mereenie 18,564 19,762 Dingo 7,908 8,229 Balance as at 30 June 62,289 54,117 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Consolidated 2023 2022 Production properties $'000 $'000 Balance at 1 July 54,117 18,344 Additions during the year 7,662 3,233 Changes in restoration provision – production (note 12) 2,919 2,799 Amortisation expense (6,032) (5,415) Contract liabilities reversed (348) - Transfers 3,055 - Additions through Amadeus Basin business combination (note 22) - 33,609 Changes in foreign currency translation 916 1,547 Closing balance 30 June 62,289 54,117 Estimates of each cash generating unit’s (CGU) recoverable amounts are based on either the fair value less costs to sell or value-in-use, which is determined by discounting each CGU’s estimated future cash flows at CGU specific discount rates. Estimated future cashflows are based on the following key assumptions: ● reserves estimates and the impact of technological advancements on the ability to commercially extract oil and gas; ● production volumes and timing thereof; ● commodity prices and the macroeconomic, technological and climate related factors which may influence forward looking estimates; ● legislative & compliance obligations & entitlements, including the extension of licenses where applicable; and ● costs and the impact of inflation. The pre-tax discount rates applied in discounting estimated future cashflows were between 12.88% and 14.29% at 30 June 2023 (30 June 2022: 14.3%), equivalent to post-tax discount rates between 12.47% and 13.30% (30 June 2022: 10.0%) depending on the nature of the risks specific to each cash generating unit. 64 Cue Energy Resources Limited Annual Report 2023
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