Cue Energy Resources Limited Notes to the financial statements 30 June 2023 Note 11. Non-current assets - production properties (continued) 20 Development assets Consolidated Net accumulated cost incurred on areas of interest 2023 2022 Development assets $'000 $'000 Sampang - Paus Biru 4,348 4,185 Mereenie 110 58 4,458 4,243 Note 12. Non-current liabilities - provisions Consolidated 2023 2022 $'000 $'000 Restoration provisions 28,563 24,517 Movements in restoration provision during the financial year are set out below: Restoration provisions Consolidated - 30 June 2023 $'000 Carrying amount at the start of the year 24,517 Change in provisions recognised 2,903 Unwinding of discount 406 Impact of foreign currency translation 737 Carrying amount at the end of the year 28,563 During the year ended 30 June 2023, the provision for site restoration costs has increased by $2.90 million, excluding the impact of foreign exchange rates, primarily as a result of the reassessment of the Maari restoration provision, which increased by $3.43 million to $16.83 million following an update of the Maari estimated restoration costs. Consolidated 2023 2022 $'000 $'000 Restoration provisions 28,563 24,517 Advances paid for restoration works (5,994) (6,300) Net unfunded restoration provisions 22,569 18,217 In accordance with legislative obligations in the respective jurisdictions in which the Consolidated Entity operates, contributions are made to special purpose funds established solely for the purpose of financing future restoration works, any amounts which have been funded are not available for general use and restricted solely for the purpose of funding future restoration works. As at 30 June 2023, $5.99 million (30 June 2022: $6.30 million) has been contributed to such funds in respect of the Mahato and Sampang assets in Indonesia. Accounting policy for provisions A provision is recognised in the statement of financial position when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risk specific to the liability. 66 Cue Energy Resources Limited Annual Report 2023
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