Cue Energy Resources Limited Notes to the financial statements 30 June 2023 Note 15. Financial instruments (continued) 25 30 June 2022 12 months or less 1 to 2 years 2 to 5 years More than 5 years Non-derivative financial liabilities $'000 $'000 $'000 $'000 Trade and other payables 4,652 - - - Borrowings 630 7,618 - - Lease liabilities 89 106 17 - On 23 June 2022, the Consolidated Entity entered into a two-year, unsecured loan agreement with NZOG for $7.0 million. The loan is unsecured, with an interest rate of 10% p.a. fixed for the term of the loan and an establishment fee of 1.5% of the loan amount. The term of the loan is two years from inception date in June 2022 and early repayments are allowed with no penalty. During the year ended 30 June 2023, $3 million in loan repayments were made. At 30 June 2023 the fair value of the loan is $3.95 million (30 June 2022: $6.90 million). (f) Credit risk Credit risk arises from the financial assets of the group, which comprise cash and cash equivalents and restricted cash and trade and other receivables. Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Consolidated Entity. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements, reflecting the potential default by the counter-party. The Consolidated Entity does not hold any collateral. The Group does not hold any credit derivatives to offset its credit exposure. The Group trades only with recognised, creditworthy third parties, and as such collateral is not requested nor is it the Group’s policy to securitize its trade and other receivables. It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures which could include an assessment of their independent credit rating, financial position, past experience and industry reputation. The risks are regularly monitored. Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments for a period greater than 1 year. Note 16. Key management personnel disclosures and related party disclosures Directors The following persons were directors of Cue Energy Resources Limited during the financial year: Alastair McGregor (Non-executive Chairman)* Andrew Jefferies (Non-Executive Director)* Peter Hood AO (Non-Executive Director) Richard Malcolm (Non-Executive Director) Rod Ritchie (Non-Executive Director) Samuel Kellner (Non-Executive Director)* Marco Argentieri (Non-Executive Director)* *As in previous years, during the year ended 30 June 2023, Alastair McGregor, Andrew Jefferies, Samuel Kellner and Marco Argentieri declined to receive compensation for the provision of Directorial services from the Company, nor was any paid to any related parties on their behalf. The deemed compensation shown above reflects the estimated compensation paid by those Directors’ employers considered attributable to the company for services provided. 71 Cue Energy Resources Limited Annual Report 2023
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