Cue Energy Resources Limited Notes to the financial statements 30 June 2023 Note 22. Business combinations (continued) 30 Business combinations during the year ended 30 June 2022 On 1 October 2021, the consolidated entity acquired the Amadeus Basin business, being the acquisition of interests in the Mereenie, Palm Valley and Dingo gas and oil fields in the Northern Territory, Australia, from Central Petroleum Limited (ASX: CTP) (Central). The Consolidated Entity’s acquired interests in the joint operation are a: - 7.5% interest in the Mereenie gas and oil field (OL4 and OL5 Production Licences); - 15% interest in the Palm Valley gas field (OL3 Production Licence); and - 15% interest in the Dingo gas field (L7 Production Licence). The ownership interests in the Amadeus Basin joint operation are as follows: Cue Energy Resources Limited New Zealand Oil & Gas Limited Central Petroleum Limited Macquarie Mereenie Pty Ltd Ownership interest in Amadeus Basin business % % % % Mereenie 7.5% 17.5% 25% 50% Palm Valley 15% 35% 50% - Dingo 15% 35% 50% - In accordance with AASB 3 Business Combinations, the consolidated entity previously reported its interest in the provisional fair value of the assets and liabilities upon acquisition of the Amadeus Basin assets at 30 June 2022. During the year ended 30 June 2023, the consolidated entity has finalised its acquisition accounting for the Amadeus Basin assets, a summary of its interest in the final valuations presented below: Final fair value $'000 Cash and cash equivalents 62 Trade receivables 4 Oil and gas production properties 33,609 Inventories 331 Right of use assets 54 Prepayments 50 Deferred tax asset 1,964 Trade payables (1,122) Contract liabilities (7,562) Restoration provision (6,546) Lease liability (50) Deferred tax liability (1,964) Acquisition-date fair value of the total consideration transferred 18,830 There was no change in the final fair values of assets and liabilities upon acquisition of the Amadeus Basin business from those provisional fair values disclosed in the annual report for the year ended 30 June 2022. Accounting policy for business combinations The acquisition method of accounting is used to account for business combinations regardless of whether equity instruments or other assets are acquired. The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling interest in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at either fair value or at the proportionate share of the acquiree's identifiable net assets. All acquisition costs are expensed as incurred to profit or loss. 76 Cue Energy Resources Limited Annual Report 2023
RkJQdWJsaXNoZXIy MjE2NDg3