Cue Energy Resources Limited Notes to the financial statements 30 June 2025 Note 12. Non-current liabilities - provisions (continued) 45 Consolidated 30 June 2025 30 June 2024 $'000 $'000 Restoration provisions 30,402 28,607 Advances paid for restoration works (6,388) (6,069) Net unfunded restoration provisions 24,014 22,538 In accordance with legislative obligations in some 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 2025, $6.39 million (30 June 2024: $6.07 million) has been contributed to such funds in respect of the Sampang asset 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. Restoration provision The expected timing of outflows for restoration liabilities is not within 12 months from the reporting date. The provision of future restoration costs is the best estimate of the present value of the future expenditure required to settle the restoration obligation at the reporting date, based on current legal requirements. Future restoration costs are reviewed annually and any changes in the estimate are reflected in the present value of the restoration provision at the reporting date, with a corresponding change in the cost of the associated asset. When the liability is initially recognised, the present value of the estimated costs is capitalised by increasing the carrying amount of the related oil and gas assets to the extent that it was incurred by the development/construction of the field, any subsequent changes to the provision, excluding the unwinding of interest in producing assets, commensurately changes the carrying amount of the related oil and gas asset. Note 13. Equity - contributed equity Consolidated 30 June 2025 30 June 2024 30 June 2025 30 June 2024 Shares Shares $'000 $'000 Ordinary shares - fully paid 699,092,624 698,372,282 152,630 152,543 Ordinary shares entitle the holder to vote, either in person or by proxy at a meeting of the Company, receive dividends as declared and, in the event of winding up the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid on the shares held. The Company has an unlimited authorised capital and the shares have no par value. Capital management When managing capital, management's objective is to ensure the entity continues as a going concern as well as maintaining optimal return for shareholders and benefits for other stakeholders. Management will assess the capital structure of the entity to take advantage of favourable costs of capital or high returns on assets. Management may recommend declaring a dividend to be paid to shareholders, returning capital to shareholders or issuing new shares 57 Cue Energy Resources Limited Annual Report 2025
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