2014-03-11 consolidated interim accounts

8/10/2019 2014-03-11 Consolidated Interim Accounts

1/19

ABN68079432796

Consolidatedinterimfinancialreport

forsixmonthsended

31December2013


2/19

TranservEnergyLimited ConsolidatedInterimFinancialReport

Directorsreport

1

Thedirectorspresent their report togetherwith the consolidated financial report for thehalfyearended 31December2013and the

reviewreportthereon.

Directors

TheDirectors

of

the

company

at

any

time

during

or

since

the

end

of

the

half

year

to

the

date

of

this

report

are:

CraigBurton ExecutiveChairman

StephenKeenihan ExecutiveDirector

IanCockerill ExecutiveDirector

WilliamBloking NonExecutiveChairman(Resigned19November2013)

BrettMitchell NonExecutiveDirector(Resigned20August2013)

ReviewofoperationsHalfyearended31December2013

WarroGasProject(TSVWorkingInterest=57%)

Drilling continues to remain a target for late 2014 to coincide with

drillingandfraccingprogrammescurrentlybeingscheduledinthePerth

Basinbyotheroperators.

The JointVenturepartners,TranservandAlcoahavecommencedpre

drillplanninganddesignworkasapreludetothenextphaseofatwo

well drilling and testing program at Warro. Work carried out or

underwayduringthepastquarterincluded;

Ahydrogeologicalstudyofgroundwater intheregionaround

Warro.Thisworkconcludedthattherewouldbenoimpacton

theaquifersystemsprovidedthewellintegrityismaintained.

Adetailedreviewoffaultpatterns inWarroareausingstate

oftheartneuralnetworkmapping technology. Thisproject

confirmedveracity thepreviousworkandhas reinforced the

JointVenturesrationaleforthenextwelllocations.

Initiationofstudiestoestablishbaseorbackground levelsof

seismicityandsoilgascomposition.

Participation inaprojectwithDMP,FarmersFederation,PGA

andAPPEAtodefineandsimplifystandardaccessagreements

andbuildconfidenceinthelocalcommunitiesintheprocess.

TheNativeTitlenegotiationshavereachedaconclusionsubjecttofinal

documentationwhichispresentlywiththeSouthWestAboriginalLand

Councilfor

execution.

WarroProjectBackground

TheWarrofieldlies200kmnorthofPerthinthePerthBasinandisone

ofthelargestundevelopedonshoregasfieldsinAustralia.

Transervcurrentlyhasa57percentstake inWarroand is theproject

operator.Alcoa isearningup to65per cent (currentlyat43per cent)undera farminagreementby spendingup to$100millionon

explorationanddevelopmentactivitiesatWarro.Alcoa is fundinga stagedevaluationandconstructionprogram,which includeswells,

productioninfrastructureandtherecentlycompleted3Dseismicsurvey.

Warro,whichcoversapproximately7,000ha isabout3,750mbelow the surfaceand is locatedjust31kmeastofboth theDampierto

BunburyNaturalGasPipelineandtheDongaratoPerthParmeliaPipeline.

Map1WarroLocation


3/19


Directorsreport

2

CanadianActivities

TranservholdsinterestsinCanadianoilandgasassets inthreeregions: AlbertaDuvernay/RockCreek,AlbertaGenesee(Mannvilletight

oil) and British Columbia (Carnaby). While the Company is ready to embark on drilling activities in Canada, thewellswill remain in

abeyanceuntilvariousfundinginitiativesarefinalised.

Alberta

Duvernay/RockCreek(TSVWorkingInterest=34%)

TherehasbeennodrillingactivitybytheCompanyinthisareaduring

thisquarter.

CanadianPanOcean(CPO)continuetocarryoutfundraisingefforts

in an effort to close the Duvernay acreage sale that the Company

announced on 5 March 2013. This sale remains subject to CPO

successfully obtaining funding and Transerv is monitoring CPOs

progress. Whilst this sale isnotcertain, theBoardbelieves thatCPO

hasa reasonableprospectofcompleting the transaction. IfCPOdoes

notcomplete,theCompanyisreadytoexecuteaseparatesaleprocess.

GeneseeTightOilPlay(TSVWorkingInterest=50%)

TherehasbeennodrillingorlandactivitybytheCompanyinthisarea

duringthefirsthalfoftheyear.

BritishColumbia

Carnaby

(TSV

Working

Interest

=

55%)

Carnaby has producing properties and exploration assets in British

Columbiato

the

east

of

Ft.

St

John.

These

lands

are

held

in

three

differentareasassetoutintheLocalityMap.

MontneyTwoRivers

Carnabysholding in theTwoRiversarea is51,388acresnet (57,021

acresgross).

As a result of continuing industry success in the area, and the

encouraging results of the Independent Review carried out by

McDanielandAssociates,Carnabyhasundertakenadetailedreviewof

theMontneysectionoverallitslands,andthesurroundingarea. This

workhas

identified

four

prospective

oil

prone

levels

which

are

widely

distributedacrosstheCarnabylands. Twoofthesezonesarecurrently

being developed in fields to the south. Twoof the identified zones

remainunexploitedatpresent. Theworkhasrecognisedandmapped

anumberofkeyreservoircharacteristicswhichappeartocontrolthe

locationoftheplaysweetspots. Thisworkispresentlybeingusedto

guide our continued land acquisition in the area and locate future

drillingtargets.

ParadiseArea

Carnaby Energy has proposed drilling a horizontal well into the

Montneyturbidite

channel

offset

from

avertical

well

that

has

producedoilfromthesameinterval. Carnabysinterest inthearea is

approximately 50% and the drilling of thiswell awaitsjoint venture

approval.

Map3CarnabyLocation

Map2

Woma

Location


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Directorsreport

3

Financial

TheCompanyscashbalanceat31December2013was$5,284,078(30June2013:$1,565,377).

Anetprofitof$548,894isreportedforthesixmonthsended31December2013(31December2012:$1,926,467loss),withabasicgain

pershareof0.01cents(31December2012:0.06centslosspershare).

Equity

Asat31December20134,034,097,761ordinaryshareswereon issuewith thecompany.Thenumberofunlistedoptionson issuewas

593,500,000.


5/19


Directorsreport

4

LeadAuditorsIndependenceDeclarationundersection308CoftheCorporationsAct2001

The lead auditors independence declaration is set out on page 5 and forms part of the directors report for the halfyear ended 31

December2013.

DatedatPerththis11th

dayofMarch,2014

Signedinaccordancewitharesolutionofthedirectors:

StephenKeenihan

ExecutiveDirector


6/19


LeadAuditorsIndependenceDeclaration

5


7/19


IndependentAuditorsReviewReport

6


8/19


IndependentAuditorsReviewReport

7


9/19


Consolidatedstatementofprofitorlossandothercomprehensiveincome

Forthesixmonthsended31December2013

8

31Dec13 31Dec12

Notes AUD AUD

Revenuefrom

continuing

operations 1,421,584 1,254,127

Costofgoodsandservices sold (1,097,034) (1,078,769)

324,550 175,358

Shareofloss ofassociates accountedforusingtheequity

method 5 (1,632) (32,404)

Otherincome 2,636,290 1,154,934

Expenses

Auditandaccountingcosts (451,396) (35,628)

Employeebenefits (232,224) (160,582)

Directorsfees (132,418) (104,750)

Professionalfees (12,177) (16,380)

Consultantfees (105,400) (290,580)

Depreciationand amortisation (621,392) (633,650)

Administrativeexpenses (681,822) (716,473)

Financingcosts (40,526) (572,451)

Otheroperatingexpenses (10,640) (164,775)

Profit/(Loss)beforeincometaxexpensefromcontinuing

operations 671,213 (1,397,381)

Incometaxexpense/(benefit) (122,319) (529,086)

Profit/(Loss)afterincometaxexpensefortheperiod 548,894 (1,926,467)

Profit/(loss)attributable

to:

Membersoftheparententity 771,442 (1,347,785)

Noncontrollinginterests (222,548) (578,682)

548,894 (1,926,467)

Othercomprehensive income:

Foreigncurrencytranslation 214,395 237,946

Totalcomprehensive profit/(loss)fortheperiod,net of

incometax 763,289 (1,688,521)

Basic/diluted

profit/(loss)

per

share

(cents

per

share) 0.01

(0.06)

The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction

with the notes to the consolidated interim financial report.


10/19

TranservEnergyLimited

Consolidatedstatementoffinancialposition


9

31Dec13 30Jun13

Note AUD AUD

Assets

CurrentAssets

Cashandcashequivalents 5,284,078 1,565,377

Otherreceivables andprepayments 960,849 4,619,609

6,244,927 6,184,986

Noncurrentassetsheldforsale 7 2,050,585 2,018,913

Totalcurrentassets 8,295,512 8,203,899

NoncurrentAssets

Property,plantandequipment 57,872 106,820

Investmentsaccountedforusingtheequitymethod 5 630,091 602,974

Developmentassets 8 13,261,553 13,527,732

Explorationandevaluationassets 9 57,702,631 57,405,341

Totalnoncurrentassets 71,652,147 71,642,867

Totalassets 79,947,659 79,846,766

Liabilities

CurrentLiabilities

Tradeandotherpayables 1,418,284 2,048,759

Provisions 72,796 49,425

Currenttaxliabilities 484,586

Totalcurrentliabilities 1,491,080 2,582,770

Noncurrentliabilities

Financiall iabil ities 3,542,081 3,274,500

Deferredtaxl iabil ity 724,251 590,577

Provisions 1,728,279

1,700,239

Totalnoncurrentliabilities 5,994,611 5,565,316

Totalliabilities 7,485,691 8,148,086

Net assets 72,461,968 71,698,680

Equity

Issuedcapital 10 66,952,804 66,952,804

Reserves 9,316,664 9,102,270

Minorityinterest 11 2,673,651 2,896,199

Accumulatedlosses (6,481,151) (7,252,593)

TotalequityattributabletoequityholdersoftheCompany 72,461,968 71,698,680

The consolidated statement of financial position is to be read in conjunction with the notes

to the consolidated interim financial report.


11/19


Consolidatedstatementofchangesonequity

Asat31December2013

10

Forthesixmonthsended31December2013 ShareCapital

Foreign

Exchange

Reserve

Options

Reserve

Accumulated

Losses

Non

controlling

interest

TotalEquity

AUD AUD AUD AUD AUD AUDBalanceat1July2013 66,952,804 897,882 8,204,388 (7,252,593) 2,896,199 71,698,680

Totalcomprehensive incomeforthe period

Lossattributabletomembersoftheparententity 548,894 548,894

Lossattributabletononcontrollinginterests - - - 222,548 (222,548)

Othercomprehensive income

Foreigncurrencytranslationdifferences 214,394 214,394

Totalothercomprehensive income 214,394 771,442 (222,548) 763,288

Totalcomprehensive incomeforperiod 214,394 771,442 (222,548) 763,288

Transactionswithowners,recordeddirectlyinequity

Contributionsbyanddistributionstoowners

Totalcontributionsbyanddistributionstoowners

Balanceat31December2013 66,952,804 1,112,276 8,204,388 (6,481,151) 2,673,651 72,461,968

Forthesixmonthsended31December2012 ShareCapital

Foreign

Exchange

Reserve

Options

Reserve

Accumulated

Losses

Non

controlling

interest

TotalEquity

AUD AUD AUD AUD AUD AUD

Balanceat1July2012 63,453,519 (99,954) 7,990,372 (7,484,407) 3,771,761 67,631,291

Totalcomprehensive incomeforthe period

Lossattributabletomembersoftheparententity (1,926,467) (1,926,467)

Lossattributabletononcontrollinginterests - - - 578,682 (578,682)

Othercomprehensive income

Foreigncurrencytranslationdifferences 237,946 237,946

Totalothercomprehensive income 237,946 237,946

Totalcomprehensive incomeforperiod 237,946 (1,347,785) (578,682) (1,688,521)

Transactionswithowners,recordeddirectlyinequity

Contributionsby

and

distributions

to

owners

Shareoptionsvested 164,775 - - 164,775

Totalcontributionsbyanddistributionstoowners 164,775 164,775

Balanceat31December2012 63,453,519 137,992 8,155,147 (8,832,192) 3,193,079 66,107,545

The consolidated statement of changes in equity is to be read in conjunction with the notes



12/19


Consolidatedstatementofcashflow


11

31Dec13 31Dec12

Note AUD AUD

Cash

flows

from

operating

activitiesReceiptsfromcustomers 1,718,707 2,394,157

ReceiptforResearchandDevelopmentRebate 3,472,291

Interestreceived 17,618 4,361

Paymenttosuppliers andemployees (3,050,009) (1,282,862)

Net cashfromoperatingactivities 2,158,607 1,115,656

Cashflowsfrominvestingactivities

Paymentforproduction,explorationandevaluationexpenditure (432,014) (1,580,645)

Paymentforproperty,plant&equipment (31,434)

Paymentforinvestmentin associates (28,749) (247,978)

Paymentfortaxoninvestmentincome (473,230)

Proceedsfromsaleofassets 2,494,087

Netcash

used

in

investing

activities 1,560,094

(1,860,057)

Cashflowsfromfinancingactivities

Proceedsfromshorttermloans 380,095

Net cashfromfinancingactivities 380,095

Netincrease/(decrease)incashandcashequivalents 3,718,701 (364,306)

Cashand cashequivalentsatbeginningofyear 1,565,377 1,080,832

Effectofexchangeratefluctuations oncashheld 32,833

Cashandcashequivalentsat31December2013 5,284,078 749,359

The consolidated statement of cash flow is to be read in conjunction with the notes



13/19


Notestotheaccounts

12

1. Reportingentity

TranservEnergyLimited(theCompany)isacompanydomiciledinAustralia.TheaddressoftheCompanysregisteredofficeisLevel7,1008

HayStreet,Perth,WA6000. Theconsolidatedinterimfinancialreportoftheconsolidatedentityforthesixmonthsended31December2013

comprisestheCompanyanditssubsidiaries(togetherreferredtoastheconsolidatedentity).Theconsolidatedentityisprimarilyinvolvedin

oilandgasexplorationinAustraliaandCanada.

2. Statementofcompliance

The consolidated interim financial report is a general purpose financial report prepared in accordance with the requirements of the

CorporationAct2001,AustralianAccounting StandardsAASB134: InterimFinancialReporting,AustralianAccounting Interpretationsand

otherauthoritativepronouncementsoftheAustralianStandardsBoard.CompliancewiththeAustralianAccountingStandardsensuresthat

thefinancialstatementsandnotesalsocomplywithInternationalFinancialReportingStandards.

Theconsolidated interim financialreportdoesnot includeallof the information required fora fullannual financialreport,andshouldbe

readinconjunctionwiththeconsolidatedannualfinancialreportoftheconsolidatedentityasatandfortheyearended30June2013.

Thesameaccountingpoliciesandmethodsofcomputationhavebeen followed in this interim financial reportaswereapplied inannual

financialreport

of

the

consolidated

entity

as

at

and

for

the

year

ended

30

June

2013.

ThisconsolidatedinterimfinancialreportwasapprovedbytheBoardofDirectorson11th

March2014.

3. Significantaccountingpolicies

Theseconsolidatedinterimfinancialstatementshavebeenpreparedinaccordancewiththeaccountingpoliciesadoptedinthelastannual

financialstatementsfortheyearto30June2013.

The accounting policies have been applied consistently throughout the consolidated entity for the purposes of preparation of these

consolidatedinterimfinancialstatements.

TheConsolidatedEntityhasadoptedthenewandrevisedStandardsandInterpretationsissuedbytheAustralianAccountingStandardsBoard

(the

AASB)

that

are

relevant

to

their

operations

and

effective

for

the

current

period.

ImpactofnewandrevisedStandardsandamendmentsthereofandInterpretationseffectiveforthecurrentperiodthatarerelevanttothe

Groupinclude:

* AASB10,ConsolidatedFinancialStatements

AASB10iseffectiveforaccountingperiodsbeginningonorafter1January2013andreplacestheguidanceoncontrolandconsolidation

in AASB 127, Consolidated and Separate Financial Statements, and Interpretation 112, Consolidation Special Purpose Entities. It

introducesasingledefinitionofcontrolofanentity,focusingontheneedtohavebothexposure,orrights,tovariablereturnsandthe

powertoaffectthosereturns,beforecontrolispresent.Thegrouphasrevieweditsinvestmentsinotherentitiesandconcludedthatthe

applicationofAASB10doesnothaveanyimpactontheamountsrecognisedintheconsolidatedinterimfinancialstatements.

* AASB11,JointArrangements

AASB11iseffectiveforaccountingperiodsbeginningonorafter1January2013andintroducesaprinciplesclassifiedaseitherajoint

operationorajointventure.Jointventuresareaccountedforusingtheequityarrangements.Basedontheassessmentofcontractual

rightsandobligations,ajointarrangementwillbebasedapproachtoaccountingforjointarrangements.Thefocusisnolongeronthe

legalstructureofjointarrangements,butratheronhowcontractualrightsandobligationsaresharedbythepartiestothejointmethod,

andthechoicetoproportionallyconsolidateisnolongerpermitted.Partiestoajointoperationcontinuetoaccountfortheirdirectright

to,andtheirshareof,jointlyheldrevenues,expenses,assetsandliabilitiesofthejointoperation.TheGrouphasassessedthenatureof

itsjointarrangementsandtheapplicationofAASB11doesnothaveanyimpactontheamountsrecognisedintheconsolidatedinterim

financialstatements.


14/19


Notestotheaccounts

13

* AASB12,DisclosureofInterestsinOtherEntities

AASB12 iseffective foraccountingperiodsbeginningonorafter1 January2013 and setsout the requireddisclosures forentities

reportingunderAASB10andAASB11,replacingthedisclosurerequirementscurrently found inAASB128, Investments inAssociates

and Joint Ventures. The application of AASB 12 has no impact on the amounts recognised in the consolidated interim financial

statements.

* AASB13,FairValueMeasurement

AASB13iseffectiveforaccountingperiodsbeginningonorafter1January2013andprovidesguidanceonhowtomeasurefairvalue

and enhance fair value disclosures. The application of AASB 13 has not changed the Company's measurement techniques for

determiningfairvalueanddoesnothaveanyimpactontheamountsrecognisedintheconsolidatedinterimfinancialstatements.

* AASB119,AmendmentstoEmployeeBenefits

AASB119 iseffective foraccountingperiodsbeginningonorafter1 January2013and setsout the requireddisclosures forentities

reportingunderAASB119.AnamendedversionofAASB119'EmployeeBenefit'withrevisedrequirementsforpensionandotherpost

employment benefits, terminationbenefits and other change requires a number of disclosureswhich are consistentwith previous

disclosuresmadeby theCompany.AASB119amendments toEmployeeBenefitshaveno impacton theamounts recognised in the

consolidatedinterim

financial

statements.

4. Estimates

The preparation of interim financial reports requires management to make judgements, estimates and assumptions that affect the

applicationofaccountingpoliciesand thereportedamountsofassetsand liabilities, incomeandexpense. Actualresultsmaydiffer from

theseestimates.

Inpreparingthisconsolidatedinterimfinancialreport,thesignificantjudgementsmadebymanagementinapplyingtheconsolidatedentitys

accountingpoliciesandthekeysourcesofestimationuncertaintywerethesameasthosethatappliedtotheconsolidatedfinancialreportas

atandfortheyearended30June2013.

5.

Share

of

profits

of

associates

accounted

for

using

the

equity

method

31Dec13 30Jun13

AUD AUD

NonCurrentAssets

Explorationandevaluationassets 630,091 602,974

ExplorationandEvaluationAssets

Costas at1July 602,974 322,479

Additions 28,749 318,726

Explorationexpenditurewrittenoff (1,632) (38,231)

Costas atperiodend31Dec/30Jun 630,091 602,974

6. Segmentreporting

DuringtheperiodtheCompanyoperatedintwobusinesssegmentsmineralexploration,developmentandproductionofoilandgasintwo

geographicalareasAustraliaandCanada.

Thegrouphas identified itsoperating segmentbasedon the internal report that is reviewedandusedby theBoardofDirectors (chief

operatingdecisionmaker)inassessingperformanceanddeterminingtheallocationofresources.


15/19


Notestotheaccounts

14

Australia Canada TotalSegment

Unallocated

Elimination Consolidated

Revenue 31Dec13 31Dec13 31Dec13 31Dec13 31Dec13

Salestoexternal customers 1,421 ,58 4 1,42 1,5 84 1,421,584

Total SalesRevenue 1,421 ,58 4 1,42 1,5 84 1,421,584

Financialincome 16,496 1,123 17,619 17,619

Otherincome 4,132 2,614,539 2,618,671

2,618,671

TotalRevenue 20,628 4,037,246 4,057,874 4,057,874

Segmentresult (1,065,976) 2,384,189 1 ,318,213 (2,701) 1,315,512

Depreciationand amortisation (29,774) (591,618) (621,392) (621,392)

Impairmentofassets

Interestrevenue 16,496 1,123 17,619 17,619

Financecosts (40,526) (40,526) (40,526)

Profitbeforeincometaxexpense (1,079,254) 1,753,168 673,914 (2,701) 671,213

Incometax (122,319) (122,319)

Researchand Developmentrebate

Profitafterincometaxexpense 548,894

Assets

Totalcurrent

assets 2,357,650 5,937,862 8,295,512

8,295,512

Total noncurrentassets 67,059,638 4,592,509 71,652,147 71,652,147

Total assets 69,417,288 10,530,371 79,947,659 79,947,659

Total assetsinclude:

Investmentsin associates 630,091 630,091 630,091

Liabilities

Total currentl iabil ities (253,729) (1,237,351) (1,491,080) (1,491,080)

Total noncurrentliabilities ( 5,994,611) (5,994,611) (5,994,611)

Total l iabil ities (253,729) (7,231,962) (7,485,691) (7,485,691)


Unallocated


Revenue 31Dec12 31Dec12 31Dec12 31Dec12 31Dec12

Salesto

external

customers

1,254,127 1,254,127

1,254,127

Total SalesRevenue 1,254,127 1,254,127 1,254,127

Financialincome 2,385 1,976 4,361 4,361

Otherincome 99,130 1,110,244 1,209,374 1,209,374

TotalRevenue 101,515 2,366,347 2,467,862 2,467,862

Segment result (1,055,190) 861,876 (193,314) (2,328) (195,642)

Depreciationandamortisation (13,849) (619,801) (633,650) (633,650)

Impairmentofassets

Interestrevenue 2,385 1,976 4,361 4,361

Financecosts (572,451) (572,451) (572,451)

Profitbeforeincometaxexpense (1,066,654) (328,400) (1,395,054) (2,328) (1,397,382)

Incometax (529,086) (529,086)

Profitafterincometaxexpense (1,926,468)


Unallocated


30Jun13 30Jun13 30Jun13 30Jun13 30Jun13

Assets

Total currentassets 1,980,203 6,223,696 8,203,899 8,203,899

Total noncurrentassets 49,548,027 22,094,840 71,642,867 71,642,867

Total assets 51,528,230 28,318,536 79,846,766 79,846,766

Total assets include:

Investmentsinassociates 602,974 602,974 602,974

Liabilities

Total currentl iabil ities (523,766) (2,059,004) (2,582,770) (2,582,770)

Total noncurrentliabilities (5,565,316) (5,565,316) (5,565,316)

Total l iabilities (523,766) (7,624,320) (8,148,086) (8,148,086)


16/19


Notestotheaccounts

15

7. Noncurrentassetsheldforsale

31Dec13 30Jun13

AUD AUDRights RockCreekandDuvernay 2,050,585 2,018,913

8. Developmentassets

31Dec13 30Jun13

AUD AUD

Developmentassets 13,261,553 13,527,732

Movement inproductionexpenditure

OpeningBalance 13,527,732 13,879,177

Acquiredduring

the

year

Expenditureincurredduringtheperiod 38,416 634,084

Depreciation/amortisation fordevelopmentassets (553,129) (1,204,527)

Impairmentofdevelopmentassets (800,082)

Foreigncurrencymovement 248,534 1,019,080

13,261,553 13,527,732

9. Explorationandevaluationassets

31Dec

13 30

Jun

13

AUD AUD

Explorationandevaluationassets 57,702,631 57,405,341

Movement inexplorationandevaluationexpenditure

OpeningBalance 57,405,341 57,559,927

Acquiredduringtheyear

Transferredtoavailableforsaleduringtheyear (93,912) (2,018,913)

Expenditureincurredduringtheperiod 316,474 1,530,926

Depreciation/amortisation forexplorationassets (7,830) (15,660)

Foreigncurrencymovement 82,558 349,061

57,702,631 57,405,341

Therecoverabilityofthecarryingamountsofexplorationandevaluationassetsisdependentonthesuccessfuldevelopmentandcommercial

exploitationorsaleoftherespectiveareasofinterest.


17/19


Notestotheaccounts

16

10. Issuedcapital

Theconsolidatedentityrecordedthefollowingamountswithinshareholdersequityasaresultoftheissuanceofordinaryshares:

Forthesixmonthsended31December 2013

31Dec13 Ordinaryshares Numberofshares Issueprice AUD

1Jul

13 Opening

balance 4,034,097,761 68,063,521

Lessshareissuecosts: (1,110,717)

66,952,804

Fortheyearended30June2013

30Jun13 Ordinaryshares Numberofshares Issueprice AUD

1Jul12 Openingbalance 3,444,349,218 64,525,045

Issueofsharesforcash 589,748,543 0.6c ents 3,53 8,4 76

Closingbalance 4,034,097,761 68,063,521

Lessshareissuecosts:

Openingbalance (1,071,526)

Currentyearcosts (39,191)

Share

issue

costs

at

the

end

of

the

year (1,110,717)

66,952,804

GrantDate Exercisable Expirydate Exerci seprice Number of

options

11Mar11 26May11to22Apr13 30Jun15 $0.03 45,000,000

11Mar11 11May11to22Apr13 30Jun15 $0.03 92,500,000

23Mar11 23Mar12 22Mar15 $0.02 336,000,000

23Aug11 23Aug11 31Dec14 $0.04 70,000,000

21Feb

12 21

Feb

12 22

Mar

15 $0.02

35,000,000

13Sep12 13Sep12 22Mar15 $0.02 15,000,000

Total 593,500,000

11. MinorityInterests

31Dec13 30Jun13

AUD AUD

ContributedEquity 5,509,972 5,509,972

Shareoflossattributedtononcontrollingi nter (2,836,321) (2,613,773)

2,673,651 2,896,199

12. Relatedparties

Arrangementswithrelatedpartiescontinuetobe inplace. Fordetailsonthesearrangements,refertothe30June2013annualfinancial

report.


18/19


Notestotheaccounts

17

13. Subsequentevents

Nomatters or circumstances have arisen since the end of the financial periodwhich significantly affect ormay significantly affect the

operationsof theconsolidatedentity, the resultsof thoseoperations,or the stateofaffairsof theconsolidatedentity in future financial

years,otherthanassetoutbelow.

RepurchaseofCommonSharesCarnaby

On27January2014,CarnabyEnergyLtd(theCorporation)offeredtopurchaseallofthecommonsharesheldbydissentingshareholdersof

theCorporationonthebasisof$0.02foreachCommonShare. TheOffertoPurchasewasopenforacceptanceuntil5.00pm(Calgarytime)

on31January2014andwasconditionalonnotlessthan100%oftheCommonSharesbeingvalidlydepositedundertheOffertoPurchase.

100%oftheDissentingShareholdersCommonShareswerevalidlydepositedundertheOffertoPurchaseasatorpriortotheClosingDate.

TheCorporation,havingreceivedtheoriginalcertificatesrepresenting100%oftheCommonSharesheldbytheDissentingShareholdershas

paidinfulltotheDissentingShareholderspursuanttotheOffertoPurchasetheaggregateamountof$69,250.04. TheCommonShareshave

beenpurchasedforcancellation.

SaleofDuvernayandRockCreekAcreage

CanadianPanOcean (CPO)continue tocarryout fund raisingefforts inaneffort toclose theDuvernayacreage sale that theCompany

announcedon

5March

2013.

This

sale

remains

subject

to

CPO

successfully

obtaining

funding

and

Transerv

is

monitoring

CPOs

progress.

Whilst this sale is not certain, the Boardbelieves that CPO has a reasonable prospect of completing the transaction. If CPO does not

complete,theCompanyhasanexperiencedagent inCanadareadytocommenceaseparatesaleprocess.

Commitmentsandcontingencies

Therehasbeennochangesince30June2013.


19/19


DirectorsDeclaration

IntheopinionofthedirectorsofTranservEnergyLimited(theCompany):

1.

thefinancialstatementsandnotessetoutonpages8to17,areinaccordancewiththeCorporationsAct2001including:

a.

givingatrueandfairviewofthefinancialpositionoftheconsolidatedentityasat31December2013andofitsperformance,

asrepresentedbytheresultsofitsoperationsandcashflowsforthehalfyearendedonthatdate;and

b.

complyingwithAustralianAccountingStandardAASB134InterimFinancialReportingandtheCorporationsRegulations2001;

and

2.

therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsasandwhentheybecomedueandpayable.

DatedinPerththis11th

dayofMarch,2014

Signedinaccordancewitharesolutionofdirectors:

StephenKeenihan

ExecutiveDirector

2014-03-11 consolidated interim accounts

Documents