Icon Energy Annual Report 2019

The Directors of Icon Energy Limited (“ Icon Energy ” or “ the Company ”) present their report together with the consolidated financial statements of the Company and its controlled entities ("the Group" or "the Consolidated Entity") for the financial year ended 30 June 2019 and the auditor’s report thereon. In order to comply with the provisions of the Corporations Act 2001 , the Directors of Icon Energy report as follows: PRINCIPAL ACTIVITIES The principal activities of Icon Energy during the year included the exploration, appraisal and development of oil and gas properties. There were no significant changes in the nature of these activities during the year. DIRECTORS The Directors of the Company who held office during or since the end of the year are set out below: Name Position First Appointed Stephen Michael Barry Non-executive Chairman Director since 05/01/1993 Raymond Swinburn James Managing Director Director since 01/02/1993 Dr Kevin Jih Executive Director, Chief Financial Officer & Company Secretary Director since 30/11/2011 Company Secretary since 13/05/2015 Retired 31st August 2019 Dr Keith Hilless AM Non-executive Director Director since 03/04/2009 Howard Lu Non-executive Director Director since 07/01/2011 Derek James Murtagh Murphy Non-executive Director Director since 20/03/2009 Retired 31st August 2019 Details of the qualifications and experience, other directorships of listed entities and special responsibilities of Directors are set out in the Board of Directors’ section of this Annual Report. Refer to table 5 of the Remuneration Report for Directors’ interests in shares and performance rights. Subsequent to the conclusion of the financial year on 30th June 2019, Directors Dr. Kevin Jih and Derek Murphy retired from the Board after many years of service to the company. Icon would like to note and thank them for their valued contribution made to the company. REVIEW OF OPERATIONS AND RESULTS A review of operations of the Consolidated Entity during the financial year is included in the Review of Operations section of this Annual Report. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS Asset Impairments Icon Energy presents its financial statements which have been prepared in accordance with the Corporations Act 2001 which requires the company to comply with Australian Accounting Standards. Those standards require the Group to perform an impairment assessment on the carrying value of the “Exploration and evaluation expenditure” assets when indicators of impairment arise. In summary: −− AASB 6 Exploration for and Evaluation of Mineral Resources lists a number of factors which might lead to an impairment. Specifically, the value of “exploration and evaluation expenditure” should be assessed for impairment where –– “substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned” (emphasis added). −− Icon Energy requires funding for further work to take place on the tenements. −− That funding is not currently available despite the efforts of our staff. −− The carrying value of the “Exploration and evaluation expenditure” must therefore be assessed for impairment in order to comply with Australian Accounting Standards. −− The impairment can be reversed in the Group’s financial statements at an appropriate time in the future if the fair value of the tenement increases. Directors' Report for the year ended 30 June 2019 24 Icon Energy Annual Report 2019