Icon Energy Annual Report 2019

Notes to the Consolidated Financial Statements for the year ended 30 June 2019 ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2019 Plant, Equipment and Motor Vehicles Building Fixtures and Fittings Land Total $ $ $ $ $ 89,874 - - - 89,875 8,462 - - - 8,462 - - - - - (26,002) - - - (26,002) 72,334 - - - 72,334 30 June 2019 30 June 2018 $ $ 7,561,157 32,861,255 Total NOTE $ 33,056,664 459,724 2d (655,133) 32,861,255 32,861,255 609,696 2d (25,909,794) 7,561,157 Less: Impairment (ATP 8554 and ATP 594) NOTE 7 - PROPERTY, PLANT AND EQUIPMENT (Continue) Exploration and Evaluation expenditure at cost The ultimate recoupment of these costs is dependent on the successful development and exploitation, or alternatively farmout of the respective areas of interest. NOTE 8 - EXPLORATION AND EVALUATION EXPENDITURE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS In addition, to comply with AASB 6, exploration expenditure for ATP 855 was impaired to the value of $5.9m. The value was prepared by an independent valuer on the basis of farm-in promotion factor taking into consideration that the Group is currently in the process of attempting to farm down ATP 855. The impairment does not affect the potential prospectivity of the tenements themselves and does not affect the existing resource certification. The Group continues to seek funding and/or joint venturers to continue work on the tenements. Consolidated Entity Balance at 1 July 2017 Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Balance at 1 July 2018 Balance at 30 June 2019 Despite the extension of the term of ATP 594 for a further two years during the year ended 30 June 2019, the Group decided not to budget for exploration of this tenement in 2020. As a result, this exploration asset has been fully impaired in order to comply with AASB 6 Exploration for and Evaluation of Mineral Resources . Less: Impairment (PEP 170, PEP 172 and PEP 173) Additions Depreciation Additions Reconciliations CONSOLIDATED ENTITY Balance at 30 June 2019 Disposals During the year ended 30 June 2018 the Group fully impaired the carrying value of its exploration projects in the Gippsland Basin ($655,133) due to the Victorian Government's ban on onshore petroleum activities and the Groups' decision not to budget for any exploration activities in this area in 2020. The Group has continued to maintain its license to explore in this area going forward and will assess its future exploration activity in this area upon any future change in legislation. Balance at 30 June 2018 Additions On 12 March 2018, the Consolidated Entity sold its corporate office and leased it back for 3 years. The rent is adjusted every year to reflect increases in CPI. Balance at 1 July 2018 52 48 Icon Energy Annual Report 2019