Business Philosophy and Strategy
The Company’s goal is to deliver material benefits to its shareholders, the State of Western Australia, the Traditional Owners of the areas in which it operates, and the Kimberley community. It is focused on exploring for and developing the petroleum and energy resources of the Canning Basin in a safe, environmentally and culturally sensitive manner.
The Company also recognises that although there is an inexorable and necessary shift to renewable sources of energy, the world still needs oil and gas in large quantities and will do so for decades to come. This provides an opportunity for the Company to ensure its core business is able to supply these necessary resources, but to also ensure it is aligned with community and shareholder expectations for participation in the new energy economy.
This is an ongoing focus for the Company to ensure it is able to use its capital and expertise to remain relevant and profitable in the future. The Company has a strong cash position and is now debt free. It has a significant farm-in commitment from Origin Energy, with a low level of commitment expenditure obligations. The Company also has income from its Ungani Oilfield operations.
During the COVID-19 pandemic restrictions in 2020 the Company substantially reduced its overhead and operating expenditures and ceased all discretionary expenditures, and consequently has retained a robust balance sheet.
The Company is in a strong position to add significant value through its planned exploration and development activities in the coming year and to participate in the integrated energy economy in the future.