Hawkley Oil And Gas : Half-Year Ended 31 December 2018

Hawkley Oil and Gas Limited

Consolidated Interim Financial Report

A.B.N. 68 115 712 162

For the Half-Year Ended 31 December 2018

Hawkley Oil and Gas Limited
Contents
For the Half-Year Ended 31 December 2018
Page
Consolidated Financial Statements
Directors' Report	1
Directors' Declaration	3
Auditor's Independence Declaration	4
Consolidated Statement of Comprehensive Income	5
Consolidated Statement of Financial Position	6
Consolidated Statement of Changes in Equity	7
Consolidated Statement of Cash Flows	8
Notes to the Financial Statements	9
Independent Auditor's Review Report	14

Directors' Report

31 December 2018

Your directors submit their report, together with the interim financial statements of the Group, being Hawkley Oil and Gas Limited (the Company) and its controlled entities (the Group) for the half year ended 31 December 2018.

Directors

The names of the directors in office at any time during, or since the end of, the half year are:

Names	Position
Mr. David Lloyd	Non-Executive Chairman
Mr. Bill Foster	Non-Executive Director
Mr. Murray Wylie	Non-Executive Director (appointed 29 November 2018)
Mr. Edmund Babington	Non-Executive Director (resigned 28 November 2018)
Company Secretary
Mr. Murray Wylie
Operating results

The consolidated loss of the Group for the half year ended 31 December 2018 amounted to $127,666 (31 December 2017: $94,473).

Review of operations

After the halt in production of gas and gas condensate from the Company's Sorochynska 201 well in Ukraine in December 2014 and given the ongoing political tensions and conflict between Ukraine and Russia, the Company was unable to attract any investment monies for the Ukraine oil and gas assets so it proceeded to sell them. The sale was eventually completed in November 2016.

Following the disposal of its Ukraine assets on 11 November 2016, the Company was not able to satisfy the ASX that it had a sufficient level of operations to justify continued quotation of its securities in accordance with Chapter 12 of the Listing Rules, and was suspended from trading on 11 May 2017. The Company's securities will remain suspended until such time as the Company completes a transaction and undertakes recompliance with Chapters 1 and 2 of the Listing Rules. The Company may be automatically removed from the Official List on 11 May 2020 if trading in its securities has been suspended for three years. The ASX has proposed to introduce a number of changes to the Listing Rules on 1 July 2019, including reducing the period for automatic removal from three years to two years. If the proposed changes are implemented in their present form, the Company may be removed from the Official List on 2 July 2019.

During the reporting period, the Company has continued to pursue investment opportunities in the oil and gas sector as well as considering potential corporate transactions in other sectors that would support recapitalisation of the Company and satisfy ASX requirements for a resumption of share trading. Whilst a number of potential transactions have been considered, none have so far met these criteria. A number of opportunities are currently being studied, although none are at an advanced stage.

Directors' Report

31 December 2018

EVENTS SUBSEQUENT TO BALANCE DATE

There has not arisen in the interval between the end of the financial period and the date of this report any item, transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company, to effect:

i. the Consolidated Entity's operations in future financial years; or

• ii. the results of those operations in future financial years; or

• iii. the Consolidated Entity's state of affairs in future financial years.

Auditor's independence declaration

The auditor's independence declaration in accordance with section 307C of the Corporations Act 2001 for the half year ended 31 December 2018 has been received and can be found on page 4 of the financial report.

This report is signed in accordance with a resolution of the Board of Directors.

Director: ...............................................................................

Mr. David Lloyd

Dated 15 March 2019

Directors' Declaration

The directors of the Company declare that:

1. The financial statements and notes, as set out on pages 5 to 13 are in accordance with the Corporations Act 2001, including:

• (a) complying with Accounting Standard AASB 134: Interim Financial Reporting; and

• (b) give a true and fair view of the consolidated Group's financial position as at 31 December 2018 and of its performance for the half-year ended on that date.

2. Subject to the matters outlined in Note 1, in the directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Director: .................. .............................................................

Mr. David Lloyd

Dated 15 March 2019