CORPORATE GOVERNANCE STATEMENT
ANNUAL
REPORT
INCREMENTAL OIL AND GAS LTD
ABN: 66 138 145 114
Year Ended 31 December 2015
Table of Contents
CORPORATE DIRECTORY 1
CHAIRMAN'S REPORT 2
2015 HIGHLIGHTS 3
FINANCIAL RESULTS 3
RESERVES REPORT 3
PRODUCTION REPORT 6
LEASEHOLD DIRECTORY 6
REVIEW OF ACTIVITIES 7
DIRECTORS' REPORT 13
Directors 13
Company Secretary/CFO 15
Principal activities 15
Dividends 16
AUDITORS'S INDEPENDENCE DECLARATION 32
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 33
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 34
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 35
CONSOLIDATED STATEMENT OF CASH FLOWS 36
NOTES TO THE FINANCIAL STATEMENTS 37
DIRECTORS' DECLARATION 76
INDEPENDENT AUDIT REPORT 77
ADDITIONAL ASX INFORMATION 79
CORPORATE DIRECTORY
Directors
Mark Stowell B.Bus, CA Non-executive Chairman
Gerry McGann B.Sc (Hons)
Non-executive Technical Director
Matthew McCann J.D. Non-executive Director
John Whisler B.Sc. Managing Director
CFO & Company Secretary
Simon Adams, B.Bus, M.Acc, AGIA
Registered office & Principal place of business
Level 1, 20 Howard Street Perth
W.Australia 6000 Australia
Telephone: +61 8 6144 0590
Facsimile: +61 8 6144 0593 Web:
www.incrementaloilandgas.com
Corporate office
600 17th Street
Suite 2625 Denver Colorado 80202 USA
Telephone: +1 (720) 763-3183
Auditors
Ernst and Young
11 Mounts Bay Road Perth,
W. Australia 6000 Australia
Solicitors
Johnson Winter & Slattery
Level 4, 167 St George's Terrace Perth
W. Australia 6000 Australia
Share Registrar
Link Market Services Level 4, Central Park 152 St. George's Terrace Perth
W. Australia 6000 Australia
Bankers
Commonwealth bank of Australia 300 Murray Street
Perth
W. Australia 6000 Australia
Home Exchange
Australian Securities Exchange Ltd Exchange Plaza
Level 40, Central Park
152-158 St George's Terrace Perth
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Australia 6000 Australia
This annual report is of the group comprising Incremental Oil and Gas Ltd ("the parent entity") and its subsidiaries (see Note 24 to Financial Statements) (collectively "the Group"). The Group's functional and presentation currency is USD ($). Unless otherwise stated, all amounts in the Annual Report are in US Dollars.
A description of the Group's operations and of its principal activities is included in the review of operations and activities on pages 7 to 12. The Directors' Report is not part of the financial report.
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INCREMENTAL OIL AND GAS LTD
Annual Report | 31 December 2015
CHAIRMAN'S REPORT
Dear Shareholder
2015 was a pivotal year for Incremental. The Company maintained discipline through a roller- coaster cycle of high asset prices followed by a major downturn in oil and gas price and industry distress.
The company's strategy as outlined in last year's annual report, is to:
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maximise profitability through increased production,
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enhance shareholder value through growth in oil and gas reserves from development activity in acquired projects, and
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profitable operation of fields by controlling costs and ensuring that resources are only allocated to developing economic wells that have been adequately derisked from a technical and operational perspective.
The acquisition of the Silvertip Oil and Gas field in Wyoming in June 2015 crystalised that strategy. Subsequent operational improvements and technical work by our team saw Incremental end the year with record 822 BOEPD production (Q4 average), and proven reserves increased by 400% to 781,000 Bbl of oil and 5.7Bcf of natural gas.
The acquisition of further onshore small-medium sized oilfields remains the company's near term objective so as to substantially increase daily production, reserves and profit. Such acquisitions will preferably be in areas where Incremental already operate.
I would like to take this opportunity on behalf of the Board to thank our management, staff, contractors and consultants for their tireless efforts which are now starting to show results and will greatly benefit Incremental shareholders in the future.
Yours sincerely
Mark Stowell Chairman
31 March 2016
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