Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Regulation
• Safety
• Remediation

Environmental Achievements

• The JV settled all remaining claims with litigants during the year and is in receipt of the settlement of the remaining insurance claim of A$970,000. This has finalised insurance in respect of the Company’s initial 40% WI and whilst there will continue to be remedial work required it is minimal and is limited to ongoing soil sampling and water well testing.

Governance Achievements

• The Company confirms that it will no longer be working towards a demerger of its oil assets. Following the adverse advice by the ATO, the Company assessed alternative methods of completing the demerger however the risks to the Company and shareholders were deemed not to be in their best interests.

Climate Goals & Targets

Environmental Challenges

• volatility of the oil price
• well decline in Dugas & Leblanc #3
• remediation at the Dugas & Leblanc #1 site
• litigation with former JV partner in Desiree Project

Mitigation Strategies

• Ongoing cost cutting has enabled the Company to continue to remain cash flow positive for the last 6 years.
• The Company successfully won judgement against a former JV partner in the Desiree Project in April 2016.
• The JV settled all remaining claims with litigants during the year and is in receipt of the settlement of the remaining insurance claim of A$970,000.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Exploration is a speculative activity with an associated risk of discovery to find any oil and gas in commercial quantities and a risk of development.
• Development and production of oil and gas projects may be exposed to low side reserve outcomes, cost overruns, production decrease or stoppage, which may result from facility shutdowns, mechanical or technical failure and other unforeseen events.
• Changes in Government, monetary, taxation and other laws in Australia or the USA or internationally may impact the Company’s operations.
• The oil market are subject to the fluctuations of supply and demand and price.
• Future value, growth and financial condition are dependent upon the prevailing prices for oil and gas.
• There are a number of risks associated with operating in the oil and gas industry.
• The ability of the Company to achieve its stated objectives will depend on the performance of the counterparties under various agreements it has entered into.
• Oil and gas reserves are expressions of judgement based on knowledge, experience and industry practice.
• Grand Gulf’s exploration, development and production activities are subject to state, national and international environmental laws and regulations.
• Grand Gulf must undertake significant capital expenditures in order to conduct development appraisal and exploration activities.
• Grand Gulf has certain obligations in respect of decommissioning of its fields, production facilities and related infrastructure.

Mitigation Strategies

• Grand Gulf utilises established methodologies and experienced personnel to evaluate prospects and manage the risk associated with exploration.
• Grand Gulf undertakes technical, financial, business and other analysis in order to determine a project’s readiness to proceed from an operational, commercial and economic perspective.
• Grand Gulf monitors legislative and regulatory developments and works to ensure that all stakeholder concerns are addressed fairly and managed.
• Grand Gulf monitors developments and changes in the international oil market and conducts regular risk assessments.
• The Company has policies and procedures for entering into hedging contracts to mitigate against the fluctuations in oil price and exchange rates.
• To the extent that it is reasonable to do so, Grand Gulf mitigates the risk of loss associated with operating events through insurance contracts.
• Grand Gulf operates with a comprehensive range of operating and risk management plans and an HSEC management system to ensure safe and sustainable operations.
• Grand Gulf monitors performance across material contracts against contractual obligations to minimise counterparty risk and seeks to include terms in agreements which mitigate such risks.
• Reserve management is consistent with the definitions and guidelines in the Society of Petroleum Engineers 2007 Petroleum Resources Management Systems.
• Grand Gulf has a comprehensive approach to the management of risks associated with health, safety, environment and community which includes standards for asset reliability and integrity, as well as technical and operational competency and requirements.
• Grand Gulf endeavours to ensure that the best source of funding to maximise shareholder benefits and having regard to prudent risk management is obtained and is supported by economic and commercial analysis of all business undertakings.
• Grand Gulf recognises restoration provisions after the construction of facilities and conducts a review on an annual basis.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Adopted Global Standard for ESG reporting

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: World Economic Forum ESG universal framework

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Carbon Sequestration

Environmental Achievements

• Assessing potential for carbon sequestration tax credits under Section 45Q of the US tax code.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities