(i) Employee Share Option Plan (‘ESOP’) and Other Share Options 

Information relating to the Company’s ESOP and other share options, including details of options granted, exercised, cancelled, forfeited and expired during the financial year and options outstanding at the end of the financial year, is set out in Note 27. 

(ii) Share Placement and Share Purchase Plan 

The purpose of the share placement to sophisticated and professional investors during September 2010 and the share purchase plan during October 2010 was to provide the Group with a strong cash position for its continued exploration and appraisal program in the Browse Basin, exploration in Brazil and Peru and general working capital. 

The purpose of the share purchase plan during July 2009 was to provide the Group with a strong cash position for its continued exploration and appraisal program in the Browse Basin, along with exploration programs in Peru and Brazil. 

## (c) Capital Management 

The Board of Directors controls the capital of the Company in order to ensure that the Group can fund its operations and continue as a going concern. The aim is to maintain a capital structure that ensures the lowest cost of capital to the Company. 

The Executive Chairman manages the Company’s capital by monitoring future rolling cash flows and adjusting its capital structure, as required, in consultation with the Board of Directors to meet Group business objectives. 

There were no externally imposed capital management restrictions on the Group during the financial year. 

## (d) Reserves within Equity 

(i) Share-based Payments Reserve 

The share-based payment reserve is used to recognise the grant date fair value of share-based payments to Directors, other key management personnel and employees as part of their remuneration, as described in Note 1(p). 

(ii) Foreign Currency Translation Reserve 

The foreign currency translation reserve is used to recognise exchange differences arising from the translation of financial statements of foreign subsidiaries, as described in Note 1(e). The relevant amounts included in the foreign currency translation reserve will be recognised in the consolidated statement of comprehensive income when each relevant investment in foreign subsidiary is disposed. 

