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## dIRECTORS’ REPORT COnTInUEd 

## Meetings 

The number of Directors’ meetings (including meetings of committees of Directors) and number of meetings attended by each Director of the Company during the financial year were: 

<img src='content_image/274543.jpg'>

A. The number of meetings held during the time the Director held office during the financial year. 

B. The number of meetings attended during the time the Director held office during the financial year. 

## Directors’ Interests in the Company’s Shares and Options 

As at the date of this Directors’ Report, the Directors held the following number of ordinary shares and options over unissued ordinary shares in the Company: 

<img src='content_image/274544.jpg'>

## Principal Activities 

The principal activity of the Company during the course of the financial year continued to be investment in hydrocarbon exploration and evaluation in Australia, Brazil and Peru. 

## Significant Changes in State of Affairs 

During the financial year, the Company successfully completed $292,461,747 in new equity capital raisings: 

• 26,631,929 ordinary shares were issued during September 2010 to sophisticated and professional investors via a share placement at $7.00 per ordinary share that raised gross proceeds of $186,423,503; 

• 11,692,642 ordinary shares were issued during October 2010 to shareholders via a share purchase plan at $7.00 per ordinary share that raised gross proceeds of $81,848,494; and 

• 5,550,000 unlisted options were exercised during the financial year that raised gross proceeds of $24,189,750. 

## Results 

The consolidated result of the Group for the financial year was a loss after income tax expense of $23,304,914 (2010: $14,893,839). The loss for the financial year was largely attributable to net foreign currency losses of $10,440,658, costs of $5,673,914 associated with the proposed public offering on the BM&FBOVESPA in São Paulo (Brazil) and exploration and evaluation expenditure of $3,881,892 for AC/P8 written off. 

## Financial Position 

The net assets of the Group increased by $256,163,753 from 30 June 2010 to $617,867,324 during the financial year. This net increase was largely due to the following: 

• Gross proceeds of $292,461,747 raised from the issue of fully paid ordinary shares in the Company. 

The Group’s working capital, being current assets less current liabilities, has increased from $91,010,773 as at 30 June 2010 to $311,643,637 as at 30 June 2011. 

