The Chairman of the Annual General Meeting will allow a reasonable opportunity for shareholders to ask questions about the Company’s performance and operations and also ask questions of the external auditor concerning the conduct of the audit, preparation and content of the Independent Auditor’s Report. 

## Risk Assessment and Management 

Recommendation 7.1 of the revised Corporate Governance Council Principles provides that companies should establish policies for the oversight and management of material business risks and disclose a summary of those policies. The Board of Directors has overall responsibility for monitoring compliance and oversight of these policies along with ensuring that they are efficient and effective. 

Currently, as part of the Group’s strategy to implement an integrated framework of control, the Board of Directors continually identifies and monitors the key business and financial risks that could jeopardise the Group achieving its objectives. The Board of Directors has and continues to develop appropriate controls to effectively manage those risks. A summary of the Company’s policies for the oversight and management of material business risks follows: 

• financial controls are set in place by the use of an authority matrix, general purchasing principles and approvals procedures. All expenditure is closely monitored by the Audit Committee on behalf of the Board of Directors and reported on a quarterly basis. The Chairman of the Audit Committee also works closely with the Company’s finance personnel prior to Board meetings in order to understand financial risks and report such risks to the Board of Directors. Management accounts are prepared regularly for the Board of Directors to ensure information congruence between management and the Board of Directors; 

• the Company offsets the risk of operational failures using appropriate insurance, with covers for third party liability, well control, day-to-day office and business insurance and operator’s extra expense; 

• the Company protects its employees through the adoption of a Health, Safety and Environment Policy and travel insurance for periods where employees are travelling on business, along with membership to emergency assistance and management for an employee overseas; and 

• operational reporting is submitted to the Board of Directors at every Board meeting to ensure decisions are made in an efficient and effective manner. Reports include reviews of current assets, potential acquisitions and general operational issues and/or opportunities. 

## Management Accountability 

In compliance with Recommendation 7.3, the Board of Directors encourages senior management level accountability for the Company’s Annual Report by requiring the Executive Chairman and Chief Financial Officer to state in writing to the Board of Directors that: 

• the Company’s Annual Report presents a true and fair view, in all material respects, of the Company’s financial condition and operational results and is in accordance with relevant Australian Accounting Standards; and 

• the Annual Report is compiled in accordance with best practice and is properly monitored using the Audit Committee and the external auditors to ensure a sound system of risk management and control. 

Recommendation 7.2 of the revised Corporate Governance Council Principles provides that the Board of Directors should require management to design and implement the risk management and internal control system to manage the Company’s material business risks and report to it on whether those risks are being managed effectively. Throughout the financial year, the Company has reviewed and where required improved risk management and internal compliance and control systems following reports from senior management. The Company will continue to review and improve its risk management systems in conjunction with senior management over the coming financial period. 

