TIDMSRO 
 
RNS Number : 3740I 
Spitfire Oil Limited 
11 March 2010 
 

 
60 St James's Street, London SW1A 1LE, United Kingdom 
        Telephone: + 44 (0)20 7629 7774  Facsimile:  + 44 (0)20 7629 7773 
 
                                11th March 2010 
 
          INTERIM STATEMENT FOR THE SIX MONTHS ENDED 31st DECEMBER 2009 
 
Spitfire Oil Limited is pleased to publish its unaudited interim results for the 
six months ended 31st December 2009, a summary of which is attached. 
 
 
Introduction 
 
Spitfire Oil Limited ("Spitfire" or "the Company") and its subsidiaries 
(together "the Group") recorded a loss before tax for the six months ended 31 
December 2009 of A$1,093,816 (2008 A$766,608). The increase in losses arises as 
a result of lower interest income. Action has been taken in the period to reduce 
costs. 
 
In the autumn of 2009 testwork and investigations into Spitfires' proprietary 
L2VTM process to extract oil and other products from the lignite at Salmon Gums 
highlighted the expanding complexity and need for additional research in 
refining and finalising the process for commercial production. As a result the 
project is being reappraised and active development work suspended pending the 
conclusion of this appraisal and consideration of alternative technologies and / 
or other opportunities for the Salmon Gums lignite deposits. 
 
 
Resource Delineation 
Following the announcement on 16th July 2009 of a new lignite JORC resource of 
876 million tonnes (indicated + inferred) no further resource delineation 
activities were undertaken. 
 
Gold Programme 
In September 2009, the Company commissioned a gold exploration program into the 
granite basement of a geologically prospective area at the intersection of the 
two faults located on its tenements. This program was started in October 2009 
and by 31 December 78 holes had been drilled for 4,963 metres of aircore. At the 
time of reporting, this drilling program has been completed for a total of 131 
holes and 6,354 metres of aircore. Analysis of bottom hole samples and regolith 
samples has recently commenced. 
 
Personnel 
The company retrenched its technical coal-to-liquids personnel when the R&D 
efforts were suspended in September. The Company's CEO resigned on 2 December 
but currently continues to provide consultancy services to the company. 
 
 
Other Business Opportunities 
 
Although Spitfire's primary objective remains the commercialisation of its L2V 
lignite-to-liquids technology over the large resource at Salmon Gums, management 
continues to evaluate other energy related opportunities and other possible 
synergistic business opportunities. 
 
 
 
Further Information 
 
Spitfire Oil Limited 
Mladen Ninkov - Chairman 
                                      Telephone: +44(0)20 7629 7774 
Roger Goodwin - Director 
 
Investec Investment Banking 
Stephen Cooper 
                                                Telephone: +44(0)20 7597 5104 
 
 
 
  Spitfire Oil Limited's shares are quoted on the Alternative Investment Market 
                                      (AIM) 
                   of the London Stock Exchange (symbol SRO). 
      The Company's news releases are available on the Company's web site: 
                              www.spitfireoil.com 
 
+---------------+ 
|  SPITIFIRE    | 
|      OIL      | 
|    LIMITED    | 
|  CONDENSED    | 
| CONSOLIDATED  | 
| STATEMENT OF  | 
|COMPREHENSIVE  | 
|    INCOME     | 
|    FOR THE    | 
|  HALF-YEAR    | 
|   ENDED 31    | 
|DECEMBER 2009  | 
|(expressed in  | 
|  Australian   | 
|   dollars)    | 
+---------------+ 
 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
|                                      |                    Half-year                    |       Full-year        | 
+--------------------------------------+-------------------------------------------------+------------------------+ 
|                               |Note  |          31            |          31            |        30 June         | 
|                               |      |        December        |        December        |          2009          | 
|                               |      |          2009          |          2008          |        Audited         | 
|                               |      |       Unaudited        |       Unaudited        |          A$            | 
|                               |      |          A$            |          A$            |                        | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
| REVENUE                       |      |                176,147 |                668,522 |              1,208,333 | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
|                               |      |                        |                        |                        | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
| EXPENDITURE                   |      |                        |                        |                        | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
| Technology and development    |      |              (430,681) |              (374,740) |              (697,216) | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
| Corporate expenses            |      |              (728,522) |              (905,363) |            (1,651,427) | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
| Other expenses                |      |              (110,760) |              (155,027) |              (296,710) | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
| LOSS BEFORE INCOME TAX        |      |            (1,093,816) |              (766,608) |            (1,437,020) | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
| Income tax benefit /          |      |                      - |                      - |                      - | 
| (expense)                     |      |                        |                        |                        | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
| LOSS FOR THE HALF-YEAR        |      |            (1,093,816) |              (766,608) |            (1,437,020) | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
|                               |      |                        |                        |                        | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
| OTHER COMPREHENSIVE INCOME    |      |                        |                        |                        | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
| Exchange differences on       |      |               (55,271) |              2,060,920 |              2,056,914 | 
| translation of foreign        |      |                        |                        |                        | 
| currency                      |      |                        |                        |                        | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
| Other comprehensive income    |      |               (55,271) |              2,060,920 |              2,056,914 | 
| for the period, net of tax    |      |                        |                        |                        | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
| TOTAL COMPREHENSIVE INCOME    |      |            (1,149,087) |              1,294,312 |                619,894 | 
| FOR THE PERIOD ATTRIBUTABLE   |      |                        |                        |                        | 
| TO MEMBERS OF SPITFIRE OIL    |      |                        |                        |                        | 
| LIMITED                       |      |                        |                        |                        | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
|                               |      |                        |                        |                        | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
| Basic and diluted loss per    |  6   |                  (2.6) |                  (1.8) |                  (3.4) | 
| share (cents)                 |      |                        |                        |                        | 
+-------------------------------+------+------------------------+------------------------+------------------------+ 
 
 
   The above consolidated statement of comprehensive income should be read in 
                    conjunction with the accompanying notes. 
 
 
 
+-----------------------------------------------------------------------+ 
|                         SPITFIRE OIL LIMITED                          | 
|        CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION         | 
|                        AS AT 31 December 2009                         | 
|                  (expressed in Australian dollars)                    | 
+-----------------------------------------------------------------------+ 
 
+------------------------------+------+-------------+-------------+-------------+ 
|                              |      |     31      |     31      |  30 June    | 
|                              |      |  December   |  December   |             | 
+------------------------------+------+-------------+-------------+-------------+ 
|                              |Note  |    2009     |    2008     |    2009     | 
|                              |      |  Unaudited  |  Unaudited  |  Audited    | 
|                              |      |     A$      |     A$      |     A$      | 
+------------------------------+------+-------------+-------------+-------------+ 
| CURRENT ASSETS               |      |             |             |             | 
+------------------------------+------+-------------+-------------+-------------+ 
| Cash and cash equivalents    |      |   8,582,902 |  11,656,022 |  10,019,229 | 
+------------------------------+------+-------------+-------------+-------------+ 
| Trade and other receivables  |      |      29,480 |     207,273 |      14,077 | 
+------------------------------+------+-------------+-------------+-------------+ 
| Other current assets         |      |      38,676 |      44,832 |      15,037 | 
+------------------------------+------+-------------+-------------+-------------+ 
| TOTAL CURRENT ASSETS         |      |   8,651,058 |  11,908,127 |  10,048,343 | 
+------------------------------+------+-------------+-------------+-------------+ 
|                              |      |             |             |             | 
+------------------------------+------+-------------+-------------+-------------+ 
| NON-CURRENT ASSETS           |      |             |             |             | 
+------------------------------+------+-------------+-------------+-------------+ 
| Plant and equipment          |      |      10,837 |      14,674 |      13,906 | 
+------------------------------+------+-------------+-------------+-------------+ 
| Intangible assets            |      |   7,985,848 |   6,489,280 |   7,590,913 | 
+------------------------------+------+-------------+-------------+-------------+ 
| TOTAL NON-CURRENT ASSSETS    |      |   7,996,685 |   6,503,954 |   7,604,819 | 
+------------------------------+------+-------------+-------------+-------------+ 
| TOTAL ASSETS                 |      |  16,647,743 |  18,412,081 |  17,653,162 | 
+------------------------------+------+-------------+-------------+-------------+ 
|                              |      |             |             |             | 
+------------------------------+------+-------------+-------------+-------------+ 
| CURRENT LIABILITIES          |      |             |             |             | 
+------------------------------+------+-------------+-------------+-------------+ 
| Trade and other payables     |      |     324,782 |     374,233 |     202,299 | 
+------------------------------+------+-------------+-------------+-------------+ 
| Provisions                   |      |      38,285 |           - |      17,100 | 
+------------------------------+------+-------------+-------------+-------------+ 
| TOTAL CURRENT LIABILITIES    |      |     363,067 |     374,233 |     219,399 | 
+------------------------------+------+-------------+-------------+-------------+ 
| TOTAL LIABILITIES            |      |     363,067 |     374,233 |     219,399 | 
+------------------------------+------+-------------+-------------+-------------+ 
| NET ASSETS                   |      |  16,284,676 |  18,037,848 |  17,433,763 | 
+------------------------------+------+-------------+-------------+-------------+ 
|                              |      |             |             |             | 
+------------------------------+------+-------------+-------------+-------------+ 
| EQUITY                       |      |             |             |             | 
+------------------------------+------+-------------+-------------+-------------+ 
| Issued capital               |  5   |  20,854,412 |  20,854,412 |  20,854,412 | 
+------------------------------+------+-------------+-------------+-------------+ 
| Reserves                     |      |     790,001 |     778,945 |     845,272 | 
+------------------------------+------+-------------+-------------+-------------+ 
| Accumulated losses           |      | (5,359,737) | (3,595,509) | (4,265,921) | 
+------------------------------+------+-------------+-------------+-------------+ 
| TOTAL EQUITY                 |      |  16,284,676 |  18,037,848 |  17,433,763 | 
+------------------------------+------+-------------+-------------+-------------+ 
 
 
    The above consolidated statement of financial position should be read in 
                    conjunction with the accompanying notes. 
 
 
 
+--------------+ 
|  SPITFIRE    | 
|     OIL      | 
|   LIMITED    | 
|  CONDENSED   | 
|CONSOLIDATED  | 
|STATEMENT OF  | 
|  CHANGES IN  | 
|    EQUITY    | 
|   FOR THE    | 
|  HALF-YEAR   | 
|  ENDED 31    | 
|  DECEMBER    | 
|    2009      | 
|  (expressed  | 
|      in      | 
|  Australian  | 
|  dollars)    | 
+--------------+ 
 
+-------------------+-------------+----------+-------------+-------------+--------------+ 
|                   |Contributed  | Options  |  Foreign    |Accumulated  |    Total     | 
|                   |   Equity    | Reserve  |  Currency   |   Losses    |              | 
|                   |             |          |Translation  |             |              | 
|                   |             |          |  Reserve    |             |              | 
+-------------------+-------------+----------+-------------+-------------+--------------+ 
|                   |     A$      |    A$    |     A$      |     A$      |      A$      | 
+-------------------+-------------+----------+-------------+-------------+--------------+ 
| BALANCE AT 1 JULY |  20,854,412 |  592,667 | (2,001,643) | (2,828,901) |   16,616,535 | 
| 2008              |             |          |             |             |              | 
+-------------------+-------------+----------+-------------+-------------+--------------+ 
| Total             |           - |        - |   2,060,920 |   (766,608) |    1,294,312 | 
| comprehensive     |             |          |             |             |              | 
| income for the    |             |          |             |             |              | 
| period            |             |          |             |             |              | 
+-------------------+-------------+----------+-------------+-------------+--------------+ 
| Share based       |           - |  127,001 |           - |           - |      127,001 | 
| remuneration      |             |          |             |             |              | 
+-------------------+-------------+----------+-------------+-------------+--------------+ 
| BALANCE AT 31     |  20,854,412 |  719,668 |      59,277 | (3,595,509) |   18,037,848 | 
| DECEMBER 2008     |             |          |             |             |              | 
+-------------------+-------------+----------+-------------+-------------+--------------+ 
|                   |             |          |             |             |              | 
+-------------------+-------------+----------+-------------+-------------+--------------+ 
| Total             |           - |        - |     (4,006) |   (670,412) |    (674,418) | 
| comprehensive     |             |          |             |             |              | 
| income for the    |             |          |             |             |              | 
| period            |             |          |             |             |              | 
+-------------------+-------------+----------+-------------+-------------+--------------+ 
| Share based       |           - |   70,333 |           - |           - |       70,333 | 
| remuneration      |             |          |             |             |              | 
+-------------------+-------------+----------+-------------+-------------+--------------+ 
| BALANCE AT 30     |  20,854,412 |  790,001 |      55,271 | (4,265,921) |   17,433,763 | 
| JUNE 2009         |             |          |             |             |              | 
+-------------------+-------------+----------+-------------+-------------+--------------+ 
|                   |             |          |             |             |              | 
+-------------------+-------------+----------+-------------+-------------+--------------+ 
| Total             |           - |        - |    (55,271) | (1,093,816) |  (1,149,087) | 
| comprehensive     |             |          |             |             |              | 
| income for the    |             |          |             |             |              | 
| period            |             |          |             |             |              | 
+-------------------+-------------+----------+-------------+-------------+--------------+ 
| BALANCE AT 31     |  20,854,412 |  790,001 |           - | (5,359,737) | (16,284,676) | 
| DECEMBER 2009     |             |          |             |             |              | 
+-------------------+-------------+----------+-------------+-------------+--------------+ 
 
 
    The above consolidated statement of changes in equity should be read in 
                    conjunction with the accompanying notes. 
 
 
 
+--------------+ 
|  SPITFIRE    | 
|     OIL      | 
|   LIMITED    | 
|  CONDENSED   | 
|CONSOLIDATED  | 
|STATEMENT OF  | 
|  CASH FLOWS  | 
|   FOR THE    | 
|  HALF-YEAR   | 
|  ENDED 31    | 
|  DECEMBER    | 
|    2009      | 
|  (expressed  | 
|      in      | 
|  Australian  | 
|  dollars)    | 
+--------------+ 
 
+-------------------------------------+-------------+-------------+-------------+ 
|                                     |        Half-year          |  Full-year  | 
+-------------------------------------+---------------------------+-------------+ 
|                                     |     31      |     31      |  30 June    | 
|                                     |  December   |  December   |    2009     | 
|                                     |    2009     |    2008     |  Audited    | 
|                                     |  Unaudited  |  Unaudited  |     A$      | 
|                                     |     A$      |     A$      |             | 
+-------------------------------------+-------------+-------------+-------------+ 
| CASH FLOWS FROM OPERATING           |             |             |             | 
| ACTIVITIES                          |             |             |             | 
+-------------------------------------+-------------+-------------+-------------+ 
| Payments to suppliers and employees |   (903,707) | (2,052,256) | (2,621,682) | 
+-------------------------------------+-------------+-------------+-------------+ 
| Interest received                   |     149,868 |     305,028 |     551,708 | 
+-------------------------------------+-------------+-------------+-------------+ 
| R&D tax concession received         |           - |     311,018 |     656,096 | 
+-------------------------------------+-------------+-------------+-------------+ 
| Net cash (outflow) from operating   |   (753,839) | (1,436,210) | (1,413,878) | 
| activities                          |             |             |             | 
+-------------------------------------+-------------+-------------+-------------+ 
|                                     |             |             |             | 
+-------------------------------------+-------------+-------------+-------------+ 
| CASH FLOWS FROM INVESTING           |             |             |             | 
| ACTIVITIES                          |             |             |             | 
+-------------------------------------+-------------+-------------+-------------+ 
| Proceeds from sales of plant and    |           - |       6,727 |      10,484 | 
| equipment                           |             |             |             | 
+-------------------------------------+-------------+-------------+-------------+ 
| Payment for purchases of plant and  |           - |     (2,946) |     (2,976) | 
| equipment                           |             |             |             | 
+-------------------------------------+-------------+-------------+-------------+ 
| Exploration expenditure             |   (674,874) | (3,073,108) | (4,731,954) | 
+-------------------------------------+-------------+-------------+-------------+ 
| Net cash (outflow) from investing   |   (674,874) | (3,069,327) | (4,724,446) | 
| activities                          |             |             |             | 
+-------------------------------------+-------------+-------------+-------------+ 
|                                     |             |             |             | 
+-------------------------------------+-------------+-------------+-------------+ 
| CASH FLOWS FROM FINANCING           |             |             |             | 
| ACTIVITIES                          |             |             |             | 
+-------------------------------------+-------------+-------------+-------------+ 
| Net cash inflow/(outflow) from      |           - |           - |           - | 
| financing activities                |             |             |             | 
+-------------------------------------+-------------+-------------+-------------+ 
|                                     |             |             |             | 
+-------------------------------------+-------------+-------------+-------------+ 
| Net (decrease) in cash and cash     | (1,428,713) | (4,505,537) | (6,138,324) | 
| equivalents                         |             |             |             | 
+-------------------------------------+-------------+-------------+-------------+ 
| Cash and cash equivalents at the    |  10,019,229 |  14,100,639 |  14,100,639 | 
| beginning of the period             |             |             |             | 
+-------------------------------------+-------------+-------------+-------------+ 
| Effects of exchange rate changes on |     (7,614) |   2,060,920 |   2,056,914 | 
| cash and cash equivalents           |             |             |             | 
+-------------------------------------+-------------+-------------+-------------+ 
| CASH AND CASH EQUIVALENTS AT THE    |   8,582,902 |  11,656,022 |  10,019,229 | 
| END OF THE PERIOD                   |             |             |             | 
+-------------------------------------+-------------+-------------+-------------+ 
 
 
  The above consolidated statement of cash flows should be read in conjunction 
                          with the accompanying notes. 
 
 
 
                              SPITFIRE OIL LIMITED 
         Notes to the CONDENSED CONSOLIDATED financial statements 
 
 
NOTE 1: BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT 
 
This general purpose financial report for the interim half-year reporting period 
ended 31 December 2009 has been prepared in accordance with Australian 
Accounting Standard AASB 134 Interim Financial Reporting and the Australian 
Corporations Act 2001. 
The summary accounts set out above do not constitute statutory accounts as 
defined by Section 84 of the Bermuda Companies Act 1981 or Section 435 of the UK 
Companies Act 2006.  The condensed consolidated statement of financial position 
at 30 June 2009 and the condensed consolidated statement of comprehensive 
income, condensed consolidated statement of changes in equity and the condensed 
consolidated statement of cash flows for the year then ended have been extracted 
from the Group's 2009 statutory financial statements upon which the auditors' 
opinion is unqualified. The condensed consolidated statement of comprehensive 
income has been prepared using information extracted from the Group's 2009 
statutory financial statements. 
This interim financial report does not include all the notes of the type 
normally included in an annual financial report. Accordingly, this report is to 
be read in conjunction with the annual report for the year ended 30 June 2009 
and any public announcements made by Spitfire Oil Limited during the interim 
period in accordance with the continuous disclosure requirements of the 
Corporations Act 2001. 
Copies of this interim report are being sent to all registered shareholders. 
Additional copies are available from the Company's London office, 60 St James's 
Street, London, SW1A 1LE. 
The accounting policies adopted are consistent with those of the previous 
financial year and corresponding interim reporting period, except as set out 
below. 
Changes in Accounting Policy 
Spitfire Oil Limited had to change some of its accounting policies as the result 
of new or revised accounting standards which become operative for the annual 
reporting period commencing on 1 July 2009. 
The affected policies and standards are: 
·   Presentation of financial statements - revised AASB 101 Presentation of 
Financial Statements. 
·   Principles of consolidation - revised AASB 127 Consolidated and Separate 
Financial Statements and changes made by AASB 2008-7 Amendments to Australian 
Accounting Standards - Cost of an Investment in a Subsidiary, Jointly Controlled 
Entity or Associate. 
·   Business combinations - revised AASB 3 Business Combinations. 
·   Segments - new AASB 8 Operating Segments. 
Presentation of financial statements 
AASB 101 (revised) prescribes the contents and structure of the financial 
statements. Changes reflected in this financial report include: 
·   The replacement of Income Statement with Statement of Comprehensive Income. 
Items of income and expense not recognised in profit or loss are now disclosed 
as components of 'other comprehensive income'. In this regard, such items are no 
longer reflected as equity movements in the Statement of Changes in Equity; 
·   The adoption of the single statement approach to the presentation of the 
Statement of Comprehensive Income; and 
·   Other financial statements are renamed in accordance with the Standard. 
 
Principles of consolidation 
AASB 127 (revised) requires the effects of all transactions with non-controlling 
interests to be recorded in equity if there is no change in control and these 
transactions will no longer result in goodwill or gains and losses. This is 
different to the Group's previous accounting policy where transactions with 
minority interests were treated as transactions with parties external to the 
Group. 
The standard also specifies the accounting when control is lost. Any remaining 
interest in the entity must now be remeasured to fair value and a gain or loss 
is recognised in profit or loss. This is consistent with the Group's previous 
accounting policy if significant influence is not retained. 
The Group in future will allocate losses to the non-controlling interest in its 
subsidiaries even if the accumulated losses should exceed the non-controlling 
interest in the subsidiary's equity. Under the previous policy, excess losses 
were allocated to the parent entity. 
Lastly, dividends received from investments in subsidiaries, jointly controlled 
entities or associates after 1 July 2009 are recognised as revenue even if they 
are paid out of pre-acquisition profits. However, the investment may need to be 
tested for impairment as a result of the dividend payment. Under the Group's 
previous policy, these dividends would have been deducted from the cost of the 
investment. 
The changes were implemented prospectively from 1 July 2009. There has been no 
impact on the current period as there are no non-controlling interests within 
the Group. There have also been no transactions whereby an interest in an entity 
is retained after the loss of control of that entity and no dividends paid out 
of pre-acquisition profits. 
Business combinations 
AASB 3 (revised) continues to apply the acquisition method to business 
combinations, but with some significant changes. 
All payments to purchase a business are now recorded at fair value at the 
acquisition date, with contingent payments classified as debt and subsequently 
remeasured through the income statement. Under the Group's previous policy, 
contingent payments were only recognised when the payments were probable and 
could be measured reliably and were accounted for as an adjustment to the cost 
of acquisition. 
Acquisition-related costs are expensed as incurred. Previously, they were 
recognised as part of the cost of acquisition and therefore included in 
goodwill. 
Non-controlling interests in an acquiree are now recognised either at fair value 
or at the non-controlling interest's proportionate share of the acquiree's net 
assets. This decision is made on an acquisition-by-acquisition basis. Under the 
previous policy, the non-controlling interest was always recognised at its share 
of the acquiree's net assets. 
 If the Group recognises acquired deferred tax assets after the initial 
acquisition accounting there will no longer be any adjustment to goodwill. As a 
consequence, the recognition of the deferred tax asset will increase the Group's 
net profit after tax. 
The changes were implemented prospectively from 1 July 2009. There has been no 
impact on the current period as there were no acquisitions by the Group during 
the period. 
Segment reporting 
The Group has applied AASB 8 Operating Segments from 1 July 2009. AASB 8 
requires a 'management approach' under which segment information is presented on 
the same basis as that used for internal reporting purposes. There has been no 
change to the reportable segments required to meet the new standard. 
Operating segments are reported in a manner that is consistent with the internal 
reporting provided to the chief operating decision maker. The chief operating 
decision maker has been identified as the full Board of Directors. 
NOTE 2: SEGMENT INFORMATION 
The Group operates in predominantly one operating segment, being the exploration 
and mining for valuable resources that produce energy in Australia. 
 
NOTE 3: DIVIDENDS 
The Company has not declared any dividends in the period ended 31 December 2009. 
 
NOTE 4: CONTINGENCIES 
There has been no change in contingent liabilities or contingent assets since 
the last annual reporting date. 
 
NOTE 5: ISSUED CAPITAL 
+-------------------------+------------+------------+------------+------------+------------+------------+ 
|                         |    31 December 2009     |    31 December 2008     |      30 June 2009       | 
+-------------------------+-------------------------+-------------------------+-------------------------+ 
|                         |    No      |    A$      |    No      |    A$      |    No      |    A$      | 
+-------------------------+------------+------------+------------+------------+------------+------------+ 
| Issued and Paid Up      |            |            |            |            |            |            | 
| Capital                 |            |            |            |            |            |            | 
+-------------------------+------------+------------+------------+------------+------------+------------+ 
| Fully Paid Ordinary     | 42,550,668 | 20,854,412 | 42,550,668 | 20,854,412 | 42,550,668 | 20,854,412 | 
| Shares                  |            |            |            |            |            |            | 
+-------------------------+------------+------------+------------+------------+------------+------------+ 
| Total Issued Capital    |            | 20,854,412 |            | 20,854,412 |            | 20,854,412 | 
+-------------------------+------------+------------+------------+------------+------------+------------+ 
 
NOTE 6: LOSS PER SHARE 
+-------------------------------------+------------------------+------------------------+------------------------+ 
|                                     |          31            |          31            |        30 June         | 
|                                     |        December        |        December        |          2009          | 
|                                     |          2009          |          2008          |                        | 
+-------------------------------------+------------------------+------------------------+------------------------+ 
| Basic and diluted loss per share    |                  (2.6) |                  (1.8) |                  (3.4) | 
| (cents)                             |                        |                        |                        | 
+-------------------------------------+------------------------+------------------------+------------------------+ 
|                                     |                        |                        |                        | 
+-------------------------------------+------------------------+------------------------+------------------------+ 
| a)  Net loss used in the            |            (1,093,816) |              (766,608) |            (1,437,020) | 
| calculation of basic and diluted    |                        |                        |                        | 
| loss per share                      |                        |                        |                        | 
+-------------------------------------+------------------------+------------------------+------------------------+ 
|                                     |                        |                        |                        | 
+-------------------------------------+------------------------+------------------------+------------------------+ 
| b)  Weighted average number of      |             42,550,668 |             42,550,668 |             42,550,668 | 
| ordinary shares outstanding during  |                        |                        |                        | 
| the period used in the calculation  |                        |                        |                        | 
| of basic and diluted loss per share |                        |                        |                        | 
+-------------------------------------+------------------------+------------------------+------------------------+ 
Options that are considered to be potential ordinary shares are excluded from 
the weighted average number of ordinary shares used in the calculation of basic 
loss per share. Where dilutive, potential ordinary shares are included in the 
calculation of diluted loss per share. 
All the options on issue do not have the effect to dilute loss per share. 
Therefore they have been excluded from the calculation of diluted loss per 
share.  There have been no other conversions to, call of, or subscriptions for 
ordinary shares since the reporting date and before the completion of this 
report. 
 
NOTE 7: NET TANGIBLE ASSETS 
+-------------------------------------+----------------------+-----------------------+-----------------------+ 
|                                     |          31          |          31           |        30 June        | 
|                                     |      December        |       December        |         2009          | 
|                                     |        2009          |         2008          |                       | 
+-------------------------------------+----------------------+-----------------------+-----------------------+ 
| Net Tangible Assets (A$)            |            8,298,828 |            11,548,568 |             9,842,850 | 
+-------------------------------------+----------------------+-----------------------+-----------------------+ 
|                                     |                      |                       |                       | 
+-------------------------------------+----------------------+-----------------------+-----------------------+ 
| Shares (No)                         |           42,550,668 |            42,550,668 |            42,550,668 | 
+-------------------------------------+----------------------+-----------------------+-----------------------+ 
|                                     |                      |                       |                       | 
+-------------------------------------+----------------------+-----------------------+-----------------------+ 
| Net Tangible Assets (cents)         |                 19.5 |                  27.1 |                  23.1 | 
+-------------------------------------+----------------------+-----------------------+-----------------------+ 
 
NOTE 8: SUBSEQUENT EVENTS 
No matter or circumstance has arisen since 31 December 2009, which has 
significantly affected, or may significantly affect the operations of the Group, 
the result of those operations, or the state of affairs of the Group in 
subsequent financial years. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IR XBLFFBXFXBBK 
 

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