FORTE ENERGY NL
ABN 59 009 087 852
HALF-YEAR FINANCIAL REPORT
31 DECEMBER 2009
Forte Energy NL
36 Outram Street
West Perth WA 6005
AUSTRALIA
FORTE ENERGY NL
(ABN 59 009 087 852)
CONTENTS
Directors' Report 2
Consolidated Statement of Financial Position 4
Consolidated Statement of Comprehensive Income 5
Consolidated Statement of Changes in Equity 6
Consolidated Statement of Cash Flow 7
Notes to the Half-Year Financial Report 8
Directors' Declaration 16
Auditor's Independence Declaration 17
Independent Review Report 18
FORTE ENERGY NL
(ABN 59 009 087 852)
DIRECTORS' REPORT
The Board of Directors of Forte Energy NL present their report on the consolidated entity of Forte Energy NL
("the Company" or "Forte Energy") and its subsidiaries ("Consolidated Entity") during the half-year ended 31
December 2009.
Directors
The names of the Company's Directors in office during the half-year and until the date of this report are as
below. Directors were in office for this entire period unless otherwise stated.
Glenn Robert Featherby - Chairman
Lady Barbara Judge- Deputy Chairman
Mark David Reilly - Managing Director
Christopher David Grannell - Non-executive Director
Bosse Gustafsson - Technical Director
Review and Results of Operations
The Consolidated Entity reported a loss for the half-year of $1,706,475 (2008: $984,516).
The principal activity of the Consolidated Entity during the reporting period was the exploration for mineral
resources.
The Company continues to investigate resource opportunities. Currently these are focused on the Company's
uranium exploration licences in West Africa in the Republic of Guinea and the Islamic Republic of Mauritania.
In June 2008 the Company entered into an extensive Cooperation Agreement with Areva NC ("Areva") to expedite
exploration and development of its Mauritanian assets.
Uranium Exploration - Mauritania
* Diamond core resource drilling program of over 5,800m carried out at Bir En Nar Uranium Project, with
estimation of a maiden JORC code compliant resource expected to be completed in the first quarter of 2010,
subject to receipt of final assay results.
* Extensive geophysical ground surveys undertaken to explore a number of uranium anomalies near Bir
Moghrein. Results from these surveys have been used to help guide a reverse circulation core drilling program
of up to 6,000m covering 11 of these anomalies that is currently underway.
Uranium Exploration - Guinea
* On 1 July 2009, the Company announced a JORC code compliant initial inferred resource of 17.7Mt @
296ppm U3O8 for 11.6Mlbs of contained U3O8 (100ppm cut-off) at its Firawa Prospect.
* Encouraging initial metallurgical test results have been received from Firawa Project that indicate
the potential for economic recovery from leaching, with further pre-feasibility optimisation studies currently
underway.
Copper/Cobalt Assets - Australia
* On 18 August 2009 the Company announced that it had entered into an option agreement with Element
Minerals Australia Pty Ltd, a wholly owned subsidiary of Orocobre Ltd (ASX: ORE) for the sale of its Millenium
leases.
* On 11 December 2009 the Company announced that it had entered into an agreement to sell its interest
in the Maroochydore JV Project to the joint venture exploration manager and joint venture partner, Birla
Maroochydore Pty Ltd a wholly owned subsidiary of Aditya Birla Minerals Ltd (ASX: ABY). Forte Energy received
$2,000,000 when the sale was completed on 22 February 2010.
Corporate
* In July 2009 Forte Energy completed the second tranche of a $12 million capital raising to help fund
its accelerated exploration activities in West Africa.
* The Company has established a subsidiary in the United Kingdom called Forte Energy UK Limited and has
opened an office in London.
Events subsequent to balance date
On 22 February 2010, the Consolidated Entity received $2,000,000 at settlement of the sale of its 50% interest
in the Maroochydore Joint Venture Copper Project. Apart from other events to the extent to which are described
elsewhere in this Director's Report, there has not arisen in the interval between the end of the financial
period and the date of this report any other item, transaction or event of a material or unusual nature likely,
in the opinion of the Directors of the Company, to effect:
i. the Consolidated Entity's operations in future financial years; or
ii. the results of those operations in future financial years; or
iii. the Consolidated Entity's state of affairs in future financial years.
Dividends
No dividend has been paid during the period (2008: $ nil).
AUDITOR'S INDEPENDENCE DECLARATION
A copy of the Auditor's Independence Declaration as required under section 307C of the Corporations Act is set
out on page 16 and forms part of this report.
Signed in accordance with a resolution of the directors.
Mark Reilly
Managing Director
London 15 March 2010
FORTE ENERGY NL
(ABN 59 009 087 852)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2009
Notes 31 December 2009 30 June 2009
$ $
ASSETS
Current Assets
Cash and cash equivalents 6 5,944,546 6,628,394
Trade and other receivables 135,747 9,226
Prepayments 135,002 55,712
6,215,295 6,693,332
Non-current assets classified as held for sale 7 2,035,778 1,657,041
Total Current Assets 8,251,073 8,350,373
Non-current assets
Available-for-sale financial assets 15,885 24,297
Exploration and evaluation expenditure 9 13,087,447 9,564,296
Plant and equipment 148,112 107,228
Total Non-Current Assets 13,251,444 9,695,821
TOTAL ASSETS 21,502,517 18,046,194
LIABILITIES
Current Liabilities
Trade and other payables 775,880 1,258,548
Provisions 25,793 13,446
801,673 1,271,994
Liabilities associated with assets held for sale 7 452,348 527,000
Total Current Liabilities 1,254,021 1,798,994
TOTAL LIABILITIES 1,254,021 1,798,994
NET ASSETS 20,248,496 16,247,200
EQUITY
Contributed equity 11 66,948,023 61,741,570
Reserves 2,134,058 1,812,740
Accumulated losses (49,013,585) (47,307,110)
TOTAL EQUITY 20,248,496 16,247,200
FORTE ENERGY NL
(ABN 59 009 087 852)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF-YEAR ENDED 31 DECEMBER 2009
Notes 2009 2008
$ $
Revenue 4 163,384 199,079
Administrative expenses 5 (1,869,859) (1,222,070)
Settlement of Renison Bell Ltd creditors - 38,475
Loss before income tax (1,706,475) (984,516)
Income tax expense - -
Loss after income tax (1,706,475) (984,516)
Net loss for the period (1,706,475) (984,516)
Other comprehensive income
Net gain/(loss) on available-for-sale financial assets (8,412) (5,828)
Foreign currency translation (5,024) -
Other comprehensive income for the period net of tax (13,436) (5,828)
(1,719,911) (990,344)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE
TO MEMBERS OF FORTE ENERGY NL
Loss per share for loss attributable to the ordinary
equity holders of the Company (cents per share)
- basic loss per share (0.31) (0.25)
- diluted loss per share (0.31) (0.25)
FORTE ENERGY NL
(ABN 59 009 087 852)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF -YEAR ENDED 31 DECEMBER 2009
Contributed Accumulated AFS financial Equity Foreign Total
equity losses assets benefits currency equity
reserve reserve translation
$ $ $ $ $ $
At 1 July 2009 61,741,570 (47,307,110) 817 1,811,923 - 16,247,200
Changes in equity for
the half year to 31
December 2009
Total comprehensive - (1,706,475) (8,412) - (5,024) (1,719,911)
income for the half year
net of tax
Equity transactions:
Share-based payment - - - 514,754 - 514,754
Exercise of options 441,500 - - - - 441,500
Issue of ordinary shares 5,331,000 - - - - 5,331,000
Transaction costs (566,047) - - - - (566,047)
Balance At 66,948,023 (49,013,585) (7,595) 2,326,677 (5,024) 20,248,496
31 December 2009
At 1 July 2008 50,871,819 (45,127,288) 4,280 1,605,672 - 7,354,483
Changes in equity for
the half year to 31
December 2008
Total comprehensive - (984,516) (5,828) - - (990,344)
income for the half year
net of tax
Equity transactions:
Share-based payment - - - 167,980 - 167,980
Issue of ordinary shares 4,922,022 - - - - 4,922,022
Transaction costs (15,343) - - - - (15,343)
Balance At 55,778,498 (46,111,804) (1,548) 1,773,652 - 11,438,798
31 December 2008
FORTE ENERGY NL
(ABN 59 009 087 852)
CONSOLIDATED STATEMENT OF CASH FLOW
FOR THE HALF -YEAR ENDED 31 DECEMBER 2009
2009 2008
$ $
Cash flows from operating activities
Payments to suppliers and employees (1,423,446) (1,101,925)
Interest and other income received 137,701 100,018
Net cash flows used in operating activities (1,285,745) (1,001,907)
Cash flows from investing activities
Proceeds from sale of equipment - 1,091
Payment for purchase of equipment (63,785) (6,370)
Payment for exploration and evaluation expenditure (3,658,960) (1,087,449)
Net cash flows used in investing activities (3,722,745) (1,092,728)
Cash flows from financing activities
Proceeds from issue of shares 5,632,500 2,698,732
Refund of share oversubscriptions (188,900) -
Transaction costs relating to issue of shares (1,044,808) (8,135)
Net cash flows from financing activities 4,398,792 2,690,597
Net increase in cash and cash equivalents (609,698) 595,962
Effects of exchange rate changes on cash and cash equivalents (74,150) (36,157)
Cash and cash equivalents at beginning of the period 6,628,394 3,653,480
Cash and cash equivalents at end of period 5,944,546 4,213,285
FORTE ENERGY NL
(ABN 59 009 087 852)
NOTES TO THE FINANCIAL REPORT
FOR THE HALF-YEAR ENDED 31 DECEMBER 2009
1. CORPORATE INFORMATION
The consolidated financial report of Forte Energy NL ("Consolidated Entity") for the half-year ended 31
December 2009 was authorised for issue in accordance with a resolution of the directors on 13 March
2010.
Forte Energy NL is a company limited by shares incorporated in Australia, whose shares are publicly
traded on the Australian Stock Exchange (ASX code "FTE"), and on the AIM Board of the London Stock
Exchange.
The nature of operations and principal activities of the Consolidated Entity during the half-year was
the exploration for minerals. There have been no significant changes in the nature of these activities
during the half-year.
2. BASIS OF PREPARATION AND ACCOUNTING POLICIES
(a) Basis of Preparation
This general purpose condensed consolidated financial report for the half-year ended 31 December 2009
has been prepared in accordance with AASB 134 "Interim Financial Reporting" and the Corporations Act
2001.
The half-year financial report does not include all notes of the type normally included within the
annual financial report and therefore cannot be expected to provide as full an understanding of the
financial performance, financial position and financing and investing activities of the Consolidated
Entity as the full financial report.
It is recommended that the half-year financial report should be read in conjunction with the annual
financial report of Forte Energy NL for the year ended 30 June 2009 and considered together with any
public announcements made by Forte Energy NL during the half-year ended 31 December 2009 in accordance
with the continuous disclosure obligations of the ASX Listing Rules.
The half-year financial report has been prepared on a historical cost basis, except for available-for-
sale investments, which have been measured at fair value.
The financial report is presented in Australian dollars ($).
For the purpose of preparing the half-year financial report, the half-year has been treated as a
discrete reporting period.
FORTE ENERGY NL
(ABN 59 009 087 852)
NOTES TO THE FINANCIAL REPORT
FOR THE HALF-YEAR ENDED 31 DECEMBER 2009
(b) Significant accounting policies
The half-year consolidated financial statements have been prepared using the same accounting policies as
used in the annual financial statements for the year ended 30 June 2009, except for the adoption of
amending accounting standards and interpretations effective for annual reporting periods beginning on or
after 1 July 2009.
From 1 July 2009, the Group has adopted all the Standards and Interpretations, mandatory for annual
periods beginning on or after 1 July 2009, including:
* AASB 8 and AASB 2007-3 Operating Segments and consequential amendments to other Australian accounting
standards
* AASB 101 (Revised), AASB 2007-8 and AASB 2007-10 Presentation of Financial Statements and
consequential amendments to other Australian Accounting Standards
* AASB 2008-1 Amendments to Australian Accounting Standard - Share-based Payments: Vesting Conditions
and Cancellations
* AASB 2008-5 Amendments to Australian Accounting Standards arising from the Annual Improvements Project
* AASB 2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements
Project
* AASB 2009-2 Amendments to Australian Accounting Standards - Improving Disclosures about Financial
Instruments
* AASB 2009-4 Amendments to Australian Accounting Standards arising from the Annual Improvements Project
* AASB 2009-7 Amendments to Australian Accounting Standards.
Adoption of these standards and interpretations did not have any effect on the financial position or
performance of the Group.
The Group has not elected to early adopt any new standards or amendments.
(c) Basis of consolidation
The consolidated financial statements comprise the financial statements of Forte Energy NL and its
subsidiaries ('the Group').
The financial statements of the subsidiaries are prepared for the same reporting period as the parent
company, using consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income
and expenses and profit and losses resulting from intra-group transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease
to be consolidated from the date on which control is transferred out of the Group.
3. SEGMENT INFORMATION
Identification of reportable segments:
For management purposes, the Consolidated Entity is organised into two business segments based on
geographical exploration regions.
Management monitors the operating results of business segments separately for the purpose of making
decisions about resources to be allocated and of assessing performance. Segment performance is
evaluated based on exploration costs and results obtained. Finance costs, finance income and income
taxes are managed on a group basis.
The reportable segments of the Consolidated Entity are as follows:
o Uranium exploration in Mauritania.
o Uranium exploration in Guinea.
Accounting policies and inter-segment transactions:
The accounting policies used by the Group in reporting segments are the same as those contained in
note 2 to the accounts and in the prior year.
It is the Consolidated Entity's policy that if items of revenue and expenses are not allocated to
operating segments then any associated assets and liabilities are also not allocated to segments. This
is to avoid asymmetrical allocations within segments which management believe would be inconsistent.
The following items and associated assets and liabilities are not allocated to operating segments as
they are not considered part of the core operations of any segment:
o Interest income and cash balances
o Net gains and losses on disposal of available-for-sale investments
o Non-current assets classified as held for sale, and
o Corporate and administrative income and expenses other than the depreciation of fixed assets.
Operating segments - 31 December 2009
Mauritania Guinea uranium Total
uranium exploration
exploration $
$ $
Half year ended 31 December 2009
Revenues
Other Revenue from external customers - - -
Total Segment revenue - - -
Unallocated items
Interest Income 124,718
Other unallocated revenue 38,666
Total revenue per statement of comprehensive 163,384
income
Results
Segment results (6,381) (11,844) (18,225)
Unallocated items
Unallocated revenue 163,384
Administrative expenses (1,851,634)
Net loss before tax (1,706,475)
Segment assets 8,125,301 4,964,087 13,089,388
Cash and cash equivalents 5,944,546
Non-current assets classified as held for 2,035,778
sale
Other Corporate assets 432,805
Total assets per statement of financial 21,502,517
position
Operating segments - 31 December 2008
Mauritania Guinea uranium Total
uranium exploration
exploration $
$ $
Half year ended 31 December 2008
Revenues
Other Revenue from external customers - - -
Total Segment revenue - - -
Unallocated items
Interest Income 184,049
Other unallocated revenue 15,030
Total revenue per statement of comprehensive 199,079
income
Results
Segment results (4,968) (10,265) (15,233)
Unallocated items
Unallocated revenue 199,079
Other income 38,475
Administrative expenses (1,206,837)
Net loss before tax (984,516)
Segment assets as at 30 June 2009 4,749,285 4,817,458 9,566,743
Cash and cash equivalents 6,628,394
Non-current assets classified as held for 1,657,041
sale
Other Corporate assets 194,016
Total assets per statement of financial 18,046,194
position as at 30 June 2009
4 REVENUE
2009 2008
$ $
Interest income 124,718 184,049
Office sub-lease rent 18,666 15,030
Other income 20,000 -
Total other revenue 163,384 199,079
5 ADMINISTRATION EXPENSES
2009 2008
$ $
Accounting and audit fees 22,690 18,035
Consulting fees 144,608 109,097
Depreciation of plant and equipment 22,901 21,045
Employee benefits expense (i) 1,087,210 490,784
Foreign exchange differences 74,150 36,157
Legal fees 45,613 3,445
Media and public relations 72,052 77,977
Nominated adviser and broker fees 57,228 59,716
Promotions, roadshows and conferences 50,855 89,242
Reporting and listing costs 84,227 71,323
Telecommunication and computing 49,794 57,284
Travel and accommodation 60,534 77,644
Minimum lease payments - operating lease 56,476 51,030
Other 41,521 59,291
Total administrative expenses 1,869,859 1,222,070
(i) Employee benefits expense is comprised of:
Salaries and wages 498,445 322,804
Share based payments 514,754 167,980
Other staff costs 74,011 -
Total 1,087,210 490,784
6. CASH AND CASH EQUIVALENTS
31 December 2009 30 June 2009
$ $
Cash at bank and in hand 5,944,546 6,628,394
Cash at bank earns interest at floating rates based on daily bank deposit rates. The carrying amounts
of cash and cash equivalents represent fair value.
7. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE
In line with the Company's focus on progressing its uranium exploration projects, the Company has entered
into sale agreements to realise value for its non-uranium assets and has therefore recognised these
exploration assets as assets held for sale.
The assets and liabilities associated with the non-uranium assets are as follows:
Capitalised exploration and evaluation expenditure 2,035,778 1,657,041
Liabilities (452,348) (527,000)
1,583,430 1,130,041
8. DIVIDENDS
There were no dividends proposed or paid during the half-year ended 31 December 2009 (2008: nil).
9. EXPLORATION AND EVALUATION EXPENDITURE
Movements in carrying amounts
31 December 2009 30 June
$ 2009
$
Carrying amount at 1 July 9,564,296 4,361,305
Additions 3,523,151 6,978,846
Transfer to Assets Held for Sale - (1,657,041)
Impairment - (118,814)
Carrying amount at end of period net of impairment 13,087,447 9,564,296
Exploration and evaluation costs have been capitalised at cost. No impairment loss was recognised
during the half-year ended 31 December 2009 (2008: nil ) because either:
* The exploration and evaluation activities are expected to be recouped through successful development
and exploitation of the area of interest or, alternatively, by its sale; or
* Exploration and evaluation activities in each area of interest have not at the reporting
date reached a stage that permits a reasonable assessment of the existence or otherwise of
economically recoverable reserves, and active and significant operations in, or relevant to, the
area of interest are continuing.
10. COMMITMENTS AND CONTINGENCIES
There have been no material changes to the commitments and contingencies disclosed in the most recent
annual financial report.
11. CONTRIBUTED EQUITY
31 December 2009 30 June 2009
$ $
Ordinary shares
571,158,031 (30 June 2009: 511,348,031)
ordinary shares, fully paid 66,925,523 61,719,070
2,250,000 (30 June 2008: 2,250,000) 25 cent
value ordinary shares, partly paid to 1 cent 22,500 22,500
66,948,023 61,741,570
(i) Ordinary shares
Movement in ordinary shares on issue Number $
At 1 July 2008 380,182,617 50,849,319
Share issues 86,699,611 9,367,732
Share issues for other assets 44,465,803 2,223,290
Transaction costs - (721,271)
Balance at 30 June 2009 511,348,031 61,719,070
511,348,031 61,719,070
At 1 July 2009
Share issues for cash 53,310,000 5,331,000
Share issues from exercise of options 6,500,000 441,500
Transaction costs - (566,047)
Balance at 31 December 2009 571,158,031 66,925,523
11. CONTRIBUTED EQUITY (Continued)
(ii) Options
Options over ordinary shares:
During the financial period:
* 6,000,000 (2008: 3,000,000) options were issued to Directors, as share based payments,
over ordinary shares exercisable at $0.20. The options were fully vested when issued on
23 December 2009 and are exercisable on or before 23 December 2012. The options can only be
exercised if the VWAP for the Company's Shares on ASX is at or above 35 cents for more than
30 days. The options have been valued using the Share Binomial Tree Model
methodology with the following inputs;
o Underlying share price $0.175
o Exercise price $0.20
o Risk-free Rate 4.59%
o Time to maturity 3 Years
o Volatility 82.45%
o Dividends Nil during review period.
* 2,500,000 ordinary shares were issued following the exercise of consultants options at
5.5 cents each.
* 4,000,000 ordinary shares were issued following the exercise of consultants options at
7.5 cents each.
12. EVENTS AFTER THE BALANCE SHEET DATE
On 22 February 2010, the Consolidated Entity received $2,000,000 on the settlement of the sale of its
50% interest in the Maroochydore Joint Venture Copper Project. There have been no other significant
events that have occurred after Balance Sheet date.
FORTE ENERGY NL
(ABN 59 009 087 852)
DIRECTORS' DECLARATION
In accordance with a resolution of the Directors of Forte Energy NL, I state that:
In the opinion of the Directors:
(a) the financial statements and notes of the Consolidated Entity are in accordance with the Corporations
Act 2001, including:
(i) giving a true and fair view of the financial position as at 31 December 2009 and the
performance for the half-year ended on that date of the Consolidated Entity; and
(ii) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations
Regulations 2001; and
(b) there are reasonable grounds to believe that the Consolidated Entity will be able to pay its debts as
and when they become due and payable.
On behalf of the Board
Mark D Reilly
Managing Director
London 15 March 2010
ERNST & YOUNG The Ernst & Young Building Tel 61 8 9429 2222
11Mounts Bay Road Fax 61 8 9429 2436
Perth WA 6000
Australia
GPO Box M939
Perth WA 6843
www.ey.com/au
Auditor's independence declaration to the directors of Forte Energy NL
In relation to our review of the financial report of Forte Energy NL for the half-year ended 31 December 2009,
to the best of my knowledge and belief, there have been no contraventions of the auditor independence
requirements of the Corporations Act 2001 or any applicable code of professional conduct.
Ernst & Young
T S Hammond
Partner
Perth
15 March 2010
TH;HG;FORTE;017 Liability limited by a scheme approved
under Professional Standards
Legislation
ERNST & YOUNG The Ernst & Young Building Tel 61 8 9429 2222
11Mounts Bay Road Fax 61 8 9429 2436
Perth WA 6000
Australia
GPO Box M939
Perth WA 6843
www.ey.com/au
To the members of Forte Energy NL
Report on the half-year financial report
We have reviewed the accompanying half-year financial report of Forte Energy NL (the company), which comprises
the statement of financial position as at 31 December 2009, and the statement of comprehensive income,
statement of changes in equity and statement of cash flows for the half-year ended on that date, other selected
explanatory notes, and the directors' declaration of the consolidated entity comprising the company and the
entities it controlled at the half-year end or from time to time during the half-year.
Directors' responsibility for the half-year financial report
The directors of the company are responsible for the preparation and fair presentation of the half-year
financial report in accordance with Australian Accounting Standards (including the Australian Accounting
Interpretations), and the Corporations Act 2001. This responsibility includes establishing and maintaining
internal controls relevant to the preparation and fair presentation of the half-year financial report that is
free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in the circumstances.
Auditor's responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We
conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of Interim and
other Financial Reports Performed by the Independent Auditor of the Entity, in order to state whether, on the
basis of the procedures described, we have become aware of any matter that makes us believe that the financial
report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the
consolidated entity's financial position as at 31 December 2009 and its performance for the half-year ended on
that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting, and the Corporations
Regulations 2001. As the auditor of Forte Energy NL and the entities it controlled during the half-year, ASRE
2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial
report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and
consequently does not enable us to obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit opinion.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. We
have given to the directors of the company a written Auditor's Independence Declaration, a copy of which is
included in the Directors' Report.
TH;HG;FORTE;016 Liability limited by a scheme approved
under Professional Standards
Legislation
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that
the half-year financial report of Forte Energy NL is not in accordance with the Corporations Act 2001,
including:
i) giving a true and fair view of the consolidated entity's financial position as at 31 December 2009 and
of its performance for the half-year ended on that date; and
ii) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations
Regulations 2001.
Ernst & Young
T S Hammond
Partner
Perth
15 March 2010
TH;HG;FORTE;016
Forte Energy NL