adjusted income, page-6

AN,

It's too complex to explain on HC. In a nutshell, a rate of 40% is applied to the taxable profit of an Operator.

Frm July 1st 2012, all onshore producers in Oz have to pay PRRT on ProdLic in Australia (only JPDA aka Conoco's Bayu-Undan field is exempt, but that's another story I don't want to go there).

An operator can accrue the drill costs over the years & when a field is 'defined' they can apply for a PL instead of relinquishing the acreage.

Once a production license is granted & production commences, the revenue for the Operator kicks in minus the capex/costs etc etc to come to a working profit. Then comes the 40% hit.

Best if u look up the ATO website, should have examples that u can apply to understand Beach, DLS & SXY.

Hope this helps.