Cairn AGM CEO's statement, page-35

STH Agree that we agree in principle, and we are not far apart.

Where I believe you are a little conservative is that NPV calculations take account of future costs. Future costs are escalated into the future, as are future revenues, and the costs and revenues are then discounted back to present value at a conservative discount rate in order to account for uncertainty.

This is why Cairn Energy's estimated NPV at $US50 oil is $US6.50, whilst the actual difference between oil price ($US50 per barrel) and SNE estimated production cost (less than $30 per barrel) is greater than $US20 per barrel.