The bottom line is that its all very profitable. The tax is not...

The bottom line is that its all very profitable.

The tax is not straight forward to predict because it relies on deductions from any Thai expenditure, oil price avg, reserves, production level, US$ to A$ rate, and tax credits. You can get a pretty good feel for it if you look at the last three 1/4's two of which they had paid tax.

In the Dec 2008 1/4 they recorded an average of 5,378 bopd net at an average price of A$67.55 per barrel. Their cash balance at quarter end was A$71.0 million.

In the Sept 2008 1/4 they recorded an average of 2,860 bopd net at an average price of A$118.44 per barrel. This resulted in an A$31.2 million net profit after making their income tax and SRB payment. Their cash balance at quarter end was A$41.0 million.

As of June 30th 2008 they reported an "after tax" profit of $16.7 million based on a net average monthly production of approximately 2,600 bopd at an average price of A$106.15 per barrel. Their cash balance at quarter end was A$31.4 million.







Sept Cash balance
The consolidated cash balance at sept quarter end was A$41.0 million, compared to A$31.5 million at the end of the previous quarter. The Phetchabun Joint Venture paid a substantial income tax and Special Remuneratory Benefit instalment during the quarter.

Carnarvon’s share of the planned December 2008 quarter production, exploration, evaluation and development expenditure is currently estimated at A$5 million, primarily consisting of ongoing drilling and testing operations in Thailand. Ongoing field expenditure will be funded by sale proceeds from producing wells.


Dec Cash balance
The consolidated cash balance at quarter end was A$71.0 million, compared to A$41 million at the end of the previous quarter, boosted by receipts from oil sales. The cash balance includes cash required to meet the anticipated remaining liabilities for the 2008 Petroleum Income Tax and the SRB, which will not be finalised until the December 2008 Reserves Statement has been completed.

Carnarvon’s share of the planned March 2009 quarter production, exploration, evaluation and development expenditure is currently estimated at A$6.75 million, primarily consisting of ongoing drilling and testing operations in Thailand. Ongoing field expenditure will be funded by sale proceeds from producing wells.