Ann: Annual Report to shareholders , page-2

Interesting read from the annual report. I will list the figures which I used to arrive at these calculations. If any accounting experts out there could correct my calculations then feel free, but im just posting what I've done.

Revenue earned 2010: 5.569 Million
Revenue earned 2011: 11.041 Million, a 98.25% increase

Consumables and external services used 2010: 1.181 Million
Consumables and external services used 2011: 1.952 Million, a 65.28% increase, increased at a lower rate than revenue which is good (good control over expenses).

Employee benefits expense decreased $18000 which is another good thing, more control of expenses while increasing revenue.

Finance costs decreased from 2.141 Million to 357,000, due to interest payable on the convertible notes. $287,000 of which was interest payable on convertible notes.

Overall net profit of $2.167 Million.

Return on equity, 11.041 (income) / 35.101 (total contributed equity) = 31.45% i used the total contributed equity here instead of the average over the two periods, it seemed to me like it was more logical to do so.

Net profit margin: 2167 (net profit after tax) / 11041(income) = 19.63%

Operating cash flow positive of 1.831 Million.

Also lastly, I copied this from the report in the part about remuneration for directors:

"The short-term incentive to D Rolf is calculated at $1 per barrel of oil produced in excess of a set
monthly production benchmark, capped at $5,000 per month and $60,000 per annum. $39,703 of the cash bonuses
received by Dennis Rolf in the 2011 year relate to this short term incentive based on Blue Ridge Dome field production.
D Rolf forfeited 34% of his production bonus in the 2011 year and 84% of his production bonus in the 2010 year.
"

From my understanding, there is incentive for the directors to increase the production rate.