Ann: Appendix 4D and Half Year Report-TAP.AX, page-5

Thanks AC,

There are 2 numbers which is what was bothering me:

- a liability of $5.1m
- an $4.6m entry in the 'hedge reserve'

The 4.6 also appears as an unrealised loss in the P&l..

Thinking about it a bit more, maybe the 5.1 is for swaps that have already terminated - for oil lifts already completed up to June 30, so the loss is crystallised, and as you say, the 4.6 is for swaps with termination dates up to feb17 where the estimated loss is based on the current oil price or the forecast oil price mentioned elsewhere?

Given we're in the red on the swaps, they can't be against our sell price but must be against Brent? $10m down on the hedging by feb 17 - sheesh the hedging is costing a lot to lock in a lower price than I expected. it will be great to get to feb and get away from those swaps!