december quarter profit, page-10

Hi there chc again.

My earlier reply was a somewhat hurried one as I was dashing out at the time.

However, I have had another look at your suggestion and I can understand your wish to condense down the detail and make it a simpler set of information. I can appreciate your wish to do so.

In my case I have tried to be as full in my calculations so that it is quite transparent what I am doing and why I am arriving at the figures I have put up.

That is why I have treated the two quarters as separate entities so far as price per barrel is concerned.

Your average of US$86 is not too far from the average of US$82 + US$95 = US$88.50 over the two quarters. But it does make a difference. I'm not too concerned about that.

Where I do take issue is the point of the costs per barrel. For some reason you are saying that the costs are US$15 per barrel.
Dargie claims that they are A$10 for operations plus A$3 for transport costs
I say they are US$10 per barrel. David Salisbury , CEO of NZOG says they are "less than US$10 per barrel".

When I was gathering details together to do the calculations I contacted Chris Roberts, Public Affairs Manager at NZOG. I asked the question about costs and was given the information of "Total operating costs are around US$10 a barrel."
When I sent back supplementary questions and queried what was covered in that US$10 figure Chris Roberts informed me that it covered the (a) operating cost (b) transport costs to the refineries (c) lease of the FPSO.

So I am sticking by what I have been offically told is the TOTAL cost per barrel. As I say David Salisbury in that OGW interview/article is quoted as saying that costs are "LESS than US$10 a barrel.
It does tend to make a difference of nearly US$3 million to the bottom line

I guess whatever way we fiddle with the figures the NZOG accountants will have their own way of fiddling with them but it is an interesting exercise to try and second guess what the outcome could be.

If the quarterly nett income flow looks close to US$47 million or A$52 million or NZ$58 million then I will be pleased.

We will await the end of next week with interest