december quarter profit, page-6

Santia,

Could we calculate in a simple way as follows: -

As we know the payment is up to 30 days after delivery, so we can ignore the December shipments.

(Nov. 27-07) NZO released “Since the start of production on 30 July 2007, the Tui Area Oil Project has produced approximately 4.7 million barrels of oil. 4.5 million barrels has been shipped, …… The next shipment is due in early December.”

Assume the average selling price is US$86 and costs US$15 (including the production costs and transport costs)

4.5 Million barrels * 0.125 (NZO) = 562,500 barrels (shopped and paid from July 07 to Nov 07)

562,500 * US$71 = US$39,937,500

US$39,937,500 – US$7,500,000 (first quarter 07/08 cash received) = US$32,437,500

US$32,437,500 / 0.77 (exchange rate) = NZ$42,126,623 (before royalties and taxes if needed)

Cheers