you need to use NET figures.Your Gross figures are probably OK,...

you need to use NET figures.

Your Gross figures are probably OK, but you also need to factor in about US$15-20 per barrle for operating costs.

Then after that, take away 20% for royalties (which probably in the first six months will be NIL as the project development costs will be 100% deductible during this period).

Then, later on, NZ company tax of 30% will be payable.

However, I would think it is fair to say that neither royalites or NZ company tax would apply to the first 6 mths of shipments.

If that was so, then 6 mths worth x 11M barrels total to 30 June 2007 (that the JV has forecast) would mean approx 5.5mb of oil sold.

5.5mb x (US$95 TAPIS - US$20 costs) x 10% / .875 = A$47M in first 6 mths, assuming no taxes or royalites.

5.5mb x same above x .80 (ie 20% rylty) x.70 (30% coy tax) = A$26M in 2nd six months assuming royalties and taxes.

AT 24 cents, mkt cap is A$140M. Assuming cash on hand of A$30M offsets US$22M owed for project loan, PPP will have received in half its mkt cap in NET cash by 30 June 2008.

I'm not asleep.........................