more fresh colculations, page-8

Hi ENCEPHALON,

Yes you are correct there is a partial cap in place.
If I can quote the AR 2007 pg 3
"To provide downside protection against any substantial fall in oil prices, PPP hedged by way of put options approximately 719,000 barrels of oil being 50% of the first three years budgeted production and 22% of its total share of reserves. This hedging ensures that Pan Pacific will receive a minimum price of USD$50 per barrel for up to 719,000 barrels, even if the oil price drops below that level on the relavent dates. The Company partly offset the cost of these put options by selling call options, which may require the Company to deliver no more than 187,600 barrels of oil at USD$92.00 if the price of oil rises above that price."

Now I have not taken that into account as such because it is such a relatively small amount of their production over the last 5 months and it is not that much below the figure of USD$ 95 that I have taken as an arbitary figure for the Tapis grade. For all I know they may have got USD$97 or USD$99 bper barrell for their production above the 187,600 that was held at USD$92.

So it could be a swings and roundabouts situation. I don't see it as a big issue in the overall picture.