Review of Operations

Last Updated on Tuesday, 13 October 2009 14:26 Written by Administrator Wednesday, 16 September 2009 11:41

Financial and Corporate

Unusually high average oil prices and excellent production from the Tui Area oil fields provided PPP with strong revenues and cash flow during the year to 30 June 2009. Tui oil sales of $91.1 million were accounted for, inclusive of receivables at 30 June 2009 of $3.7 million. In addition, PPP’s share of inventory at 30 June 2009 was approximately 46,105 barrels which have been recorded at cost.

Exploration expenditure written off of $4.7 million primarily related to the cost of Maitland exploration wells drilled within Carnarvon Basin permit WA33R. Expenditure in relation to Block 07/03 in Vietnam was carried forward as a receivable pending Vietnamese government approval.

Amortisation charges were $6.6 million.

NET PROFIT AFTER PROVISION OF TAX FOR THE YEAR WAS $40.8 MILLION REPRESENTING EPS OF 6.9 CENTS

EBITDAX for the year before income and royalty taxes was $77.7 million including an amount of $0.1 million reflecting an increase in the value of put options at US$50.0 per barrel held by the Company. Net profit after provision for tax for the year was $40.8 million representing EPS of A$0.069 per share.

Cash held at 30 June 2009 was $106.6 million (including $1.0 million held in the accounts of various joint ventures), but excluding $7.5 million used to cash collateralise the Letter of Credit.

During the year to 30 June 2009, call options over 35,578 barrels expired at no cost to the Company, while a further 16,336 barrels had been cash settled on maturity at a cost of USD$424,398. The remaining 150,589 call barrels mature over the period July 2009 to March 2010, on a reducing basis.