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Netbacks for India, Bangladesh and in total are calculated by dividing the revenue and costs for each country and in total by the total sales volume for each country and in total measured in Mcfe.
---------------------------------------------------------------------------- Nine months ended Nine months ended Dec 31, 2012 Dec 31, 2011($/Mcfe) India Bangladesh Total India Bangladesh Total----------------------------------------------------------------------------Oil and natural gas revenue 4.86 2.61 4.10 4.93 2.63 4.35Royalties (0.25) - (0.16) (0.25) - (0.19)Profit petroleum (0.30) (0.88) (0.50) (0.11) (0.89) (0.30)Production and operating expense (0.63) (0.40) (0.56) (0.47) (0.32) (0.44)----------------------------------------------------------------------------Operating netback 3.68 1.33 2.88 4.10 1.42 3.42----------------------------------------------------------------------------General and administrative (0.11) (0.09)Other income 0.01 0.10Net finance expense (0.50) (0.28)Current income tax reduction / (expense) 0.03 (0.05)Minimum alternate tax (0.13) (0.29)----------------------------------------------------------------------------Funds from operations netback 2.18 2.81----------------------------------------------------------------------------Share-based operating expenses (0.02) -Exploration and evaluation costs (3.26) (1.80)Other expenses (1.63) (0.50)Loss on short-term investment (0.01) (0.10)Deferred income tax reduction (expense) 0.66 (0.11)Change in accounting estimate - deferred taxes - (0.89)Net finance expense (0.11) (0.23)Depletion and depreciation expense (2.43) (1.33)----------------------------------------------------------------------------Earnings netback (4.62) (2.15)----------------------------------------------------------------------------
Netbacks for India, Bangladesh and in total are calculated by dividing the revenue and costs for each country and in total by the total sales volume for each country and in total measured in Mcfe.
RELATED PARTIES
The Company has a 45 percent interest in a Canadian property that is operated by a related party, a Company owned by the President and CEO of the Company. This joint interest originated as a result of the related party buying the interest of the third-party operator of the property in 2002. The transactions with the related party are not significant to operations or consolidated financial statements. The transactions with the related party are measured at fair value.
FINANCIAL INSTRUMENTS
The Company's financial instruments consist of short and long-term investments, accounts receivable, long-term accounts receivable, accounts payable and accrued liabilities, borrowings, convertible notes and convertible debentures.
