Commodity Hedging
The Company’s current commodity hedging arrangements are set out as follows:
| Period | Oil (BO) Total Hedged | Cap/Collar Range ($US) |
| 12 months to 31 December 09 | 288,000 | $55.00 – 84.30 |
The above oil hedge provides protection at US$55/BBL of oil on 60% of production until 31 December 2009.
| Period | Oil (BO) Total Hedged | Swap Price ($US) |
| 12 months to 31 December 2010 12 months to 31 December 2011 | 141,600 96,300 | $66.88 $70.00 |
| Period | Gas (MCF) Total Hedged | Swap Price ($US) |
| 12 months to 31 December 2010 12 months to 31 December 2011 | 268,800 139,500 | $6.00 $6.80 |
Interest Rate Hedging
The current interest rate swap position for US senior bank debt is summarised as follows:
| Notional | Fixed Rate | Effective Date | Maturity Date |
| US$40 million | 4.93% | 3 December 2007 | 3 December 2009 |
