Annual Report 2005 (6 MB) - Lundin Petroleum

NOTES
NOTE 4 – WRITE-OFF OF OIL AND GAS PROPERTIES (TSEK)
Parent
Parent
Group
Group
Company
Company
Oil and gas properties written off were as follows:
2005
2004
2005
2004
Nigeria 158,174 – – –
Netherlands 30,162 – – –
Iran 6,040 123,820 – –
Indonesia 855 22,360 – –
Other – project appraisal 12,904 3,885 – –
208,135 150,065 – –
Whilst Lundin Petroleum retains an interest in Block OML 113 in Nigeria and is reviewing the information that was obtained from drilling
the Aje-3 well, it was decided to write off all of the costs amounting to MSEK 158.2 in 2005 following the disappointing well results. The
other material cost written off in 2005 relates to the Luttelgeest exploration well that was drilled in the Netherlands in 2004. After testing
of the well in August 2005 the decision was made to plug and abandon the well and the costs incurred of MSEK 30.2 were written off .
During 2004 the decision was made to write off the costs incurred in Iran as well as other exploration project costs resulting in a charge to
the income statement for the year ended 31 December 2004 of MSEK 150.1.
NOTE 5 – REMUNERATION TO THE GROUP’S AUDITORS (TSEK)
Remuneration to the
Group’s auditors for
Audit fees
Group
2005
> 60 <
Group
2004
Parent
Company
2005
Parent
Company
2004
- PricewaterhouseCoopers 4,289 5,152 1,023 1,114
- Other 52 741 – –
4,341 5,893 1,023 1,114
Other
- PricewaterhouseCoopers 498 879 498 206
- KPMG – 9 – –
- Other 47 1,418 – –
545 2,306 498 206
Total 4,886 8,199 1,521 1,320
NOTE 6 – FINANCIAL INCOME (TSEK)
Parent
Parent
Group
Group
Company
Company
Financial income comprise:
2005
2004
2005
2004
Interest income 31,195 11,468 37,243 30,005
Dividends received 12,817 10,899 – –
Foreign exchange gain, net – 36,125 2,603 523
Other fi nancial income – – – 267
44,012 58,492 39,846 30,795
Included in the interest income for the Parent Company is an amount of TSEK 37,161 (TSEK 29,944) received from Group companies.