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ond, exploratory and confirmatory well Dravica-1 on theterritory of the Republic of Croatia is projected. The costsof the realization of the obligations assumed for makingand testing the Dravica-1 exploratory well amount to 8million EUR. Since INA is the operator, upon the completionof works, MOL will settle 50% of the well costs.Participation and Joint Operator Activity Agreementfor the Contract Area “Novi Gradac-Potony”On 1 September 2007, INA and MOL concluded the Participationand Joint Operator Activity Agreement for the ContractArea “Novi Gradac-Potony”. The contracting parties willequally share 50% of participation stake in the Agreement.According to the Agreement, the exploration period will lastthree years from the date of execution of the Agreement. Theobligations under the Agreement comprise screening 189km2 of seismics and the construction of exploratory wells.The realization of seismic works was planned for the endof 2007 and beginning of 2008. In 2008, obligations toMOL, GES and the so-called Third Party (reparations tolegal and natural persons for field damages) remain tobe settled as a part of seismic works, in the amount of1.15 million EUR.The construction of the first exploratory well on the NoviGradac-Potony Project is planned for 2009. INA’s obligationsassumed for the construction of the first exploratorywell amount to a maximum of 4.1 million EUR. The constructionof the second exploratory well is planned for2010, and depends on the positive results of the first well.Purchase obligations under “take or buy“ contractsOn 1 June 2005, INA d.d. concluded a contract withGAZEXPORT Ltd. Moscow for the annual procurementof 1.2 bcm of natural gas until 2010. As at 31 December2007, the Company’s future contractual obligationsamount to 5.3 billion HRK until the expiry of the contract(31 December 2010).Additionally, the Company concluded transport contractsin order to secure the delivery of gas to the destinationpoint (FCA Croatian border). The transport contractsare valid only until 2010 for Slovakia, 2015 for Sloveniaand 2017 for Austria. The future contractual obligationsamount to 2.5 billion HRK until the expiry of the contract(until 2017).Gas sale contractsFor the periods ending on 31 December 2007, the Group hasthe following long-term contracts for the sale of natural gas:In the period from 30 December 2007 to the expiry ofthe Contract:1. Long-term contract between INA and HEP d.d. Zagreba) Obligation under contract: 700,000,000 m 3per year in 2008b) Annual income from sale: 980 million HRKc) Contract duration: 2015d) Estimated income for the remaining period:7.8 billion HRK2. Long-term contract between INA and Petrokemija d.d. Kutinaa) Obligation under contract: 621,000,000 m 3 per yearb) Annual income from sale: 807.3 million HRKc) Contract duration: 2008d) Estimated income for the remaining period:807.3 million HRK3. Long-term contract between INA and PLIVA-Hrvatskad.o.o. Zagreba) Obligation under contract: 9,990,000 m 3per year in 2008b) Annual income from sale: 14 million HRKc) Contract duration: 2013d Estimated income for the remaining period:112 million HRK4. Contracts between INA and natural gas tariff buyers(distributors)a) Obligation under contract: 1,342,342,500 m 3 in 2008b) Annual income from sale: 1.4 billion HRKAnnual report 2007155