Annual report pursuant to Section 13 and 15(d)

Supplemental Oil and Gas Information (Tables)

v2.4.0.8
Supplemental Oil and Gas Information (Tables)
 12 Months Ended
Jun. 30, 2013
Oil and Gas Exploration and Production Industries Disclosures [Abstract]  
Analysis of Changes in Proved Reserves
The following table sets forth information regarding the Company's estimated proved oil and gas reserve quantities. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries and undeveloped locations are more imprecise than estimates of established producing oil and gas properties. Accordingly, these estimates are expected to change as future information becomes available.
 
United States
Australia (1)
 
Total
 
Oil
(Mbbls)
 
Gas
(Bcf)
 
Oil
(Mbbls)
 
Gas
(Bcf)
Proved Reserves:
 
 
 
 
 
 
 
Fiscal year beginning balance
9,190.0

 
0.4

 
9,190.0

 
0.4

Extensions and discoveries
186.4

 
—

 
186.4

 
—

Revision of previous estimates
(1,643.8
)
 
6.0

 
(1,643.8
)
 
6.0

Purchase of minerals in place
1,246.8

 
5.5

 
1,246.8

 
5.5

Production
(74.2
)
 
(0.4
)
 
(74.2
)
 
(0.4
)
Fiscal year ended June 30, 2012
8,905.2

 
11.5

 
8,905.2

 
11.5

Revision of previous estimates
(1,215.7
)
 
0.2

 
(1,215.7
)
 
0.2

Production
(320.9
)
 
(0.3
)
 
(320.9
)
 
(0.3
)
Fiscal year ended June 30, 2013
7,368.6

 
11.4

 
7,368.6

 
11.4

 
 
 
 
 
 
 
 
Proved Developed Reserves:
 
 
 
 
 
 
 
Fiscal year ended June 30, 2012
1,646.7

 
11.5

 
1,646.7

 
11.5

Fiscal year ended June 30, 2013
1,581.5

 
11.4

 
1,581.5

 
11.4

 
 
 
 
 
 
 
 
Proved Undeveloped Reserves:
 
 
 
 
 
 
 
Fiscal year ended June 30, 2012
7,258.4

 
—

 
7,258.4

 
—

Fiscal year ended June 30, 2013
5,787.2

 
—

 
5,787.2

 
—

(1) The amount of proved reserves applicable to Australia gas reflects the amount of gas committed to specific long term supply contracts.
Standardized Measure of Oil and Gas - Prices
The resulting prices used for proved reserves for the fiscal year ended June 30, 2013 are:
 
United States
 
Australia
Oil (per Bbl)
$82.90
 
NA
Gas (per Mcf)
NA
 
$4.92
Standardized Measure of Oil and Gas - Discounted Future Cash Flows Relating to Proved Reserves Disclosure
The following table presents the standardized measure of discounted future net cash flows related to proved oil and gas reserves:
 
United States
 
Australia
 
Total
 
(In thousands)
Fiscal year ended June 30, 2013
 
 
 
 
 
Future cash inflows
$
610,853

 
$
55,947

 
$
666,800

Future production costs
(244,703
)
 
(38,576
)
 
(283,279
)
Future development costs
(28,922
)
 
(4,095
)
 
(33,017
)
Future income tax expense
(112,193
)
 
—

 
(112,193
)
Future net cash flows
225,035

 
13,276

 
238,311

10% annual discount
(127,644
)
 
(2,991
)
 
(130,635
)
Standardized measures of discounted future net cash flows
$
97,391

 
$
10,285

 
$
107,676


 
United States
 
Australia
 
Total
 
(In thousands)
Fiscal year ended June 30, 2012
 
 
 
 
 
Future cash inflows
$
756,405

 
$
53,296

 
$
809,701

Future production costs
(291,212
)
 
(34,729
)
 
(325,941
)
Future development costs
(34,416
)
 
(4,107
)
 
(38,523
)
Future income tax expense
(152,314
)
 
(3,667
)
 
(155,981
)
Future net cash flows
278,463

 
10,793

 
289,256

10% annual discount
(156,967
)
 
(2,214
)
 
(159,181
)
Standardized measures of discounted future net cash flows
$
121,496

 
$
8,579

 
$
130,075

Standardized Measure of Oil and Gas - Changes in Standardized Measure of Discounted Future Net Cash Flows
A summary of changes in the standardized measure of discounted future net cash flows is as follows:
 
United States
 
Australia
 
Total
 
(In thousands)
Fiscal year beginning balance
$
110,016

 
$
264

 
$
110,280

Net change in prices and production costs
18,517

 
—

 
18,517

Extensions and discoveries
6,785

 
—

 
6,785

Acquisitions of reserves
26,584

 
4,872

 
31,456

Revisions of previous quantity estimates
(37,846
)
 
6,144

 
(31,702
)
Changes in estimated future development costs
(2,275
)
 
(555
)
 
(2,830
)
Sales and transfers of oil and gas produced
(941
)
 
(264
)
 
(1,205
)
Previously estimated development cost incurred during the period
5,841

 
—

 
5,841

Accretion of discount (1)
—

 
—

 
—

Net change in income taxes
(1,657
)
 
(1,576
)
 
(3,233
)
Net change in timing and other
(3,528
)
 
(306
)
 
(3,834
)
Fiscal year ended June 30, 2012
121,496

 
8,579

 
130,075

Net change in prices and production costs
(7,955
)
 
(624
)
 
(8,579
)
Revisions of previous quantity estimates
(26,503
)
 
192

 
(26,311
)
Changes in estimated future development costs
3,473

 
5

 
3,478

Sales and transfers of oil and gas produced
(20,178
)
 
556

 
(19,622
)
Previously estimated development cost incurred during the period
3,419

 
7

 
3,426

Accretion of discount
19,269

 
1,016

 
20,285

Net change in income taxes
22,258

 
1,577

 
23,835

Net change in timing and other (2)
(17,888
)
 
(1,023
)
 
(18,911
)
Fiscal year ended June 30, 2013
$
97,391

 
$
10,285

 
$
107,676

(1) For fiscal year 2012, the Company assumed no accretion in value of proved oil reserves in the US and Australia. Accretion, with respect to measuring the changes in the standardized measure of reserves values, represents the value benefit of being closer in time, relative to the prior fiscal year's standardized measure, to future cash flows in the reserve projections. During fiscal year 2012, in the US, the Company did not develop its US proved oil reserves in accordance with the reserve plans in place at the beginning of the year, but instead postponed such plans by one year. Therefore, the benefit of accretion of the prior fiscal year's reserves should not have factored into the value of the standardized measure for fiscal year 2012. During fiscal year 2012, in Australia, the reserves at the beginning of the year had been sold entirely during the fiscal year as the long term gas sales contract in place at Palm Valley expired by its term in January 2012. As such, accretion of prior year reserves was not relevant in this case.
(2) For fiscal year 2013, in the US, there was a $17,888 downward revision in reserves value due to changes in timing and other. This revision primarily relates to the change, relative to the prior year reserves projections, in the expected timing of drilling and completing PUD wells and the attendant cash flow expected from these wells. During fiscal year 2013, the Company focused its activities at Poplar on executing water shutoff treatments due to their potential attractive economics. As a result, PUDs previously estimated to be drilled during fiscal year 2013 were postponed, resulting in a change in the annual quantity and timing of PUD wells to be drilled in the current reserves projections.