Niko Resources AR 2011

Fsco Yor-End Pporc
For ch Yor Endd lorch 31, 2011

1 Annuo Hghghcs
2 Prsdncs Pporc co ch Shorhodrs
3 Pvw o Oprocons ond Cudonc
6 lonogmncs Dscusson ond Anoyss
31 lonogmncs Pporc
32 lndpndnc Audcors Pporc co Shorhodrs
33 Consodocd Fnonco Scocmncs
36 Nocs co Consodocd Fnonco Scocmncs
OBC Corporoc lnormocon
CONTENT5
1
! K O K 8 O U K C 8 L T .
AnnuaI HighIights
NlKO PEPOPT5 PE5ULT5 FOP THE YEAP ENDED MAPCH 31, 2011
Nko Psourcs Lcd. (Nko" or ch Compony") s posd co rporc cs nonco ond oprocng rsucs, ncudng consodocd nonco
scocmncs ond nocs chrco, os w os cs monogmncs dscusson ond onoyss, or ch yor ndd lorch 31, 2011. Th oprocng
rsucs or ccv Jun 28, 2011. A omouncs or n U.S. doors unss ochrws ndcocd.
FlNANClAL HlCHLlCHT5
- Thr wos o yor-ovr-yor ncros o 32 prcnc n unds rom oprocons.
- ln Occobr 2010, Nko rpod o o cs oucscondng ong-crm dbc.
- Ac lorch 31, 2011, ch Componys unrscrccd cosh cocod $108 mon.
- ln Jonuory 2009, ch Compony onnouncd choc ch Conodon ouchorcs wr ngogd n o ormo nvscgocon nco ogocons
o mpropr poymncs n 8ongodsh. Th Compony cooprocd n ch nvscgocon, whch wos concudd on Jun 24, 2011. Th
Compony podd gucy co on counc o brbry undr ch Corrupcon o Forgn Pubc Ocos Acc, wos nd Cdn$9.5 mon
ond s subcc co o 3-yor Probocon Ordr. ln ory 2009, ch Compony odopcd o u onc-corrupcon componc progrom.
EXPLOPATlON HlCHLlCHT5
- lndonso: Four nw oshor xporocon bocks wr oddd ond ch Compony ormd ouc 45 prcnc o cs workng ncrsc n
ch Srom ond Eosc 8uo bocks ond 40 prcnc o cs workng ncrsc n ch Norch lokossor Scroc, Wsc Popuo lV ond Homohro-
loou bocks. Ssmc ocquscon occvcy concnud durng ch yor ond ch ponnng o drng hos commncd.
- Trndod: Th Compony ncrosd cs xporocon ocrog n Trndod wch chr nw oshor bocks, o o whch or n proxmcy
co producng gos ds, ond ncrd nco on ogrmnc, whch cosd subsqunc co yor-nd, co ocqur o 25 prcnc workng
ncrsc n 8ock 5(c), ococd 94 komcrs o ch osc coosc o Trndod.
- lodogoscor: Ssmc ocquscon hos bn compcd ond procssng s undrwoy.
- lurdscon: Drng wos compcd co o dpch o 3,908 mcrs n loy ond cscng s undrwoy ond xpccd co concnu nco
Juy 2011.
2
! K O K 8 O U K C 8 L T .
Th Componys scrocgy o occumuocng o hghy prospccv xporocon porcoo concnud.
ln lndonso, our nw bocks wr oddd ond orm-oucs occurrd n v bocks. Form-oucs or o porc o ch Componys xporocon
scrocgy. Porcnrs n lndonso now ncud Exxonlob, lorochon, Ppso ond Scoco.
ln Trndod ond Tobogo, our nw bocks wr oddd. Porcnrs n chs councry ncud Cncrco ond PWE.
From o drng prspccv, n Trndod ond Tobogo, ch Compony hos concroccd on oshor rg choc s xpccd co spud ch Componys
rsc oshor w n ch councry n Occobr. ln lndonso, Nko hos scobshd on xcrmy scrong drng orgonzocon scod wch
sosond prossonos choc brng xcnsv dp-wocr drng xprnc.
Durng ch posc yor, uncrconcy rgordng D6 produccon, rsrvs ond gos prc hos bn o concrn. Ths uncrconcy hos bn orgy
rmovd by on ndpndnc rsrv rporc choc shows choc ch rvson co ch Componys wordwd nc provd pus probob rsrvs
wos opproxmocy 6.8 prcnc. Oproconoy, ch D6 ds gross gos produccon ovrogd opproxmocy 2 bon cubc c pr doy
ovr ch yor wch no downcm.
Du co o pr-mpcv rghc, Nko xpccs co hov ch opporcuncy co ncros cs nc ncrsc by 30 prcnc n och or o o ch D6,
NEC-25 ond D4 bocks n lndo. Nko xpccs chs opporcuncy woud b noncd wch dbc.
Nko hos o scrong produccon bos ond on xcnsv porcoo o xporocon prospccs. Two chousond ond cwv coud prov co b
Nkos mosc xccng yor vr.
'FYCTF55CORUQP
Chormon o ch 8oord, Prsdnc ond CEO
Jun 28, 2011
President's Peport to the 5harehoIders
(sgnd) Edword S. Sompson
3
! K O K 8 O U K C 8 L T .
Peview of Operations and Cuidance
5aIes VoIumes
Accuo ActuaI Forcosc
2010 2011 2012
O ond condnsoc produccon (bbsd) 1,416 2,784 1,500
Cos produccon (lcd) 227,357 278,060 227,000
Toco produccon (lcd) 235,855 294,765 236,000
Produccon rom ch D6 8ock hos ncrosd yor-ovr-yor ond s ch prmory roson or coco produccon ncross o 25 prcnc
compord co produccon n ch pror yor. Th D6 8ock s oso ch prmory roson or mprovd oprocng ncbocks os ch D6 8ock hos
hghr rozd prcs ond owr proc pcroum chon ch ovrog o ch Componys ochr proprcs.
Cos sos voums rom ch D6 8ock or ch yor ovrogd opproxmocy 198 llcd vrsus o budgc o 210 llcd du co w
prormonc. Currnc gos sos voums rom ch bock or opproxmocy 167 llcd. Produccon rom ch D6 8ock s xpccd co
dcn unc oddcono ws or drd ond cd-n.
Th Compony s orcoscng coco produccon o 236 llcd or Fsco 2012, whch ossums choc no oddcono ws w b cd n oc
D6 durng ch yor ond s consscnc wch ch scmocd produccon rom coco provd rsrvs n ch Componys rsrv rporc.
Operating Cashhow
2010 2011 2012
Oprocng coshow ($ mons)
(1)
258 365 279
Oprocng ncbock ($lc) 3.01 3.40 3.24
Oprocng coshow s dnd os o ond nocuro gos rvnus ss royocs, proc pcroum ond oprocng xpns ond s o non-CAAP
mosur. Oprocng ncbock s ch oprocng coshow pr unc o produccon mosurd n lc ond s o non-CAAP mosur.
Oprocng coshow ncrosd n Fsco 2011 prmory os o rsuc o ncrosd o ond gos sos rom ch D6 8ock. Forcosc oprocng
coshow or ch comng yor s xpccd co dcros wch ch dcros n produccon dscrbd obov. ln oddcon, moncnonc o ch
onshor crmno ond subso syscms or ch D6 8ock or xpccd co rsuc n o dcrosd oprocng ncbock.
4
! K O K 8 O U K C 8 L T .
CapitaI Expenditures
(1)
($ mons) 2010
(2)
2011 2012
Exporocon
lndo 50 19 7
lndonso 40 50 86
lurdscon Pgon 13 23 15
lodogoscor 5 26 1
Pokscon 2 2 1
Trndod 5 15 78
(3)
Nw vncurs ochr 2 2 -
Dvopmnc
lndo 92 10 118
8ongodsh 10 7 9
Toco 219 154 315
(1)
Th omouncs prsncd or ch Componys shor o xpndcurs. Copco xpndcurs ncud copcozd scock-bosd compnsocon, copcozd gnro ond
odmnscrocv xpnss ond ossc rcrmnc coscs.
(2)
Excuds ch ocquscons o 8ock Cod Enrgy LLC, Voyogr Enrgy Lcd. ond ch oddcono ncrsc n ch Qoro Dogh bock.
(3)
Excuds ch ocquscon o 8ock 5(c).
Exporocon xpndcurs or Fsco 2011 wr or drng occvcs on chr xporocon ws n ch D6 8ock, ssmc ocquscon n
lndonso ond lodogoscor, drng o ch rsc xporocon w n lurdscon ond ssmc on 8ock 2A8 n Trndod ond corryng coscs
o ch Trndod bocks. Forcosc xpndcurs or Fsco 2012 ncud drng on ch D6 ond D4 8ocks n lndo; ssmc occvcy ond
prporocon or drng occvcs n lndonso; compcon o drng ch w n lurdscon, ond ssmc occvcy n Trndod on o bocks
ond commncmnc o drng on 8ock 2A8.
Dvopmnc xpndcurs orcosc or Fsco 2012 or prmory or workovrs, drng nw ws ond ocquscon o comprsson
qupmnc or ch D6 bock.
ln oddcon co xporocon ond dvopmnc xpndcurs, ch Componys ocquscon o 8ock 5(c), ococd 94 komcrs o ch osc
coosc o Trndod cosd n Jun 2011 or o purchos prc o $78.1 mon.
FinanciaI PesuIts
($ mons) 2010 2011
Funds rom oprocons 214 283
Nc ncom 119 120
Funds rom oprocons mprovmncs rsucd rom mprovd voums ond oprocng ncbocks porcoy osc by hghr currnc
ncom coxs, hghr ncrsc xpns rocd co ch Componys convrcb dbncurs, o Cdn$9.5 mon (US$9.7mon) n
dscrbd prvousy hrn ond owr ochr ncom os ch pror yor prods bnccd rom o ovorob orbcrocon rung rocd co o
ppn dspuc.
Nc ncom ncrosd yor-ovr-yor os o rsuc o ch ncros n unds rom oprocons. Th bnc rom mprovd unds rom
oprocons wos osc by hghr non-cosh chorgs rocd prmory co dpcon ond o oss on shorc-crm nvscmncs.
5
! K O K 8 O U K C 8 L T .
ExpIoration Acreage
Nko hos ncrosd cs xporocon ocrog wch ch oddcon o chr bocks n Trndod ond our bocks n lndonso. ln oddcon, Nko
ormd ouc 45 prcnc o cs workng ncrsc n cwo bocks n lndonso co Ppso ond 40 prcnc o cs workng ncrsc n chr bocks
n lndonso co Scoco.
A comporson o Nkos nc xporocon ondhodngs os oc lorch 31, 2010 ond cs currnc ondhodngs s shown bow:
lorch 31, 2010 Jun 28, 2011
(Squor komcrs) Cross Nc Cross Nc
lndo 35,187 5,266 35,187 5,266
lndonso 59,113 47,726 79,739 52,581
lurdscon 846 313 846 313
lodogoscor 16,845 10,949 16,845 12,634
Pokscon 9,921 9,921 9,921 9,921
Trndod 3,652 1,868 7,530 4,877
8ongodsh 7,299 4,547 7,299 4,547
Toco 132,863 80,590 157,367 90,139
Forward-Looking lnformation and MateriaI Assumptions
Ths rporc on rsucs or ch yor ndd lorch 31, 2011 concons orword-ookng normocon ncudng orword-ookng normocon
obouc Nkos oprocons, rsrv scmocs, produccon ond copco spndng.
Forword-ookng normocon s gnroy sgnd by words such os orcosc", proccd", xpcc", onccpoc", bv", w",
shoud" ond smor xprssons. Ths orword-ookng normocon s bosd on ossumpcons choc ch
Compony bvs wr rosonob oc ch cm such normocon wos prpord, buc ossuronc connoc b gvn choc chs ossumpcons
w prov co b corrcc, ond ch orword-ookng normocon n chs rporc on rsucs or ch yor ndd lorch 31, 2011 shoud noc
b unduy rd upon. Th orword-ookng normocon ond ch Componys ossumpcons or subcc co uncrconcs ond rsks ond or
bosd on o numbr o ossumpcons mod by ch Compony, ony o whch moy prov co b ncorrcc.
Th Compony updocs orword-ookng normocon rocd co oprocons, produccon ond copco spndng on o quorcry boss ond
updocs rsrv scmocs on on onnuo boss. Pr co Psk Foccors" concond n ch Componys monogmncs dscusson ond onoyss
or dscusson o uncrconcs ond rsks choc moy cous occuo vncs co dr rom orword-ookng normocon provdd n chs rporc
on rsucs or ch yor ndd lorch 31, 2011.
6
! K O K 8 O U K C 8 L T .
Ths lonogmncs Dscusson ond Anoyss (lD&A) o ch nonco condcon, rsucs o oprocons ond cosh ows o Nko Psourcs
Lcd. (Nko" or ch Compony") or ch yor ndd lorch 31, 2011 shoud b rod n conunccon wch ch oudcd consodocd nonco
scocmncs or ch yor ndd lorch 31, 2011. Ths lD&A s ccv Jun 28, 2011. Addcono normocon rocng co ch Compony,
ncudng ch Componys Annuo lnormocon Form (AlF), s ovoob on SEDAP oc www.sdor.com.
A nonco normocon s prsncd n chousonds o U.S. doors unss ochrws ndcocd.
Th crm ch ourch quorcr" s usd chroughouc ch lD&A ond n o coss rrs co ch prod rom Jonuory 1, 2011 chrough
lorch 31, 2011. Th crm pror yors quorcr" s usd chroughouc ch lD&A or comporocv purposs ond rrs co ch prod rom
Jonuory 1, 2010 chrough lorch 31, 2010.
Th sco yor or ch Compony s ch 12-monch prod ndd lorch 31. Th crms Fsco 2010" ond pror yor" s usd chroughouc
chs lD&A ond n o coss rrs co ch prod rom Apr 1, 2009 chrough lorch 31, 2010. Th crms Fsco 2011", currnc yor" ond
ch yor" or usd chroughouc ch lD&A ond n o coss rr co ch prod rom Apr 1, 2010 chrough lorch 31, 2011. Th crm
Fsco 2012" s usd chroughouc chs lD&A ond n o coss rrs co ch prod rom Apr 1, 2011 chrough lorch 31, 2012.
lc (chousond cubc c quvonc) s o mosur usd chroughouc ch lD&A. lc s drvd by convrcng o ond condnsoc co
nocuro gos n ch roco o 1 bb:6 lc. lc moy b msodng, porccuory usd n soocon. An lc convrson roco o 1 bb: 6 lc
s bosd on on nrgy quvoncy convrson mchod prmory oppcob oc ch burnr cp ond dos noc rprsnc o vou quvoncy
oc ch whod. ll8cu (mon 8rcsh chrmo uncs) s o mosur usd n ch lD&A. lc rrs co ch nrgy concnc o nocuro gos (os
w os ochr us) ond s usd or prcng purposs. On ll8cu s quvonc co 1 lc pus or mnus up co 20 prcnc, dpndng on
ch composcon ond hocng vou o ch nocuro gos n quscon.
Lss chon 2 prcnc o coco corporoc voums ond coco corporoc rvnu or rom Conodon o ond 8ongodsh condnsoc.
Thror, ch rsucs rom Conodon o ond 8ongodsh condnsoc produccon or noc dscussd sporocy.
Forward-Looking lnformation and MateriaI Assumptions
Ths lD&A concons orword-ookng normocon ncudng orword-ookng normocon obouc Nkos oprocons, rsrv scmocs,
produccon ond copco spndng. Forword-ookng normocon s gnroy sgnd by words such os orcosc", proccd", xpcc",
onccpoc", bv", w", shoud" ond smor xprssons. Ths orword-ookng normocon s bosd on ossumpcons choc ch
Compony bvs wr rosonob oc ch cm such normocon wos prpord, buc ossuronc connoc b gvn choc chs ossumpcons
w prov co b corrcc, ond ch orword-ookng normocon n chs lD&A shoud noc b unduy rd upon. Th orword-ookng
normocon ond ch Componys ossumpcons or subcc co uncrconcs ond rsks ond or bosd on o numbr o ossumpcons mod by
ch Compony, ony o whch moy prov co b ncorrcc.
Forword-ookng normocon n chs lD&A ncuds, buc s noc ncssory mcd co, ch oowng:
Forcosc produccon rocs: Th Compony prpors produccon orcoscs cokng nco occounc hscorco ond currnc produccon,
occuo ond ponnd vncs choc or xpccd co ncros or dcros produccon ond produccon vs ndcocd n ch Componys
rsrv rporcs.
Forcosc copco spndng ond commcmncs: Th Compony prpors copco spndng orcoscs bosd on ncrno budgcs or oprocd
proprcs, budgcs prpord by ch Componys onc vncur porcnrs, whn ovoob, or non-oprocd proprcs, d dvopmnc
pons ond occuo ond ponnd vncs choc or xpccd co occ ch cmng or omounc o ch copco spndng.
Management's Discussion and AnaIysis
7
! K O K 8 O U K C 8 L T .
Forcosc oprocng xpnss: Th Compony prpors oprocng xpns orcoscs bosd on hscorco ond currnc vs o xpnss
ond occuo ond ponnd vncs choc or xpccd co ncros or dcros produccon ondor ch ossococd xpnss.
Tmng o produccon ncross, cmng o commncmnc o produccon ond cmng o copco spndng: Th Compony dscoss
ch nocur ond cmng o xpccd ucur vncs bosd on ch Componys budgcs, pons, ncncons ond xpccd ucur vncs or
oprocd proprcs. Th nocur ond cmng o xpccd ucur vncs or non-oprocd proprcs or bosd on budgcs ond ochr
communcocons rcvd rom ch Componys onc vncur porcnrs.
Th Compony updocs orword-ookng normocon rocd co oprocons, produccon ond copco spndng on o quorcry boss ond
updocs rsrv scmocs on on onnuo boss. Pr co Psk Foccors" concond n chs lD&A or dscusson o uncrconcs ond rsks
choc moy cous occuo vncs co dr rom orword-ookng normocon provdd n chs lD&A.
Non-CAAP Measures
Th sccd nonco normocon prsncd chroughouc ch lD&A s prpord n occordonc wch Conodon gnroy occpcd
occouncng prncps (CAAP), xcpc or unds rom oprocons", oprocng ncbock", unds rom oprocons ncbock", ornngs
ncbock" ond sgmnc proc", whch or usd by ch Compony co onoyz ch rsucs o oprocons.
8y xomnng unds rom oprocons, ch Compony s ob co ossss cs posc prormonc ond co hp dcrmn cs obcy co und ucur
copco proccs ond nvscmncs. Funds rom oprocons s cocuocd os cosh ows rom oprocng occvcs pror co ch chong n
oprocng non-cosh workng copco ond ch chong n ong-crm occouncs rcvob cocuocd os oows:
Years Ended March 31, 2011 2010
Cosh provdd by oprocng occvcs (CAAP mosur) $ 240,310 $ 181,718
Addbock:
Chong n non-cosh workng copco 12,933 26,103
Chong n ong-crm occouncs rcvob 29,930 5,987
Funds rom oprocons (non-CAAP mosur) $ 283,173 $ 213,808
8y xomnng oprocng ncbock, unds rom oprocons ncbock, ornngs ncbock ond sgmnc proc, ch Compony s ob co vouoc
posc prormonc by sgmnc ond ovro. Oprocng ncbock s cocuocd os o ond nocuro gos rvnus ss royocs, proc pcroum
xpnss ond oprocng xpnss or o gvn rporcng prod, pr chousond cubc c quvonc (lc) o produccon or ch som
prod, ond rprsncs ch bor-cox cosh morgn or vry lc sod.
Funds rom oprocons ncbock s cocuocd os ch unds rom oprocons pr lc ond rprsncs ch cosh morgn or vry lc sod.
Eornngs ncbock s cocuocd os nc ncom pr lc ond rprsncs nc ncom or vry lc sod.
Sgmnc proc s dnd os o ond nocuro gos rvnus ss royocs, proc pcroum xpnss, oprocng xpnss, dpcon,
dprcocon ond occrcon xpns ond currnc ond ucur ncom coxs rocd co och busnss sgmnc.
Th Compony dns workng copco os currnc osscs ss currnc obcs ond uss workng copco os o mosur o ch Componys
obcy co u obgocons wch currnc osscs.
Ths non-CAAP mosurs do noc hov ony scondordzd monng prscrbd by CAAP ond or chror unky co b comporob co
smor mosurs prsncd by ochr compons.
8
! K O K 8 O U K C 8 L T .
AII amounts are in thousands of U.5. doIIars unIess otherwise indicated.
OVEPALL PEPFOPMANCE
; j c Y h [ g d b D e Z g V i ^ d c h
O ond nocuro gos rvnus $ 453,824 $ 334,111
Poyocs [20,707) (14,979)
Proc pcroum [29,261) (29,533)
Oprocng xpns [38,360) (31,125)
lncrsc ncom ond ochr 912 12,679
lncrsc ond noncng xpns [24,914) (19,843)
Cnro ond odmnscrocv xpns [11,972) (11,069)
Ochr xpns [9,727) -
Pozd orgn xchong gon (oss) 278 (1,582)
Currnc ncom cox xpns [36,900) (24,851)
Funds rom oprocons
(1)
$ 283,173 $ 213,808
(1)
Funds rom oprocons s o non-CAAP mosur os dnd undr Non-CAAP mosurs" n chs lD&A.
Nocuro gos produccon rom ch D6 8ock commncd n Apr 2009 ond produccon voums wr ncrosng ovr Fsco 2010. Wch
16 co 17 ws producng or mosc o Fsco 2011, nocuro gos rvnus rom ch D6 8ock ncrosd by $86 mon. O ond condnsoc
produccon voums rom ch D6 8ock ncrosd ond ch Compony rozd o hghr prc chon n ch pror yor ncrosng rvnus by
$44 mon. 8ock 9 condnsoc produccon ond prc ncrosd comprsng ch moorcy o ch $4 mon ncros n rvnus rom ch
bock. Th ncros n D6 ond 8ock 9 rvnus wr porcoy osc by concnung nocuro dcns oc Hozro ond Suroc.
Poyocs, oprocng xpns ond currnc ncom cox xpns ncrosd wch ch nc ncros n produccon dscrbd obov.
ln spc o o sgnconc ncros n o ond gos rvnu, proc pcroum wos rocvy consconc prod-ovr-prod prmory du co
D6 rvnus occroccng o vry ow proc pcroum chorg ond oso du co ch poscv mpocc o ncudng ch 36-nch ppn or
cosc rcovry oc ch Hozro d. S noc 24() co ch consodocd nonco scocmncs or ch compc dscusson o o concngncy
rocd co ch oword o ch 36-nch ppn.
lncrsc ond ochr ncom n ch pror yor ncud o $9 mon oduscmnc rocd co ch succssu orbcrocon o o dspuc ovr o
36-nch ppn choc s connccd co ch Hozro occs.
lncrsc ond noncng xpns s or ch os o ch Foocng Produccon, Scorog ond Ooodng vss (FPSO) rocd co D6 o
produccon, ncrsc xpns on ch ong-crm dbc ond ncrsc xpns on ch convrcb dbncurs, whch wr ssud durng ch
pror yor.
Ochr xpns s o n rocd co ch Componys gucy po undr ch Corrupcon o Forgn Pubc Ocos Acc. Pr co ch
Corporoc" sccon n chs lD&A or u dcos.
Th Componys rozd orgn xchong gon n ch yor oros prmory on ch sccmnc o lndon-rup dnomnocd workng
copco oc orgn xchong rocs choc dr rom ch rocs whn ch occouncs rcvob or poyob wr ncoy scobshd.
9
! K O K 8 O U K C 8 L T .
C Z i > c X d b Z
Funds rom oprocons (non-CAAP mosur) $ 283,173 $ 213,808
Unrozd orgn xchong gon (oss) 597 (8,572)
(Loss) gon on shorc-crm nvscmncs [12,720) 14,554
lncrsc ond noncng xpns ond ochr [4,914) (267)
Scock-bosd compnsocon xpns [28,998) (19,778)
Dpcon, dprcocon ond occrcon [139,242) (101,367)
Fucur ncom cox rduccon 21,844 20,410
Nc ncom $ 119,740 $ 118,788
losc o ch ncros n unds rom oprocons wos osc by ochr occors occng nc ncom os xpond bow.
Th unrozd orgn xchong gon wos prmory o rsuc o ch cronsocon o ch lndon-rup dnomnocd ncom cox rcvob
ond ucur ncom cox ossc.
Th oss or gon on shorc-crm nvscmncs oso concrbucd co yor-ovr-yor voroncs.
Th porcon o ncrsc ond noncng xpns ncudd obov rocs prmory co occrcon o ch convrcb dbncurs.
Th ncros n scock-bosd compnsocon xpns n ch yor s prmory o rsuc o ch ncrosd or vou xpns pr scock opcon
ond on ncros n ch numbr o scock opcons bng groncd.
Dpcon xpns ncrosd prmory du co ch ncrosd produccon rom ch D6 8ock.
Th ucur ncom cox rcovry consscs o o cox crdc ovoob or ucur yors rocd co ch mnmum ocrnocv cox pod or ch
D6 8ock porcoy osc by o ucur ncom cox xpns choc wos rcognzd os o rsuc o o proccd rduccon n produccon durng
ch cox hodoy prod.
BACKCPOUND ON PPOPEPTlE5
Nko Psourcs Lcd. s ngogd n ch xporocon or ond, whr succssu, ch dvopmnc ond produccon o nocuro gos ond o n
lndo, 8ongodsh, lndonso, ch lurdscon rgon o lroq, Trndod, Pokscon ond lodogoscor. Th Compony hos ogrmncs wch ch
govrnmncs o chs councrs or rghcs co xpor or ond, succssu, produc nocuro gos ond o. Th Compony gnroy s groncd
on xporocon cnc co commnc work. Th ogrmncs gnroy nvov o numbr o xporocon phoss wch spcd mnmum
work commcmncs ond ch moxmum numbr o yors co compc ch work. Ac ch nd o ony xporocon phos, ch Compony hos ch
opcon o concnung co ch nxc xporocon phos ond moy b rqurd co rnqush o porcon o ch non-dvopmnc ocrog co ch
rspccv govrnmnc. l o commrco dscovry s noc mod by ch nd o o ch xporocon phoss, ch Componys rghcs co xpor
ch bock gnroy crmnoc. ln ch vnc o o dscovry choc s dcrmnd co b commrco, ch Compony prpors o dvopmnc
pon ond opps co ch govrnmnc or o pcroum mnng cnc. Th pcroum mnng cncs or or o spcd numbr o yors
ond moy b xcndd undr crcon crcumsconcs. Durng ch produccon phos, ch Compony s rqurd co poy ony royocs spcd
n ch ogrmncs ond coxs oppcob n ch councry or os spcd n ch produccon shorng concrocc (PSC). Whr ch Compony s
currncy producng, ch Compony poys co ch govrnmnc on ncrosng shor o ch procs bosd on on lnvscmnc lucp (ll) or
on produccon vs pus on ll, or o xd shor o procs, dpndng on ch ogrmnc. Th ll s ch numbr o cms ch Compony
hos rcovrd cs nvscmnc n ch proprcy rom cs shor o procs rom ch proprcy. Ac ch nd o ch o ch d or ch
mnng cnc, ch d ond ch osscs rvrc co ch govrnmnc; howvr, ch Compony s rsponsb or ch coscs o obondonmnc
ond rscorocon.
10
! K O K 8 O U K C 8 L T .
> c Y ^ V
Cauvery - Th Compony hos o 100 prcnc workng ncrsc ond oprocs ch bock, whch covrs 957 squor komcrs. Th Compony
hos prormd ch ssmc work ond drd our o ch v ws rqurd undr ch rsc xporocon phos. Th scmocd cosc o ch
rmonng work commcmnc s $2 mon. Ws drd co doc hov bn unsuccssu. Th Compony ncnds co rnqush ch bock.
D4 - Th Compony hos o 15 prcnc ncrsc n ch D4 8ock, ococd n ch lohonod 8osn oshor rom ch osc coosc o lndo.
Th bock, whch s currncy n ch xporocon phos, ncomposss mor chon 17,000 squor komcrs. Th commcmnc or
Phos l xporocon ncuds ssmc work ond chr xporocon ws. Orgnoy, ch work commcmnc wos co b compcd by
Spcmbr 2009; howvr, ch Covrnmnc o lndo opprovd o bonkc xcnson co Dcmbr 31, 2010 or chs ond ochr dp-wocr
bocks. Ths ond ochr xcnsons oow ch Compony unc Jun o 2013 co dr ch chr ws. Th Componys shor o ch scmocd
cosc o ch rmonng work commcmnc s $10 mon.
D6 - Th Compony hos o 10 prcnc workng ncrsc n ch 7,645-squor-komcr D6 8ock. Th D6 8ock comprsd 79 prcnc o ch
Componys o ond gos rvnu durng ch yor. Produccon rom ch lA dscovry bgon n Spcmbr 2008 ond rom ch Dhrubho
1 ond 3 dscovrs n Apr 2009. Th Compony hos bn groncd pcroum mnng cncs or ch dscovrs xprng n 2028 ond
2025, rspccvy. O produccon s sod on ch spoc morkc oc o prc bosd on 8onny Lghc ond oduscd or quocy. Cos produccon
s sod undr ong-crm gos concroccs usng o prcng ormuo opprovd by ch Covrnmnc o lndo, whch currncy rsucs n o prc
o $4.20ll8cu nc ond chr s o morkcng morgn o $0.135ll8cu ornd n oddcon co ch prc ormuo. Ths quocs co o sos
prc o opproxmocy $3.95lc.
Undr ch crms o ch produccon shorng concrocc (PSC) wch ch Covrnmnc o lndo or ch D6 bock, ch Compony s rqurd
co poy ch govrnmnc o royocy o 5 prcnc o ch w-hod vou o crud o ond nocuro gos or ch rsc svn yors rom ch
commncmnc o commrco produccon n ch d ond chrocr co poy 10 prcnc.
ln oddcon, ch Compony poys o prcncog o ch procs rom ch bock co ch govrnmnc, whch vors wch ch lnvscmnc lucp
(ll). Th Compony poys 10 prcnc o procs whn ch ll s ss chon 1.5; 16 prcnc bcwn 1.5 ond 2; 28 prcnc bcwn 2 ond
2.5; ond 85 prcnc chrocr. As oc lorch 31, 2011, ch proc shor wos 10 prcnc.
Hazira - Th Compony hos o 33 prcnc workng ncrsc n ch 50-squor-komcr Hozro onshor ond oshor bock on ch wsc
coosc o lndo. Th Hozro 8ock comprsd 4 prcnc o ch Componys o ond gos rvnus n ch yor.
Th Compony hos o pcroum mnng cnc choc xprs n Spcmbr 2014, whch con b xcndd. Th Compony hos on sgnconc
concrocc or ch so o gos produccon rom ch d xprng n Apr 2016 oc o currnc prc o $4.86lc.
NEC-25 - Th Compony hos o 10 prcnc workng ncrsc n ch NEC-25 8ock, whch covrs 9,461 squor komcrs n ch lohonod
8osn o ch osc coosc o lndo. Th Compony hos ud cs copco commcmncs or ch bock.
5urat - Th Compony hods o dvopmnc oro o 24 squor komcrs conconng ch 8hmo ond NSA shoow nocuro gos ds.
Th bock comprsd 3 prcnc o ch Componys o ond gos rvnu n ch quorcr. Th Compony hos on concrocc or ch so o gos
produccon oc o prc o $6.00 lc unc lorch 31, 2013.
11
! K O K 8 O U K C 8 L T .
7 V c \ a V Y Z h ]
BIock 9 - Th Compony hods o 60 prcnc ncrsc n chs 6,880-squor-komcr onshor bock choc ncomposss ch copco ccy
o Dhoko. Nocuro gos ond condnsoc produccon rom chs d bgon n loy 2006 ond comprsd 14 prcnc o ch Componys o
ond gos rvnus or ch yor. As pr ch PSC, ch Compony hos rghcs co produc or o prod o 25 yors ond chs orrongmnc s
xcndob produccon concnus byond chs prod. Th Compony ss gos undr o gos purchos ond sos ogrmnc (CPSA) oc o
currnc prc o $2.34ll8cu (opproxmocy $2.33lc) or o prod up co 25 yors. Th Compony shors o prcncog o ch procs
rom ch bock wch ch govrnmnc, whch vors wch produccon ond whchr or noc ch Compony hos rcovrd cs nvscmnc. Th
Compony poys co ch govrnmnc 61 prcnc ond 66 prcnc o procs, rspccvy, bor ond ocr coscs or rcovrd on nocuro
gos produccon up co 150 llcd. Procs on nocuro gos or cocuocd os ch mnmum o () 55 prcnc o rvnu or ch prod ond
() rvnu ss oprocng ond copco coscs ncurrd co doc. As oc lorch 31, 2011, ch proc shor wos 61 prcnc.
> c Y d c Z h ^ V
Th Compony hods ncrscs n PSCs or 16 oshor xporocon bocks covrng 79,739 squor komcrs. Th chorc bow ndcocs
ch ococon, oword doc, ch Componys workng ncrsc ond ch sz o ch bock.
Workng Aro (Squor
8ock Nom Oshor Aro Aword Doc lncrsc lomcrs)
8on 8oy Suows SW Nov. 2008 45? 4,969
Souch Eosc Cono
(1)
lokossor Scroc Nov. 2008 100? 4,868
Srom
(1)
Srom Norch Nov. 2008 55? 4,991
Souch locndok
(1)
Suows NE Nov. 2008 100? 5,182
Wsc Sogr
(1)
Cndrowosh Popuo NW loy 2009 45? 4,991
loou
(1)
Wsc Popuo loy 2009 100? 5,000
lumowo Popuo SW loy 2009 45? 5,004
Eosc 8uo
(1)
Srom NE Nov. 2009 55? 6,029
Homohro-loou
(1)
Popuo W Nov. 2009 48? 4,926
Norch lokosor
(1)
Wsc Popuo lV
(1)
Popuo SW Nov. 2009 48? 6,389
Cndrowosh 8oy ll Popuo NW loy 2010 50? 5,073
Cndrowosh 8oy lll
(1)
Popuo NW loy 2010 50? 4,689
Cndrowosh 8oy lV
(1)
Popuo NW loy 2010 50? 3,904
Sundo Scroc l
(1)
Sundo Scroc loy 2010 100? 6,960
(1)
Oprocd by ch Compony.
A o ch bocks or n ch rsc xporocon prod, whch s o chr-yor prod. Th ssmc commcmncs hov bn mc ond 10 o
ch bocks hov o sng w commcmnc. Th Compony hos scmocd ch coscs ossococd wch ch rmonng work commcmncs
co compc ch rsc xporocon prod. Ths coscs or scmocd co b $148 mon co b spnc by Novmbr 2011; on oddcono
$54 mon by loy 2012; on oddcono $6 mon by Novmbr 2012; ond on oddcono $46 mon by loy 2013. Th Compony hos
oppd or pons co oppy or xcnsons whr drng occvcy s ponnd. Th Compony xpccs co b groncd opprovo rom ch
Covrnmnc o lndonso bor ch PSC chr-yor onnvrsory. Th Compony s rqurd co rnqush o porcon o ch xporocon
ocrog ocr ch rsc xporocon prod. Th drng progrom or ch Componys oprocd bocks s xpccd co commnc
ory 2012.
12
! K O K 8 O U K C 8 L T .
@j g Y ^ h i V c
Th Compony hos o 37 prcnc ncrsc ond corrs ch proporconoc cosc or ch rgono govrnmncs ncrsc, rsucng n o 46
prcnc cosc ncrsc n ch onshor Qoro Dogh bock. Th bock covrs opproxmocy 846 squor komcrs, n ch Suoymonyoh
Covrnoroc o ch Fdro Pgon o lurdscon n lroq. Th xporocon prod s or o crm o v yors ond s xcndob by cwo on-
yor crms. An xporocory w wos drd bcwn loy 2010 ond loy 2011 ond ch w s currncy bng cscd. Th Componys
shor o ch scmocd rmonng coscs or ch xporocon prod s $38 mon.
I g ^ c ^ Y V Y
Th Compony hods ncrscs n nn PSCs or svn xporocon oros. Th chorc bow ndcocs ch ococon, PSC doc, ch Componys
workng ncrsc ond ch sz o ch bock.
Workng Aro (Squor
Exporocon Aro Lococon PSC Doc lncrsc lomcrs)
8ock 2A8
(1)
Oshor Juy 2009 35.75? 1,605
Cuoyoguoyor - Shoow Horzon
(1)
OnshorOshor Juy 2009 65? 1,134
Cuoyoguoyor - Dp Horzon
(1)
OnshorOshor Juy 2009 80? 1,190
Cncro Pong - Shoow Horzon Onshor Spc. 2008 32.5? 734
Cncro Pong - Dp Horzon Onshor Spc. 2008 40? 856
8ock 4(b)
(1)
Oshor Apr 2011 100? 754
NClA2
(1)
Oshor Apr 2011 56? 1,020
NClA3
(1)
Oshor Apr 2011 80? 2,107
8ock 5(c)
(1)
Oshor Juy 2005 25? 324
(1)
Oprocd by ch Compony.
Th Compony hos mnmum work commcmncs or ch ocquscon or rprocssng o ssmc or o o ch bocks ond co dr o coco
o 14 ws on ch bocks. Th scmocd cosc co compc chs commcmncs s: $24 mon co b spnc by Juy 2012; on oddcono
$46 mon by Spcmbr 2012; ond oddcono $14 mon by Juy 2013; on oddcono $69 mon by Apr 2014; ond on oddcono
$53 mon by Apr 2016.
ln Dcmbr 2010, ch Compony sgnd on ogrmnc co ocqur o 25? ncrsc n 8ock 5(c), ococd 94 komcrs o ch osc coosc o
Trndod. Th purchos prc wos $75.5 mon ccv os o Dcmbr 22, 2010 ond ch ossumpcon o ch srs obcy undr ch
prormonc guoronc provdd or ch 8ock lC cns. Th Compony hod pod $20 mon os o dposc ogonsc ch purchos prc
oc lorch 31, 2011. Th Compony cosd ch ocquscon o 8ock 5(c) n Jun 2011 ond pod on oddcono $58.1 mon rsucng n o
purchos prc o $78.1 mon oc cosng. Th cronsr o ch 8ock lC cns hos noc bn compcd ond s subcc co ch socsoccon
o crcon condcons.
B V Y V \ V h X V g
Th Compony hos o 75 prcnc workng ncrsc n o PSC or o 16,845-squor-komcr bock o ch wsc coosc o lodogoscor wch
wocr dpchs rongng rom shoow wocr co 1,500 mcrs. Th Compony compcd o 31,944-n komcr oro-mogncc survy ond o
10,000 squor komcr muc-bom survy. A 3,236-squor-komcr 3D survy wos compcd n Juy 2010. Th 3D ssmc w u
ch Phos ll work commcmnc. Th cosc o ch Phos lll work commcmnc s scmocd oc $40 mon ond ncuds drng o w. A w
ococon s xpccd co b sccd ocr ssmc ncrprcocon.
13
! K O K 8 O U K C 8 L T .
E V ` ^ h i V c
Th Compony hos produccon shorng ogrmncs (PSAs) or our bocks n Pokscon. Th bocks or ococd n ch Arobon So oshor
ch ccy o loroch ond covr o combnd oro o omosc 10,000 squor komcrs. Eoch ogrmnc s or o chr-Phos xporocon
prod choc nds lorch 2013 ond o urchr rnwo o 2 yors n ch vnc o commrco produccon. Phos ll o ch xporocon prod
nds lorch 2012 ond ch Compony hos subsconcoy compcd ch commcmncs undr chs phos chrough ssmc occvcy. Th
Compony hos vouocd ch ssmc, hos sccd drng ococons ond pons co corgc drng n oc 2012.
CAPlTAL ADDlTlON5
For the Year Ended March 31, 2011
xplcraticr
lndo $ 18,593
lndonso 49,698
lurdscon 23,438
lodogoscor 25,699
Pokscon 1,983
Trndod 15,040
Nw vncurs Ochr 2,170
Develcprert
8ongodsh 7,302
lndo 9,645
Toco
(1)
$ 153,568
(1)
Th omouncs prsncd or ch Componys shor o xpndcurs. Copco xpndcurs ncud copcozd scock-bosd compnsocon, copcozd gnro ond
odmnscrocv xpnss ond ossc rcrmnc coscs.
E x p I o r u I i o n
lndo: Thr wos drng occvcy on chr xporocon ws, AP1, Al3 ond AW1, n ch D6 8ock durng ch yor. Th AP1 w wos ch
chrd w opprosng ch P-compx", whch s o prvous gos dscovry. Th P-compx s ococd opproxmocy 37 komcrs co ch
souch o ch Dhrubho 1 ond 3 producng gos ds. 8och ch AP1 ond ch Al3 ws wr succssu gos ws ond or currncy bng
vouocd. Th AW1 w s oso on opproso w n ch vcncy o ch P1 compx. Exporocon drng s xpccd co rcommnc n
ch ucur.
Ac NEC-25, ch Compony drd o succssu ch w n ch souchrn AJ" porcon o ch bock.
Th rmonng cwo ws o ch chr-w drng progrom n ch Hozro bock wr drd durng ch yor. A chr ws ncouncrd
o nw o borng ncrvo choc owocs urchr vouocon.
lndonso: ln ch yor, ovr 13,500 komcrs o 2D ssmc wos ocqurd, ond rom ncpcon co ch nd o lorch 2011, ch progrom
hod occumuocd opproxmocy 28,000 komcrs o 2D ssmc covrng 12 PSCs ond cwo onc scudy oros. Ths wos occompshd
oc on ovrog cosc o opproxmocy $900 pr komcr ond wch zro hours osc du co nury durng mor chon 393,000 mon-hours o
ssmc oprocons.
ln ch yor, opproxmocy 6,600 squor komcrs o 3D ssmc wos ocqurd rsucng n o cumuocv coco o ovr 11,000 squor
komcrs o 3D ssmc by ch nd o lorch 2011. Th ovrog cosc o ch 3D ssmc wos opproxmocy $5,500 pr squor
komcr.
14
! K O K 8 O U K C 8 L T .
lurdscon: Drng o on xporocory w on ch Qoro Dogh onccn bgon n loy 2010 ond wos drd co o dpch o 3,558 mcrs oc
lorch 31, 2011.
lodogoscor: A 3,236-squor-komcr 3D survy bgon n Apr 2010 ond wos compcd n Juy 2010 oc o cosc o opproxmocy $6,400
pr squor komcr.
Trndod: Copco oddcons n Trndod or or ssmc on 8ock 2A8 ond ch coscs o poymncs undr ch PSC ond corryng coscs o ch
bocks.
O c c c I o p m c n I
lndo: Thr wos drng occvcy on cwo dvopmnc ws n ch D6 8ock durng ch yor, 816 ond A21.
8ongodsh: Copco oddcons ncud on oduscmnc co ch scmoc o ossc rcrmnc obgocons.
5ECMENT PPOFlT
> c Y ^ V
Nocuro gos rvnu $ 311,730 $ 238,274
O ond condnsoc rvnu
(1)
78,200 34,359
Poyocs [20,638) (14,900)
Proc pcroum [7,907) (9,184)
Oprocng xpnss [30,694) (25,129)
Currnc ncom cox xpns [37,898) (24,315)
Fucur ncom cox rcovry 21,844 20,410
Sgmnc proc
(2)
$ 205,274 $ 146,539
Doy nocuro gos sos (lcd) 211,018 157,987
Doy o ond condnsoc sos (bbsd)
(1)
2,559 1,300
Oprocng coscs ($lc) $ 0.37 $ 0.42
Dpcon roc ($lc) $ 1.29 $ 1.16
(1)
Produccon choc s n nvncory hos noc bn ncudd n ch rvnu or cosc omouncs ndcocd.
(2)
Sgmnc proc s o non-CAAP mosur os cocuocd obov.
Sgmnc proc rom lndo ncuds ch rsucs rom ch Dhrubho 1 ond 3 gos d ond ch lA o d n ch D6 8ock, ch Hozro o
ond gos d ond ch Suroc gos d.
Pevenue and PoyaIties
Th Componys gos produccon or ch yor rom ch D6 bock ovrogd 198 llcd compord co 139 llcd n ch pror yor. Th
ncros n voums concrbucd co on $86 mon ncros n rvnus. Th prc rcvd or gos sos rom ch D6 8ock wos consscnc
yor-ovr-yor oc $3.95lc. Produccon rom ch D6 8ock s xpccd co dcn unc oddcono ws or drd ond cd-n.
Nocuro gos produccon rom ch Suroc ond Hozro ds dcrosd du co nocuro dcns n chs ds or o dcros o $13 mon n
rvnus n ch yor compord co ch pror yor. Th nocuro dcns or xpccd co concnu n ch comng yor.
15
! K O K 8 O U K C 8 L T .
Crud o ond condnsoc produccon rom ch lA d n ch D6 8ock ncrosd wch oddcono ws puc on produccon n ch posc
yor. On o ch ws s o gos w choc hod ovrog sos or ch yor o opproxmocy 206 bbsd o condnsoc. Th Componys
crud o ond condnsoc sos rom ch D6 bock or ch yor ovrogd 2,396 bbsd compord co 1,096 bbsd n ch pror yor. Th
Componys o sos rom ch Hozro bock or ch yor ovrogd 163 bbsd compord co 204 bbsd n ch pror yor. Th Compony
rcvd o prc o $83.65bb n ch yor compord co $72.46bb n ch pror yor. Th ovro ncros n o ond condnsoc sos ond
ch ncrosd sos prc rsucd n on ncros n rvnu o $44 mon.
Th ncros n royocs s o rsuc o ch ncros n rvnus rom ch D6 8ock snc ch pror yor. Poyocs oppcob co produccon
rom ch D6 8ock or 5 prcnc or ch rsc svn yors o commrco produccon ond gos royocs oppcob co ch Hozro ond Suroc
ds or currncy 10 prcnc o ch sos prc.
P r o / i I P c I r o I c u m
Pursuonc co ch crms o ch PSCs ch Covrnmnc o lndo s nccd co o sdng sco shor n ch procs onc ch Compony hos
rcovrd cs nvscmnc. Procs or dnd os rvnu ss royocs, oprocng xpnss ond copco xpndcurs.
Th nc dcros n proc pcroum n ch yor wos prmory o rsuc o ch ncuson o ch 36-nch ppn or cosc rcovry or ch
Hozro d. Ths wos porcoy osc by proc pcroum poymncs on ch ncrosd rvnus rom ch D6 bock.
For ch D6 8ock, ch Compony s ob co us up co 90 prcnc o procs co rcovr coscs. Th govrnmnc wos nccd co 10 prcnc
o ch procs noc usd co rcovr coscs durng ch yor. Proc pcroum durng ch yor wos $3.5 mon, whch s on prcnc o
rvnus, ond w concnu oc chs v unc ch Compony hos rcovrd cs coscs.
For Hozro, n ch yor ond ch pror yor, ch govrnmnc wos nccd co 25 prcnc o ch procs.
For Suroc, ch Compony rcovrd cs nvscmnc n ch osc quorcr o ch pror yor ond bgon shorng procs wch ch govrnmnc oc
o roc o 20 prcnc.
O p c r u I i n g E x p c n s c s
Oprocng xpnss ncrosd durng ch yor compord co ch pror yor. Howvr, on o unc-o-produccon boss, oprocng coscs
hov dcrosd rom ch pror yor os o sgnconc porcon o ch oprocng coscs or ch D6 8ock or xd. lncrosd oprocng coscs
or xpccd or ch D6 8ock n ch comng yor os o rsuc o moncnonc o ch onshor crmno ond subso syscms.
O c p I c I i o n , O c p r c c i u I i o n u n d A c c r c I i o n
Th dpcon roc or ch yor hos ncrosd co $1.29lc n ch yor rom $1.16lc prmory os o rsuc o ch rvson co rsrv
voums ond ucur coscs choc mpoccd ch dpcon rcordd n ch ourch quorcr os o rsuc o ch lorch 31, 2011 rsrv rporc.
1 n c o m c T u x c s
Th ncros n currnc ncom cox xpns s prmory o rsuc o ch currnc ncom cox xpns rocd co mnmum ocrnocv
cox on ch procs rom ch D6 8ock. Th ucur ncom cox rcovry consscs o o cox crdc ovoob or ucur yors rocd co ch
mnmum ocrnocv cox pod porcoy osc by o ucur ncom cox xpns choc wos rcognzd os o rsuc o o proccd rduccon n
produccon durng ch cox hodoy prod.
C o n I i n g c n c i c s
Th Compony hos concngncs rocd co gos sos concroccs, ch proc pcroum cocuocon ond ownrshp o ch 36" ppn or
Hozro ond rocd co ncom coxs or Hozro ond Suroc os oc lorch 31, 2011. Pr co ch consodocd nonco scocmncs ond nocs
or ch prod ndd lorch 31, 2011 or o compc dscusson o ch concngncs.
16
! K O K 8 O U K C 8 L T .
7 V c \ a V Y Z h ]
Nocuro gos rvnu $ 56,694 $ 58,633
Condnsoc rvnu 6,559 2,236
Proc pcroum [21,354) (20,350)
Oprocng xpnss [7,485) (5,820)
Currnc ncom cox xpns - (41)
Sgmnc proc
(1)
$ 6,497 $ 8,204
Doy nocuro gos sos (lcd) 67,042 69,369
Doy condnsoc sos (8bsd) 202 91
Oprocng coscs ($lc) $ 0.30 $ 0.23
Dpcon roc ($lc) $ 1.12 $ 1.03
(1)
Sgmnc proc s o non-CAAP mosur os cocuocd obov. Sgmnc proc ncuds ch rsucs rom 8ock 9 ond Fn n 8ongodsh. Produccon rom Fn cosd
n Apr 2010.
R c c c n u c , P r o / i I P c I r o I c u m , O c p I c I i o n u n d O p c r u I i n g E x p c n s c s
Th nocuro gos rvnu voronc rocs ncry co voums. Cos produccon or ch yor wos mpoccd by ppn moncnonc
choc occurrd n Jun 2010. Unc Novmbr 2009, ch Compony rcvd 66.67 prcnc o produccon rom 8ock 9; howvr, ch
Covrnmnc o 8ongodshs corrd ncrsc n ch bock hos bn rpod rsucng n ch Componys shor o produccon now bng
60 prcnc.
Thr wos on ncros n condnsoc produccon ond prc, boch o whch concrbucd co ch ncros n rvnus yor-ovr-yor.
Pcovry o condnsoc rom gos produccon ncrosd os o rsuc o ch nscoocon o ch dw-ponc concro unc.
Pursuonc co ch crms o ch PSC or 8ock 9, ch Covrnmnc o 8ongodsh wos nccd co 61 prcnc o proc gos n ch yor ond pror
yor. Ovro, proc pcroum xpns ncrosd du co ncrosd rvnus rom 8ock 9.
Oprocng coscs ncrosd os o rsuc o ch ppn moncnonc coscs ncurrd n ch yor ond ch scorc-up o ch hydrocorbon dw-
ponc concro unc.
Dpcon xpns ncrosd on o unc-o-produccon boss os o rsuc o ch chong n scmoc o ucur dvopmnc coscs.
C o n I i n g c n c i c s
Th Compony hos concngncs rocd co o rcvob or produccon rom ch Fn d n 8ongodsh ond vorous coms rosd
ogonsc ch Compony os oc lorch 31, 2011. Pr co ch consodocd nonco scocmncs ond nocs or ch prod ndd
lorch 31, 2011 or o compc dscusson o ch concngncs.
17
! K O K 8 O U K C 8 L T .
NETBACK5
Th oowng cobs oucn ch Componys oprocng, unds rom oprocons ond ornngs ncbocks (o o whch or non-CAAP
mosurs):
lndia BangIadesh TotaI lndo 8ongodsh Toco
[$/Mcfe) [$/Mcfe) [$/Mcfe) ($lc) ($lc) ($lc)
O ond nocuro gos rvnu 4.72 2.54 4.22 4.51 2.39 3.88
Poyocs [0.25) - [0.19) (0.25) - (0.17)
Proc pcroum [0.10) [0.86) [0.27) (0.15) (0.80) (0.34)
Oprocng xpns [0.37) [0.30) [0.36) (0.42) (0.23) (0.36)
Oprocng ncbock 4.00 1.38 3.40 3.69 1.36 3.01
lncrsc ncom ond ochr 0.01 0.14
lncrsc ond noncng xpns [0.28) (0.23)
Cnro ond odmnscrocv xpns [0.11) (0.13)
Ochr xpns [0.09) -
Pozd orgn xchong (oss) - (0.02)
Currnc ncom cox xpns [0.34) (0.29)
Funds rom oprocons ncbock 2.59 2.48
Unrozd orgn xchong gon (oss) 0.01 (0.10)
Scock-bosd compnsocon xpns [0.28) (0.23)
(Loss) gon on shorc-crm nvscmnc [0.12) 0.17
Fucur ncom cox rduccon 0.20 0.24
Dpcon, dprcocon ond occrcon xpns [1.29) (1.18)
Eornngs ncbock 1.11 1.38
Th ncbock or lndo, 8ongodsh ond n coco or ch Compony s o non-CAAP mosur cocuocd by dvdng ch rvnu ond coscs or
och councry ond n coco or ch Compony by ch coco sos voum or och councry ond n coco or ch Compony mosurd n lc.
COPPOPATE
Pevenues
lncrsc ncom ond ochr $ 912 $ 12,679
Expenses
lncrsc ond noncng $ 29,694 $ 20,110
Cnro ond odmnscrocv $ 12,106 $ 11,069
Ochr xpns $ 9,727 $ -
Forgn xchong (gon) oss $ [875) $ 10,154
Scock bosd-compnsocon $ 28,998 $ 19,778
Loss (gon) on shorc-crm nvscmncs $ 12,720 $ (14,554)
> c i Z g Z h i > c X d b Z V c Y D i ] Z g
lncrsc ond ochr ncom o $1.5 mon s porcoy osc by on oduscmnc rocd co rcordng ch oword o ch 36-nch ppn. Th
rsucs o ch ppn rom ncpcon co Dcmbr 31, 2009 wr oudcd ond oduscd occordngy.
18
! K O K 8 O U K C 8 L T .
> c i Z g Z h i V c Y ; ^ c V c X ^ c \
lncrsc ond noncng xpns ncuds ch ncrsc porcon o poymncs or ch os o ch FPSO o $5 mon (2010 - $5 mon);
ncrsc xpns on ch ong-crm dbc o $4 mon (2010 - $10 mon); ond ncrsc ond occrcon xpns on ch convrcb
dbncurs o $20 mon (2010 - $5 mon). lncrsc xpns on ch ong-crm dbc dcrosd prmory os o rsuc o ch dcros n
ch dbc boonc ond rpoymnc o ch dbc n u n Occobr 2010. Th convrcb dbncurs wr ssud oc ch nd o Dcmbr
2009 ond chr s ony on quorcr o xpns n ch pror yor.
D i ] Z g : m e Z c h Z
ln Jonuory 2009, ch Compony rcvd conrmocon rom Conodon ouchorcs choc chy wr ngogd n o ormo nvscgocon nco
ogocons o mpropr poymncs n 8ongodsh by chr ch Compony or cs subsdory n 8ongodsh. Th Compony cooprocd n ch
nvscgocon, whch wos concudd on Jun 24, 2011, ond ch Compony podd gucy co on counc o brbry undr ch Corrupcon
o Forgn Pubc Ocos Acc. Th chorg rrs co cwo spcc ncdncs choc occurrd n 2005: ch provson o o vhc or ch
prsono us o ch chn-8ongodsh Enrgy lnscr, voud oc Cdn$190,984; ond ch provson o crov coscs co ch som lnscr
co occnd on Enrgy Expo n Cogory ond o subsqunc prsono crp co Nw York, voud oc Cdn$5,000. Th sncnc ncuds o n o
Cdn$8,260,000 ond on oddcono 15? Vccm Fn Surchorg or o coco omounc o Cdn$9,499,000. Addconoy, ch sncnc ncuds
o Probocon Ordr, whch pucs ch Compony undr ch Courcs suprvson or ch nxc chr yors co nsur oudcs or don co nsur
ch Componys componc wch ch Acc. Th coscs o componc wch ch Probocon Ordr w b born by ch Compony.
; d g Z ^ \ c : m X ] V c \ Z
Pozd orgn xchong (gon) oss $ [278) $ 1,582
Unrozd orgn xchong (gon) oss [597) 8,572
Toco orgn xchong (gon) oss $ [875) $ 10,154
Th Componys rozd orgn xchong gons ond osss ors bcous o ch drnc bcwn ch lndon rup co U.S. door
xchong roc oc ch cm o rcordng ndvduo occouncs rcvob ond occouncs poyob compord co ch xchong roc oc ch cm
o rcpc o unds co scc rcordd occouncs rcvob ond poymnc co scc rcordd occouncs poyob.
Th unrozd orgn xchong gon oros prmory on ch cronsocon o ch lndon-rup dnomnocd ncom cox rcvob ond
ucur ncom cox ossc co U.S. doors.
Thr wr oddcono orgn xchong osss n ch yor on U.S. door cosh hd by ch pornc whos unccono currncy s ch
Conodon door. An osccng ncry dcross ch occumuocd ochr comprhnsv ncom buc dos noc ow chrough ch
ncom scocmnc.
H i d X ` " 7 V h Z Y 8 d be Z c h V i ^ d c
Thr wos o nc ncros n scock-bosd compnsocon xpns n ch yor. Scock-bosd compnsocon xpns ncrosd os o rsuc
o on ncrosd numbr o opcons bng groncd prmory du co ch Componys xponson n lndonso ond ch ncrosd or vou
xpns pr scock opcon du co ch uccuocons n ch Componys scock prc.
H ] d g i " I Z g b > c k Z h i b Z c i h
Th oss on shorc-crm nvscmncs wos o rsuc o morkng ch shorc-crm nvscmncs co morkc vou. ln ch pror yor, chr wos on
unrozd gon os o rsuc o ch chongs n morkc vou durng ch prods.
Th Compony purchosd nvscmncs durng ch yor ond sod nvscmncs rsucng n rozd osss o $13 mon. Th moorcy o
chs osss hod bn ncudd n ncom n pror prods os ch nvscmncs hov bn morkd co morkc snc ch cm o purchos.
19
! K O K 8 O U K C 8 L T .
LlQUlDlTY AND CAPlTAL PE5OUPCE5
Th Compony gnrocd unds rom oprocons n xcss o cs copco xpndcurs or ch yor. Th dcros n ch Componys cosh
poscon s prmory o rsuc o rpoymncs o ch Componys ong-crm dbc. Ac lorch 31, 2011, ch Compony hod coco rscrccd
ond unrscrccd cosh o $126 mon (lorch 31, 2010 - $246 mon). Currnc rscrccd cosh o $8 mon w b ovoob or us
pror co lorch 31, 2012 ond $10 mon w b ovoob chrocr. Th Compony hod o workng copco surpus o $107 mon oc
lorch 31, 2011 (lorch 31, 2010 - workng copco surpus o $20 mon), cocuocd os currnc osscs ss currnc obcs.
On Dcmbr 30, 2009, ch Compony ncrd nco o Cdn$310 mon convrcb dbncur crdc occy (ch Dbncurs"). Th
Dbncurs bor o coupon roc o 5 prcnc ond mocur on Dcmbr 30, 2012. Th ncrsc s pod sm-onnuoy n orrors on Jonuory
1sc ond Juy 1sc o och yor. Dbncurs or convrcb oc ch opcon o ch hodr nco common shors o ch Compony oc o convrson
prc o Cdn$110.50 pr common shor unc 60 doys pror co ch mocurcy doc. ln loy 2011, ch crms o ch dbncurs wr ocrd
such choc ch Compony now moy cc co convrc o o ch Dbncurs oc mocurcy nco common shors oc o 6? dscounc co ch wghcd
ovrog crodng prc or ch 20 crodng doys pror co ch ccon.
lncudd n occouncs rcvob oc lorch 31, 2011 s $30 mon choc ch Compony odvoncd or o nw vncur wch condcons
prcdnc. Th condcons wr noc mc ond ch odvonc wos rcurnd co ch Compony subsqunc co lorch 31, 2011. lncudd n
ong-crm occouncs rcvob oc lorch 31, 2011 s $20 mon rundob dposc or ch Componys purchos o 8ock 5(c) n Trndod
rom Sond Psourcs Corp. ln Dcmbr 2010, ch Compony sgnd on ogrmnc co ocqur o 25? ncrsc n 8ock 5(c), ococd
94 komcrs o ch osc coosc o Trndod. Th purchos prc wos $75.5 mon ccv os o Dcmbr 22, 2010 ond ch ossumpcon
o ch srs obcy undr ch prormonc guoronc provdd or ch 8ock lC cns. Th Compony hod pod $20 mon os
o dposc ogonsc ch purchos prc oc lorch 31, 2011. Th Compony cosd ch ocquscon o 8ock 5(c) n Jun 2011 ond pod on
oddcono $58.1 mon rsucng n o purchos prc o $78.1 mon oc cosng. Th cronsr o ch 8ock lC cns hos noc bn
compcd ond s subcc co ch socsoccon o crcon condcons.
Th Compony mod prncpo rpoymncs on ch ong-crm dbc o $193 mon ond concd ch occy. Durng ch yor, ch
Compony obcond o $40 mon crdc occy or gnro corporoc purposs ond hos noc borrowd ogonsc chs occy. ln Apr 2011,
ch Compony ncrd nco on occounc prormonc scurcy ogrmnc undr whch c con ssu prormonc scurcy guoroncs up co
on oggrgoc omounc o $36.5 mon ond hos noc mod us o chs occy.
Th Compony hos scmocd ch cosc o cs rmonng work commcmncs os oc lorch 31, 2011 undr ch vorous PSCs ncudng
$10 mon or drng chr ws n ch D4 8ock, $2 mon co dr ch rmonng w rqurd or ch Couvry 8ock, $254 mon
or ch rmonng ssmc ond ponnd drng or lndonson bocks, $38 mon or drng n lurdscon, $40 mon or drng n
lodogoscor ond $205 mon or ch rmonng ssmc ond drng commcmncs or ch Trndod bocks.
Th ponnd copco progrom or Fsco 2012 s $315 mon, whch s comprsd o $188 mon or xporocon ond $127 mon
or dvopmnc.
Th Compony xpccs choc c w us cosh on hond, cosh rom oprocons ond cs currnc crdc occy n ordr co und cs ponnd
copco progrom or Fsco 2012. Coshow rom oprocons s occd by produccon vs, by uccuocons n orgn xchong rocs,
chongs n oprocng coscs ond ch morkc prc o o. Th Compony hos ncrd nco gos concroccs or produccon rom ch D6 8ock
wch o gos prc choc s xd oc $3.95lc unc lorch 2014.
Durng Fsco 2012, du co o pr-mpcv rghc, Nko xpccs co hov ch opporcuncy co ncros cs nc ncrsc by 30 prcnc n och
or o o ch D6, NEC-25 ond D4 bocks n lndo. Nko xpccs chs opporcuncy woud b noncd wch dbc.
20
! K O K 8 O U K C 8 L T .
Th concroccuo obgocons o ch Compony or os oows:
Poymncs Du by Prod
As oc lorch 31, 2011 Toco Lss Thon 1 Yor 1 - 3 Yors 4 - 5 Yors Acr 5 Yors
Cuoroncs $ 14,105 $ 10,158 $ 3,947 $ - $ -
Work commcmncs
(1)
549,000 188,000 153,000 155,000 53,000
Assc rcrmnc obgocons
(2)
81,932 - 6,496 1,928 73,508
Copco os obgocons
(3)
79,805 10,757 21,514 21,514 26,020
Convrcb dbncurs
(4)
318,996 - 318,996 - -
Acquscons
(5)
58,100 58,100 - - -
Toco concroccuo obgocons $ 1,101,938 $ 267,015 $ 503,953 $ 178,442 $ 152,528
(1)
Dcos o ch work commcmncs by proprcy or ncudd n Lqudcy ond Copco Psourcs" ond 8ockground on Proprcs" n chs lD&A. Th work
commcmncs or ncudd n ch obov chorc bosd on ch dodn or spndng. Th Compony moy oppy or xcnsons co xporocon prods os rqurd co
compc ch work commcmnc.
(2)
Assc rcrmnc obgocons or bosd on ch undscouncd scmocd ucur obcy o ch Compony os dscosd n ch nocs co ch consodocd nonco
scocmncs or ch yor ndd lorch 31, 2011. Thy do noc ncud ws or occs choc wr noc compc os oc lorch 31, 2011.
(3)
Copco os obgocon ncuds boch ch currnc ond ong-crm porcons.
(4)
Th convrcb dbncurs or rcordd n ch consodocd nonco scocmncs oc o vou o $309 mon, whch s o dscouncd vou co rcc ch occ choc ch
ncrsc roc s owr chon ch morkc ncrsc roc on smor dbncurs wchouc o convrson ocur. Th convrcb dbncurs or ncudd n ch cob obov
n ch omounc o $319 mon, bng ch omounc choc woud b rqurd co rpoy ch Cdn $310 mon dbncurs chy wr sccd oc lorch 31, 2011 convrcd
co U.S. doors oc on xchong roc o 0.97 Cdn$ - 1 US$.
(5)
ln Dcmbr 2010, ch Compony sgnd on ogrmnc co ocqur o 25? ncrsc n 8ock 5(c), ococd 94 komcrs o ch osc coosc o Trndod. Th purchos
prc wos $75.5 mon ccv os o Dcmbr 22, 2010 ond ch ossumpcon o ch srs obcy undr ch prormonc guoronc provdd or ch 8ock lC
cns. Th Compony hod pod $20 mon os o dposc ogonsc ch purchos prc oc lorch 31, 2011. Th Compony cosd ch ocquscon o 8ock 5(c) n Jun 2011
ond pod on oddcono $58.1 mon rsucng n o purchos prc o $78.1 mon oc cosng. Th cronsr o ch 8ock lC cns hos noc bn compcd ond s
subcc co ch socsoccon o crcon condcons.
5ELECTED ANNUAL lNFOPMATlON
Years Ended March 31, 2011 2010 2009
O ond nocuro gos rvnu 453,824 334,111 104,993
Nc ncom (oss) 119,740 118,788 (18,867)
Pr shor bosc ($) 2.35 2.39 (0.38)
Pr shor ducd ($) 2.33 2.37 (0.38)
Toco osscs 2,207,513 2,246,454 1,467,063
Toco ong-crm nonco obcs 627,294 640,404 278,342
Dvdnds pr shor (Cdn$) 0.21 0.12 0.12
(1)
(1)
Th dvdnd o Cdn$0.03 pr shor rocd co ch quorcr ndd lorch 31, 2009 wos dcord n Apr 2009.
O ond nocuro gos rvnus ncrosd n Fsco 2010 compord co Fsco 2009 os o rsuc o ch commncmnc o gos produccon
rom ch D6 8ock, ncrosd o produccon rom ch D6 8ock ond ncrosd nocuro gos produccon rom 8ock 9. Th ncros n gos
produccon rom 8ock 9 wos o rsuc o ch occy upgrods oc 8ock 9 ond ch 8ongoro-3 w gong on-scrom. Pos s Ovro
Prormonc" n chs lD&A or o dscusson o ch chong n o ond nocuro gos rvnus n Fsco 2011 compord co Fsco 2010.
Poyocs, oprocng xpns, currnc ncom cox xpns ond dpcon ncrosd n Fsco 2010 compord co Fsco 2009 os o rsuc
o ch ncrosd produccon dscrbd obov. lncrsc ond ochr ncom ncrosd n Fsco 2010 compord co Fsco 2009 du co o
$9 mon oduscmnc or prvousy unrcordd rsucs rocd co o 36-nch ppn choc s connccd co ch Hozro occs. lncrsc
ond noncng xpns ncrosd n Fsco 2010 compord co Fsco 2009 by $18 mon os o rsuc o ncrsc on ong-crm dbc bng
21
! K O K 8 O U K C 8 L T .
xpnsd n Fsco 2010 wh c wos copcozd n Fsco 2009 ond os o rsuc o ncrsc on ch convrcb dbncurs. lncrsc on
ong-crm dbc wos copcozd pror co ch commncmnc o gos produccon rom ch D6 8ock. Th convrcb dbncurs wr
ssud durng Fsco 2010. Thr wos o oss on morkng ch shorc-crm nvscmncs co morkc n Fsco 2009 o $24 mon ond o gon n
Fsco 2010 o $15 mon. Pos s Ovro Prormonc" n chs lD&A or o dscusson o ch chong co nc ncom n Fsco 2011
compord co Fsco 2010.
Toco osscs ncrosd n Fsco 2010 compord co Fsco 2009 du co on unrozd gon ncrosng ch vou o ch shorc-crm nvscmncs,
on ncros n occouncs rcvob rom ch so o D6 gos, on ncros n ch ucur ncom cox ossc os o rsuc o mnmum ocrnocv
coxs pod or ch D6 8ock ond ch oddcon o proprcy, ponc ond qupmnc ncudng xporocon ond dvopmnc xpndcurs
ond ch ocquscons o 8ock Cod Enrgy LLC ond Voyogr Enrgy Lcd. Toco osscs dcrosd by 2 prcnc n Fsco 2011 compord
co Fsco 2010 prmory os o rsuc o ch rpoymnc o ch ong-crm dbc usng cosh porcoy osc by cosh rom oprocons ornd
n ch prod.
Long-crm obcs n Fsco 2009 ncuds ch ong-crm porcon o ch dbc ond ch copco os obgocon. ln Fsco 2010, o porcon
o ch dbc ond copco os obgocon wos movd co currnc, ch convrcb dbncurs wr ssud ond ucur ncom cox obcs
wr rcordd on ch ocquscons o 8ock Cod Enrgy LLC ond Voyogr Enrgy Lcd. ln Fsco 2011, ch ong-crm dbc wos rpod
n u.
5UMMAPY OF QUAPTEPLY PE5ULT5
Th oowng cobs sc orch sccd nonco normocon o ch Compony or ch ghc mosc rcncy compcd quorcrs co
lorch 31, 2011:
Jun 30, Spc. 30, Dc. 31, Mar. 31,
Thr lonchs Endd 2010 2010 2010 2011
O ond nocuro gos rvnu 116,501 119,215 111,912 106,196
Dpcon, dprcocon ond occrcon (32,400) (33,656) (31,917) [41,269)
Fucur ncom cox (xpns) rcovry 11,000 11,108 9,064 [9,328)
(Loss) gon on shorc-crm nvscmncs (7,826) (5,844) 166 784
Nc ncom 39,756 41,041 38,294 649
Pr shor
8osc ($) 0.78 0.80 0.75 0.01
Ducd ($) 0.77 0.80 0.74 0.01
Jun 30, Spc. 30, Dc. 31, lor. 31,
Thr lonchs Endd 2009 2009 2009 2010
O ond nocuro gos rvnu 53,853 77,879 91,757 110,622
Dpcon, dprcocon ond occrcon (16,697) (22,937) (27,387) (34,346)
Fucur ncom cox rcovry - 8,830 6,213 5,367
Con (oss) on shorc-crm nvscmnc 18,003 19,685 (26,525) 3,391
Nc ncom 20,441 45,043 14,637 38,667
Pr shor
8osc ($) 0.41 0.91 0.29 0.77
Ducd ($) 0.41 0.90 0.29 0.76
Nc ncom hos uccuocd ovr ch quorcrs, du n porc co chongs n rvnu, ochr ncom, oprocng xpnss, dpcon xpns,
ncrsc xpns, ch vou o nvscmncs ond ncom coxs.
22
! K O K 8 O U K C 8 L T .
Cos produccon rom ch D6 8ock commncd n ch quorcr ndd Jun 30, 2009 ond rompd-up durng ch subsqunc quorcrs,
subsconcoy ncrosng rvnus n och quorcr co ch quorcr ndd Spcmbr 30, 2010. D6 gos produccon bgon co dcn n ch
subsqunc quorcrs.
Oprocng xpns ncrosd n ch quorcr ndd Jun 30, 2009 wch ch commncmnc o gos produccon rom ch D6 bock ond
ncrosd n subsqunc quorcrs os oddcono ws com on-scrom ond whn gos produccon commncd rom ch lA o d.
Thr wr ncross n dpcon xpns ond currnc ncom coxs os o rsuc o ch ncros n produccon dscrbd obov. Fucur
ncom cox rcovrs wr rcordd rom ch quorcr ndd Jun 30, 2010 os o rsuc o mnmum ocrnocv cox pod n lndo or ch
D6 8ock, whch or xpccd co b dduccb ogonsc currnc ncom cox n ch ucur. ln ch quorcr ndd lorch 31, 2011, chr wos
o ucur ncom cox xpns os o rsuc o o proccd rduccon n produccon durng ch cox hodoy prod.
lncrsc ond ochr ncom n ch quorcr ndd Dcmbr 31, 2009 ncuds o $9 mon oduscmnc rocd co o 36-nch ppn choc s
connccd co ch Hozro occs. Du co o dspuc choc wos n orbcrocon, ch Compony hod bn ossumng choc c coud noc ncud ch
coscs o ch 36-nch ppn or cosc rcovry, spccoy, os o dduccon n ch cocuocon o proc pcroum. Durng choc quorcr,
ch Compony wos succssu n orbcrocon ond, os o rsuc, ppn coscs w b gb or cosc rcovry ond ch Compony rcognzd
ch oduscmnc n ch quorcr. S noc 24() co ch consodocd nonco scocmncs or ch compc dscusson o o concngncy
rocd co ch oword o ch 36-nch ppn.
lncrsc xpns on ch ong-crm dbc wos copcozd unc ch commncmnc o gos produccon rom ch D6 8ock. ln ch quorcr
ndd Jun 30, 2009, ncrsc xpns on ch ong-crm dbc wos xpnsd, dcrosng nc ncom. Th ncrsc xpns on ch ong-
crm dbc dcrosd wch quorcry rpoymncs commncng n Jun 2010. ln ch quorcr ndd lorch 31, 2010, ncrsc ond noncng
xpns ncrosd wch ncrsc pod ond occrcon on ch convrcb dbncurs. Th xpns w concnu unc Dcmbr 30, 2012
whn ch dbncurs mocur.
Th Compony mod purchoss ond sos o scurcs chroughouc ch quorcrs. Th shorc-crm nvscmncs or rcognzd oc or vou,
whch s ch pubcy quocd morkc vou, ond ch Compony rcognzs gons ond osss bosd on ch chongng morkc prcs. Th
mogncud o ch gons ond osss compord co nc ncom by quorcr s dspoyd n ch cob obov.
ln ch quorcr ndd lorch 31, 2011, o Cdn$9.5 mon (US$9.7 mon) n wos rcordd rocd co ch Componys gucy po co on
counc o brbry undr ch Corrupcon o Forgn Pubc Ocos Acc.
FOUPTH QUAPTEP
Durng ch quorcr ndd lorch 31, 2011, unds rom oprocons wos $59 mon compord co $69 mon n ch som quorcr n ch pror
yor. Compord co ch pror yors quorcr, rvnus dcrosd n o o ch lndon proprcs ond ncrosd n 8ock 9 n 8ongodsh or
o nc dcros n rvnu. lncrsc ond noncng xpns dcrosd n ch quorcr os o rsuc o ch rpoymnc o ch ong-crm dbc
snc ch pror yors prod. ln oddcon, chr wos o Cdn$9.5 mon (US$9.7 mon) n rcordd rocd co ch Componys gucy
po co on counc o brbry undr ch Corrupcon o Forgn Pubc Ocos Acc.
Thr wos nc ncom o $1 mon n ch quorcr compord co $39 mon n ch som quorcr n ch pror yor os o rsuc o ncrosd
dpcon, scock-bosd compnsocon ond ucur ncom cox xpns. Dpcon ncrosd os o rsuc o o chong n ch rsrv voums
ond ucur coscs os o rsuc o ch rsrv rporc os oc lorch 31, 2011. Scock-bosd compnsocon ncrosd os o rsuc o oddcono
opcons bng groncd ond o hghr or vou pr opcon. ln ch pror yor, chr wos o ucur ncom cox rcovry o $5 mon on ch
rcogncon o o cox crdc ovoob or ucur yors rocd co mnmum ocrnocv cox pod or ch D6 8ock n ch currnc yor. ln
ch currnc yors quorcr, ch bnc rom rcognzng ch cox crdc wos mor chon osc by ch rcogncon o o ucur ncom cox
xpns os o rsuc o o proccd rduccon n produccon durng ch cox hodoy prod.
23
! K O K 8 O U K C 8 L T .
PELATED PAPTlE5
Th Compony hos o 45 prcnc ncrsc n o Conodon proprcy choc s oprocd by o rocd porcy, o Compony ownd by ch Prsdnc
ond CEO o Nko Psourcs Lcd. Ths onc ncrsc orgnocd os o rsuc o ch rocd porcy buyng ch ncrsc o ch chrd-porcy
oprocor o ch proprcy n 2002. Th cronsoccons wch ch rocd porcy or noc sgnconc co ch oprocons or ch consodocd
nonco scocmncs. Th cronsoccons wch ch rocd porcy or mosurd oc ch xchong omounc, whch s ch omounc ogrd co
bcwn rocd porcs.
FlNANClAL lN5TPUMENT5
Fnonco nscrumncs o ch Compony conssc o shorc-crm nvscmncs, occouncs rcvob, ong-crm occouncs rcvob, occouncs
poyob ond occrud obcs ond convrcb dbncurs.
Th Compony s xposd co uccuocons n ch vou o cs cosh, occouncs rcvob, shorc-crm nvscmncs, occouncs poyob ond
occrud obcs du co chongs n orgn xchong rocs os chs nonco nscrumncs or porcoy or whoy dnomnocd n
Conodon doors ond ch oco currncs o ch councrs n whch ch Compony oprocs. Th Compony monogs ch rsk by convrcng
cosh hd n orgn currncs co U.S. doors os rqurd co und orcosc xpndcurs. Th Compony s xposd co chongs n orgn
xchong rocs os ch ucur ncrsc poymncs on ch convrcb dbncurs or n Conodon doors.
Th Compony s xposd co chongs n ch morkc vou o ch shorc-crm nvscmncs.
Th Compony s xposd co crdc rsk wch rspcc co o o cs nonco nscrumncs o cuscomr or councrporcy os co mc cs
concroccuo obgocons. Th Compony hos dposcd ch cosh ond rscrccd cosh wch rpucob nonco nsccucons, or whch
monogmnc bvs ch rsk o oss co b rmoc. Th Compony coks mosurs n ordr co mcgoc ony rsk o oss wch rspcc co
ch occouncs rcvob, whch moy ncud obconng guoroncs.
Th Compony s xposd co ch rsk o chongs n morkc prcs o commodcs. Th Compony ncrs nco physco commodcy concroccs
or ch so o nocuro gos, whch monogs chs rsk. Th Compony dos so n ch normo cours o busnss by ncrng nco concroccs
wch xd gos prcs. Th concroccs or noc cossd os nonco nscrumncs bcous ch Compony xpccs co dvr o rqurd
voums undr ch concroccs. No omouncs or rcognzd n ch consodocd nonco scocmncs rocd co ch concroccs unc such
cm os ch ossococd voums or dvrd. Th Compony s xposd co ch chong n ch 8rnc crud prc os ch ovrog 8rnc crud
prc rom ch prcdng yor s o vorob n ch gos prc or ch currnc yor, cocuocd onnuoy, or ch D6 gos concroccs.
Th or vous o occouncs rcvob, occouncs poyob ond occrud obcs opproxmoc chr corryng vous du co chr shorc
prods co mocurcy. Th or vou o ch shorc-crm nvscmncs s bosd on pubcy quocd morkc vous. A oss on ch rcogncon
o ch shorc-crm nvscmncs oc or vou o $12.7 mon wos rcognzd n ncom. Th Compony rozd prvousy rcordd
mork-co-morkc osss on ch so o nvscmncs o $13 mon n ch yor. Th or vou o ch ong-crm occounc rcvob s
cocuocd bosd on ch omounc rcvob dscouncd oc 6.5 prcnc or chr yors os coccon s ossumd n chr yors. Th oss on
rcogncon o ch or vou o ch ong-crm occounc rcvob wos noc sgnconc durng ch yor ond wos rcognzd n ncrsc ond
noncng xpns.
Th dbc componnc o ch convrcb dbncurs hos bn rcordd nc o ch or vou o ch convrson ocur. Th or vou
o ch convrson ocur o ch dbncurs ncudd n shorhodrs qucy oc ch doc o ssu wos $15 mon. Th or vou o
ch convrson ocur o ch dbncurs wos dcrmn bosd on ch dscouncd ucur poymncs usng o dscounc roc o o smor
nonco nscrumnc wchouc o convrson ocur compord co ch xd roc o ncrsc on ch dbncurs. lncrsc ond noncng
xpns o $20 mon wos rcordd or ncrsc pod ond occrcon o ch dscounc on ch convrcb dbncurs durng ch yor.
lncrsc xpns o $4.2 mon wos rcordd on ch ong-crm dbc.
24
! K O K 8 O U K C 8 L T .
CPlTlCAL ACCOUNTlNC E5TlMATE5
Th Compony moks ossumpcons n oppyng crcon crcco occouncng scmocs choc or uncrcon oc ch cm ch occouncng scmoc
s mod ond moy hov o sgnconc cc on ch consodocd nonco scocmncs o ch Compony.
D ^ a V c Y C V i j g V a < V h G Z h Z g k Z h
Psrvs scmocs con hov o sgnconc cc on nc ornngs os o rsuc o chr mpocc on ch dpcon roc, ossc rcrmnc
provsons ond ossc mpormncs. lndpndnc quod ngnrs n conunccon wch ch Componys rsrv ngnrs scmoc ch
vou o o ond nocuro gos rsrvs on on onnuo boss. Th scmocon o rsrvs s on nhrncy compx procss rqurng sgnconc
udgmnc. Escmocs o conomcoy rcovrob o ond gos rsrvs ond ucur cosh ows rom chos rsrvs or bosd upon o
numbr o vorobs ond ossumpcons such os googco ncrprcocon, commodcy prcs, oprocon ond copco coscs ond produccon
orcoscs, o o whch moy vory consdrob rom occuo rsucs. Ths scmocs or xpccd co b rvsd upword or downword ovr
cm, os oddcono normocon such os rsrvor prormonc bcoms ovoob, or os conomc condcons chong.
9 Z e a Z i ^ d c ! 9 Z e g Z X ^ V i ^ d c V c Y 6 b d g i ^ o V i ^ d c
Th Compony oows ch u cosc mchod o occouncng whrby o coscs rocd co ch xporocon or ond dvopmnc o o ond
nocuro gos rsrvs or ncoy copcozd ond occumuocd n cosc cncrs by councry (u cosc poo). Coscs copcozd ncud ond
ocquscon coscs, googco ond gophysco xpnss, coscs o drng produccv ond non-produccv ws, coscs o gochrng ond
produccon occs ond qupmnc ond odmnscrocv coscs rocd co copco proccs. Coscs copcozd n ch u cosc poo, ncudng
copco oss, or dpcd usng ch unc-o-produccon mchod by cosc cncr bosd upon gross provd o ond nocuro gos rsrvs
ond monogmncs bsc scmoc o ucur prcs ond ucur dvopmnc coscs.
Pvsons co rsrv scmocs ond ch ossococd ucur coshows coud sgnconcy ncros or dcros dpcon xpns chorgd
co nc ncom ond coud rsuc n on mpormnc o proprcy ond qupmnc chorgd os on xpns co nc ncom.
Coscs o ocqurng unprovd proprcs or ncoy xcudd rom ch u cosc poo ond or ossssd quorcry co oscrcon whchr
mpormnc hos occurrd. Whn provd rsrvs or ossgnd co ch proprcy or ch proprcy s consdrd co b mpord, ch cosc o
ch proprcy or ch omounc o mpormnc s oddd co ch u cosc poo. Coscs o moor dvopmnc proccs or ncoy xcudd rom
ch u cosc poo ond or ossssd quorcry co oscrcon whchr mpormnc hos occurrd. Whn o porcon o ch proprcy bcoms
copob o produccon or ch proprcy s consdrd co b mpord, ch cosc or on opproproc porcon o ch cosc o ch proprcy s
oddd co ch u cosc poo.
A chong n ony o ch quococv consdrocons or mpormnc ncudng, buc noc mcd co: googco ncrprcocons, xporocon
occvcs ond succss or our, ch Componys pons wch rspcc co ch proprcy ond nonco obcy co hod ch proprcy; ond ch
os crm or ch proprcy, moy rsuc n ch ncuson o ch proprcy ond qupmnc n ch u cosc poo. Ths coud sgnconcy
ncros dpcon xpns chorgd co nc ncom.
6 h h Z i > be V ^ g b Z c i
Th Compony prorms o cosc rcovry csc (cng csc), pocng o mc on ch corryng vou o proprcy, ponc ond qupmnc. l ch
corryng vou xcds ch or vou, on mpormnc oss s rcognzd co ch xcnc choc ch corryng vou o osscs xcds ch nc
prsnc vou, cocuocd os ch sum o ch dscouncd vou o ucur nc rvnus rom provd ond probob rsrvs, ch owr o
cosc ond morkc o unprovd proprcs ond ch cosc o moor dvopmnc proccs. Th nc prsnc vou s scmocd usng xpccd
ucur prcs ond coscs ond s dscouncd usng o rsk-r ncrsc roc. A chong n scmoc o ch o ond nocuro gos rsrvs os
dscrbd obov n O ond nocuro gos rsrvs", o chong n ch xpccd ucur prcs ond coscs or o chong n ch rsk-r ncrsc
roc coud rsuc n o mocro dcros n ch or vou o ch ossc. Ths woud rsuc n o downwords oduscmnc co proprcy, ponc ond
qupmnc ond quvonc mpormnc o proprcy, ponc ond qupmnc chorgd os on xpns co nc ncom.
25
! K O K 8 O U K C 8 L T .
6 h h Z i G Z i ^ g Z b Z c i D W a ^ \ V i ^ d c
Th Compony rcognzs ch or vou o ch obcs or ossc rcrmnc obgocons rocd co cs ong-vd osscs n ch prod
n whch chy or ncurrd. Th or vou o on ossc rcrmnc obgocon s rcordd os o obcy. Th or vou s dcrmnd by
prporng o cosc scmoc, nocng ch coscs co ch xpccd doc o obondonmnc ond dscouncng ch coscs usng o crdc-oduscd
rsk-r roc. A chong co ony o ch cosc scmoc, ch nocon roc, ch cmng o xpccd obondonmnc or ch crdc-oduscd
rsk-r roc coud rsuc n o mocro chong n ch scmoc. Ths woud occ proprcy, ponc ond qupmnc ond ossc rcrmnc
obgocon rcordd on ch boonc shc ond dpcon, dprcocon ond occrcon xpns chorgd co nc ncom.
> c X d b Z I V m Z h
Th Compony scmocs currnc ond ucur ncom coxs bosd on cs ncrprcocon o cox ows n ch vorous ursdccons n whch
c oprocs ond poys ncom coxs. Th Compony rcordd cs ncom cox xpns ncudng provsons choc provd or o cox hodoy
dduccon or vorous undrcokngs rocd co ch Hozro ond Suroc or ch coxocon yors 1998 co 2008. Shoud ch cox ouchorcs
dcrmn choc ch cox hodoy dduccon dos noc oppy co nocuro gos, ch Compony woud poy oddcono cosh coxs, hov o wrc
o o ch nc ncom cox rcvob on ch boonc shc ond rcognz oddcono ncom cox xpns os o chorg co nc ncom. Ths
moy oso mpocc ch o ond nocuro gos rsrvs ond ossc mpormnc rocd co chs proprcs. S noc 24() co ch consodocd
nonco scocmncs or urchr dscusson.
FUTUPE ACCOUNTlNC CHANCE5
> c i Z g c V i ^ d c V a ; ^ c V c X ^ V a G Z e d g i ^ c \ H i V c Y V g Y h > ; G H
ln Fbruory 2008, ch Accouncng Scondords 8oord conrmd choc lFPS w b rqurd or ncrm ond onnuo rporcng by pubcy
occouncob ncrprss ccv or Jonuory 1, 2011 ncudng 2010 comporocv normocon. lFPS w rpoc Conodon gnroy
occpcd occouncng prncps. Th rsc ncrm consodocd nonco scocmncs choc ch Compony w rporc undr lFPS w b or
ch quorcr ndng Jun 30, 2011.
Th Compony hos dvopd o chongovr pon co compc ch cronscon co lFPS by Apr 1, 2011, whch s ch doc o chongovr or
ch Compony. Th convrson pon ncuds ch oowng phoss:
- Phos l Scopng ond dognoscc - dsgnocng rsourcs co ch procc, rosng owornss ond prormng hgh v dognoscc
ossssmncs o occouncng drncs bcwn lFPS ond Conodon CAAP;
- Phos ll Dcod Assssmnc - bosd on cms dncd n Phos l, prormonc o syscmocc ond dcod onoyss o gops
bcwn ch oppcocon o currnc occouncng pocs ond lFPS ond consdr cronscono pocy chocs. Assssmnc o mpoccs
on ch Componys dbc ogrmncs, monogmnc rporcng syscms ond busnss occvcs;
- Phos lll Dsgn ond mpmncocon - mpmncocon o o chongs opprovd n ch ossssmnc phos. Poro runnng o Fsco
2011 nonco rsucs ond ch prporocon o lFPS nonco scocmncs ond dscosurs; ond
- Phos V Evouocon - rvw o procsss ond concros co mok ony rqurd chongs.
Th Compony hos compcd ch scopng ond dognoscc phos ond hos compcd ch onoyss undr Phos ll. Th Compony hos
sccd o numbr o occouncng pocs os dscrbd bow. Th oudc commcc hos opprovd ch Componys lFPS occouncng pocy
sccons choc or dscussd bow. Th Componys xcrno oudcors or n ch procss o vouocng ch droc cronscono boonc
shc oc Apr 1, 2010. A rsucs dscussd hrn or prmnory ond or subcc co oudc.
26
! K O K 8 O U K C 8 L T .
lFPS 1, Frsc-Tm Adopcon o lncrnocono Fnonco Pporcng Scondords" (lFPS1), provds nccs odopcng lFPS or ch rsc cm
wch o numbr o opcono xmpcons co ch gnro rqurmnc or u rcrospccv oppcocon o lFPS. Th pocncoy rvonc
xmpcons choc or ovoob co ch Compony ond ch Componys xpccd us o ch xmpcons or os oows:
- on xmpcon rom rcrooccvy rcognzng scock-bosd compnsocon xpns n occordonc wch lFPS2 Shor-bosd Poymnc
on scock opcons choc wr groncd on or bor Novmbr 7, 2002 or chos vscng pror co ch doc o cronscon co lFPSs. Th
Compony hos dcrmnd choc c w noc mok us o chs xmpcon ond w oppy lFPS 2 rcrospccvy. As o rsuc, ch Compony
hos rcordd ch scock-bosd compnsocon xpns or scock opcons vscng on or ocr Apr 1, 2005, bng ch odopcon doc
or lFPS 2.
- on xmpcon rom rcrooccvy rscocng ch vou o proprcy, ponc ond qupmnc. An nccy choc oowd ch u cosc mchod
o occouncng or o ond gos proprcs undr cs prvous CAAP moy cc co mosur on cm o proprcy, ponc ond qupmnc
oc ch doc o cronscon oc ch corryng omounc undr cs prvous CAAP. Th Compony hos dcrmnd choc c w noc mok us
o chs xmpcon.
- on xmpcon rom oppyng lFPlC1 Chongs n Exscng Dcommssonng, Pscorocon ond Smor Lobcs or chongs choc
occurrd bor ch doc o cronscon co lFPSs. lnscod, ch Compony moy mosur ch obcy oc ch doc o cronscon co
lFPSs, dscounc ch obcy co doc o ncpcon ond cocuoc ch occumuocd dprcocon on choc omounc. Th Compony hos
dcrmnd choc c w mok us o chs xmpcon or cs go nccs choc or rsc cm odopcrs o lFPS.
- on xmpcon rom rcrospccvy oppyng lFPS3 8usnss Combnocons co busnss combnocons choc occurrd bor ch doc
o cronscon co lFPS. Th Compony w mok us o chs xmpcon ond ch rcordd coscs or ch ocquscons o 8ock Cod
Enrgy LLC ond Voyogr Enrgy Lcd. w noc b rscocd undr lFPS3.
Th Compony hos cocuocd ch oowng prmnory moor drncs bcwn Conodon CAAP ond lFPS:
- lFPS 2 Shor-bosd Poymnc: Smor co Conodon CAAP, undr lFPS 2 ch or vou o ch compnsocon xpns ossococd
wch ch Componys scock opcon pon s rcognzd os on xpns wch o corrspondng ncros n qucy. Th Componys scock
opcons or qucy sccd.
Undr Conodon CAAP, ch Compony rcognzd on xpns rocd co ch shor-bosd poymncs or opcons groncd ocr
lorch 31, 2003. On cronscon co lFPS, ch Compony oppd lFPS2 rcrospccvy ond rcognzd ch cosc or shor-bosd
poymncs vscng ocr Apr 1, 2005 os on xpns. Ths rsucd n on scmocd oddcono $4 mon rcordd os on xpns
dcrosng rcond ornngs ond ncrosng shor copco os o o ch scock opcons hov bn xrcsd.
Undr Conodon CAAP, ch Compony rcognzd on xpns rocd co chr shor-bosd poymncs, howvr, dd noc ncorporoc
o orcur mucp. Undr lFPS, ch Compony s rqurd co scmoc o orcur roc oc ch doc o gronc. Th shor-bosd
poymncs rcognzd undr Conodon CAAP wr oduscd co ncorporoc o orcur roc rsucng n on scmocd ncros n
rcond ornngs o $3 mon ond o corrspondng dcros n concrbucd surpus o $3 mon.
Undr Conodon CAAP, ch Compony copcozd ch porcon o shor-bosd poymncs occrbucob co xporocon occvcs. Undr
lFPS, ch Compony xpnsd o porcon o chs shor-bosd poymncs. Ths rsucd n on scmocd dcros n proprcy, ponc
ond qupmnc ond o corrspondng dcros n rcond ornngs o $5 mon.
27
! K O K 8 O U K C 8 L T .
- lFPS 6 Exporocon or ond Evouocon o lnro Psourcs opps co ch Componys xporocon xpndcurs.
Undr Conodon CAAP, ch Compony oowd ch u-cosc mchod o occouncng copcozng coscs ncurrd or xporocon,
dvopmnc ond producng proprcs. Undr ch Componys sccd lFPS pocs, pr-cns coscs, googco ond gophysco
coscs, ch coscs o unsuccssu xporocon drng ond ossococd gnro ond odmnscrocv coscs or xpnsd rsucng n
on scmocd rduccon o $312 mon co ch proprcy, ponc ond qupmnc, on $11 mon dcros n occumuocd ochr
comprhnsv ncom ond o $301 mon dcros n rcond ornngs. Th rmonng copco osscs prvousy cocgorzd
os proprcy, ponc ond qupmnc hov bn consdrd undr ch lFPS cocgors ncudng nvncory ($7 mon), xporocon
ond vouocon osscs ($708 mon), dvopmnc osscs ($5 mon), producng osscs ($813 mon), copco-work-n-progrss
($30 mon) ond ochr proprcy, ponc ond qupmnc ($20 mon).
- lAS16 Proprcy, Ponc ond Equpmnc opps co ch Componys dvopmnc ond produccon osscs.
Th Compony currncy copcozs coscs o o ond gos dvopmnc ond produccon osscs choc mc ch dncon o on ossc
undr Conodon CAAP ond dpcs chs coscs by cosc cncr, whch s o councry, bosd on coco provd rsrvs. lFPS rqurs
dpcon co b cocuocd bosd on ndvduo componncs, whch ch Compony hos dcrmnd co b o PSC. Th chong n mchod
o cocuocd dpcon ond ch chong n ch cosc bos os o rsuc o ch occouncng pocs or xporocon ond vouocon coscs
sccd by ch Compony rsucd n o $139 mon ncros co producng osscs rocd co dpcon ond o corrspondng ncros
n rcond ornngs. Th Compony pons co dpc ch osscs n o CCU bosd on coco provd rsrvs.
- lAS 36 lmpormnc o Asscs rqurs ch Compony co ossss whchr chr s ony ndcocon choc on ossc moy b mpord oc
ch nd o och rporcng prod ond on cronscon co lFPS. l ony such ndcocon xscs, ch Compony scmocs ch rcovrob
omounc o ch ossc. Undr Conodon CAAP, ch mpormnc csc s oppd co ch cosc cncr v, whros c s oppd co cosh
gnrocng uncs (CCUs) undr lFPS. A CCU s ch smosc group o osscs copob o ndpndncy gnrocng cosh nows. Th
Compony hos dncd cs CCUs ond, n gnro, on ossc undr on produccon shorng concrocc (PSC) w orm o CCU.
lmpormncs cocuocd on cronscon co lFPS wr opproxmocy $55 mon or ch Fn ond Choccok proprcs ond $20 mon
or ch Couvry proprcy rsucng n o rduccon n proprcy, ponc ond qupmnc ond o corrspondng rduccon n rcond
ornngs. Undr Conodon CAAP, ch mpormnc csc wos consdrd on o councry-by-councry boss. Undr lFPS, ch mpormnc
csc s consdrd oc ch cosc-gnrocng-unc v, whch s ch PSC or Couvry ond ch JVA or Fn ond Choccok ond dos noc
ncud ch Componys ochr proprcs n lndo or 8ongodsh. Th or vou o ch proprcs usd n ch ossssmnc o ch
mpormnc wos ch vou n us.
- lAS 17 Loss oucns ch occouncng crocmnc or ch Componys os o ch FPSO.
Undr Conodon CAAP ond lFPS, ch nonc os obgocon s rcordd oc ncpcon o ch os or on omounc choc s ch ssr
o ch prsnc vou o ch mnmum os poymncs ond ch or vou o ch ossc. Undr Conodon CAAP, ch prsnc vou o
ch mnmum os poymncs s cocuocd usng ch ssr o ch roc mpcc o 11.7? n ch os ond ch Componys ncrmnco
cosc o borrowng oc ch cm o 6? wh ch roc mpcc n ch os s owoys usd undr lFPS. As o rsuc, ch os obgocon
wos rcordd oc ch or vou undr Conodon CAAP ond s rcordd oc ch prsnc vou o ch mnmum os poymncs
undr lFPS.
As o rsuc o ch drnc, ch nonc os obgocon ond ch copcozd cosc orgnoy rcordd n proprcy, ponc ond
qupmnc dcrosd by opproxmocy $6 mon.
28
! K O K 8 O U K C 8 L T .
- lAS 37 Provsons, Concngnc Lobcs & Concngnc Asscs ndcocs how co dncy ond cocuoc chs cms, ncudng
dcommssonng obgocons.
Undr Conodon CAAP dcommssonng obgocons wr dscouncd oc ch corporoc crdc oduscd rsk r roc o
5 co 7 prcnc ovr cm. Undr lFPS ch scmocd cosh ow co obondon ond rmdoc ch ws ond occs hos bn rsk oduscd
ond oppd by councry chror ch provson s dscouncd oc on ovrog rsk r roc o 7 prcnc rsucng n on scmocd
$3 mon dcros n ch dcommssonng obgocons ond proprcy, ponc ond qupmnc.
- lAS 12 lncom Toxs drs rom Conodon CAAP or purposs o rcognzng drrd coxs, spccoy n rocon co ncrcompony
cronsrs, ossc ocquscons, orgn currncy ond ochr mnor cms.
Undr Conodon CAAP, ch Compony ncs ch coxs poyob ond coxs pod by go nccy, rporcng dspucd omouncs os on lncom
Tox Pcvob, xcss poymncs os on occouncs rcvob ond coxs rcordd n xcss o nscomncs os currnc cox poyob.
Undr lFPS, ch Compony ncs ch coxs poyob ond coxs pod by go nccy by yor rporcng xcss poymncs os on lncom
Tox Pcvob ond ony coxs rcordd n xcss o nscomncs mod os o currnc cox poyob. Th rsuc o ch rcosscocons
s o dcros n occouncs rcvob o $4 mon, on ncros n ncom cox rcvob o $13 mon ond on ncros n currnc cox
poyob o $9 mon.
Th corryng omounc ond dpcon o proprcy, ponc & qupmnc undr Conodon CAAP ond lFPS dr. Ths rsucs n ch
rcogncon o o drrd cox obcy o $2 mon undr lFPs.
Ochr oros choc ch Compony hos dcrmnd w hov drnc rsucs n ch nonco scocmncs undr lFPSs chon undr Conodon
CAAP ncud prsncocon o prpod xpnss ond ch rcogncon o occouncs rcvob ond occouncs poyob or ch 36" ppn.
Ths sc o oros mpoccd by lFPS shoud noc b rgordd os o comprhnsv sc o chongs choc w rsuc rom ch cronscon co lFPS
ond omouncs dscosd obov or unoudcd.
Th oowng cob summorzs ch Componys Apr 1, 2010 scocmnc o nonco poscon undr Conodon CAAP ond ch prmnory
ond unoudcd cc o cronscon co prsnc ch opnng boonc shc undr lFPS. Th Compony hos noc yc prpord o u sc o
onnuo nonco scocmncs undr lFPS, chror, omouncs rmon prmnory ond unoudcd.
Escmocd Escmocd
($mons) Conodon CAAP lFPS Aduscmncs lFPS
Currnc osscs 306 3 309
Long-crm osscs 1,941 (257) 1,684
Toco osscs 2,246 (253) 1,993
Currnc obcs 291 1 292
Long-crm obcs 640 (1) 639
Equcy 1,315 (253) 1,062
Toco obcs ond qucy 2,246 (253) 1,993
29
! K O K 8 O U K C 8 L T .
ln oddcon co occouncng pocy drncs, ch Componys cronscon co lFPS mpoccs normocon cchnoogy ond doco syscms;
ncrno concro ovr nonco rporcng, dscosur concros ond procdurs, nonco rporcng xprcs, ond busnss occvcs
os oows:
- lT syscms - Th Componys occouncng socwor dos noc supporc ch convrson co lFPS. Th Compony s monconng ch
occouncs undr boch Conodon CAAP ond lFPS durng ch convrson procss ond hos cosd co moncon occouncs undr Conodon
CAAP os o lorch 31, 2011.
- lncrno concro ovr nonco rporcng (lCOFP) - Th Compony pons co ossss ch mpocc on ncrno concro ovr nonco
rporcng (lCOFP) n ch rsc quorcr o Fsco 2012, wch vouocon o oprocng ccvnss co b conduccd durng Fsco 2012.
Som o ch concros prvousy prormd n Conodo or xpccd co b prormd n ch bronch ocs ond oddcono concros
or xpccd co b mpmncd ovr ch convrson procss.
- Dscosur concros ond procdurs (DCP) - Th Compony onccpocs provdng normocon co scokhodrs os pr ch rqurmncs
ond rcommndocons o ch scurcy rguocors chrough rguocory documncs ncudng chs ond ucur lD&As.
- Fnonco rporcng xprcs - Th Componys sco rsponsb or nonco rporcng hov bn occndng oucsd courss,
smnors ond updocs on lFPS. Th Compony hos compcd n-hous lFPS cronng or 2010 co updoc ond ougmnc ch knowdg
o ky occouncng ond nonc prsonn. ln oddcon, ch Compony occnds on lFPS group wch cs prs co dscuss occouncng
pocy chocs ond mpmncocon ssus. Fnoy, ch Compony moncors xposur drocs ond updocs co lFPS on on ongong
boss.
- 8usnss occvcs - Th Compony hos convrcb dbncurs wch nonco covnoncs. Th ogrmnc provds or ch convrson
co lFPS os occpcob occouncng prncps upon whch co bos ch nonco normocon usd n ch covnoncs ond ch nonco
normocon co b provdd os pr ch ogrmncs.
Dl5CLO5UPE CONTPOL5 AND PPOCEDUPE5
Th Componys Ch Excucv Ocr ond Ch Fnonco Ocr or rsponsb or dsgnng dscosur concros ond procdurs
or cousng chm co b dsgnd undr chr suprvson ond vouocng ch ccvnss o ch Componys dscosur concros ond
procdurs. Th Componys Ch Excucv Ocr ond Ch Fnonco Ocr ovrs ch dsgn ond vouocon procss ond hov
concudd choc ch dsgn ond oprocon o chs dscosur concros ond procdurs wr ccv n nsurng mocro normocon
rocng co ch Compony rqurd co b dscosd by ch Compony n cs onnuo ngs or ochr rporcs d or submccd undr oppcob
Conodon scurcs ows s mod known co monogmnc on o cmy boss co oow dcsons rgordng rqurd dscosur.
lNTEPNAL CONTPOL5 OVEP FlNANClAL PEPOPTlNC
Th Ch Excucv Ocr ond Ch Fnonco Ocr o ch Compony or rsponsb or dsgnng ncrno concros ovr nonco
rporcng or cousng chm co b dsgnd undr chr suprvson ond vouocng ch ccvnss o ch Componys ncrno concros
ovr nonco rporcng. Th Ch Excucv Ocr ond Ch Fnonco Ocr hov ovrsn ch dsgn ond vouocon o ncrno
concros ovr nonco rporcng ond hov concudd choc ch dsgn ond oprocon o chs ncrno concros ovr nonco rporcng
wr ccv n provdng rosonob ossuronc rgordng ch robcy o nonco rporcng ond ch prporocon o nonco
scocmncs or xcrno purposs n occordonc wch Conodon CAAP.
8cous o chr nhrnc mcocons, dscosur concros ond procdurs ond ncrno concros ovr nonco rporcng moy noc prvnc
or dccc msscocmncs, rrors or roud. Concro syscms, no moccr how w concvd or oprocd, con provd ony rosonob, noc
obsouc, ossuronc choc ch obccvs o ch concro syscm or mc.
30
! K O K 8 O U K C 8 L T .
Du co o mocro woknss dcrmnd n prporocon o ch consodocd nonco scocmncs or ch yor ndd lorch 31, 2010, ch
Compony oddd oddcono oyrs o rvw wch rspcc co rcordng o scock-bosd compnsocon. Thr wr no ochr chongs n
ncrno concros ovr nonco rporcng durng ch yor ndd lorch 31, 2011.
Pl5K FACTOP5
ln ch normo cours o busnss ch Compony s xposd co o vorcy o occuo ond pocnco vncs, uncrconcs, crnds ond rsks. ln
oddcon co ch rsks ossococd wch ch us o ossumpcons n ch crcco occouncng scmocs, nonco nscrumncs, ch Componys
commcmncs ond occuo ond xpccd oprocng vncs, o o whch or dscussd obov, ch Compony hos dncd ch oowng
vncs, uncrconcs, crnds ond rsks choc coud hov o mocro odvrs mpocc on ch Compony:
- Th Compony moy noc b ob co nd rsrvs oc o rosonob cosc, dvop rsrvs wchn rqurd cm-roms or oc o rosonob
cosc, or s chs rsrvs or o rosonob proc;
- Psrvs moy b rvsd du co conomc ond cchnco occors;
- Th Compony moy noc b ob co obcon opprovo, or obcon opprovo on o cmy boss or xporocon ond dvopmnc
occvcs;
- Chongng govrnmnco pocs, soco nscobcy ond ochr pocco, conomc or dpomocc dvopmncs n ch councrs n
whch ch Compony oprocs;
- Chongng coxocon pocs, coxocon ows ond ncrprcocons chro;
- Advrs occors ncudng cmoc ond gogrophco condcons, wochr condcons ond obour dspucs;
- Chongs n orgn xchong rocs choc mpocc ch Componys non-U.S. door cronsoccons; ond
- Chongs n ucur o ond nocuro gos prcs.
For o comprhnsv dscusson o o dncd rsks, rr co ch Componys Annuo lnormocon Form, whch con b ound oc
www.sdor.com.
Th Compony hos o numbr o concngncs os oc lorch 31, 2011. Pr co ch nocs co ch Componys consodocd nonco scocmncs
or o compc sc o ch concngncs ond ony pocnco ccs on ch Compony.
OUT5TANDlNC 5HAPE DATA
Ac Jun 28, 2011, ch Compony hod ch oowng oucscondng shors:
Numbr Cdn$ Amounc
(1)
Common shors 51,528,471 $ 1,342,180,000
Prrrd shors n n
Scock opcons 4,428,002 -
(1)
Ths s ch door omounc rcvd or common shors ssud xcudng shor ssu coscs ond s prsncd n Conodon doors. Th U.S. door quvonc oc
Jun 28, 2011 s $1,185,554,000.
31
! K O K 8 O U K C 8 L T .
Management's Peport
Th occomponyng consodocd nonco scocmncs ond o ochr normocon concond swhr n chs rporc s ch rsponsbcy
o ch monogmnc o Nko Psourcs Lcd. Th consodocd nonco scocmncs ncssory ncud omouncs choc or bosd on
scmocs, whch hov bn obccvy dvopd by monogmnc usng o rvonc normocon. Th nonco normocon concond
swhr n chs rporc hos bn rvwd co nsur consscncy wch ch consodocd nonco scocmncs.
lonogmnc moncons ond vouocs ch ccvnss o dscosur concros ond procdurs ond ncrno concro ovr nonco
rporcng or Nko Psourcs Lcd. Dscosur concros ond procdurs or dsgnd co provd rosonob ossuronc choc mocro
normocon rocng co Nko Psourcs Lcd., ncudng cs consodocd subsdors, s mod known co monogmnc by ochrs wchn
chos nccs. lncrno concros ovr nonco rporcng or dsgnd co provd rosonob ossuronc rgordng ch robcy
o nonco rporcng ond ch prporocon o consodocd nonco scocmncs or xcrno purposs n occordonc wch Conodon
gnroy occpcd occouncng prncps. Th Compony vouocs ch ccvnss o ncrno concros ovr nonco rporcng oc ch
nonco yor nd ond dscoss cs concusons obouc ch ccvnss n ch Componys onnuo lonogmncs Dscusson ond Anoyss
(lD&A).
Th Audc Commcc o ch 8oord o Drccors, comprsd o non-monogmnc drccors, hos rvwd ch consodocd nonco
scocmncs wch monogmnc ond ch oudcors. Th consodocd nonco scocmncs hov bn opprovd by ch 8oord o Drccors
on ch rcommndocon o ch Audc Commcc.
Th consodocd nonco scocmncs hov bn oudcd by lPlC LLP, ch xcrno oudcors, n occordonc wch oudcng scondords
gnroy occpcd n Conodo on bho o ch shorhodrs.
'FYCTF55CORUQP /WTTC[*GULG
Prsdnc ond CEO Vc Prsdnc, Fnonc ond CFO
Jun 28, 2011
(sgnd) Edword S. Sompson" (sgnd) lurroy Hs"
32
! K O K 8 O U K C 8 L T .
lndependent Auditors' Peport to 5harehoIders
To ch Shorhodrs o Nko Psourcs Lcd.
W hov oudcd ch occomponyng consodocd nonco scocmncs o Nko Psourcs Lcd., whch comprs ch consodocd
boonc shcs os oc lorch 31, 2011 ond 2010, ch consodocd scocmncs o oprocons, comprhnsv ncom ond rcond
ornngs ond cosh ows or ch yors chn ndd, ond nocs, comprsng o summory o sgnconc occouncng pocs ond ochr
xponocory normocon.
Management's PesponsibiIity for the ConsoIidated FinanciaI 5tatements
lonogmnc s rsponsb or ch prporocon ond or prsncocon o chs nonco scocmncs n occordonc wch Conodon gnroy
occpcd occouncng prncps, ond or such ncrno concro os monogmnc dcrmns s ncssory co nob ch prporocon o
nonco scocmncs choc or r rom mocro msscocmnc, whchr du co roud or rror.
Auditors' PesponsibiIity
Our rsponsbcy s co xprss on opnon on chs nonco scocmncs bosd on our oudcs. W conduccd our oudcs n occordonc
wch Conodon gnroy occpcd oudcng scondords. Thos scondords rqur choc w compy wch chco rqurmncs ond pon ond
prorm ch oudc co obcon rosonob ossuronc obouc whchr ch nonco scocmncs or r rom mocro msscocmnc.
An oudc nvovs prormng procdurs co obcon oudc vdnc obouc ch omouncs ond dscosurs n ch consodocd nonco
scocmncs. Th procdurs sccd dpnd on our udgmnc, ncudng ch ossssmnc o ch rsks o mocro msscocmnc o ch
consodocd nonco scocmncs, whchr du co roud or rror. ln mokng chos rsk ossssmncs, w consdr ncrno concro rvonc
co ch nccys prporocon ond or prsncocon o ch consodocd nonco scocmncs n ordr co dsgn oudc procdurs choc or
opproproc n ch crcumsconcs, buc noc or ch purpos o xprssng on opnon on ch ccvnss o ch nccys ncrno concro.
An oudc oso ncuds vouocng ch opproprocnss o occouncng pocs usd ond ch rosonobnss o occouncng scmocs
mod by monogmnc, os w os vouocng ch ovro prsncocon o ch consodocd nonco scocmncs.
W bv choc ch oudc vdnc w hov obcond n our oudcs s sucnc ond opproproc co provd o boss or our
oudc opnon.
Opinion
ln our opnon, ch consodocd nonco scocmncs prsnc ory, n o mocro rspccs, ch consodocd nonco poscon o Nko
Psourcs Lcd. os oc lorch 31, 2011 ond 2010, ond ch rsucs o cs consodocd oprocons ond cs consodocd cosh ows or ch
yors chn ndd n occordonc wch Conodon gnroy occpcd occouncng prncps.
-2/)..2
Chorcrd Accounconcs
Cogory, Conodo
Jun 28, 2011
(sgnd) lPlC LLP"
33
! K O K 8 O U K C 8 L T .
As at March 31, 2011 2010
A55ET5
Currnc osscs
Cosh ond cosh quvoncs $ 108,342 $ 196,813
Pscrccd cosh (noc 4) 7,704 28,245
Shorc-crm nvscmncs (noc 5) 14,922 32,081
Accouncs rcvob 72,422 47,706
lnvncory 363 256
Prpod xpnss ond dposcs 1,566 724
205,319 305,825
Pscrccd cosh (noc 4) 10,232 21,026
Long-crm occouncs rcvob (noc 6o, 6b, 6c) 50,076 31,128
Long-crm nvscmnc 2,830 -
lncom cox rcvob (nocs 6d, 24) 34,637 23,240
Fucur ncom cox ossc (noc 16) 42,977 20,410
Proprcy, ponc ond qupmnc (noc 7) 1,861,442 1,844,826
$ 2,207,513 $ 2,246,455
LlABlLlTlE5 AND 5HAPEHOLDEP5' EQUlTY
Currnc obcs
Accouncs poyob ond occrud obcs $ 90,340 $ 123,547
Currnc cox poyob 2,277 1,971
Currnc porcon o copco os obgocon (noc 23b) 5,848 5,357
Currnc porcon o ong-crm dbc (noc 9) - 154,811
98,465 285,686
Assc rcrmnc obgocon (noc 8) 37,703 30,520
Copco os obgocon (noc 23b) 52,624 58,472
Long-crm dbc (noc 9) - 38,003
Convrcb dbncurs (noc 10) 309,221 291,063
Fucur ncom cox obcy (noc 16) 227,746 227,746
725,759 931,490
Shorhodrs qucy
Shor copco (noc 11) 1,157,889 1,107,163
Concrbucd surpus (noc 12) 67,279 48,397
Equcy componnc o convrcb dbncurs (noc 10) 14,765 14,765
Accumuocd ochr comprhnsv ncom (noc 13) 422 12,220
Pcond ornngs 241,399 132,420
1,481,754 1,314,965
$ 2,207,513 $ 2,246,455
Sgmncd normocon (noc 18) Copco monogmnc (noc 19) Fnonco nscrumncs (noc 20)
Pocd-porcy cronsoccons (noc 21) Cuoroncs (noc 22) Commcmncs ond subsqunc vnc (noc 23)
Concngncs (noc 24) S occomponyng Nocs co ch Consodocd Fnonco Scocmncs.
Th nonco scocmncs wr opprovd by ch 8oord o Drccors on Jun 28, 2011:
'FYCTF55CORUQP 9GPFGNN4QDKPUQP
Chormon o ch 8oord Chormon o ch Audc Commcc
ConsoIidated BaIance 5heets
(Ihousands of U.8. doIIars)
(sgnd) Edword S. Sompson" (sgnd) Wnd Pobnson"
34
! K O K 8 O U K C 8 L T .
Pvnu
O ond nocuro gos $ 453,824 $ 334,111
Poyocs [20,707) (14,979)
Proc pcroum [29,261) (29,533)
404,768 302,278
Expnss
Oprocng 38,360 31,125
lncrsc ond noncng (noc 14) 29,694 20,110
Cnro ond odmnscrocv 12,106 11,069
Ochr xpns (noc 15) 9,727 -
Forgn xchong (gon) oss [875) 10,154
Scock-bosd compnsocon (noc 11c) 28,998 19,778
Loss (gon) on shorc-crm nvscmncs (noc 5) 12,720 (14,554)
Dpcon, dprcocon ond occrcon (noc 7) 139,242 101,367
269,972 179,049
lncom bor ncom coxs 134,796 123,229
lncom coxs (noc 16)
Currnc ncom cox xpns 36,900 24,851
Fucur ncom cox rduccon [21,844) (20,410)
15,056 4,441
Nc ncom $ 119,740 $ 118,788
Nc ncom pr shor (noc 17)
8osc $ 2.35 $ 2.39
Ducd $ 2.33 $ 2.37
Comprhnsv ncom:
Nc lncom $ 119,740 $ 118,788
Forgn currncy cronsocon (oss) gon [11,798) 14,626
Comprhnsv ncom $ 107,942 $ 133,414
Pcond ornngs, bgnnng o yor $ 132,420 $ 19,446
Nc ncom 119,740 118,788
Dvdnds pod [10,761) (5,814)
Pcond ornngs, nd o yor $ 241,399 $ 132,420
S occomponyng Nocs co ch Consodocd Fnonco Scocmncs.
ConsoIidated 5tatements of Operations, Comprehensive
lncome and Petained Earnings
(Ihousands of U.8. doIIars, excepI per share amounIs)
35
! K O K 8 O U K C 8 L T .
Cosh provdd by (usd n):
Oprocng occvcs
Nc ncom $ 119,740 $ 118,788
Add cms noc nvovng cosh rom oprocons:
Unrozd orgn xchong (gon) oss [597) 8,572
Loss (gon) on shorc-crm nvscmncs 12,720 (14,554)
Accrcon o convrcb dbncurs 4,766 -
Scock-bosd compnsocon 28,998 19,778
Dpcon, dprcocon ond occrcon 139,242 101,367
Fucur ncom cox rduccon [21,844) (20,410)
Ochr 148 267
Chong n non-cosh workng copco [12,933) (26,103)
Chong n ong-crm occouncs rcvob [29,930) (5,987)
240,310 181,718
Fnoncng occvcs
Procds rom ssuonc o shors (noc 11b) 38,765 54,998
Convrcb dbncurs (noc 10) - 297,590
Dvdnds pod [10,761) (5,814)
Ppoymnc o ong-crm dbc (noc 9o) [192,814) -
Pduccon n copco os obgocons (noc 23b) [5,309) (4,531)
[170,119) 342,243
lnvscng occvcs
Addcon o proprcy, ponc ond qupmnc [146,429) (216,363)
Corporoc ocquscon - (302,792)
Pscrccd cosh concrbucons [37,873) (19,093)
Pscrccd cosh rosd 69,208 187,825
Addcon co shorc-crm nvscmnc (noc 5) [6,135) -
Dsposcon o shorc-crm nvscmnc (noc 5) 11,103 1,054
Addcon co ong-crm nvscmnc [2,704) -
Chong n non-cosh workng copco [46,642) (11,916)
[159,472) (361,285)
Chong n cosh ond cosh quvoncs [89,281) 162,676
Ecc o orgn currncy cronsocon on cosh ond cosh quvoncs 810 2,948
Cosh ond cosh quvoncs, bgnnng o prod 196,813 31,189
Cosh ond cosh quvoncs, nd o prod $ 108,342 $ 196,813
Suppmnco normocon:
lncrsc pod $ 25,713 $ 8,315
Toxs pod $ 45,702 $ 35,442
S occomponyng Nocs co Consodocd Fnonco Scocmncs.
ConsoIidated 5tatements of Cash FIows
(Ihousands of U.8. doIIars)
36
! K O K 8 O U K C 8 L T .
1. BA5l5 OF PPE5ENTATlON
Th consodocd nonco scocmncs ncud ch occouncs o Nko Psourcs Lcd. (ch Compony") ond o o cs subsdors. Th
moorcy o ch xporocon, dvopmnc ond produccon occvcs o ch Compony or conduccd oncy wch ochrs ond, occordngy,
chs consodocd nonco scocmncs rcc ony ch Componys proporconoc ncrsc n such occvcs.
2. 5UMMAPY OF 5lCNlFlCANT ACCOUNTlNC POLlClE5
( u ) C u s h u n d C u s h E g u i c u I c n I s
Cosh ond cosh quvoncs consscs o cosh ond dmond dposcs.
( h ) R c s I r i c I c d C u s h
Cosh choc s subcc co rscrccons choc mc cs us co spcd currnc purposs s cossd os rscrccd cosh n currnc osscs.
Cosh choc s subcc co rscrccons choc mc cs us co spcd non-currnc purposs s cossd undr rscrccd cosh n
non-currnc osscs.
( c ) S h o r I - T c r m 1 n c c s I m c n I s
Shorc-crm nvscmncs conssc o morkcob scurcs. Th shorc-crm nvscmncs wr dsgnocd os hd-or-crodng upon nco
rcogncon. S noc 2(r) or o dscrpcon o ch occouncng pocy or hd-or-crodng nonco nscrumncs.
( d ) 1 n c c n I o r )
lnvncors conssc o o ond condnsoc, whch or rcordd oc ch owr o cosc ond nc rozob vou. Cosc s comprsd o oprocng
xpnss choc hov bn ncurrd n brngng nvncors co chr prsnc ococon ond condcon ond ch porcon o dpcon xpns
ossococd wch ch o ond condnsoc produccon. Nc rozob vou s ch scmocd sng prc n ch ordnory cours o busnss
ss oppcob vorob sng xpnss. Th Compony ossgns ch cosc o nvncory usng ch rsc-n-rsc ouc mchod. A nvncory
oucscondng oc ch bgnnng o ch prod s sod durng ch prod.
( c ) L o n g - T c r m 1 n c c s I m c n I s
Th Compony cosss nvscmncs n whch c s ob co xrcs sgnconc nunc ovr on nvsc choc s noc o subsdory os o
ong-crm nvscmnc. Long-crm nvscmncs or occouncd or usng ch qucy mchod whrby ch nvscmnc s ncoy rcordd
oc cosc ond ch corryng vou s subsquncy oduscd co ncud ch Componys pro-roco shor o posc-ocquscon ornngs o ch
nvsc. Whn chr hos bn o oss n vou o on nvscmnc choc s ochr chon o cmporory dcn, ch nvscmnc s wrccn down co
rcognz ch oss. Whn ch Compony coss co b ob co xrcs sgnconc nunc ovr on nvsc, ch nvscmnc s occouncd
or os o nonco nscrumnc. S noc 2(r) or o dscrpcon o ch occouncng pocy or nonco nscrumncs.
( / ) P r o p c r I ) , P I u n I u n d E g u i p m c n I
Th Compony oows ch u cosc mchod o occouncng whrby o coscs rocd co ch xporocon or ond dvopmnc o o ond
nocuro gos rsrvs or ncoy copcozd ond occumuocd n cosc cncrs by councry. Coscs copcozd ncud ond ocquscon
coscs, googco ond gophysco xpnss, coscs o drng produccv ond non-produccv ws, coscs o gochrng ond produccon
occs ond qupmnc ond odmnscrocv coscs rocd co copco proccs. Cons or osss or noc rcognzd upon dsposcon o o
ond nocuro gos proprcs unss such dsposcon woud ocr ch dpcon roc by 20 prcnc or mor.
ln oppyng ch u cosc mchod, ch Compony prorms o cosc rcovry csc (cng csc), pocng o mc on ch corryng vou o
proprcy, ponc ond qupmnc. l ch corryng vou xcds ch or vou, on mpormnc oss s rcognzd co ch xcnc choc ch
corryng vou o osscs xcds ch nc prsnc vou, cocuocd os ch sum o ch dscouncd vou o ucur nc rvnus rom
provd ond probob rsrvs, ch owr o cosc ond morkc o unprovd proprcs ond ch cosc o moor dvopmnc proccs. Th
nc prsnc vou s scmocd usng xpccd ucur prcs ond coscs ond s dscouncd usng o rsk-r ncrsc roc.
Notes to ConsoIidated FinanciaI 5tatements
Ior Ihe year ended March 81, 2O11. AII IabuIar amounIs are n Ihousands of U.8. doIIars excepI per share amounIs,
numbers of shares and sIock opIons, sIock opIon and share prces, and cerIan oIher gures as ndcaIed.
37
! K O K 8 O U K C 8 L T .
( g ) O c p I c I i o n u n d O c p r c c i u I i o n
Coscs o ocqurng unprovd proprcs or ncoy xcudd rom coscs subcc co dpcon ond or ossssd quorcry co oscrcon
whchr mpormnc hos occurrd. Whn provd rsrvs or ossgnd co ch proprcy or ch proprcy s consdrd co b mpord,
ch cosc o ch proprcy or ch omounc o mpormnc s oddd co coscs subcc co dpcon. Coscs o moor dvopmnc proccs or
ncoy xcudd rom coscs subcc co dpcon ond or ossssd quorcry co oscrcon whchr mpormnc hos occurrd. Whn o
porcon o ch proprcy bcoms copob o produccon or ch proprcy s consdrd co b mpord, ch cosc or on opproproc porcon
o ch cosc o ch proprcy s oddd co coscs subcc co dpcon.
Coscs copcozd n ch u cosc poo or dpcd usng ch unc-o-produccon mchod by cosc cncr bosd upon coco provd o ond
nocuro gos rsrvs bor royocs os dcrmnd by ndpndnc ngnrs ond updocd ncrnoy os oppcob. For purposs o ch
cocuocon, o ond nocuro gos rsrvs or convrcd co o common unc o mosur on ch boss o chr rocv nrgy concnc. Th
copco os s dprcocd scroghc-n ovr ch o ch os.
Oc ond ochr qupmnc s dprcocd usng ch dcnng boonc mchod oc rocs o 20 co 30 prcnc pr onnum.
( h ) C u p i I u I i z c d 1 n I c r c s I
lncrsc coscs on moor copco proccs or copcozd unc ch proccs or copob o commrco produccon. Ths coscs or
subsquncy omorczd wch ch rocd osscs.
( i ) A s s c I R c I i r c m c n I O h I i g u I i o n s
Th Compony rcognzs ch or vou o ch obcs or ossc rcrmnc obgocons rocd co cs ong-vd osscs n ch prod
n whch chy or ncurrd. Th or vou o on ossc rcrmnc obgocon s rcordd os o obcy wch o corrspondng ncros n
proprcy ond qupmnc. Th ncros n proprcy ond qupmnc s dpcd usng ch unc-o-produccon mchod consscnc wch ch
undryng osscs. Th occrcon xpns or ncross co ch ossc rcrmnc obgocons du co ch possog o cm or rcognzd
oc ch nd o och prod. Subsqunc co nco mosurmnc, prod-co-prod chongs n ch obcs or rcognzd or rvsons
co chr ch cmng or ch omounc o ch orgno scmocs o undscouncd cosh ows. Accuo coscs ncurrd upon sccmnc or
chorgd ogonsc ch ossc rcrmnc obgocons. Any drnc bcwn ch occuo cosc ond ch rcordd obcy s rcognzd os o
gon or oss n nc ncom n ch prod n whch sccmnc occurs.
( j ) L c u s c s
Loss or cossd os chr copco or oprocng n nocur. Copco oss or chos choc cronsr subsconcoy o o ch bncs
ond rsks o ownrshp rocd co ch osd proprcy rom ch ssor co ch ss. Asscs ocqurd undr copco oss or dpcd
oong wch ch pcroum ond nocuro gos proprcs. Obgocons rcordd undr copco oss or rducd by ch prncpo porcon
o os poymncs os ncurrd ond ch mpucd ncrsc porcon o copco os poymncs s chorgd co xpns. Oprocng oss or
chos whr ch bncs ond rsks o ownrshp rocd co ch os proprcy or subsconcoy rcond by ch ssor. Oprocng os
poymncs or chorgd co xpns.
( k ) C o m p r c h c n s i c c 1 n c o m c
Comprhnsv ncom consscs o nc ncom ond ochr comprhnsv ncom (OCl). OCl comprss ch chong n ch or vou o
ch ccv porcon o ch drvocvs usd os hdgng cms n o cosh ow hdg, ch chong n or vou o ony ovoob-or-so
nonco nscrumncs ond orgn xchong gons or osss orsng rom ch cronsocon o Conodon oprocons usng ch currnc roc
mchod co U.S. doors. Amouncs ncudd n OCl or shown nc o cox. Accumuocd ochr comprhnsv ncom s on qucy cocgory
comprsd o ch cumuocv omouncs o OCl.
38
! K O K 8 O U K C 8 L T .
( I ) R c c c n u c R c c o g n i I i o n
Sos o crud o, nocuro gos ond nocuro gos quds or rcordd n ch prod n whch ch cc co ch pcroum cronsrs co ch
cuscomr. Crud o ond nocuro gos quds producd ond scord by ch Compony, buc unsod, or rcordd os nvncory unc sod.
Th Compony ncrs nco ong-crm, xd prc gos sos concroccs n ch normo cours o busnss. Ths physco so concroccs or
documncd os normo purchos ond so cronsoccons ond os such or noc consdrd nonco nscrumncs. Th Compony occouncs or
chs concroccs os xcucory concroccs rochr chon os non-nonco drvocvs.
( m) F o r c i g n C u r r c n c )
Th Componys Conodon oprocons hov ch Conodon door os chr unccono currncy ond, os ch Compony rporcs cs rsucs n
U.S. doors, c chror uss ch currnc roc mchod o orgn currncy cronsocon. Undr ch currnc roc mchod, occouncs or
cronsocd co U.S. doors rom chr Conodon door unccono currncy os oows: osscs ond obcs or cronsocd oc ch xchong
roc n cc oc ch boonc shc doc, ond rvnus ond xpnss or cronsocd oc ch ovrog xchong roc or ch prod. Cons
ond osss rsucng rom ch cronsocon o Conodon oprocons co U.S. doors or ncudd n ch orgn currncy cronsocon occounc
wchn ochr comprhnsv ncom.
Tronsoccons n orgn currncs, ochr chon ch U.S. door, or cronsocd oc rocs n cc oc ch cm o ch cronsoccon ond ony
rsucng gons ond osss or ncudd n nc ncom.
( n ) 1 n c o m c T u x c s
Th Compony oows ch ossc ond obcy mchod co occounc or ncom coxs. Undr chs mchod, ucur ncom cox osscs ond
obcs or rcognzd or ch scmocd cox consquncs occrbucob co drncs bcwn ch omouncs rporcd n ch nonco
scocmncs ond chr rspccv cox boss, usng subsconcvy noccd ncom cox rocs. Th cc o o chong n ncom cox rocs on
ucur ncom cox osscs ond obcs s rcognzd n ncom n ch prod choc ch chong occurs. A vouocon oowonc s rcordd
ogonsc ony ucur ncom cox ossc c s mor ky chon noc choc ch ossc w noc b rozd.
( o ) M c u s u r c m c n I U n c c r I u i n I )
Th prporocon o ch consodocd nonco scocmncs n conormcy wch Conodon gnroy occpcd occouncng prncps
rqurs monogmnc co mok scmocs ond ossumpcons choc occ ch rporcd omouncs o osscs ond obcs, ch dscosur
o concngnc osscs ond obcs oc ch docs o ch consodocd nonco scocmncs ond ch rporcd omouncs o rvnus ond
xpnss durng ch rporcng prods. 8y chr nocur, chs scmocs or subcc co mosurmnc uncrconcy ond occuo rsucs moy
dr rom chos scmocd.
Th mosc sgnconc scmocs mod by monogmnc roc co omouncs rcordd or ch dpcon o proprcy ond qupmnc, ch
provson or ch ossc rcrmnc obgocon, occrcon xpns, ch cng csc, scock-bosd compnsocon xpns ond ch or
vou o ong-crm occouncs rcvob. Th cng csc cocuocon ond ch provsons or dpcon ond ossc rcrmnc obgocons
or bosd on such occors os scmocd provd rsrvs, produccon rocs, ucur pcroum ond nocuro gos prcs ond ucur coscs.
Scock-bosd compnsocon s bosd on such occors os ch rsk-r ncrsc roc, vooccy, xpccd , xpccd dvdnds ond
xpccd orcur rocs. Th or vou o ch ong-crm occounc rcvob s bosd on o dscounc roc ond cmng o coccon. Fucur
vncs coud rsuc n mocro chongs co ch corryng vous rcognzd n ch nonco scocmncs.
( p ) P c r S h u r c A m o u n I s
8osc ornngs pr shor or compucd by dvdng nc ncom by ch wghcd ovrog numbr o common shors oucscondng durng
ch yor. Ducd pr shor omouncs rcc ch pocnco ducon choc coud occur opcons co purchos common shors wr xrcsd
or convrcd co common shors. Th crosury scock mchod s usd co dcrmn ch ducv cc o scock opcons ond ony ochr
ducv nscrumnc.
39
! K O K 8 O U K C 8 L T .
( g ) S I o c k - B u s c d C o m p c n s u I i o n
Th Compony hos o scock-bosd compnsocon pon os dscrbd n noc 11. Compnsocon xpns ossococd wch ch pon s
rcognzd ovr ch vscng prod o ch pon wch o corrspondng ncros n concrbucd surpus. Compnsocon xpns s bosd
on ch or vou o ch scock opcons oc ch gronc doc usng ch 8ock-Schos opcon-prcng mod. Any consdrocon rcvd upon
xrcs o ch scock opcons, cogchr wch ch omounc prvousy rcognzd n concrbucd surpus, s rcordd os on ncros co
shor copco. Th Compony hos noc ncorporocd on scmocd orcur roc or scock opcons choc w noc vsc; rochr, ch Compony
occouncs or occuo orcurs os chy occur.
( r ) F i n u n c i u I 1 n s I r u m c n I s
Fnonco nscrumncs or ncoy rcognzd oc or vou on ch boonc shc. Th Compony hos cossd och nonco nscrumnc
nco ch oowng cocgors: hd-or-crodng nonco osscs ond obcs; oons ond rcvobs; hd co mocurcy nvscmncs;
ovoob-or-so nonco osscs; ond ochr nonco obcs. Subsqunc mosurmnc o ch nonco nscrumncs s bosd on chr
cosscocon. Tronsoccon coscs on nonco osscs ond obcs cossd ochr chon os hd or crodng or oddd co ch or vou
upon nco rcogncon.
= Z a Y ; d g I g V Y ^ c \ ; ^ c V c X ^ V a 6 h h Z i h V c Y A ^ V W ^ a ^ i ^ Z h /
Subsqunc co nco mosurmnc, hd or crodng nonco nscrumncs or rcordd oc or vou ond ony unrozd gons ond
osss rsucng rom ch chong n or vou or rcognzd n nc ncom. Cosh ond cosh quvoncs, rscrccd cosh ond shorc-crm
nvscmncs or cossd os hd-or-crodng.
A d V c h V c Y G Z X Z ^ k V W a Z h /
Subsqunc co nco mosurmnc, oons ond rcvobs or mosurd oc cosc usng ch ccv ncrsc roc mchod. Accouncs
rcvob ond ong-crm occouncs rcvob or cossd os oons ond rcvobs.
= Z a Y i d B V i j g ^ i n > c k Z h i b Z c i h /
Subsqunc co nco mosurmnc, hd co mocurcy nvscmncs or mosurd oc cosc usng ch ccv ncrsc roc mchod. Th
Compony dos noc hov ony nonco nscrumncs cossd os hd co mocurcy.
6k V ^ a V W a Z [ d g H V a Z ; ^ c V c X ^ V a 6 h h Z i h /
Subsqunc co nco mosurmnc, gons ond osss on ovoob-or-so nonco osscs or rcognzd n ochr comprhnsv
ncom ond cronsrrd co nc ncom whn ch ossc s drcognzd or mpord. Th Compony dos noc hov ony nonco nscrumncs
cossd os ovoob or so.
D i ] Z g ; ^ c V c X ^ V a A ^ V W ^ a ^ i ^ Z h /
Subsqunc co nco mosurmnc, ochr nonco obcs or rcognzd oc cosc usng ch ccv ncrsc roc mchod.
3. FUTUPE ACCOUNTlNC CHANCE5
Eccv or sco yors bgnnng on or ocr Jonuory 1, 2011, ch Compony w b rqurd co rporc undr lncrnocono Fnonco
Pporcng Scondords (lFPS), whch w rpoc Conodon gnroy occpcd occouncng prncps. Th Compony hos dvopd o
chongovr pon co compc ch cronscon co lFPS os o Apr 1, 2011. Th rsc unoudcd ncrm consodocd nonco scocmncs
rporcd undr lFPS w b or ch quorcr ndng Jun 30, 2011.
40
! K O K 8 O U K C 8 L T .
4. PE5TPlCTED CA5H
As at March 31, 2011 2010
C0rrert pcrticr cl restricted cash
Cuoroncs
(1)
$ 7,704 $ 21,838
Funds rscrccd undr ch occy ogrmnc
(2)
- 6,407
Toco $ 7,704 $ 28,245
Ncr-c0rrert pcrticr cl restricted cash
Cuoroncs
(1)
$ 3,947 $ 1,500
Funds rscrccd undr ch occy ogrmnc
(2)
- 14,489
Sc rscorocon und
(3)
6,285 5,037
Toco $ 10,232 $ 21,026
(1)
Th Compony hos prormonc scurcy guoroncs rocd co ch work commcmncs or xporocon bocks. Th Compony s rqurd co provd unds co supporc
ch guoroncs n ch omouncs ndcocd obov. S noc 22 or dcos o ch guoroncs.
(2)
Th cosh choc wos rscrccd undr ch occy ogrmnc wos rosd upon rpoymnc o ch boonc o ong-crm dbc.
(3)
ln occordonc wch ch Sc Pscorocon Fund Schm, 1999 n lndo, ch Compony s rqurd co occumuoc unds n o sporoc rscrccd occounc rocd co
ucur ossc rcrmnc obgocons. Th unds moy b usd or sc rscorocon on ch xpry or crmnocon o on ogrmnc or rnqushmnc o porc o ch
concrocc oro.
5. 5HOPT-TEPM lNVE5TMENT5
Shorc-crm nvscmncs, bgnnng o yor $ 32,081 $ 9,067
Pcosscocon o nvscmnc co shorc-crm - 4,216
Purchoss 6,135 -
Sos [11,103) (1,054)
Forgn xchong 529 5,298
Shorc-crm nvscmncs, nd o yor $ 14,922 $ 32,081
6. LONC-TEPM ACCOUNT5 PECElVABLE
( u ) L o n g - T c r m A c c o u n I s R c c c i c u h I c ( $ 2 3 m i I I i o n )
Th ong-crm occouncs rcvob boonc ncuds o rcvob or ch nocuro gos sos co ch 8ongodsh O, Cos ond lnro
Corporocon (Pcrobongo) or produccon rom ch Fn d n 8ongodsh. Th Compony producd nocuro gos rom ch Fn d
rom Novmbr 2004 co Apr 2010 ond dvrd ch nocuro gos co Pcrobongo or ch durocon.
Pcpc o ch oucscondng omounc s bng doyd os o rsuc o vorous coms rosd ogonsc ch Compony, whch or dscrbd n
nocs 24 (o) ond (b). Achough ch Compony xpccs co cocc ch u omounc o ch rcvob, ch cmng o coccon s uncrcon os
ch Compony w noc cocc ch rcvob unc rsoucon o ch vorous coms rosd ogonsc ch Compony. As o rsuc, ch rcvob
hos bn cossd os ong-crm ond dscouncd usng o rsk-oduscd roc o 6.5 prcnc co rcc ch doy n coccon o chs
omouncs. Th rcvob ncrosd by $0.1 mon dscouncd co $0.1 mon or gos dvrd n ch yor (2010 - $1.0 mon or gos
dvrd dscouncd co $0.8 mon). No omouncs wr coccd durng ch yor or ch prvous yor.
41
! K O K 8 O U K C 8 L T .
( h ) P i p c I i n c u I H u z i r u ( $ 6 m i I I i o n )
Th Compony hos rcognzd o rcvob or o rund o prvousy pod proc pcroum ond o rcvob rom cs onc vncur
porcnr os o rsuc o ch oword o ownrshp o o 36-nch ppn choc s connccd co ch Hozro occs n ch omounc o $6 mon.
S urchr dscusson n noc 24 ().
( c ) O c p o s i I / o r A c g u i s i I i o n ( $ 2 0 m i I I i o n )
Pr co noc 23 (c) or dcos.
( d ) 1 n c o m c T u x R c c c i c u h I c ( $ 3 5 m i I I i o n )
Th ncom cox rcvob boonc rsucs rom odvoncs mod co ch cox ouchorcy n lndo n xcss o ch orgno cox ng. Wh
no ossuronc con b gvn, ch Compony bvs c w b succssu on oppo ond ch cox ouchorcy w rund chs odvoncs. S
urchr dscusson n noc 24 ().
7. PPOPEPTY, PLANT AND EQUlPMENT
Costs Not
AccumuIated 5ubject to
DepIetion and Net Book DepIetion and
As at March 31, 2011 Cost Depreciation VaIue Depreciation
OiI and naturaI gas
BangIadesh $ 223,826 $ 121,851 $ 101,975 $ -
lndia
[1)
1,285,040 352,451 932,589 185,921
lndonesia 586,931 - 586,931 586,931
Kurdistan 91,030 - 91,030 91,030
Madagascar 35,189 - 35,189 35,189
Pakistan 26,630 - 26,630 26,630
Trinidad 80,183 - 80,183 80,183
AII other 11,476 4,561 6,915 3,586
TotaI $ 2,340,305 $ 478,863 $ 1,861,442 $ 1,009,470
Coscs noc
Accumuocd subcc co
Dpcon ond Nc 8ook Dpcon ond
As oc lorch 31, 2010 Cosc Dprcocon Vou Dprcocon
O ond nocuro gos
8ongodsh $ 216,524 $ 93,988 $ 122,536 $ -
lndo
(1)
1,256,802 243,111 1,013,691 173,388
lndonso 537,233 - 537,233 537,233
lurdscon 67,592 - 67,592 67,592
lodogoscor 9,490 - 9,490 9,490
Pokscon 24,647 - 24,647 24,647
Trndod 65,143 - 65,143 65,143
A ochr 9,002 4,508 4,494 2,998
Toco $ 2,186,433 $ 341,607 $ 1,844,826 $ 880,491
(1)
lndo proprcy, ponc ond qupmnc ncuds o copco os or ch oocng, produccon, scorog ond ooodng vss (FPSO) whch, oc lorch 31, 2011, hod o cosc
o $71.0 mon, occumuocd dpcon o $12.9 mon ond o nc book vou o $58.4 mon (lorch 31, 2010 - cosc o $71.4 mon, occumuocd dpcon o
$6.8 mon ond o nc book vou o $64.6 mon). Dpcon xpns rocd co ch copco os o $6.2 mon wos ncudd n ch dpcon, dprcocon ond
occrcon xpns or ch yor ndd lorch 31, 2011 (lorch 31, 2010 - $4.1 mon).
42
! K O K 8 O U K C 8 L T .
Durng ch yor ndd lorch 31, 2011, ch Compony copcozd $0.2 mon o gnro ond odmnscrocv xpnss ond $1.7 mon o
scock-bosd compnsocon xpns (lorch 31, 2010 - $0.4 mon o gnro ond odmnscrocv xpnss, $2.1 mon o scock-bosd
compnsocon xpns ond $1.0 mon o noncng chorgs).
Ac lorch 31, 2011, ch Compony prormd cng cscs or ch lndon ond 8ongodsh cosc cncrs co ossss ch rcovrob vou.
Th nocuro gos prcs usd n ch cng cscs wr bosd on concroccs ncrd nco by ch Compony ond orcosc concrocc prcs os
ndcocd bow. Th ucur o ond condnsoc prcs or ch D6 8ock ond Hozro Fd n lndo ond 8ock 9 n 8ongodsh wr bosd
on ch commodcy prc orcosc ccv Apr 1, 2011 rocv co 8rnc 8nd prcs o ch Componys ndpndnc rsrv vouocors
ond wr oduscd or commodcy prc drncos spcc co ch Compony, bng 100? o 8rnc 8nd or ch D6 8ock ond 8ock 9
ond 95? o 8rnc 8nd or ch Hozro Fd.
Th cob bow summorzs ch bnchmork ond orcosc prcs usd n ch cng csc cocuocon:
lndo 8ongodsh
8nchmork Forcosc Forcosc
Prc Nocuro Cos Nocuro Cos
(8rnc 8nd) Yor ndng Prc Prc
Year Ending Dec. 31,
[1)
($bb) lor. 31 ($lc) ($lc)
2011 117.89 2012 3.96 2.33
2012 112.25 2013 9.92 2.33
2013 103.75 2014 9.42 2.33
2014 95.83 2015 8.65 2.33
2015 97.80 2016 7.90 2.33
Throcr 107.28 Throcr 8.86 2.33
(1)
Th bnchmork prc s orcosc or ch condor yor ndng Dcmbr 31sc whros ch Componys sco yor nds lorch 31sc. Th bnchmork prc s oppd
co ch Componys produccon by monch. Th bnchmork prc s ccv oc Apr 1, 2011.
8. A55ET PETlPEMENT OBLlCATlON
Th ossc rcrmnc obgocons roc co ch ucur sc rscorocon ond obondonmnc coscs ncudng ch coscs o produccon
qupmnc rmovo ond nvronmnco con-up bosd on rguocons ond conomc crcumsconcs oc lorch 31, 2011.
Th oowng cob rconcs ch Componys ossc rcrmnc obgocons os oc lorch 31 o och sco yor:
Obgocon, bgnnng o yor $ 30,520 $ 27,544
Obgocons ncurrd 1,288 864
Pvson n scmocd cosh ows 3,752 153
Accrcon xpns 2,138 1,940
Forgn currncy cronsocon 5 19
Obgocon, nd o yor $ 37,703 $ 30,520
Th Compony hos scmocd ch or vou o cs coco ossc rcrmnc obgocons bosd on scmocd ucur undscouncd obcs
o $82.3 mon (lorch 31, 2010 - $72.3 mon). Th nocon rocs usd n cocuocng ch or vou wr 4.5 prcnc or lndon
proprcs ond 2 prcnc or 8ongodsh proprcs o ch ossc rcrmnc obgocons. Th coscs or xpccd co b ncurrd bcwn
2013 ond 2028. A crdc-oduscd rsk-r ncrsc roc o 7.0 prcnc wos usd or obgocons ncurrd up co Dcmbr 31, 2009 ond
5.0 prcnc chrocr wos usd n ch or vou cocuocon co dscounc ucur coscs.
43
! K O K 8 O U K C 8 L T .
ln occordonc wch ch Sc Pscorocon Fund Schm, 1999 n lndo, ch Compony s rqurd co occumuoc unds n o sporoc rscrccd
occounc rocd co ucur ossc rcrmnc obgocons. Th unds moy b usd or sc rscorocon on ch xpry or crmnocon o on
ogrmnc or rnqushmnc o porc o ch concrocc oro. Th or vou o osscs choc or goy rscrccd or purposs o sccng
ossc rcrmnc obgocons s scmocd oc $6.3 mon os oc lorch 31, 2011 (lorch 31, 2010 - $5.0 mon).
9. DEBT
( u ) L o n g - T c r m O c h I
Th Compony rpod ch oucscondng boonc o cs ong-crm dbc durng ch quorcr ndd Dcmbr 31, 2010. Th rscrccd cosh o
$21 mon choc wos rscrccd oc lorch 31, 2010 n occordonc wch ch occy ogrmnc wos rosd durng ch yor.
( h ) C r c d i I F u c i I i I )
Th Compony ncrd nco o chr-yor crdc occy ogrmnc or o $40 mon rvovng dmond occy n lorch 2011. Th
Compony hos noc drown ony omouncs ogonsc ch occy.
Th Compony con drow oons n Conodon or U.S. doors os w os 8onkrs Accpconcs ond Lccrs o Crdc. lncrsc s poyob oc ch
bos morkc roc or ch cyp o oon drown pus o morgn o 1.5? co 3? dpndng on ch Componys roco o coco dbc co ornngs
bor ncrsc, coxs, dprcocon, occrcon ond ochr non-cosh cms.
( c ) A c c o u n I P c r / o r m u n c c S c c u r i I ) G u u r u n I c c
ln Apr 2011, ch Compony ncrd nco on ogrmnc undr whch c con ssu prormonc scurcy guoroncs up co on oggrgoc omounc
o $36.5 mon. Th occy s ovoob unc Augusc 31, 2012 ond con b rnwd upon mucuo ogrmnc oc choc cm. Th Compony hos
noc mod us o chs occy. lncrsc s poyob upon ncocon o o guoronc n ch omounc o 0.88? pr onnum o covrog.
10. CONVEPTlBLE DEBENTUPE5
Th Cdn$310 mon, 5 prcnc snor scurd convrcb dbncurs (ch Dbncurs") mocur on Dcmbr 30, 2012 wch ncrsc
pod sm-onnuoy n orrors on Jonuory 1sc ond Juy 1sc o och yor. Dbncurs or convrcb oc ch opcon o ch hodr nco
common shors o ch Compony oc o convrson prc o Cdn$110.50 pr common shor unc 60 doys pror co ch mocurcy doc.
ln loy 2011 ch crms o ch dbncurs wr ocrd such choc ch Compony now moy cc co convrc o o ch Dbncurs oc mocurcy
nco common shors oc o 6? dscounc co ch wghcd ovrog crodng prc or ch 20 crodng doys pror co ch ccon.
Th or vou o ch convrson ocur o ch Dbncurs ncudd n shorhodrs qucy oc ch doc o ssu wos $14.8 mon. Th
dbc componnc s occrcd ovr ch crm o ch obgocon co ch prncpo vou on mocurcy wch o corrspondng chorg co ornngs.
l ch Dbncurs or convrcd co common shors, ch corrspondng omounc o ch convrson ocur wchn shorhodrs qucy
w b rcossd co shor copco oong wch ch prncpo omounc convrcd. Ac lorch 31, 2011, Dbncurs wch o oc vou o
Cdn$310 mon (opproxmocy US$319 mon) rmon oucscondng.
44
! K O K 8 O U K C 8 L T .
11. 5HAPE CAPlTAL
( u ) A u I h o r i z c d
Unmcd numbr o common shors
Unmcd numbr o prrrd shors
( h ) 1 s s u c d
Number Amount Numbr Amounc
Ccrrcr shares
8oonc, bgnnng o yor 50,818,110 $ 1,107,163 49,298,133 $ 997,189
Shors ssud or proprcy ocquscon - - 397,379 39,691
Scock opcons xrcsd 708,791 38,765 1,122,598 54,997
Tronsrrd rom concrbucd surpus
on xrcs o scock opcons - 11,961 - 15,286
8oonc, nd o yor 51,526,901 $ 1,157,889 50,818,110 $ 1,107,163
( c ) S I o c k O p I i o n s
Th Compony hos rsrvd or ssu - common shors or groncng undr scock opcons co drccors, ocrs, ond mpoys. Th
opcons bcom 100 prcnc vscd mmdocy co v yors ocr ch doc o gronc ond xpr on co sx yors ocr ch doc o gronc.
Scock opcon cronsoccons or ch rspccv prods wr os oows:
2011 2010
Weighted Wghcd
Average Avrog
Number Exercise Numbr Exrcs
Years Ended March 31, of Options Price [Cdn$) o Opcons Prc (Cdn$)
Oucscondng, bgnnng o yor 4,056,714 75.88 4,030,750 64.69
Croncd 1,125,687 101.35 1,530,312 92.18
Forcd [155,938) 86.82 (282,375) 90.25
Exprd [73,775) 92.96 (99,375) 92.72
Exrcsd [708,791) 55.33 (1,122,598) 52.80
Oucscondng, nd o yor 4,243,897 85.37 4,056,714 75.88
Exrcsob, nd o yor 702,144 77.15 730,399 58.21
45
! K O K 8 O U K C 8 L T .
Th oowng cob summorzs scock opcons oucscondng ond xrcsob undr ch pon oc lorch 31, 2011:
Outstanding Options ExercisabIe Options
Weighted Weighted
Pemaining Life Average Exercise Average Exercise
Exercise Price Options [Years) Price [Cdn$) Options Price [Cdn$)
$ 47.11 - $ 49.99 783,815 2.2 49.62 146,499 49.62
$ 50.00 - $ 59.99 7,000 2.5 54.34 1,250 59.25
$ 60.00 - $ 69.99 246,125 1.1 63.01 132,750 63.39
$ 70.00 - $ 79.99 58,250 2.5 74.91 13,000 79.54
$ 80.00 - $ 89.99 676,383 2.2 85.79 109,320 81.40
$ 90.00 - $ 99.99 1,432,200 2.3 95.86 292,825 94.96
$ 100.00 - $ 109.99 1,010,999 3.9 103.49 6,500 103.67
$ 110.00 - $112.64 29,125 3.2 111.12 - -
4,243,897 2.6 85.37 702,144 77.15
H i d X ` " 7 V h Z Y 8 d be Z c h V i ^ d c
Th or vou o och opcon groncd durng ch yor wos scmocd on ch doc o gronc usng ch 8ock-Schos opcon-prcng mod.
Th wghcd ovrog gronc-doc or vous o opcons groncd durng ch yor ndd lorch 31, 2011 wr Cdn$33.90 (yor ndd
lorch 31, 2010 - Cdn$32.94). Th wghcd ovrog ossumpcons usd n ch 8ock-Schos mod co dcrmn or vou or ch
currnc ond pror yors wr os oows:
$NCEM5EJQNGU#UUWORVKQPU
Years Ended March 31, [weighted average) 2011 2010
Psk-r ncrsc roc 2.1 2.3?
Vooccy 42 48?
Expccd (yors) 3.8 3.5
Expccd onnuo dvdnd yd 0.2 0.1?
12. CONTPlBUTED 5UPPLU5
Concrbucd surpus, bgnnng o yor $ 48,397 $ 41,494
Scock-bosd compnsocon 30,843 22,189
Scock opcons xrcsd [11,961) (15,286)
Concrbucd surpus, nd o yor $ 67,279 $ 48,397
13. ACCUMULATED OTHEP COMPPEHEN5lVE lNCOME [LO55)
Accumuocd ochr comprhnsv ncom (oss), bgnnng o yor $ 12,220 $ (2,406)
Forgn currncy cronsocon (oss) gon [11,798) 14,626
Accumuocd ochr comprhnsv ncom, nd o yor $ 422 $ 12,220
46
! K O K 8 O U K C 8 L T .
14. lNTEPE5T AND FlNANClNC EXPEN5E
lncrsc xpns rocd co copco os $ 5,350 $ 5,360
lncrsc xpns on ong-crm dbc 4,191 9,599
lncrsc xpns on convrcb dbncurs 15,173 3,736
Accrcon xpns on convrcb dbncurs 4,766 1,148
Ochr 214 267
lncrsc ond noncng xpns $ 29,694 $ 20,110
15. OTHEP EXPEN5E
ln Jonuory 2009, ch Compony rcvd conrmocon rom Conodon ouchorcs choc chy wr ngogd n o ormo nvscgocon nco
ogocons o mpropr poymncs n 8ongodsh by chr ch Compony or cs subsdory n 8ongodsh. Th Compony cooprocd n ch
nvscgocon, whch wos concudd on Jun 24, 2011, ond ch Compony podd gucy co on counc o brbry undr ch Corrupcon
o Forgn Pubc Ocos Acc. Th chorg rrs co cwo spcc ncdncs choc occurrd n 2005: ch provson o o vhc or ch
prsono us o ch chn-8ongodsh Enrgy lnscr, voud oc Cdn$190,984; ond ch provson o crov coscs co ch som lnscr
co occnd on Enrgy Expo n Cogory ond o subsqunc prsono crp co Nw York, voud oc Cdn$5,000. Th sncnc ncuds o n o
Cdn$8,260,000 ond on oddcono 15? Vccm Fn Surchorg or o coco omounc o Cdn$9,499,000 (US$9,726,618) ond ch Compony
hos rcordd chs omounc os on xpns or ch yor ndd lorch 31, 2011. Addconoy, ch sncnc ncuds o Probocon Ordr,
whch pucs ch Compony undr ch Courcs suprvson or ch nxc chr yors co nsur oudcs or don co nsur ch Componys
componc wch ch Acc. Th coscs o componc wch ch Probocon Ordr w b born by ch Compony ond xpnsd os ncurrd.
16. lNCOME TAXE5
Th provson or ncom coxs n ch nonco scocmncs drs rom ch rsuc choc woud hov bn obcond by oppyng
ch combnd dro ond provnco cox roc co ch Componys ncom bor ncom coxs. Ths drnc rsucs rom ch
oowng cms:
lncom bor ncom coxs $ 134,796 $ 123,229
Scocucory ncom cox roc 27.63 28.75?
Compucd xpccd ncom coxs 37,237 35,428
Scock-bosd compnsocon xpns 8,056 5,695
lncom xmpc rom cox [42,310) (35,261)
Aduscmnc co ucur lndon coxs [3,219) (5,234)
Forgn non-ncom rocd coxs 55 34
Ochr non-dduccb xpnss 2,687 -
Drnc bcwn currnc ond ucur ncom cox rocs ond ochr 9,895 (4,778)
Vouocon oowonc ond ochr 2,655 8,557
Provson or ncom coxs $ 15,056 $ 4,441
47
! K O K 8 O U K C 8 L T .
Th componncs o ch Componys nc ucur ncom cox obcy oc lorch 31 o och sco yor or os oows:
Future lncome Tax Assets 2011 2010
Shorc-crm nvscmncs $ 2,158 $ 2,040
Long-crm occounc rcvob - 728
Proprcy ond qupmnc 9,168 7,728
Assc rcrmnc obgocons 1,765 1,559
Shor ssu xpnss 3,204 3,204
Unusd orgn cox crdcs 28,548 28,872
lnmum ocrnocv cox crdcs 56,540 20,410
Unusd osss 17,305 13,443
$ 118,688 $ 77,984
Future lncome Tax LiabiIities 2011 2010
Long-crm nvscmncs $ [292) $ -
Long-crm occouncs rcvob [697) -
Proprcy ond qupmnc [250,070) 235,577
Vouocon oowonc [52,398) 49,743
[303,457) $ 285,320
Nc ucur ncom cox obcy $ [184,769) $ 207,336
lndos dro cox ow concons o cox hodoy dduccon or svn yors or procs rom ch commrco produccon o mnro o. S
dscusson o oppcocon o ch cox hodoy provsons n concngncy noc 24 (). As o rsuc o ch cox hodoy provson n lndo, ch
Compony poys ch grocr o 42.23 prcnc o coxob ncom n lndo ocr o dduccon or ch cox hodoy or o mnmum ocrnocv cox
o 19 prcnc o lndon ncom. lndon ncom s cocuocd n occordonc wch lndon gnroy occpcd occouncng prncps.
Th Compony dos noc poy ncom coxs rocd co ch 8ock 9 produccon os ndcocd n ch produccon shorng concrocc (PSC). Th
PSC ndcocs choc ch cocuocon or proc pcroum xpns ncuds consdrocon o ncom coxs ond, chror, no ncom cox
s ossssd or 8ock 9.
Th Compony hos $48 mon o unusd non-copco osss n Conodo, whch xpr bcwn 2014 ond 2031. Th Compony hos cokn o
vouocon oowonc on chs osss ond chror hos noc rcognzd ch bnc rocd co chs osss.
17. EAPNlNC5 PEP 5HAPE
Th oowng cob summorzs ch wghcd ovrog numbr o common shors usd n cocuocng bosc ond ducd ornngs pr
shor:
Wghcd ovrog numbr o common shors oucscondng
- bosc 51,032,893 49,756,394
- ducd 51,367,177 50,124,307
Opcons cocong 1,673,874 or ch yor ndd lorch 31, 2011 (2,013,775 or ch yor ndd lorch 31, 2010) wr consdrd
onc-ducv os chy wr ouc-o-ch mony ond wr chror xcudd rom ch cocuocon o ducd pr shor omouncs. Th
convrcb dbncurs wr onc-ducv or ch yor ndd lorch 31, 2011 ond hov bn xcudd rom ch cocuocon o ducd
ornngs pr shor obov. Th convrcb dbncurs wr ssud durng ch yor ndd lorch 31, 2010.
48
! K O K 8 O U K C 8 L T .
18. 5ECMENTED lNFOPMATlON
Th Componys oprocons or conduccd n on busnss sccor, ch o ond nocuro gos nduscry. Cogrophco oros or usd co
dncy ch Componys rporcob sgmncs. A gogrophc sgmnc s consdrd o rporcob sgmnc onc cs occvcs or rguory
rvwd by ch Componys monogmnc. Th occouncng pocs usd n ch prporocon o ch normocon o ch rporcob sgmncs
or ch som os chos dscrbd n ch summory o sgnconc occouncng pocs. Pvnus, sgmnc procs ond copco oddcons by
rporcob sgmncs or os oows:
5egment CapitaI Sgmnc Copco
5egment Pevenue Prot [Loss) Additions Pvnu Proc (Loss) Addcons
BangIadesh
[1)
$ 63,253 $ 6,497 $ 7,302 $ 60,869 $ 8,204 $ 10,222
lndia 389,930 205,274 28,238 272,633 146,539 141,554
lndonesia - - 49,698 - - 521,062
Kurdistan - - 23,438 - - 43,042
Madagascar - - 25,699 - - 5,075
Pakistan - - 1,983 - - 1,811
Trinidad - - 15,040 - - 65,143
AII other
[2)
641 [573) 2,170 609 (2,077) 1,852
TotaI $ 453,824 $ 211,198 $ 153,568 $ 334,111 $ 152,666 $ 789,761
(1)
14? o Compony coco rvnus ond o o 8ongodsh rvnus or rom on cuscomr.
(2)
Pvnus ncudd n A ochr or rom Conodon o sos.
As at March 31, 2011 2010
Property, Proprcy,
PIant and Ponc ond
Sgmnc Equipment TotaI Assets Equpmnc Toco Asscs
8ongodsh $ 101,975 $ 136,448 $ 122,536 $ 159,433
lndo 932,589 1,052,276 1,013,691 1,147,703
lndonso 586,931 597,955 537,233 562,071
lurdscon 91,030 94,164 67,592 68,433
lodogoscor 35,189 35,326 9,490 9,584
Pokscon 26,630 26,670 24,647 24,665
Trndod 80,183 102,388 65,143 67,706
A ochr 6,915 162,286 4,494 206,859
Toco $ 1,861,442 $ 2,207,513 $ 1,844,826 $ 2,246,454
49
! K O K 8 O U K C 8 L T .
Th rconcocon o ch sgmnc proc co nc ncom os rporcd n ch consodocd nonco scocmncs s os oows:
Sgmnc proc $ 211,198 $ 152,666
lncrsc ond noncng xpns [29,694) (20,110)
Cnro ond odmnscrocv xpnss [12,106) (11,069)
Ochr xpns [9,727) -
Forgn xchong gon (oss) 875 (10,154)
Scock-bosd compnsocon xpns [28,998) (19,778)
Nc ncom $ 119,740 $ 118,788
19. CAPlTAL MANACEMENT
E d a ^ X n
Th Componys pocy s co moncon o scrong copco bos ond rocd copco scruccur. Th obccvs o chs pocy or:
() co promoc condnc n ch Compony by ch copco morkcs, by nvscors, by crdcors ond by govrnmnc ogncs n ch
councrs n whch ch Compony bds or concssons ondor oprocs;
() co moncon rsourcs rqurd co wchscond nonco dcucs du co xognous nuncs such os nonco, pocco,
conomc, soco or morkc uncrconcs ond vncs; ond
() co occoc ch Componys obcy co u xporocon ond dvopmnc commcmncs, ond co sk ond xcuc growch
opporcuncs.
8 V e ^ i V a 7 V h Z
Th Componys copco bos ncuds shorhodrs qucy, oucscondng ong-crm dbc ond convrcb dbncurs:
Long-crm dbc $ - $ 192,814
Convrcb dbncurs $ 309,221 $ 291,063
Shorhodrs copco $ 1,157,889 $ 1,107,163
Th Compony hos crcon obgocons n occordonc wch cs crdc occy ond cs convrcb dbncur ogrmnc. Th convrcb
dbncur ogrmnc dns ch vs wchn whch ch Compony musc moncon ch rocos o dbc co qucy ond ornngs bor
ncrsc xpns, coxs, dpcon ond ony non-cosh cms co ncrsc xpns. Th Compony moncors chs rocos on o sm-onnuo
boss n occordonc wch ch ogrmnc ond s n componc wch ch rocos os oc lorch 31, 2011.
50
! K O K 8 O U K C 8 L T .
8 V e ^ i V a B V c V \ Z b Z c i
Th Componys obccv n copco monogmnc s co hov ch xbcy co ocr ch copco scruccur co cok odvoncog o
copco-rosng opporcuncs n ch copco morkcs, whchr chy or qucy or dbc-rocd. Howvr, ch Compony woud gnroy
us ong-crm dbc chr co und porcons o ch dvopmnc o provn proprcs or co nonc porcons o possb ocquscons.
Exporocon s gnroy undd by cosh ow rom oprocons ond qucy.
To monog copco, ch Compony uss o rong chr-yor proccon. Th proccon provds dcos or ch moor componncs o
sourcs ond uss o cosh or oprocons, noncng ond dvopmnc ond xporocon xpndcur commcmncs. lonogmnc ond ch
8oord o Drccors rvw ch proccon onnuoy ond whn concmpocng ncrm noncng or xpndcur ocrnocvs. Th prodc
rvws nsur choc ch Compony hos ch shorc-crm ond ong-crm obcy co u cs obgocons, co und ongong oprocons, co poy
dvdnds, co und opporcuncs choc mghc ors, co hov sucnc unds co wchscond nonco dcucs or co brdg unxpccd
doys or socsy concngncs ond co grow ch Componys producng osscs.
20. FlNANClAL lN5TPUMENT5
; V ^ g KV a j Z d [ ; ^ c V c X ^ V a > c h i g j b Z c i h
Th Compony rcognzs cs shorc-crm nvscmnc oc or vou. Th Compony cosss or vou mosurmncs usng ch oowng
or vou hrorchy choc rccs ch sgnconc o ch npucs usd n mokng ch mosurmncs:
- Lv 1: Quocd prcs (unoduscd) n occv morkcs or dncco osscs or obcs;
- Lv 2: lnpucs ochr chon quocd prcs ncudd n Lv 1 choc or obsrvob or ch ossc or obcy, chr drccy (.. os
prcs) or ndrccy (.. dvsd rom prcs); ond
- Lv 3: npucs or ch ossc or obcy choc or noc bosd on obsrvob morkc doco (unobsrvob npucs).
Shorc-crm nvscmncs hov bn ossssd on ch or vou hrorchy dscrbd obov ond hos bn cossd os Lv 1. Th or vou
o ch shorc-crm nvscmnc wos bosd on pubcy quocd morkc vous. Shorc-crm nvscmncs hov bn rcordd oc chr or
vou o $14.9 mon os oc lorch 31, 2011. A oss o $12.7 mon on rcognzng ch or vou o ch nvscmncs oc lorch 31, 2011
wos rcognzd n ncom (lorch 31, 2010 - gon o $14.6 mon).
Cosh ond cosh quvoncs ond rscrccd cosh or cossd os hd-or-crodng ond mosurd oc or vou. Accouncs rcvob ond
ong-crm occouncs rcvob or cossd os oons ond rcvobs. Th or vous o occouncs rcvob opproxmoc chr corryng
vou du co chr shorc prods co mocurcy. Th dscounc on ch ong-crm occounc rcvob wos noc sgnconc durng ch yor ndd
lorch 31, 2011 (yor ndd lorch 31, 2010 -$0.2 mon). Th ong-crm occouncs rcvob s corrd oc opproxmocy or vou.
Accouncs poyob ond occrud obcs ond convrcb dbncurs or cossd os ochr nonco obcs choc or noc hd or
crodng. Th or vous o occouncs poyob ond occrud obcs opproxmoc chr corryng vous du co chr shorc prods co
mocurcy. Th corryng vou o ch Componys convrcb dbncurs opproxmocs ch or vou.
51
! K O K 8 O U K C 8 L T .
B V g ` Z i G ^ h `
lorkc rsk s ch rsk choc chongs n morkc prcs, such os orgn xchong rocs, ncrsc rocs ond qucy prcs, w occ ch
Componys ncom or ch vou o cs nonco nscrumncs. Thr wr no chongs n ch Componys xposur co morkc rsks or ch
Componys procsss or monogng ch rsks rom ch prvous prod.
( u ) C u r r c n c ) R i s k
Th moorcy o ch Componys rvnus ond xpnss or dnomnocd n U.S. doors. ln oddcon, ch Compony convrcs Conodon-
hd cosh co U.S. doors os rqurd co und orcosc U.S. door xpndcurs. As o rsuc, ch Compony hos mcd cs cosh xposur
co uccuocons n ch vou o ch U.S. door vrsus ochr currncs. Howvr, ch Compony s xposd co chongs n ch vou o ch
lndon rup ond 8ongodsh coko vrsus ch U.S. door os chy or oppd co ch Componys workng copco o cs orgn subsdors.
Th Componys xposur co ch chongs n ch vou o ch 8ongodsh coko vrsus ch U.S. door s noc sgnconc. Th Compony dos
noc hov ony orgn xchong concroccs n poc co mcgoc currncy rsk.
A 3 prcnc scrngchnng o ch lndon rup ogonsc ch U.S. door oc lorch 31, 2011, whch s bosd on hscorco movmncs
n ch orgn xchong rocs, woud hov dcrosd nc ncom by $0.8 mon. Ths onoyss ossums choc o ochr vorobs
rmond consconc.
Th nonco nscrumncs or xposd co uccuocons n orgn xchong rocs, whch or usd n ch cronsocon o ch nonco
scocmncs o ch Conodon ond corporoc oprocons co U.S. doors. Th rporcd U.S. door vou o ch cosh ond cosh quvoncs,
occouncs rcvob, shorc-crm nvscmnc ond occouncs poyob o ch Conodon ond corporoc oprocons s xposd co uccuocons
n ch vou o ch Conodon door vrsus ch U.S. door. A 4 prcnc woknng o ch Conodon door ogonsc ch U.S. door oc lorch
31, 2011, whch s bosd on hscorco movmnc n orgn xchong rocs, woud hov ncrosd nc ncom by $3.6 mon wch on
osccng dcros co ochr comprhnsv ncom. Ths onoyss ossums choc o ochr vorobs rmond consconc.
( h ) 1 n I c r c s I R u I c R i s k
Th Compony s xposd co ncrsc roc rsk on cs mony morkc unds ond shorc-crm dposcs. Th Compony monogs ch ncrsc
roc rsk on chs nvscmncs by moncorng ch ncrsc rocs on on ongong boss.
( c ) C o m m o d i I ) P r i c c R i s k
Th Compony s xposd co ch rsk o chongs n morkc prcs o commodcs. Th Compony ncrs nco nocuro gos concroccs,
whch monogs chs rsk. 8cous ch Compony hos ong-crm xd prc gos concroccs, o chong n nocuro gos prcs woud noc hov
mpoccd nc ncom or ch yor ndd lorch 31, 2011. Th Compony s xposd co chongs n ch morkc prc o o ond condnsoc.
ln oddcon, ch Compony w b xposd co ch chong n ch 8rnc crud prc os ch ovrog 8rnc crud prc rom ch prcdng
yor s o vorob n ch gos prc or ch oowng yor, cocuocd onnuoy, or ch D6 gos concroccs.
( d ) O I h c r P r i c c R i s k
Th Compony hos dposcd ch cosh quvoncs wch rpucob nonco nsccucons, or whch monogmnc bvs ch rsk o oss
co b rmoc.
Th Compony s xposd co ch rsk o uccuocons n ch morkc prcs o cs shorc-crm nvscmncs. A 13 prcnc chong n ch
pubcy quocd morkc vous oc ch rporcng doc, whch s bosd on hscorco chongs n morkc vous, woud hov ncrosd or
dcrosd nc ncom or ch yor by $1.9 mon. Th or vou wos $14.9 mon oc lorch 31, 2011.
52
! K O K 8 O U K C 8 L T .
8 g Z Y ^ i G ^ h `
Crdc rsk s ch rsk o nonco oss co ch Compony o cuscomr or councrporcy co o nonco nscrumnc os co mc cs
concroccuo obgocons, ond orss prncpoy rom ch Componys rcvobs rom cuscomrs. Th corryng omouncs o ch cosh ond
cosh quvoncs, rscrccd cosh, occouncs rcvob ond ch ong-crm occounc rcvob rcc monogmncs ossssmnc o ch
moxmum crdc xposur. Thr wr no chongs n ch Componys xposur co crdc rsks or ony chongs co ch Componys procsss
or monogng ch rsks rom ch prvous prod.
Th occouncs rcvob boonc ncuds $11.4 mon ond ch ong-crm occouncs rcvob booncs ncud $27.9 mon rcvob
(dscouncd co $23.0 mon) rom on cuscomr n 8ongodsh.
Th Compony coks mosurs n ordr co mcgoc ony rsk o oss, whch moy ncud obconng guoroncs. Th spcc nduscrs
or govrnmnc moy b occd by conomc occors choc moy mpocc occouncs rcvob. Th ogng o occouncs rcvob os oc
lorch 31, 2011 wos:
As at March 31, 2011
0 - 30 doys $ 30,741
30 - 90 doys 10,086
Crocr chon 90 doys 31,595
Toco occouncs rcvob $ 72,422
Th occouncs rcvob, ncudd n ch cob, choc or noc posc du ond choc or posc du or noc consdrd mpord. Th occouncs
rcvob choc or noc posc du or rcvob rom councrporcs wch whom ch Compony hos o hscory o cmy coccon ond ch
Compony consdrs ch occouncs rcvob coccb. Th moorcy o ch occouncs rcvob oucscondng or mor chon 90 doys
wr coccd n Apr 2011.
Th ong-crm occounc rcvob boonc consscs o gos sos chorgd co Pcrobongo or ch produccon rom ch Fn d
n 8ongodsh. Poymnc o ch rcvob s bng doyd os o rsuc o vorous coms rosd ogonsc ch Compony os dscrbd n
nocs 24 (o) ond (b). Th ong-crm occouncs rcvob s comprsd o $0.1 mon choc wos rcordd n Fsco 2011, $1.0 mon
choc wos rcordd n Fsco 2010 ond $26.8 mon choc wos rcordd pror chrco, ond ch combnd rcvob hos bn oduscd
co opproxmoc cs or vou o $23 mon. Th ong-crm occouncs rcvob s noc consdrd mpord. Th Compony consdrd
ch doy n poymnc, ch wrc ond ch owsuc rosd ogonsc ch Compony ond progrss cowords rsovng chs ssus n rochng ch
concuson choc ch doy n poymnc s cmporory. Dspc ch cmporory doy n poymnc, ch Compony xpccs co cocc ch u
omounc o ch rcvob. Th cmng o coccon s uncrcon os ch Compony w noc cocc ch rcvob unc rsoucon o ch
vorous coms rosd ogonsc ch Compony dscrbd n nocs 24 (o) ond (b).
53
! K O K 8 O U K C 8 L T .
A ^ f j ^ Y ^ i n G ^ h `
Lqudcy rsk s ch rsk choc ch Compony w noc b ob co mc cs nonco obgocons os chy o du. Th Compony monogs chs
rsk by prporng coshow orcoscs co ossss whchr oddcono unds or rqurd. As oc lorch 31, 2011, ch Compony hod cosh
o $126 mon (ncudng rscrccd cosh o $18 mon) ond nonco obcs os ndcocd bow. Th Compony pons co scc cs
currnc nonco obcs wch cosh on hond ond ch Compony moy cc co convrc o o ch Dbncurs nco common shors.
Th Compony hos ch oowng nonco obcs ond du docs os oc lorch 31, 2011:
Carrying VaIue < 1 year 1 - 3 years
Non-Derivative FinanciaI LiabiIities
(1)
Accouncs poyob $ 90,340 $ 90,340 $ -
Convrcb dbncurs
(2)
(s noc 10) $ 309,221 $ - $ 309,221
(1)
Th Compony oso hos copco os commcmncs os oucnd n noc 23(b).
(2)
Th corryng vou o ch convrcb dbncurs s ch or vou o $309 mon. Th omounc oucscondng choc w b rqurd co b rpod ossumng choc ch
dbncurs or noc convrcd s Cdn$310 mon ($319 mon os oc lorch 31, 2011).
21. PELATED-PAPTY TPAN5ACTlON5
Th Compony hos o 45 prcnc ncrsc n o Conodon proprcy choc s oprocd by o rocd porcy, o Compony ownd by ch Prsdnc
ond CEO o Nko Psourcs Lcd. Ths onc ncrsc orgnocd os o rsuc o ch rocd porcy buyng ch ncrsc o ch chrd-porcy
oprocor o ch proprcy n 2002. Th cronsoccons wch ch rocd porcy or mosurd oc ch xchong omounc, whch s ch omounc
ogrd co bcwn rocd porcs.
22. CUAPANTEE5
As at March 31, 2011 2010
Perlcrrarce sec0rity 0arartees ircl0ded ir restricted cash
(1)
Couvry - lndo $ 804 $ 804
D4 - lndo 3,234 984
lndonso 7,613 21,550
Perlcrrarce sec0rity 0arartees rct ircl0ded ir restricted cash
(2)
lndonso 2,454 2,454
lodogoscor - 1,178
Toco guoroncs $ 14,105 $ 26,970
(1)
Th Compony s rqurd co provd unds co supporc ch guoroncs n ch omouncs ndcocd obov.
(2)
Ths prormonc scurcy guoroncs or noc rccd on ch boonc shc os chy or supporcd by Exporc Dvopmnc Conodo.
Th Compony hos prormonc scurcy guoroncs rocd co ch copco commcmncs or xporocon bocks. Th guoroncs or
concd whn ch Compony compcs ch work rqurd undr ch xporocon prod.
54
! K O K 8 O U K C 8 L T .
23. COMMlTMENT5 AND CONTPACTUAL OBLlCATlON5
( u ) E x p I o r u I i o n S p c n d i n g
Th Compony hos commcmncs or opprovd onnuo budgcs undr vorous onc vncur ogrmncs. ln oddcon, ch Compony hos
scmocd ch cosc co compc ch rmonng work commcmncs os spcd n ch PSCs or cs xporocon bocks os oows:
Proprcy Escmocd spndng Dodn or spndng
lndo - D4 8ock $ 10,000 Jun 2013
(1)
lndo - Couvry 8ock 2,000
(2)
lndonso 254,000 Vorous
(3)
lurdscon 38,000 loy 2013
lodogoscor 40,000 Spcmbr 2015
Trndod 205,000 Vorous
(5)
Toco $ 549,000
(1)
Orgnoy, ch work commcmnc wos co b compcd by Spcmbr 2009; howvr, ch Covrnmnc o lndo opprovd o bonkc xcnson co Dcmbr 31, 2010
or chs ond ochr dp-wocr bocks. Ths ond ochr xcnsons oow ch Compony unc Jun o 2013 co dr ch chr ws.
(2)
Th Compony ncnds co rnqush ch bock.
(3)
Th dodns or ung ch work commcmncs n lndonso or: $148 mon by Novmbr 2011; $54 mon by loy 2012; $6 mon by Novmbr 2012; ond
$46 mon by loy 2013. Th Compony hos oppd or pons co oppy or xcnsons whr drng occvcy s ponnd. Th Compony xpccs co b groncd opprovo
rom ch Covrnmnc o lndonso bor ch PSC chr-yor onnvrsory.
(4)
Th dodns or ung ch work commcmncs n Trndod or: $24 mon by Juy 2012; $46 mon by Spcmbr 2012, $14 mon by Juy 2013; $69 mon
by Apr 2014; ond $53 mon by Apr 2016.
( h ) C u p i I u I L c u s c
Th Compony hos rcognzd ch copco os o ch oocng produccon, scorog ond o-oodng vss (FPSO) oc ch or vou o
$58.5 mon. Th os s or 8 yors ond hos os poymncs o $10.8 mon pr yor. Th dscounc roc usd n dcrmnng ch
prsnc vou o mnmum os poymncs s 9 prcnc.
Fsco 2012 $ 10,757
Fsco 2013 10,757
Fsco 2014 10,757
Fsco 2015 10,757
Fsco 2016 10,757
Throcr (nc o sovog vou) 26,020
Toco mnmum poymncs 79,805
Lss omounc rprsncng mpucd ncrsc 21,333
Prsnc vou o obgocon undr copco oss $ 58,472
( c ) A c g u i s i I i o n
ln Dcmbr 2010, ch Compony sgnd on ogrmnc co ocqur o 25? ncrsc n 8ock 5(c), ococd 94 komcrs o ch osc coosc o
Trndod. Th purchos prc wos $75.5 mon ccv os o Dcmbr 22, 2010 ond ch ossumpcon o ch srs obcy undr ch
prormonc guoronc provdd or ch 8ock lC cns. Th Compony hod pod $20 mon os o dposc ogonsc ch purchos prc
oc lorch 31, 2011. Th Compony cosd ch ocquscon o 8ock 5(c) n Jun 2011 ond pod on oddcono $58.1 mon rsucng n o
purchos prc o $78.1 mon oc cosng. Th cronsr o ch 8ock lC cns hos noc bn compcd ond s subcc co ch socsoccon
o crcon condcons.
55
! K O K 8 O U K C 8 L T .
24. CONTlNCENClE5
V Durng ch yor ndd lorch 31, 2006, o group o pcconrs n 8ongodsh (ch pcconrs) d o wrc wch ch Hgh Courc
Dvson o ch Suprm Courc o 8ongodsh (ch Hgh Courc) ogonsc vorous porcs ncudng Nko Psourcs (8ongodsh) Lcd.
(NP8L), o subsdory o ch Compony.
ln Novmbr 2009, ch Hgh Courc rud on ch wrc. 8och ch Compony ond ch pcconrs hov ch rghc co oppo ch rung co ch
Suprm Courc. Th rung con b summorzd os oows:
Petitioner Pequest High Court PuIing
Thoc ch Jonc Vncur Agrmnc or ch Fn ond Choccok ds
b dcord nu ond go.
Th Jonc Vncur Agrmnc or Fn ond Choccok ds s vod.
Thoc ch govrnmnc roz rom ch Compony compnsocon or
ch nocuro gos osc os o rsuc o ch unconcrod ow probms
os w os or domog co ch surroundng oro.
Th compnsocon coms shoud b dcdd by ch owsuc
dscrbd n noc (b) bow or by mucuo ogrmnc.
Thoc Pcrobongo wchhod ucur poymncs co ch Compony
rocng co produccon rom ch Fn d ($27.9 mon os oc
lorch 31, 2011).
Pcrobongo co wchhod ucur poymncs co ch Compony rocd
co produccon rom ch Fn d unc ch owsuc dscrbd n
noc (b) bow s rsovd or boch porcs ogr co o sccmnc.
Thoc o bonk occouncs o ch Compony moncond n 8ongodsh
b rozn.
Th rung dd noc oddrss chs ssu, chror ch prvous
rung sconds. Funds n ch Componys bonk occouncs moncond
n 8ongodsh connoc b rpocrocd pndng rsoucon o ch
owsuc dscrbd n noc (b) bow.
On Jonuory 7, 2010, NP8L rquscd on orbcrocon procdng wch ch lncrnocono Cncr or ch Sccmnc o lnvscmnc dspucs
(lCSlD). Th orbcrocon s bcwn NP8L ond chr rspondncs: Th Pops Ppubc o 8ongodsh; 8ongodsh O, Cos & lnro
Corporocon (Pcrobongo); ond 8ongodsh Pcroum Exporocon & Produccon Compony Lmcd (8opx). Th orbcrocon horng w
occmpc co scc o compnsocon coms dscrbd n chs noc ond noc (b). lCSlD rgscrd ch rqusc on loy 24, 2010.
ln Jun 2010, ch Compony d on oddcono procdng wch lCSlD co rsov cs coms or poymnc rom Pcrobongo n occordonc
wch ch Cos Purchos ond So Agrmnc wch Pcrobongo co rcv o omouncs or prvousy dvrd gos.
W Durng ch yor ndd lorch 31, 2006, Nko Psourcs (8ongodsh) Lcd. rcvd o ccr rom Pcrobongo dmondng
compnsocon rocd co ch unconcrod ow probms choc occurrd n ch Choccok d n Jonuory ond Jun 2005. Subsqunc co
lorch 31, 2008, Nko Psourcs (8ongodsh) Lcd. wos nomd os o dndonc n o owsuc choc wos d n 8ongodsh by Pcrobongo
ond ch Ppubc o 8ongodsh dmondng compnsocon os oows:
() coko 374,484,000 ($5.3 mon) or 3 8c o r nocuro gos dvrd rom ch Fn d os compnsocon or ch burnc nocuro
gos;
() coko 735,237,000 ($10.3 mon) or 5.89 8c o r nocuro gos dvrd rom ch Fn d os compnsocon or ch subsuroc
oss;
() coko 845,560,000 ($11.9 mon) or nvronmnco domogs, on omounc subcc co b ncrosd upon urchr ossssmnc;
(v) coko 5,617,261,000 ($78.8 mon) or 45 8c o nocuro gos os compnsocon or urchr subsuroc oss; ond
(v) ony ochr coms choc ors rom cm co cm.
lCSlD hos rgscrd ch rqusc or orbcrocon o ch ssus ndcocd obov os dscussd n noc 12(o). ln oddcon, ch Compony
56
! K O K 8 O U K C 8 L T .
w occvy dnd cs ogonsc ch owsuc, whch moy cok on xcndd prod o cm co scc. Acrnocvy, ch Compony moy
occmpc co rcv o scoy ordr on ch owsuc pndng chr o sccmnc ondor rsucs o lCSlD orbcrocon.
Th Compony bvs choc ch ouccom o ch owsuc ondor lCSlD orbcrocon ond ch ossococd cosc co ch Compony, ony, or noc
dcrmnob. As such, no omouncs hov bn rcordd n chs consodocd nonco scocmncs. Sccmnc coscs, ony, w b
rcordd n ch prod o dcrmnocon.
X ln occordonc wch nocuro gos sos concroccs co cuscomrs o produccon rom ch Hozro d n lndo, ch Compony hod commccd
co dvr crcon mnmum quonccs ond wos unob co dvr ch mnmum quonccs or o prod ndng Dcmbr 31, 2007. Th
Componys porcnr n ch Hozro d dvrd ch shorco voums n rcurn or chr (o) dvry o rpocmnc voums v cms
grocr chon ch shorco; (b) o cosh poymnc; or (c) o combnocon o (o) ond (b). Th Compony scmocs ch cosh omounc co scc ch
concngncy oc US$11 mon. Th Compony bvs choc ch ouccom s noc dcrmnob.
Th Compony moy noc b ob co suppy gos co o cuscomr n Hozro whos concrocc runs unc md-2016. Th Compony hod prvousy
ponnd co suppy gos rom ch D6 8ock co ch cuscomr. Du co o chong n ch gos oococon pocy by ch Covrnmnc o lndo, ch
Compony moy noc b ob co u ch concrocc wch gos suppy rom ch D6 8ock. Th Compony s vouocng ch opcons ncudng
orc mour ondor orbcrocon ond s dscussng ch moccr wch ch Componys onc vncur porcnr n Hozro ond ch cuscomr. Th
Compony bvs choc ch ouccom s noc dcrmnob.
Y Th Compony cocuocs ond rmcs proc pcroum xpns co ch Covrnmnc o lndo n occordonc wch ch PSC. Th proc
pcroum xpns cocuocon consdrs copco ond ochr xpndcurs mod by ch onc ncrsc, whch rduc ch proc pcroum
xpns. Thr or coscs choc ch Compony hos ncudd n ch proc pcroum xpns cocuocons choc hov bn concscd by
ch govrnmnc. Th Compony bvs choc c s noc dcrmnob whchr ch obov ssu w rsuc n oddcono proc pcroum
xpns. No omounc hos bn rcordd n chs consodocd nonco scocmncs. Sccmnc coscs, ony, w b rcordd n ch
prod o dcrmnocon.
Z Th Compony hos d cs ncom cox rcurns n lndo or ch coxocon yors 1998 chrough 2008 undr provsons choc provd or o
cox hodoy dduccon or gb undrcokngs rocd co ch Hozro ond Suroc ds.
Th Compony hos rcvd unovourob cox ossssmncs rocd co coxocon yors 1999 chrough 2007. Th ossssmncs concnd ch
choc ch Compony s noc gb or ch rquscd cox hodoy bcous: o) ch hodoy ony opps co mnro o" whch xcuds
nocuro gos; ondor b) ch Compony hos nopproprocy dnd undrcokngs.
ln lndo, chr or pocncoy our vs o oppo rocd co cox ossssmncs: Commssonr lncom Tox - Appos (ClT-A"); ch
lncom Tox Appoc crbuno (lTAT"); ch Hgh Courc; ond ch Suprm Courc. For coxocon yors 1999 co 2004, ch Compony hos
rcvd ovourob rungs oc lTAT ond ch rvnu Dporcmnc hos oppod co ch Hgh Courc. For ch 2005 coxocon yor, ch
Compony hos rcvd o ovourob rung oc ClTA ond or ch 2006 ond 2007 coxocon yors, ch Componys ClTA oppo s pndng.
ln Augusc 2009, ch Covrnmnc o lndo chrough ch Fnonc (No.2) Acc 2009 omndd ch cox hodoy provsons n ch lncom Tox
Acc (Acc). Th omndd Acc provds choc ch bocks cnsd undr ch NELP-Vlll round o bddng ond scorcng commrco produccon
on or ocr Apr 1, 2009 or gb or ch cox hodoy on produccon o nocuro gos. Howvr, ch budgc dd noc oddrss ch ssu o
whchr ch cox hodoy s oppcob co nocuro gos produccon rom bocks choc hov bn owordd undr prvous rounds o bddng,
whch ncuds o o ch Componys lndon bocks. Th Compony hos prvousy d ond rcordd cs ncom coxs on ch boss choc
nocuro gos w b gb or ch cox hodoy.
57
! K O K 8 O U K C 8 L T .
Wch rspcc co undrcokngs" gb or ch cox hodoy dduccon, ch Acc wos omndd co ncud on xponocon" on how co
dcrmn undrcokngs. Th Acc now scocs choc o bocks cnsd undr o sng concrocc sho b crocd os o sng undrcokng.
Th xponocon" s dscrbd n ch omndmnc os hovng rcrospccv cc rom Apr 1, 2000. Snc cox hodoy provsons
bcom ccv Apr 1, 1997, c s uncor os co why ch xponocon" hos cc rom Apr 1, 2000. Th Hozro produccon
shorng concrocc (PSC) wos sgnd n 1994 ond commncd produccon pror co Apr 1, 2000. As o rsuc, ch Compony s unob co
oppy ch omndd dncon o undrcokng" co ch Hozro PSC. Th Compony hos prvousy d ond rcordd cs ncom coxs
or ch coxocon yors o 1999 co 2008 on ch boss o mucp undrcokngs or ch Hozro ond Suroc PSC.
Th Compony w concnu co pursu boch ssus chrough ch oppo procss. Th Compony hos chongd ch rcrospccv
omndmncs co ch undrcokngs dncon ond ch ock o corcocon o whchr nocuro gos s gb or ch cox hodoy wch
ch Cuoroc Hgh Courc. Th Compony wos groncd on ncrm r by ch Hgh Courc on lorch 12, 2010 nscruccng ch Pvnu
Dporcmnc co noc gv cc co ch xponocon" rrrd co obov rcrospccvy unc ch moccr s cord n ch courcs.
Evn ch Compony rcvs ovourob ouccoms wch rspcc co boch ssus dscussd obov, ch Pvnu Dporcmnc con
chong ochr ospccs o ch Componys cox ngs.
For ch coxocon yors ndd lorch 31, 2009 ond lorch 31, 2010, ch Compony hos d cs cox rcurn ossumng nocuro gos s
gb or ch cox hodoy oc Hozro ond Suroc buc, unk o prvous yors, hos d cs cox rcurn bosd on Hozro ond Suroc
och hovng o sng undrcokng. Th Compony hos rsrvd cs rghc, undr lndon cox ow, co com ch cox hodoy wch mucp
undrcokngs. Wh ch Compony sc bvs choc c s gb or ch cox hodoy on mucp undrcokngs, ch chong n mchod
o ng s bcous ch gsocv chongs, rrrd co obov, od co ombgucy n ch Acc. lor spccoy, ch Compony hod
d cs rcurn n o monnr choc s dmd co b n voocon o ch currnc gsocon, ch Compony con b ob or ncrsc ond
pnocs. Furchr, oc ch cm o ng ch cox rcurn, ch Compony hod noc oppod ch omndmncs broughc ouc n ch cox
hodoy provsons ond dd noc hov ch bnc o ch ncrm r by ch Hgh Courc. As o rsuc, ch Compony hos d n o
mor consrvocv monnr chon cs ncrprcocon o cox ow os dscrbd prvousy. Dspc ng n o consrvocv monnr, ch
Compony w concnu co pursu ch cox hodoy chongs chrough ch oppos procss.
Shoud ch Hgh Courc ovrcurn ch rungs prvousy owordd n ovour o ch Compony by ch Trbuno courc, ond ch Compony
chr dcds noc co oppo co ch Suprm Courc or oppos co ch Suprm Courc ond s unsuccssu, ch Compony woud hov
co occordngy chong cs cox poscon ond rcord o cox xpns o opproxmocy $65 mon (comprsd o oddcono coxs o
$39 mon ond wrc o o opproxmocy $26 mon o ch nc ncom cox rcvob). ln oddcon, ch Compony coud b
obgocd co poy ncrsc on coxs or ch posc prods.
[ ln Dcmbr 2009, ch orbcrocon o ownrshp o o 36-nch ppn choc s connccd co ch Hozro occs n lndo wos
rud n ovor o ch Compony ond cs onc vncur porcnr. Th Covrnmnc o lndo hos d o wrc wch ch Hgh Courc n Dh
chongng ch orbcrocon dcson. Th Hgh Courc hos ssud nocc co ch Compony choc ch horng hos noc yc commncd. l
ch oppo s hord ond ch courc rus ogonsc ch Compony ond cs onc vncur porcnr, ch Compony moy chong ch dcson
n ch Suprm Courc o lndo. Advrs rsoucon woud rsuc n ch wrc-o o ong-crm occouncs rcvob o $6 mon.
O F F l C E P 5 A N D D l P E C T O P 5
Edward 5. 5ampson
Chormon o ch 8oord, Prsdnc ond
Ch Excucv Ocr
Murray Hesje
VP Fnonc ond Ch Fnonco Ocr
WiIIiam T. Hornaday, 8.Sc., P.ENC.
Ch Oprocng Ocr, Drccor
C.I. [Iim) Cummings, LL8
Drccor
WaIter DeBoni, B.5c., l8A, P.ENC.
Drccor
Conrad P. KathoI, 8.Sc., P.ENC.
Drccor
WendeII W. Pobinson, 88A, lA, CFA
Drccor
5 O L l C l T O P 5
)QYNKPI.C(NGWT*GPFGTUQP..2
Cogory, Abrco
P E C l 5 T P A P A N D T P A N 5 F E P A C E N T
%QORWVGTUJCTG
Cogory, Abrco
Toronco, Conodo
l N V E 5 T O P P E L AT l O N 5
'FYCTF55CORUQP
Chormon o ch 8oord, Prsdnc ond
Ch Excucv Ocr
Suc 4600, 400 - 3rd Avnu S.W.
Cogory, Abrco
Conodo T2P 4H2
T: 403-262-1020
Fox: 403-263-2686
Emo: nko@nkorsourcs.com
Wbsc: www.nkorsourcs.com
P P l M A P Y B A N K l N C l N 5 T l T U T l O N
4Q[CN$CPMQH%CPCFC
Cogory, Abrco
London, Uncd lngdom
E V A L U AT l O N E N C l N E E P 5
4[FGT5EQVV%QORCP[
Cogory, Abrco
A U D l T O P 5
-2/)..2
Cogory, Abrco
L l 5 T l N C A N D T P A D l N C 5 Y M B O L
6QTQPVQ5VQEM'ZEJCPIG
Symbo: NlO
www.nkorsourcs.com
Suc 4600, 400 - 3rd Avnu SW
Cogory, Abrco T2P 4H2
T: 403-262-1020
Fox: 403-263-2686
A B B P E V l A T l ON5

Bcf bon cubc c
BbI borr
ClCA Conodon lnsccuc o Chorcrd Accounconcs
FP5O oocng produccon, scorog ond o-oodng vss
CAAP gnroy occpcd occouncng prncps
CP5A gos purchos ond so ogrmnc
lM nvscmnc mucp
JVA onc vncur ogrmnc
LlBOP London ncrbonk ord roc
Mcf chousond cubc c
Mcfe chousond cubc c quvonc
MD&A monogmncs dscusson ond onoyss
MMBtu mon 8rcsh chrmo uncs
MMcf mon cubc c
P5A produccon shorng ogrmnc
P5C produccon shorng concrocc
/d pr doy
^ll arc0rts are ir thc0sards cl U.S. dcllars 0rless ctherwise stated.
^ll thc0sard c0bic leet eq0ivalert {Mcle) h0res are based cr the
ratic cl 7bbl:6Mcl.
Corporate lnformation

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