IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

445

Chapter 38 / Exploration for and Evaluation ofMineral Resources (l FRS 6)

$ million

2006

2005

Depreci ati on, depletion and amortization At January I Charge for the year Sales, retirements, currency translation differences and other movements At December 31 Net book amount at December 31 Capitalised exploration drilling costs are as follows:

1,451 128 (140)

1,439 164 -----lQ 1,633 7330

1,439 2947

$ million

2006

2005

832 At January I Capital expenditure (additions pending determination of proved reverses) Amounts charged to expense Reclassifications to productive wells on determination of proved reserves Other movements, including acquisitions, disposals and currency translation differ– ences At December 31 Th ere were $540 millio n exploration drilling costs at December 3 1, 2006, capitalised for period s greater than one year, representing 52 wells . Information by year of expendi ture is as follows: 771 480 1,182 (72) (220) (301) (228) ----lQ) 1 708 102 832

$ million 21 20 66 97

Number orwell" 1

2000 2001 2002 2003 2004 2005 Total

2 6 9 13 Zl 52

122 214 540

These cos ts remain cap italised for more than one year because , for the related projects, either (a) firm exploration/exploratory appraisal well s were exe cuted in 2006 andlor are planned in the near future, andlor (b) firm development activities are bei ng progressed with a fina l investment decision ex pec ted in the near future.