Ann: Onshore Indonesian Oil Operations Update - February 2019, page-30

An article here for those interested that may go someway to explaining the low return figures on sales, as i suspected tax/royalties being witheld under a gross split regime as opposed to the more common PCS's implemented by most countries. Seems the government is gouging BAS bigtime and hence the lowly figures. At $65pb average for 2018 it looks as though BAS is making approx -$6pb once all is said and done......need to see prices back above $70pb asap to be in profit territory. So the figure of $25pb field operating costs and $7pb admin costs sounds good and well if there was $33pb income to be taxed at a rate of 25% leaving $25pb profit, but it doesn't take into consideration that the government's gross split regime seems to be witholding approx $32pb in tax/royalties from sales leaving BAS $33pb to deduct CAPEX/OPEX from. They seriously need to renegotiate the repayments to COE, once this 500k payment is made (USD350) and if they continue as in previous quarters they'll have around 3-400k left in the bank. If higher production can be maintained and the POO increases they may get through by the seat of their pants. The Bunian-5 well is needed more than ever and needs to perform!!!!

https://www.alexandrareadhead.com/blog/2017/6/6/is-indonesias-experiment-with-gross-split-the-future-of-oil-and-gas-production-sharing-arrangements