Calculate the net profit of Exam Limited for the year ended 30 June 2009 using the "area of interest" approach and set out your answer as a typical profit and loss account for a company complying with accounting standards for the oil and gas industry. During the year the company derived the following income (in \$million) - a) Exploration in PLI discovered another reservoir into which a development well was drilled. The total reserves in PLI at the beginning of the year were estimated to be 1 million barrels of oil. b) Exploration on EL2 did not identify any worthwhile drilling targets during the year. The wildcat well on EL2 was dry, plugged and abandoned. The company will drop this permit. c) Exploration on ELI is continuing with several targets identified that may warrant exploration wells in future. While no exploration successes have been achieved to date, the company has generated some excellent data and the chief geologist is confident of some petroleum discoveries in the program about to start. d) Exploration on EL3 has just started. It is too early to make any assessment of the likely potential of the permit, but the budget for exploration on the permit over the next 5 years amounts to $5 million, including at least one well. e) The development expenditure for PLI carried forward from the previous year and not yet written off against the profit and loss account is $8 million. f) The production of oil during the year amounted to 200,000 barrels, of which 100,000 barrels were sold at $50 per barrel. g) Stock on hand should be valued at cost. h) The plant and equipment expenditure on PLI carried forward from the previous year and not yet written off against the profit and loss account is $5 million. i) The depreciation rate on plant and equipment is 10% per annum prime cost (straight line) depreciation