Sea Production Ltd Financial Information Second Quarter 2011

Sea Production Ltd
Financial Information Second Quarter 2011
Background
This financial information has been prepared in accordance with International Financial Reporting
Standards.
General Information
Sea Production Ltd and its subsidiaries own and operate two Floating, Production, Storage and
Offloading (“FPSO”) vessels and one Aframax tanker vessel.
Financial Statements
Income Statement
(Second quarter 2010 figures in brackets)
The Group’s revenue in the quarter was US$2.0 million (US$1.8 million), with EBITDA of US$1.9 million
negative (US$1.5 million negative).
The Crystal Ocean generated bareboat hire revenue of US$1.8 million. The Front Puffin and the Sea Cat
were laid up during the quarter and did not generate any revenue.
Operating expenses for the quarter amounted to US$0.04 million (US$1.7 million) and administrative
expenses for the period were US$3.9 million (US$1.5 million).
Total depreciation for the quarter was US$3.8 million (US$3.7 million). The Group’s vessels are
depreciated on a straight‐line basis over their economically useful lives, taking into account their
estimated residual value. Assessment of the remaining economic life of the assets is done on a yearly
basis. Capital costs incurred in relation to a specific contract are depreciated over the expected life of
the relevant contract. At the end of the contract any remaining balance is written off.
Net financing charges for the period were US$1.6 million (US$1.6 million). The interest expense on the
US$130.0 million bond was US$1.7 million.
The net result for the quarter was a net loss of US$6.8 million (net loss of US$6.9 million).
Balance Sheet
Current assets as at 30 June 2011 were US$61.8 million (US$69.6million) and non‐current assets were
US$189.3 million (US$216.6 million). The majority shareholder is planning to inject US$10 million of cash
into the Company by way of a shareholder loan. A circular, including details of the transaction, will be
sent to shareholders shortly. The Company has a 5 year callable bullet bond loan with a nominal value of
US$124.5 million outstanding and a final maturity of February 2012. The Company had no other
borrowings at the end of the quarter. The Company’s equity as at 30 June 2011 was US$61.1 million
(US$97.6 million).

Group Update Second Quarter 2011
The Crystal Ocean was chartered to Anzon/Roc throughout the period. The FPSO Front Puffin has been
laid‐up pending the securing of a new contract and the Sea Cat was laid‐up during the quarter.
Update on Puffin Dispute
On 4 August 2011, the Board of Sea Production announced that on 3 August 2011 the Tribunal which
heard the arbitration had made an award in favour of Puffin FPSO Ltd requiring that AED Services Pte Ltd
(“AED”) shall pay to Puffin FPSO Ltd (“Puffin FPSO”) US$72.39 million by 2 September 2011 (the
“Award”). The Tribunal directed both parties to provide submissions as to legal costs, following which
the Tribunal will in due course make a determination of entitlement to recovery of legal costs.
AED is a 100% subsidiary of AED Oil Limited (“AED Oil”), a public company listed on the Australian Stock
Exchange. AED Oil Limited is a 40% joint venture partner in the Puffin Field, offshore North‐western
Australia. The field operator and owner of the remaining 60% of the joint venture is Sinopec Oil & Gas
Australia (Puffin) Pty Limited (“Sinopec Australia”), a wholly‐owned subsidiary of Sinopec Group
(“Sinopec”). Under signed agreements forming part of the FPSO contract pursuant to which the Award
was made, Puffin FPSO has the benefit of certain security, including a financial and performance
guarantee from AED Oil and fixed charge security over AED Oil’s assets and the aggregate 100% interests
of AED Oil and Sinopec Australia in the Puffin and Talbot Fields.
AED Oil went into voluntary administration on 12 August 2011 and the amount due to Puffin FPSO under
the Award was not paid by 2 September 2011.
Puffin FPSO is taking, and will continue to take, all necessary steps to recover all amounts due from
Sinopec, Sinopec Australia and AED. Initial steps taken by Puffin FPSO have resulted in insolvency
practitioners from KPMG having been replaced as the voluntary administrator of AED Oil by insolvency
practitioners from PPB Advisory on 24 August 2011, a judicial manager having been appointed to AED on
6 September 2011 by the Court of Singapore and on 16 September 2011, a receiver and manager having
been appointed to AED Oil, each with a view to enforcing Puffin FPSO’s contractual rights and security
held in order to recover all amounts due to Puffin FPSO.
The Board will keep shareholders appropriately informed.
Board of Directors, September 2011
Important Information:
This document does not constitute an invitation or inducement to sell or an offer to purchase shares in Sea Production Ltd. It is not intended to
form the basis of any investment decision, does not constitute and may not be relied upon as constituting any form of investment advice, and is
not to be construed as an undertaking or assurance that any specific course of action will be followed. Prospective investors are advised to
ensure that they obtain appropriate independent professional advice before making any investment. The information and any opinions
contained in this document have been compiled in good faith, but no representation or warranty, express or implied, is made as to their
accuracy, completeness or correctness. Save to the extent (if any) that exclusion of liability is prohibited by any applicable law or regulation, Sea
Production Ltd, its officers, employees, representatives and agents expressly advise that they shall not be liable in any respect whatsoever for
any loss or damage, whether direct, indirect, consequential or otherwise however arising (whether in negligence or otherwise) out of or in
connection with the contents of or any omissions from this document. Statements contained in this document may constitute "forward‐looking
statements" which are generally identifiable by the use of the words "may", "will", "should", "plan", "expect", "anticipate", "estimate",
"believe", "intend", "project", "goal" or "target" or the negative of these words or other variations on these words or comparable terminology.
Forward‐looking statements involve a number of known and unknown risks, uncertainties and other factors that could cause Sea Production’s
actions to be materially different from any actions expressed or implied by such forward‐looking statements. Sea Production Ltd cannot
guarantee that such actions will be put into effect in whole or in part in the future, nor does Sea Production Ltd undertake publicly to update or
revise any forward looking statement that may be made in this document, whether as a result of new information, future events or otherwise.

Sea Production Ltd
Consolidated Income Statement
(Unaudited)
(US$000)
Operating revenues
Charter revenues 1,987
Other income 50
Total operating revenues 2,037
Operating expenses
Operating expenses (41)
Administrative expenses (3,907)
Total operating expenses (3,949)
Loss before depreciation (1,912)
Depreciation (3,807)
Net operating loss (5,719)
Second Quarter First Half
Full Year
2011 2010 2011 2010 2010
1,779 4,287
‐
50
1,779 4,337
(1,760) (682)
(1,535) (8,385)
(3,295) (9,067)
(1,516) (4,730)
(3,737) (7,422)
(5,253) (12,153)
3,863 7,410
‐ 5,171
3,863 12,581
(3,242) (6,991)
(3,552) (10,501)
(6,794) (17,492)
(2,931) (4,911)
(7,475) (19,401)
(10,406) (24,312)
Other income/(expenses)
Interest income 0
0 1
1 2
Interest expense (1,693) (1,470) (3,151) (2,881) (6,414)
Amortization of deferred charges 111 (151) ‐ (302) (135)
Other financial items, net (15) (15) (26) 28 (54)
Gain on disposal of fixed assets 467
‐ 467
‐
86
Net other income/(expenses) (1,129) (1,636) (2,709) (3,154) (6,515)
Taxation ‐
Net loss (6,848)
Attributable to:
Equity holders of the Company (6,848)
‐
(6,889) (14,861)
(6,889) (14,861)
‐
‐
(4,207)
(13,560) (35,034)
(13,560) (35,034)

Sea Production Ltd
Consolidated Balance Sheet
(Unaudited)
(US$000)
ASSETS
Current assets
30‐Jun‐11 30‐Jun‐10 31‐Dec‐10
Cash and cash equivalents 457 13,217
6,555
Trade accounts receivable 14,133 13,503 13,496
Prepaid expenses and accrued income 46,647 40,288
1,155
Inventory 0
153
2
Other receivables 614
2,466 45,066
Total current assets 61,851 69,627 66,274
Non‐current assets
Vessels and equipment 188,714
Other non‐current assets 629
Total non‐current assets 189,343
Total assets 251,194
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Trade accounts payable 6,252
Deferred revenue 620
Short‐term debt 124,248
Accrued expenses 1,352
Current income tax liabilities 45,066
Total current liabilities 177,538
Non‐current liabilities
Long‐term debt ‐
Deferred revenue ‐
Deferred income tax liabilities 12,552
Other non‐current liabilities ‐
Total non‐current liabilities 12,552
Total liabilities 190,090
Stockholders' equity
Share capital 90,000
Other equity 20,901
Retained losses (49,797)
Stockholders' equity 61,104
Total liabilities and stockholders' equity 251,194
214,945
1,687
216,632
286,259
2,101
620
‐
‐
4,526
7,247
129,276
2,037
50,058
‐
181,371
188,618
90,000
21,104
(13,463)
97,641
286,259
197,472
1,243
198,715
264,989
4,893
620
‐
1,433
45,083
52,029
124,026
‐
11,418
1,359
136,803
188,832
90,000
21,093
(34,936)
76,157
264,989

Sea Production Ltd
Consolidated Cashflow Statement
(Unaudited)
(US$000)
OPERATING ACTIVITIES
Net loss
Adjustments to reconcile net income to net cash
generated from operating activities:
(6,848)
Stock options/retention scheme 1
Dividends paid ‐
Depreciation and amortization 3,807
Gain on assets disposal (467)
Net change in working capital/non‐current items 1,257
Cash generated from operating activities (2,249)
INVESTING ACTIVITIES
Sale/(purchase) of property, plant and equipment 1,805
Net cash provided by investing activities 1,805
FINANCING ACTIVITIES
Repayment of borrowings and interest (1,436)
Net cash provided by financing activities (1,436)
Net decrease in cash and cash equivalents (1,880)
Cash and cash equivalents at start of period 2,338
Cash and cash equivalents at end of period 457
Second Quarter First Half
Full Year
2011 2010 2011 2010 2010
(6,889)
‐
‐
3,737
‐
2,128
(1,024)
(1,008)
(1,008)
(2,916)
(2,916)
(4,948)
18,165
13,217
(14,861)
3
‐
7,422
(467)
2,864
(5,039)
1,805
1,805
(2,864)
(2,864)
(6,098)
6,555
457
(13,560)
‐
‐
7,475
‐
72
(6,013)
(1,008)
(1,008)
(2,916)
(2,916)
(9,937)
23,154
13,217
(30,827)
‐
‐
19,401
(86)
1,718
(9,794)
4,626
4,626
(11,431)
(11,431)
(16,599)
23,154
6,555

Sea Production Ltd
Statement of Changes in Equity
(Unaudited)
(US$000)
Share capital
Balance as at 31 March 2011 90,000
Total recognized income and expense for the period from 1
April 2011 to 30 June 2011
Currency translation difference ‐
Balance as at 30 June 2011 90,000
Attributable to equity holders of the Company
‐
Other
reserves
21,087
‐
(185)
20,901
Retained
earnings
(42,950)
(6,848)
‐
(49,797)
Total equity
68,137
(6,848)
(185)
61,104