JPMorgan - KASE

December 31, 2000
Cost
Accumulated
Depletion and
Depreciation
Net Book Value
Oil and gas properties and equipment .................... 378,095 252,970 125,125
Refining............................................... 114,311 6,973 107,338
492,406 259,943 232,463
Othercapitalassets ..................................... 34,228 2,225 32,003
526,634 262,168 264,466
Excluded from the depletable base of oil and gas properties are undeveloped properties of $32.3
million (December 31, 2000—$32.3 million).
Construction in progress of $23.0 million (December 31, 2000—$25.8 million) included in other
capital assets is not depreciated.
10 Short Term Debt
As at December 31
2001 2000
Working capital facilities ............................................................... 42,557 1,000
Current portion of term facilities ........................................................ 4,000 —
Joint venture loan payable ............................................................. 6,000 —
52,557 1,000
The working capital facilities are revolving, for terms of 1 to 8 years, are secured and have
interest rates ranging from 14% per annum to Libor plus 3.5% per annum.
11 Debt and Accrued Interest
Debt and accrued interest includes the following:
As at December 31
2001 2000
Canadian Notes ....................................................................... — 9,891
U.S.Notes............................................................................ — 14,115
— 24,006
Canadian notes
On March 26, 1997, Hurricane issued C$110 million (U.S. $80 million) of Special Warrants under a
Special Warrant Indenture (the “Indenture”). Under the terms of the Indenture, each Special
Warrant was exercisable by the holder thereof, at no additional cost, into one unit, with each
unit comprised of one C$1,000 principal amount Note and 45 Series 5 Warrants. In accordance
with generally accepted accounting principles for compound financial instruments,
C$107,525,000 (U.S.$78,245,525) was ascribed to long-term debt and the remaining C$2,475,000
(U.S.$1,801,048) to share capital. As of July 27, 1997, all of the Special Warrants were exercised or
were deemed to have been exercised. As a result, Hurricane issued C$110 million of 11% senior
unsecured notes due 2002 (the “Canadian Notes”) under the Indenture.
The Canadian Notes were to mature on March 27, 2002 and all outstanding principal would have
been payable on maturity. Interest on the Canadian Notes accrued at the rate of 11% per annum
and was payable on June 1 and December 1 in each year through 2001, commencing June 1,
1997, with the final interest payment on March 26, 2002.
The Canadian Notes were general unsecured obligations of Hurricane and ranked equally in right
of payment to all existing and future unsecured debt of Hurricane not subordinated by its
express terms. The Canadian Notes ranked senior in right of payment to any and all existing and
future subordinated debt of Hurricane. The Canadian Notes were not callable or otherwise
redeemable at the option of the Corporation at any time prior to their stated maturity date.
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