Term  Definition EIA Environmental Impact Assessment. A report on the study of the effect of proposed works on the local  people and environment. ESOP The Karoon Gas Australia Employee Share Option Plan. exploration The process of identifying, discovering and testing prospective hydrocarbon regions and structures, mainly  by interpreting regional and specific geochemical, geological, geophysical survey data and drilling. farm-in and farm-out A commercial agreement in which an incoming joint venture participant (the ‘farmee’) earns an interest  in an exploration permit by funding a proportion of exploration and evaluation expenditures, while the  participant owning the interest in the exploration permit (the ‘farmor’) pays a reduced contribution. The  interest received by a farmee is a farm-in while the interest transferred by the farmor is a farm-out. FBT Fringe Benefits Tax in Australia. FID Final Investment Decision. field An area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same  individual geological structural feature or stratigraphic condition. The field name refers to the surface  area although it may refer to both the surface and underground productive formation. financial year Financial year ended 30 June 2011. GST Goods and Services Tax in Australia. hydrocarbon A compound of the elements hydrogen and carbon, in either liquid or gaseous form. Natural gas and  petroleum are mixtures of hydrocarbons. IASB International Accounting Standards Board. Karoon or Group Karoon Gas Australia Ltd and its subsidiaries. lead A potential hydrocarbon target which has been identified but requires further evaluation before it is drill  ready, at which point it becomes a prospect. LNG Liquefied natural gas. LPG Liquid petroleum gas. m Metres. market capitalisation The product of a company’s share price multiplied by the total number of ordinary shares issued by the company. migration Hydrocarbons are often found in formations other than those in which their organic source was  deposited. This movement often covers considerable distances and is known as migration. mm Million. mmbbls Millions of barrels (1,000,000 barrels). mmscf/d Millions of standard cubic feet per day; equivalent to 28,317 cubic metres per day. MMtpa Million tonnes per annum. A common measurement of LNG facility production capacity. Monte Carlo simulation Where there is uncertainty in the variables used in the calculation of economically recoverable reserves,  the ranges of possible values of each variable can be incorporated in a Monte Carlo simulation  calculation to produce a range of probabilistic outcomes that reflect that uncertainty. The ‘mean’ is the  expected outcome. The P10 (probability greater than 10%) is often used as the maximum case, the  P50 (probability of 50%) the mid case and the P90 (probability greater than 90%) the minimum case. mRT Metres rotary table. MAZ Multi Azimuth Seismic Processing NGER Act National Greenhouse and Energy Reporting Act 2007 . 95 Karoon Gas Australia Ltd  Annual Report 2011