NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE FINANCIAL YEAR ENDED 30 JUNE 2011  Consolidated 2011 2010 $ $ Note 25. Commitments  (a) Capital Expenditure Commitments  Contracts for capital expenditure in relation to assets not provided for in the financial statements and payable:  Drilling operations (non-joint venture operations)  Not later than one year  12,965,882 - Total capital expenditure commitments  12,965,882 - (b) Operating Lease Rental Commitments  Non-cancellable operating lease rentals not provided for in the financial statements and payable:  Not later than one year  855,745 294,144 Later than one year but not later than five years  2,829,030 443,945 Later than five years  192,762 - Total operating lease rental commitments  3,877,537 738,089 The Group has an office lease for Office 6 & 7, 34-38 Lochiel Avenue, Mount Martha with a primary three year term that expires  on 31 January 2013. Rent is payable monthly in advance. Annually from the commencement date, the rent is adjusted by  reference to the consumer price index. There is an option to extend for one further term of three years, except that a market  review of rent will be triggered on renewal. The Group has an office lease for Level 25, 367 Collins Street, Melbourne with a primary six year term that expires on 30  November 2016 and a 4% p.a. rental increase. Rent is payable monthly in advance. There is no option for renewal at the end of  the term. The Group also has an office lease at Level 10, 406 Collins Street, Melbourne with a five year term that expires on 31 May 2012  and a 4% p.a. rental increase. Rent is payable monthly in advance. The Group has two office leases in Brazil. One at Rua Visconde de Pirajá, 303 – 9º Andar – Salas 904/912, Ipanema, Rio de Janeiro  with a primary four year term that expires on 30 April 2015. Rent is payable monthly in advance. There is an option to extend for  a further term, which is negotiable at the end of the lease. The second office lease is at Av Afonso Delambert Neto, 619 sala 5  Lagoa da Conceição, Florianópolis with a primary four year term that expires on 30 April 2015. Rent is payable monthly in advance.  The lease can be renewed for no more than 12 months. A market review of rent is triggered at the end of the lease term. The Group has an office lease at Antequera 777, 101, Sam Isidro, Peru with a primary term that expires on 31 July 2013. Rent is  payable monthly in advance. There is an option to extend for a further term of twelve months, on essentially the same terms and  conditions, except that a market review of rent will be triggered on renewal.  (c) Exploration Expenditure Commitments  Some subsidiaries within the Group have commitments for exploration expenditure arising from obligations to government, to  perform minimum exploration and evaluation work and expend minimum amounts of money pursuant to the award of exploration  permits WA-314-P, WA-315-P, WA-398-P, Block 1037, Block 1101, Block 1102, Block 1165, Block 1166, Block Z-38, Block 144 and  AC/P8 (30 June 2010: WA-314-P, WA-315-P, WA-398-P, Block 1037, Block 1101, Block 1102, Block 1165, Block 1166, Block Z-38,  Block 144 and AC/P8) not provided for in the financial statements and payable. Included in exploration expenditure commitments  are $90,965,044 (30 June 2010: $175,918,961) of commitments that relate to the non-guaranteed work commitments: 70 Karoon Gas Australia Ltd  Annual Report 2011