NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE FINANCIAL YEAR ENDED 30 JUNE 2011 Note 13. Security Deposits  (continued) (a) Performance Bonds (b) Performance Guarantees (c) Bank Guarantees (d) Performance Guarantee (e) Bond (f) Financial Risk Management Consolidated 2011 2010 $ $ Note 14. Other Assets Current Prepayments  3,525,878 710,376 Total current other assets  3,525,878 710,376 (a) Included in current prepayments are deposits of $2,093,163 on long lead materials inventory items for the anticipated Santos Basin Block exploration drilling program.  Non-current Prepayments  1,102,759 - Total non-current other assets  1,102,759 - 58 Karoon Gas Australia Ltd  Annual Report 2011 Information concerning the Group’s exposure to financial risks on security deposits is set out in Note 3. Cash was held in the previous financial year as a security deposit for the relinquished exploration licence EL4537. In the previous financial year, a performance guarantee (via a letter of credit) was provided to a third party supplier by the Group  for exploration work undertaken in Peru (refer Note 24). The letter of credit was fully funded by way of payment of a security  deposit, and was released once the Group’s obligation under the contract was satisfied. Cash deposits are held as security against bank guarantee facilities for bank guarantees (refer Note 24) given to lessors for the  Group’s compliance with its obligations in respect of operating lease rental agreements for office premises at Melbourne, Mount  Martha, Peru and Brazil. Performance guarantees (via letters of credit) were provided to Peru Petro SA for Block Z-38 and Block 144 by the Group (refer Note  24) for second and third period work commitments (30 June 2010: for first and second period work commitments). The letters of  credit are fully funded by way of payment of a security deposit, which will be released once the work commitments are met. The Group has provided Agencia Nacional do Petróleo (the Brazilian Petroleum Agency) letters of credit and insurance bonds  (refer Note 24) to carry out minimum work programs in relation to the Group’s exploration permits in the Santos Basin, Brazil  (Santos Basin Blocks 1037, 1101, 1102, 1165 and 1166). The letters of credit are fully funded by way of payment of a security  deposit, which will be released once the work programs are met. The insurance bonds have been part funded to 50% of the value  of the total bonds provided to Agencia Nacional do Petróleo by establishment of an escrow account. The funds deposited in  escrow are invested on term deposit and quarterly interest earned is released from escrow after the end of each quarter. The  principal funds held in escrow will be released as work is undertaken to satisfy the work programs.