(c) Guarantees Entered into by Parent Company Parent Company guarantees provided to third parties guaranteeing a subsidiary’s performance under joint venture operating  agreements are set out in Note 23. A bank guarantee provided by the Parent Company to a third party, guaranteeing a subsidiary’s performance under an operating  lease rental agreement, is set out in Note 24. 79 Karoon Gas Australia Ltd  Annual Report 2011  Consolidated 2011 2010 $ $ (b) Contingent Liabilities of Parent Company (i) Bank guarantees were provided in respect of operating lease rental agreements  at Melbourne and Mount Martha for the Company and a subsidiary. These  guarantees may give rise to liabilities in the Parent Company if obligations are  not met under these guarantees. The bank guarantees given to lessors are fully  funded by way of payment of security deposit (refer Note 13).  (ii) Performance guarantees (via letters of credit) were provided to Peru Petro SA for  Block Z-38 and Block 144 by the Company for second and third period work  commitments (2010: first and second period work commitments). The Directors  are of the opinion that the work commitments will be satisfied under both Blocks.  The letters of credit are fully funded by way of payment of security deposit (refer  Note 13), which will be released once the work commitments are met.  (iii) In the previous financial year, a performance guarantee (via a letter of credit)  was provided to a third party supplier by the Parent Company for exploration  work undertaken in Peru. The letter of credit was fully funded by way of payment  of a security deposit (refer Note 13), and was released once the obligation under  the contract was satisfied. 359,509 70,307 10,011,647 4,517,490 - 293,324 (iv) The Company’s present intention is to provide the necessary financial support  for all Australian incorporated subsidiaries, whilst they remain wholly owned  subsidiaries, as is necessary for each company to pay all debts as and when  they become due. 