NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE FINANCIAL YEAR ENDED 30 JUNE 2011 Note 23. Joint Venture Operations  (continued) Note 24. Contingent Liabilities and Contingent Assets (a) Contingent Liabilities  68 Karoon Gas Australia Ltd  Annual Report 2011 The future recoverability of the carrying amount of capitalised exploration and evaluation expenditure is dependent on successful  development and commercial exploitation or, alternatively, the sale of the respective areas of interest. Contingent liabilities in respect of joint venture operations are set out in Note 24. Exploration expenditure commitments and  capital commitments in respect of joint venture operations are set out in Note 25. Parent Company guarantees have been provided to ConocoPhillips guaranteeing Karoon Gas (Browse Basin) Pty Ltd’s performance  under the joint venture operating agreements covering the three Browse Basin permit interests. In addition, a deed of cross charge  has been entered into with ConocoPhillips by Karoon Gas (Browse Basin) Pty Ltd covering its three Browse Basin permit interests.  Consolidated 2011 2010 $ $ Cash and cash equivalents  343,869 10,217,259 Other receivables  118,278 872,986 Inventories  279,892 360,081 Total current assets 742,039 11,450,326 Exploration and evaluation expenditure carried forward  216,828,377 212,525,349 Total non-current assets  216,828,377 212,525,349 Trade payables  - 19,130 Sundry payables and accrued expenditure  200,796 10,651,597 Total current liabilities  200,796 10,670,727 Share of net assets employed in joint venture operations  217,369,620 213,304,948 The following amounts represented the Group’s share of assets and liabilities employed in joint venture operations. The amounts are included in the financial statements, in accordance with the accounting policy described in Note 1(s), under the following classifications:  Consolidated 2011 2010 $ $ (i) The Group has provided Agencia Nacional do Petróleo (the Brazilian Petroleum Agency) letters of credit and insurance bonds to carry out minimum work programs in relation to the Group’s exploration permits in the Santos Basin,  Brazil. The Directors are of the opinion that the work programs will be satisfied. The letters of credit are fully funded by way of payment of security deposit (refer Note 13), 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 principal funds held in escrow will be released as work is undertaken to satisfy the work programs. (ii) Performance guarantees (via letters of credit) were provided to Peru Petro SA for Block Z-38 and Block 144 by the Group 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 for 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. 56,811,842  11,723,326 10,011,647  4,517,490 The Group had contingent liabilities as at 30 June 2011 that may become payable in respect of: