NOTES TO THE FINANCIAL STA TEMENTS for the year ended 31 December 2004 The interest-bearing amounts owing by controlled entities are for loans made  in the  ordinary course of business on normal market terms and conditions for an ind efinite period. 58 Annual Report 2004 At cost 6,175.3 5,613.1 1,950.7 1,859.4 Less accumulated depletion (2,965.0) (2,667.8) (1,044.9) (955.8) 3,210.3 2,945.3 905.8 903.6 Movements during the year Areas in which production has commenced Cost at the beginning of the year 5,190.6 5,108.8 1,752.4 1,624.3 Expenditure incurred during the year 399.2 277.5 161.7 92.6 Acquisitions 146.0 19.5 – 1.6 Disposals (53.1) (16.0) (99.8) – Foreign currency translation (34.2) (231.6) – – Expenditure transferred from areas in the exploration and development stage 107.2 36.3 38.8 33.9 Expenditure transferred from plant and equipment 60.7 – 17.6 – Expenditure written off during the year (16.3) (3.9) – – Cost at the end of the year 5,800.1 5,190.6 1,870.7 1,752.4 Less accumulated depletion (2,965.0) (2,667.8) (1,044.9) (955.8) 2,835.1 2,522.8 825.8 796.6 Areas in the exploration and development stage Cost at the beginning of the year 422.5 424.2 107.0 118.0 Expenditure incurred during the year 66.1 109.6 16.4 29.0 Acquisitions – 0.4 – – Disposals – (17.7) – – Foreign currency translation (0.4) (1.9) – – Expenditure transferred to areas where production has commenced (107.2) (36.3) (38.8) (33.9) Expenditure written off during the year (5.8) (55.8) (4.6) (6.1) Cost at the end of the year 375.2 422.5 80.0 107.0 Total exploration and development expenditure 3,210.3 2,945.3 905.8 903.6 Current Prepayments 18.3 14.3 7.7 7.4 Deferred loss on commodity hedges 3.2 – 2.3 – 21.5 14.3 10.0 7.4 Non-current Other 2.9 1.1 – – Petroleum products 82.4 73.7 44.8 35.9 Drilling and maintenance stocks 44.4 45.9 16.1 18.9 Less provision for obsolescence (9.5) (7.2) (2.1) (1.6) 117.3 112.4 58.8 53.2 Consolidated Santos Ltd 2004 2003 2004 2003 7. Receivables $million $million $million $million Trade debtors 181.5 144.3 72.8 88.1 Sundry debtors 228.2 29.1 131.1 12.6 Less provision for doubtful debts (0.6) (1.7) (0.5) (0.7) Amounts owing by controlled entities: Non-interest-bearing – – 455.2 359.1 Interest-bearing – – 990.0 636.4 Tax related balances owing by controlled entities – – 269.1 314.8 409.1 171.7 1,917.7 1,410.3 8. Inventories 9. Other Assets 10. Exploration and Development Expenditure