2018 Half Year Guidance1Date issued 17 July 2018
Production costs Above US$10.50 – 13.50/boe2
Other operating costs US$53 - 57m
Depreciation and amortisationUS$12 - 13/boe (upper end)
Exploration and evaluation expenseUS$12.3m
Net finance cost US$98 - 101m
Effective tax rate 33 - 36%3

1. Subject to the finalisation of the financial statements, Board review and the half year review by the Company’s auditor.
2. Above FY18 guidance production costs, reflects impact of 7.5 magnitude PNG Highlands earthquake in February 2018.
3. Higher than the statutory rate due to one-off adjustments

2018 Full Year Guidance1Date issued 17 July 20182
Oil Search operated PNG oil and gas (mmboe)3,42.7 – 4.0*
PNG LNG Project (mmboe)320 – 22*
Total production (mmboe)At upper end of 23 – 26range 
Production costsUS$10.50 – 13.50/boe*
Other operating costs5US$140 - 150m*
Depreciation and amortisationUS$12 – 13/boe*
Exploration & EvaluationUS$250 - 310m*
DevelopmentUS$40 - 50m*
Production US$35 - 40m*
Other PP&EUS$50 - 55m*
PowerUS$50 - 65m*
Total US$425 - 520m*

* Unchanged from previous guidance provided on 17 April 2018  
1. Numbers may not add due to rounding  
2. Reflects impact of 7.5 magnitude PNG Highlands earthquake in February 2018.  
3. Gas volumes have been converted to barrels of oil equivalent using an Oil Search specific conversion factor of 5,100 scf = 1 boe, which represents a weighted average, based on Oil Search's reserves portfolio, using the actual calorific value of each gas volume at its point of sale.  
4. Includes SE Gobe gas sales.  
5. Includes Hides GTE gas purchase costs, royalties and levies, selling and distribution costs, rig operating costs, power expense and corporate administration costs (including business development) and other expenses. 
6. Excludes Alaska acquisition costs.