This excerpt taken from the PBR 6-K filed May 27, 2005.
Aging of Capitalized Exploratory Well Costs (US$ millions)
Of the $840 million for 40 projects that include wells suspended for more than one year since the completion of drilling, approximately $766 million is associated with 26 offshore projects. Activities associated with assessing the reserves and the projects economic viability include: (a) $224 million negotiations with potential customers of natural gas (three projects), (b) $60 million discussions with operators for the joint development of two projects and (c) $54 million negotiation of commercial terms with partner. Included in the $840 million of exploratory well costs that have been capitalized for a period of greater than one year since the completion of drilling is $321.5 million associated with 29 wells completed before 2002.
We believe that the changes proposed in FSP SFAS 19-a, if they are adopted, would not have a material effect on our financial position or results of operations for any period.