8. Foreign Activities

As of December 31, 2004, our gross capitalized oil and gas property costs in New Zealand totaled approximately $243.2 million. Approximately $209.8 million has been included in the "Proved properties" portion of our oil and gas properties, while $33.4 million is included as "Unproved properties." Our functional currency in New Zealand is the U.S. Dollar. Net assets of our New Zealand operations total $197.4 million at December 31, 2004. Our expenditures on oil and gas property in New Zealand were approximately $36.5 million in 2004.