8. Foreign Activities

As of December 31, 2005, our gross capitalized oil and gas property costs in New Zealand totaled approximately $292.2 million. Approximately $262.8 million has been included in the “Proved properties” portion of our oil and gas properties, while $29.4 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 $241.9 million at December 31, 2005. Our capital expenditures on oil and gas property in New Zealand were approximately $50.8 million in 2005.