The group received a royalty income for the June quarter of $10,278,413, which is $1,278,413 (14.2%) higher than the estimate contained in the prospectus on an annualised basis and 19.3% higher than the previous quarter.

Bass Strait said the principal reasons for this higher quarter royalty were the higher average oil price and the increased gas production due to rising demand for the three months ended 30 June 2004.