	dome pete dmp takes billion dlr writedown dome petroleum ltd earlier reporting a billion dlr loss compared to year earlier profit of mln dlrs said the loss was mainly due to write downs totalling billion dlrs before a reduction in deferred income taxes of mln dlrs the loss also includes mln dlrs in accumulated foreign exchange losses the company said the dramatic drop in energy prices in early reverses much of the progress the company has made in the two previous years dome chairman j howard macdonald said in a statement but even a net loss of this magnitude has very little bearing on the day to day operations of dome chairman macdonald said it merely reflects the realistic carrying value of the company s assets in today s economic environment and the absolute need for reaching a timely agreement with our lenders on a debt restructuring plan to assure the company s continued existence he added dome is now trying to reach agreement on a complex plan for restructuring debt of more than billion dlrs dome said it charged the mln dlrs in accumulated foreign exchange losses to current expenses because of the uncertainty arising from its proposed restructuring plan normally the expenses would be amortized over the remaining period of the loans to which they apply it said dome also said the write downs included a fourth quarter reduction in the value of its oil and gas properties of billion dlrs before a reduction in deferred income taxes of mln dlrs the fourth quarter writedown was in addition to a charge of mln dlrs on certain other assets taken mainly in the third quarter dome said the billion dlr fourth quarter charge resulted from a year end accounting change made under new full cost accounting guidelines by the canadian institute of chartered accountants the company said it previously determined a write down of conventional oil and gas properties was not required at september under the previous method of calculating the limitation of oil and gas values dome said the most significant accounting change under the new guidelines is using current oil and gas prices in calculations instead of escalating price forecasts terms of dome s proposed debt restructuring plan preclude the company from making an accurate estimate of future financing costs which are used in the new accounting calculations it said as a result dome adopted current prices and costs and a pct discount factor in the calculations which substantially conform with accounting rules prescribed by the u s securities and exchange commission the company said dome said operating income from its crude oil and natural gas segments fell by billion dlrs to a loss of billion dlrs from prior year ings of mln dlrs dome said the steep drop in crude oil and natural gas operating income was due to write downs totalling billion dlrs and lower energy prices that sharply reduced revenue reduced production of natural gas and lower utilization of dome s offshore drilling fleet in the beaufort sea also contributed to the decline it said ings from its natural gas liquids business fell by pct to mln dlrs from mln dlrs in cash from operations dropped to mln dlrs from year ago mln dlrs and unrestricted cash balance declined to mln dlrs from mln dlrs dome said crude oil production in was maintained at prior year s levels through new drilling activity and improvements in productivity natural gas production fell by nine pct as a result of lower domestic and export sales it said oil and field natural gas liquids production totalled barrels a day compared to bpd in the prior year natural gas production fell to mln cubic feet a day from mcf a day reuter 
