Last week, I mentioned that the Exploration & Production (E&P) spending budgets of oil majors hold the key to the recovery of most Oil & Gas (O&G) companies. Moreover, E&P companies are the most direct beneficiaries of the recent recovery in oil price among all O&G companies. This week, we will explore the economics of a small E&P company listed on Singapore Exchange -- Interra Resources. Interra was chosen for this analysis as it has a detailed breakdown of its Profit & Loss (P&L) statement.   Interra is involved in the exploration and production of oil in several oil fields in Myanmar and Indonesia through production sharing contracts. For Financial Year 2015, Interra's sale of shareable oil was 0.64M barrels. It earned a revenue of USD23.5M from the sale of oil and petroleum products. The average selling price works out to be USD36.87 per barrel. The total cost ......