NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
NOTE 33 – FINANCIAL RISK MANAGEMENT continued 
 
b) Net Fair Value of Financial Assets and Liabilities 
The net fair value of cash and cash equivalent and non- interest bearing monetary financial assets and financial 
liabilities of the consolidated entity approximate their carrying value.  
 
The net fair value of other monetary financial assets and financial liabilities is based on discounting future cash 
flows by the current interest rates for assets and liabilities with similar risk profiles.  Other than the Junior Credit 
Facility, the balances are not materially different from those disclosed in the consolidated statement of financial 
position of the Group. 
 
c) Credit Risk 
Credit risk for the Group arises from investments in cash and cash equivalents, derivative financial instruments 
and deposits with banks and financial institutions, as well as credit exposures to customers including 
outstanding receivables and committed transaction s, and represents the potential financial loss if 
counterparties fail to perform as contracted. The Group trades only with recognised, creditworthy third parties. 
 
The maximum exposure to credit risk, excluding the value of any collateral or other security , at balance date to 
recognise the financial assets, is the carrying amount, net of any impairment of those assets, as disclosed in the 
balance sheet and notes to the financial statements.  Receivable balances are monitored on an ongoing basis at 
the individual customer level. 
 
At 31 December 2014, the Group had three customers that owed the Group more than $1.0 million each and 
accounted for approximately 75% of total accrued revenue receivables.  There was one customer with balances 
greater than $5.0 million accounting for approximately 56% of total accrued revenue receivables.  For joint 
interest billing receivables, if payment is not made, the Group can withhold future payments of revenue, as 
such, there is minimal to no credit risk associated with these receivables. 
 
d) Liquidity Risk 
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.  The 
Group’s approach to managing liquidity is to ensure that it will have sufficient liquidity to meet its liabilities as 
they become due, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group 
manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring 
forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.  
 
As at 31 December 2014, based on the current borrowing based, the Group had $15.0 million of undrawn 
borrowing facilities. 
 
  
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