NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
NOT E 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued  
 
The excess of the consideration transferred, the amount of any non -controlling interest in the acquiree and the 
acquisition-date fair value of any previous equity interest in the acquire e over the fair value of the net identifiable 
asset acquired, if any, is recorded as goodwill.  If those amounts are less than the fair value of the net identifiable 
assets of the subsidiary acquired and the me asurement of all amounts has been reviewed, the difference is 
recognised directly in the consolidated statement of profit or loss and other comprehensive income as a bargain 
purchase.  Adjustments to the purchase price and excess on consideration transferr ed may be made up to one year 
from the acquisition date. 
 
o) Assets Held for Sale 
The Company classifies property as held for sale when management commits to a plan to sell the property, the plan 
has appropriate approvals, the sale of the property is probable  within the next twelve months, and certain other 
criteria are met. At such time, the respective assets and liabilities are presented separately on the Company’s 
consolidated statement of financial position and amortisation is no longer recognized. Assets held for sale are 
reported at the lower of their carrying amount or their estimated fair value, less the costs to sell the assets. The 
Company recognizes an impairment loss if the current net book value of the property exceeds its fair value, less 
selling costs. The company did not have any assets classified as held for sale as at 31 December 2014.  As at 31 
December 2013, all of the Company’s Williston properties were classified as held for sale.   
 
p) Critical Accounting Estimates and Judgements 
The Director s evaluate estimates and judgements incorporated into the financial report based on historical 
knowledge and best available current information. Estimates assume a reasonable expectation of future events and 
are based on current trends and economic data obtained both externally and within the Group.  Revisions to 
accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that 
period, or in the period of the revision and future periods if the revision affe cts both current and future periods. 
 
Management has made the following judgements, which have the most significant effect on the amounts recognised 
in the consolidated financial statements. 
 
Estimates of reserve quantities 
The estimated quantities of hydrocarbon reserves reported by the Group are integral to the calculation of 
amortisation (depletion) and to assessments of possible impairment of assets. Estimated reserve quantities are 
based upon interpretations of geologica l and geophysical models and assessment of the technical feasibility and 
commercial viability of producing the reserves. Management prepares reserve estimates which conform to 
guidelines prepared by the Society of Petroleum Engineers. Management also prepares reserve estimates under SEC 
guidelines.  Reserve estimates conforming to the guidelines prepared by the Society of Petroleum Engineers are 
utilized for accounting purposes.  These assessments require assumptions to be made regarding future development 
and production costs, commodity prices, exchange rates and fiscal regimes. The estimates of reserves may change 
from period to period as the economic assumptions used to estimate the reserves can change from period to period, 
and as additional geological data is generated during the course of operations. 
 
  
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