NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
NOTE 14 – FAIR VALUE MEASUREMENT 
 
The following table presents financial assets and liabilities measured at fair value in the consolidated statement of 
financial position in accordance with the fair value hierarch y.  Thi s hierarchy groups financial assets and liabilities 
into three levels based on the significance of inputs used in measuring the fair value of the financial assets and 
liabilities. The fair value hierarchy has the following levels: 
 
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; 
 
Level 2: inputs other than quoted prices included within Level 1 that  are observable for the asset or 
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and 
 
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). 
 
The Level within which the financial asset or liability is classified is determined based on the lowest level of significant 
input to the fair value measurement.  The financial assets and liabilities measured at fair value in the statement of 
financial position are grouped into the fair value hierarchy as follow s: 
Consolidated 31 December 2014 
(US$’000) 
 
Level 1 
 
Level 2 
 
Level 3   
 
Total 
     
Assets measured at fair value     
Derivative commodity contracts               -     9,476               -       9,476 
Interest rate swap contracts - 107 - 107 
Development and production 
assets (1) 
- - 455,084 455,084 
     
Liabilities measured at fair value     
Interest rate swap contracts               -      (130)               -        (130) 
     
Net fair value               -       9,453     455,084      464,537   
     
(1) Excludes work-in-progress and restoration provision assets totaling $63.9 million. 
Consolidated 31 December 2013 
(US$’000) 
 
Level 1 
 
Level 2 
 
Level 3   
 
Total 
     
Assets measured at fair value     
Interest rate swap contract               -        176               -         176 
     
Liabilities measured at fair value     
Derivative commodity contracts - (219) - (219) 
Interest rate swap contracts               -      (147)               -      (147) 
     
Net fair value               -        (190)               -        (190)   
 
During the years ended 31 December 2014 and 2013, respectively, there were no transfers between level 1 and level 
2 fair value measurements, and no transfer into or out of level 3 fair value measurements.  
  
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