NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
NOTE 16 – DEVELOPMENT AND PRODUCTION ASSETS  
 2014 2013 
Year ended 31 December US$’000 US$’000 
   
Costs carried forward in respect of areas of interest in:   
Development and production assets, at cost:   
   Producing assets   652,035   297,469 
   Wells-in-progress       56,043       55,636 
Development and production assets, at cost: 708,078 353,105 
Accumulated depletion (117,613) (40,635) 
Provision for impairment    (71,452)         (240) 
Total Development and Production Expenditure    519,013    312,230 
   
a) Movements in carrying amounts:   
Development expenditure   
Balance at the beginning of the period 312,230       79,729 
Amounts capitalised during the period 350,196 219,121 
Amounts transferred from exploration phase 59,209 31,999 
Fair value of assets acquired - 54,258 
Allocation of working interest assets acquired 2,244 - 
Reclassifications to assets held for sale - (10,489) 
Impairment expense (71,212) - 
Depletion expense (85,357) (36,294) 
Development and production assets, net of accumulated 
amortization, sold during the period 
 
   (48,297) 
 
   (26,094) 
Balance at end of period    519,013    312,230 
 
Borrowing costs relating to drilling of development wells that have been capitalized as part of oil and gas properties 
during the year ended 31 December 2014 was $3.4 million (2013: $1.3 million) . The interest capitalization rate for 
both years ended 31 December 2014 and 2013 was 100%. 
 
  
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