NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
NOT E 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued  
 
The life of each item has regard to both its physical life limitations and present assessments of economically 
recoverable reserves of the field at which the asset is located.  Economically recoverable reserves are defined as 
proved developed and probable developed reserves.  These calculations require the use of estimates and 
assumptions, including the amount of recoverable reserves and estimates of future capital expenditure.  The 
calculation of the units of production rate of depreciation or amortisation could be impacted to the extent that 
actual production in the future is different from current forecast production based on total economically recoverable 
reserves, or future capital expenditure estimates change.  Changes to economically recoverable reserves could arise 
due to change in the factors or assumptions  used in estimating reserves, including the effect on economically 
recoverable reserves of differences between actual commodity prices and commodity price assumptions and 
unforeseen operational issues.  Changes in estimates are accounted for prospectively.  
 
Stock Based Compensation 
The Group’s policy for stock based compensation is discussed in Note 1 (h).  The application of this policy requires 
management to make certain estimates and assumptions as to future events and circumstances.  Stock based 
compensation related to stock options use estimates for expected volatility of the Company’s share price and 
expected term, including a forfeiture rate, if appropriate. 
 
q) Change in Accounting Estimate 
Effective 1 July 2013, the Company had a change in accounting estimate related to the economically recoverable 
reserves in its Eagle Ford formation used in the units-of-production depletion calculation.  Subsequent to the change, 
the Company began to include management's best estimate of economically recoverable reserves associated with 
developed properties, which include both proved developed and probable developed reserves.  Prior to the change, 
the Company used economically recoverable reserves associate d only with proved developed reserves as probable 
developed reserves were not significant.   
 
r) Rounding of Amounts 
The Company is of a kind referred to in Class Order 98/100 issued by the Australian Securities and Investment 
Commission, relating to rounding of amounts in the financial statements. Amounts have been rounded to the 
nearest thousand. 
 
s) Parent Entity Financial Information 
The financial information for the parent entity, SEAL (“Parent Company”), also the ultimate parent, discussed in Note 
34, has been prepared on the same basis, using the same accounting policies as the consolidated financial 
statements, except for its investments in subsidiaries which are accounted for at cost in the individual financial 
statements of the parent entity less any impairment. 
 
t) Earnings Per Share 
The group presents basic and diluted earnings per share for its ordinary shares. Basic earnings per share is calculated 
by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number 
of ordinary shares outstanding during the year. Diluted earnings per share is determined by adjusting the profit or 
loss attributable to ordinary shareholders and the weighted average number of ordinary shares for the dilutive 
effect, if any, of outstanding share rights and share options which have been issued to employees.  
  
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