NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
NOTE 5 – GENERAL AND ADMINISTRATIVE EXPENSES 
 
 2014 2013 
Year ended 31 December US$’000 US$’000 
   
Employee benefits expense, including salaries and wages, 
net of capitalised overhead 
 
  (3,064) 
 
     (4,553) 
General legal and professional fees (4,661) (3,307) 
Corporate fees (2,676) (2,344) 
Regulatory expenses (1,374) (2,313) 
Share based payments expense (1,915) (1,590) 
Rent (631) (234) 
Other expenses       (1,206)         (956) 
Total general and administrative expenses    (15,527)     (15,297) 
 
The company capitalised overhead costs, including salaries, wages benefits and consulting fees, directly attributable 
to the exploration, acquisition and development of oil and gas properties of $ 4.5 million and $2.9 million for the 
years ended 31 December 2014 and 2013, respectively. 
 
NOTE 6 – GAIN ON SALE OF NON-CURRENT ASSETS 
 
Disposals in 2014 
In July 2014, the Company sold its remaining Denver -Julesburg Basin assets for net  proceeds of $1 08.8 million in 
cash, whi ch includes the reimbursement of capital expenditures incurred on 8 gross (3.1 net) non- operated 
horizontal wells.  The sale resulted in a pre- tax gain of $48. 7 million, which is included in the gain on sale of non -
current assets in the consolidated statement of profit or loss and other comprehensive income for the year ended 
31 December 2014.   
 
In July 2014, the Company sold its remaining Bakken assets, located in the Williston Basin, for approximately $14.0 
million, which included $10 million in cash and approximately $4.0 million in settlement of a net liability due to the 
buyer. The sale resulted in a pre-tax gain of $1.6 million, which is included in the gai n on sale of non-current assets 
in the consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 
2014.  As at 31 December 2013, the carrying costs of these assets were $11.6 million and were classified as held f or 
sale. 
 
For the Denver-Julesburg Basin sales proceeds, the Company elected to apply Section 1031 “like -kind exchange” 
treatment under the US tax rules, which allow deferral of the gain if the proceeds are used to acquire “like- kind 
property” within six months of the closing date of the transaction.  In addition, the US tax rules allow the deduction 
of all intangible drilling costs (“IDCs”) in the period incurred.  In January 2015, the Company deferred majority of the 
taxable gain on the sale of the Denver-Julesburg Basin by acquiring qualified replacement properties. 
 
  
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