NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
NOTE 27 – CAPITAL AND OTHER EXPENDITURE COMMITMENTS continued 
 
The following tables summarize the Group’s contractual commitments not provided for in the consolidated 
financial statements: 
 
 
As at 31 December 2014 Total 
Less than 1 
year 1 – 5 years 
More than 5 
years 
Drilling rig commitments (1)       1,460     1,460              -            - 
Operating lease commitments (3) 2,363 430 1,933 - 
Employment commitments (4) 742 370 372 - 
     Total expenditure commitments     4,565     2,260     2,305           - 
     
  
 
As at 31 December 2013 Total 
Less than 1 
year 1 – 5 years 
More than 5 
years 
Drilling rig commitments (1)     5,159     5,159                       -                        - 
Drilling commitments (2) 2,000 - 2,000 - 
Operating lease commitments (3) 1,860 200 1,354 306 
Employment commitments (4) 104 104 - - 
     Total expenditure commitments     9,123     5,463     3,354      306 
     
(1) As at 31 December 2014 the Company had one (2013: four) outstanding drilling rig contracts  to 
explore and develop the Company’s properties.  The contracts generally have terms of 6 months.  
Amounts represent minimum expenditure commitments should the Company elect to terminate 
these contracts prior to term. 
(2) On 31 December 2012, the Company entered into an agreement to acquire certain oil and natural 
gas properties located in the Wattenberg Field and to drill 45 net wells by 31 December 2015 on 
the acquired properties (the “Drilling Commitment”).  As each qualifying well is drilled, 
approximately $67 thousand is paid from the escrow account to the Company. However, for each 
required net commitment well not completed by the Company during that prorated commitment 
year, the Company is to pay the seller of the properties approximately $67 thousand from the 
escrow account.  Certain clawba ck provisions allow the Company to recoup amounts paid to the 
sellers if the total 45 wells are drilled by 31 December 2015.  The Company sold the properties in 
July 2014 and should the buyer drill any qualifying wells, the obligation would be satisfied.  As at 
31 December 2014, the Company and the buyer had not drilled any wells and the Company does 
not expect any wells to be drilled under this provision in 2015.  A s such, the remaining 
commitment of $2.0 million was accrued in our consolidated statement of financial position and 
recognised against the gain on sale of assets in the consolidated statement of profit or loss and 
comprehensive income.   
(3) Represents commitments for minimum lease payments in relation to n on-cancellable operating 
leases for office space not provided for in the consolidated financial statements.  
(4) Represents commitments for the payment of salaries and other remuneration under long -term 
employment and consultant contracts not provided for in the consolidated financial statements. 
Details relating to the employment contracts are set out in the Company’s Remuneration Report. 
     
 
  
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