text: **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**
  
  **NOTE 17 – IMPAIRMENT OF NON-CURRENT ASSETS**
  
  At 31 December 2014, the Group reassessed the carrying amount of its non-current assets for indicators of 
  impairment in accordance with the Group’s accounting policy. Due to the change in the oil pricing environment at 
  year-end, the Company determined that there was an indication of impairment for development and production 
  assets. 
  
  Each of the Group’s development and production asset CGUs include all of its developed producing properties, 
  shared infrastructure supporting its production and undeveloped acreage that the Group considers technically 
  feasible and commercially viable. 
  
  Estimates of recoverable amounts are based on the higher of an asset’s value-in-use or fair value less costs to sell 
  (level 3 fair value hierarchy), using a discounted cash flow method, and are most sensitive to the key assumptions 
  such as pricing, discount rates, and reserve risk factors. The Group has used the FVLCS calculation whereby future 
  cash flows are based on estimates of hydrocarbon reserves in addition to other relevant factors such as value 
  attributable to additional reserves based on production plans. 
  
  Estimates of future commodity prices are based on the Group’s best estimates of future market prices with reference 
  to external market analysts’ forecasts, current spot prices and forward curves. At 31 December 2014, future NYMEX 
  strip prices, adjusted for basis differentials, were applied in 2015 and gradually increased through 2016 to $75/bbl 
  in 2017 and thereafter. 