text: **e) Financial Instruments**
  
  **Recognition and Initial Measurement**
  Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity becomes 
  a party to the contractual provisions of the instrument. Trade date accounting is adopted for financial assets that 
  are delivered within timeframes established by marketplace convention. 
  
  Financial instruments are initially measured at fair value plus transactions costs where the instrument is not classified 
  at fair value through profit or loss. Transaction costs related to instruments classified at fair value through profit or 
  loss are expensed to profit or loss immediately. Financial instruments are classified and measured as set out below. 
  
  **Derivative Financial Instruments**
  The Group uses derivative financial instruments to economically hedge its exposure to changes in commodity prices 
  arising in the normal course of business. The principal derivatives that may be used are commodity crude oil price 
  swap, option and costless collar contracts and interest rate swaps. Their use is subject to policies and procedures as 
  approved by the Board of Directors. The Group does not trade in derivative financial instruments for speculative 
  purposes. 
  
  Derivative financial instruments are recognised at fair value. Subsequent to initial recognition, derivative financial 
  instruments are recognised at fair value. The fair value of these derivative financial instruments is the estimated 
  amount that the Group would receive or pay to terminate the contracts at the reporting date, taking into account 
  current market prices and the current creditworthiness of the contract counterparties. The derivatives are valued 
  on a mark to market valuation and the gain or loss on re-measurement to fair value is recognised through the 
  statement of profit or loss and other comprehensive income. 