text: **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**
  
  **NOTE 26 – RESERVES**
  
  **a) Share Option Reserve**
  
  The share option reserve records items recognised as expenses on valuation of employee and supplier share 
  options and restricted share units. 
  
  **b) Foreign Currency Translation Reserve**
  
  The foreign currency translation reserve records exchange differences arising on translation of the Parent 
  Company. 
  
  **NOTE 27 – CAPITAL AND OTHER EXPENDITURE COMMITMENTS**
  
  **Capital commitments relating to tenements**
  As at 31 December 2014, all of the Company’s exploration and evaluation and development and production assets 
  are located in the United States of America (“US”). 
  
  The mineral leases in the exploration prospects in the US have primary terms ranging from 3 years to 5 years and 
  generally have no specific capital expenditure requirements. However, mineral leases that are not successfully 
  drilled and included within a spacing unit for a producing well within the primary term will expire at the end of the 
  primary term unless re-leased. 