text: **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**
  
  **NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES**
  
  The consolidated financial report of Sundance Energy Australia Limited (“SEAL”) and its wholly owned subsidiaries, 
  (collectively, the “Company”, “Consolidated Group” or “Group”), for the year ended 31 December 2014 was 
  authorised for issuance in accordance with a resolution of the Board of Directors on 31 March 2015. The Group has 
  the power to amend and reissue the financial report. 
  
  The Group is a for-profit entity for the purpose of preparing the financial report. The principal activities of the Group 
  during the financial year are the exploration for, development and production of oil and natural gas in the United 
  States of America, and the continued expansion of its mineral acreage portfolio in the United States of America. 
  
  **Basis of Preparation**
  The consolidated financial report is a general purpose financial report that has been prepared in accordance with 
  Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the 
  Australian Accounting Standards Board (“AASB”) and the Corporations Act 2001. 
  
  These consolidated financial statements comply with International Financial Reporting Standards (“IFRS”) as issued 
  by the International Accounting Standards Board (“IASB”). Material accounting policies adopted in the preparation 
  of this financial report are presented below. They have been consistently applied unless otherwise stated. 