Page 58 - Sun Resources 2014 Annual Report

Consolidated
8 Exploration and Evaluation Expenditure 2014
$
2013
$
-- At cost 56,941,014 16,720,865
-- Net expenses incurred in the year and capitalised 13,278,462 15,967,304
-- Share-based payments (Note 5) - 22,807,371
-- Foreign exchange movement 811,864 6,243,527
-- Expenditure impairment (23,451,687) (4,798,053)
-- Net carrying value 47,579,653 56,941,014
Exploration expenditure is carried forward in accordance with the accounting policy and comprises expenditure
incurred on the acquisition and exploration of tenement interests for oil and gas.
Recoverability of the carrying amount of exploration assets is dependent on the successful exploration and sale of oil
and gas.
Capitalised costs amounting to $14,469,693 (2013: $9,974,966) have been included in cash flows from investing
activities in the Statement of Cash Flows of the economic entity.
Share based payments includes an amount of Nil (2013: $14,597,954) for shares issued to Amerril Energy LLC as
part consideration of the Amerril Oil Project. Sun has a 50% interest in the Amerril Oil Project joint venture.
Expenditure impairment of $23,451,687 (2013: $4,798,053) relates to the write-off of uncommercial wells
$12,705,047 (2013: $4,798,053) and expired Delta Oil Project acres $10,746,640 (2013: Nil).
9 Oil and gas production assets
Producing Projects
-- At cost 2,271,792 -
-- Net expenses incurred in the year and capitalised 1,013,232 5,369,367
-- Foreign exchange movement 12,673 302,879
-- Expenditure written-off (i) and (ii) (1,779,378) (2,929,104)
-- Amortisation of oil and gas properties (775,629) (471,350)
-- Net carrying value 742,690 2,271,792
(i) The fair value of the producing projects was reviewed at 30 June 2014.
(ii) Production Impairment Expense
The Beeler Oil Project was considered impaired based on Net Present Value calculations.
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
56 SUN RESOURCES ANNUAL REPORT 2014