General and Administrative Costs  $^{ }$Share-Based Compensation  $^{ }$Depletion and Depreciation  $^{ }$Reduction of Carrying Amount of Property and Equipment  $^{ }$Accretion  As more fully described on page 28, in the last quarter of 2014 the Company reduced the carrying amount of the  Alberta CGU. The amount of the reduction in the carrying amount, $22.7 million (2013 - $26.0 million), was included  in the consolidated statement of loss for the quarter.  The increased year-over-year change for accretion is due to additional liabilities assumed due to drilling, acquisitions  and facility construction. The increase in accretion expense between the third and fourth quarters of 2014 was due to  changes in estimates of future costs and discount rates.  The year-over-year per-Boe charge fell by 17%, a reflection of lower cost reserve additions resulting from the  Company’ s successful 2014 drilling program.  Higher production resulted in the total charge for depletion and depreciation increasing year over year by 77% in the  final quarter of 2014. Compared to the immediately prior quarter, the charge for the fourth quarter of 2014 increased  by 33%, with higher production being offset by a decrease in the per-unit rate resulting from the application of the  2014 year-end reserve report to reset the depletion calculation for the final quarter of the year. The increase in the  year-over-year charge for depreciation is a consequence of increased investment in facilities in 2014.  Share-based compensation increased by 248% in the final quarter of 2014 compared to the same quarter of 2013  and increased by 24% when compared to the third quarter of 2014. The increase in share-based compensation is  attributable to the grant of 3.8 million new stock options in 2014.  On a per-Boe measure, net general and administrative costs fell by 64% compared to the same quarter in 2013 due  to increased production. The Company expects that increased production volumes in future periods will result in this  favourable trend continuing.  Gross general and administrative costs for the final quarter of 2014 decreased by 9% when compared to the final  quarter of 2013 and increased by 24% compared to the third quarter of 2014. The year-on-year decrease in general  and administrative costs is largely attributable to lower personnel costs. The increase in the final quarter of 2014,  when compared to the third quarter, is due to the inclusion in the final quarter of certain costs related to the  Company’ s year end, including external services. Further, overhead recoveries in the final quarter of 2014 fell due to  capital expenditures declining by 34% when compared to the third quarter.  Total Costs  Three Months Ended   December 31, 2014  Three Months Ended   December 31, 2013  Three Months Ended   September 30, 2014  Charge for period –before recoveries  $ 1,581 $ 1,740  $ 1,278  Overhead recoveries  (498 )  (312)  (634)  Charge for period –net of recoveries  $ 1,083 $ 1,428  $ 644  Per Boe  $ 1.16 $ 3.25  $ 0.98  Three Months Ended   December 31, 2014  Three Months Ended   December 31, 2013  Three Months Ended   September 30, 2014  Depletion  $ 8,965 $ 5,218  $ 6,587  Depreciation  1,155 494  1,021  Charge for period  $ 10,120 $ 5,712  $ 7,608  Per Boe  $ 10.81 $ 13.01  $ 11.55  38 