Gross general and administrative costs for 2014 increased by 11% when compared to 2013. The year-on-year  increase in general and administrative costs is largely attributable to increases in personnel and accommodation  costs. Standard overhead recoveries increased as a result of increased capital spending at Umbach.  On a per-Boe measure, net general and administrative costs fell by 50% compared to 2013 as a result of increased  production. The Company expects that increased production volumes in future periods will result in this favourable  trend continuing, although general and administrative costs for the fourth and first quarters of a fiscal year tend to be  higher due to the inclusion of year-end costs. However, there will be an offset, as lower levels of field activity  expected in 2015 will result in lower recoveries.  Share-based compensation is a non-cash charge which reflects the estimated value of stock options issued to  Storm’ s directors, officers and employees. Share-based compensation increased by 149% in 2014 compared to  2013. The year-over-year increase is attributable to the grant of 3,770,000 stock options in 2014. In the first quarter  of 2014 grants of 1,742,000 stock options were made with a subsequent grant of 1,938,000 being made in the final  quarter. In addition, 90,000 options were granted to new employees.  Property and equipment assets are subject to depletion and depreciation charges. Depletion is calculated using unit- of-production methodology under which intangible drilling and completion costs plus future development costs  associated with individual cash generating units are depleted using a factor calculated by dividing production for each  reporting quarter by proved plus probable reserves at the beginning of the quarter. As a result, the considerable  year-over-year increase in reserves at year end only benefits the fourth quarter of the year. The charge for depreciation for the period relates to facility and tangible equipment costs and office equipment  included with property and equipment costs. Such costs are depreciated over the useful life of the asset on a straight  line basis.  Exploration and evaluation costs expensed is a non-cash charge representing the cost of undeveloped lands with  lease terms expiring in the period.  Year Ended December 31, 2014  Year Ended  December 31, 2013  Charge for year  $ 2,192 $ 881 Per Boe  $ 0.86 $ 0.66  Share-Based Compensation  Year Ended  December 31, 2014  Year Ended  December 31, 2013  Depletion  $ 25,869 $ 17,396  Depreciation  3,623 1,539  Charge for year  $ 29,492 $ 18,935  Per Boe  $ 11.58 $ 14.26  Year Ended December 31, 2014  Year Ended  December 31, 2013  Charge for year  $ 1,427 $ 480  Per Boe   $ 0.56 $ 0.36  Year Ended December 31, 2014  Year Ended  December 31, 2013  Charge for year  $ 351 $ 223  Accretion represents the time value increase for the year of the Company’ s decommissioning liability.  Accretion  Exploration and Evaluation Costs Expensed  Higher production volumes resulted in the total charge for depletion and depreciation increasing year over year. Year-over-year per-Boe charge fell by 19%, as reserves continued to grow at Umbach, reflecting Storm’ s successful  drilling program.  27  Depletion and Depreciation 