Environmental Issues  The Group is committed to the environmentally sustainable development of its operations and, while the Group’s operations  are subject to significant environmental regulation under the laws of the states in which we operate and the United States of  America, no notice of any breach has been received and the Directors believe no material breach of any environment  regulations has occurred. The Company maintains strict internal performance and reporting guidelines to capture all spills and  emissions. Additionally, a third party firm is used to conduct quarterly environmental inspections to ensure the company is  meeting both internal and external standards. In the Group’s Oklahoma asset, significant company and regulatory scrutiny has been placed on seismic events in proximity to  salt water disposal wells (“SWDs”). Prior to the development and operation of our SWDs, the company undertook a study of  the state approved disposal zones and successfully drilled and completed its SWDs in state approved zones that accept  sufficient volumes of water to meet the company’s operational objectives while minimizing the potential risk of seismic events. During 2014, all of the Group’s SWDs were reviewed and approved by the state regulatory agency.  During 2014 the Group undertook a review of its operations in Texas and has identified two main opportunities to reduce its  environmental impact: 1) water recycling and re-use for completion operations in the Eagle Ford; and 2) more efficient and  less environmentally impactful treatment of hydrogen sulphide (H2S) from the company’s natural gas production in the Eagle  Ford. During 2015 the Company expects to implement operational changes to capitalize on these opportunities to reduce its  environmental impact. The Company is committed to providing a best in class health and safety environment for its employees, contractors and  communities with a zero-defect target. The Company tracks both company and company plus contractor incident rates. During  2014 the company had an Occupational Safety and Health Administration (“OSHA”) Recordable Incident Rate (“ORIR”) of 0.0  per 200,000 man hours and company plus contractor ORIR of 0.25 per 200,000 man hours. The Company maintains a comprehensive safety program that includes annual training of employees and regular monitoring  of employee and contractor safety certifications. The company uses a third party expert to conduct random safety audits of  its key operational activities and implements any changes identified by these audits. During 2014 the Company’s drilling  operations achieved a 98% audit rating. The Company expects to conduct further random safety audits for both its drilling and  completion operations in 2015. The Company uses subcontractors and vendors (“Contractors”) for execution of a significant portion of its operating activities. Prior to utilising the Contractors, the Company investigates the historical safety ratings of the Contractor utilizing the  Contractor’s Workers Compensation Experience Modification Ratio (“EMR”). Only contractors with EMRs below 1.0 are utilized  unless executive exception is granted. The Company investigates the safety certifications and experience of key Contractor  employees expected to work on the Company’s assets. As part of the Company’s policy all Contractors must provide written  documentation that they will comply with the Company’s comprehensive written Health, Safety and Environmental Plan.  The Company actively encourages its employees to participate in a variety of health and wellness programs, either self-directed  or those sponsored by the Company. As a result, many employees utilize the Company’s dedicated wellness centre to assist  in achievement of their individual health and wellness goals. Additionally, in 2014, the Company sponsored a 30-day walking  competition where company sponsored teams collectively walked 7.85 million steps or 3,925 miles with each participating  employee walking an average of 3.25 miles per day.  No dividends were declared or paid during the financial year. No recommendation for payment of dividends has been made.  Dividends Health and Safety - 22 - 