NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  NOTE 14 – FAIR VALUE MEASUREMENT continued  Measurement of Fair Value  a) Derivatives b) Credit Facilities NOTE 15 – OTHER CURRENT ASSETS  c) Other Financial Instruments  Derivatives entered into by the Company consist of commodity contracts and interest rate swaps. The Company  utilises present value techniques and option-pricing models for valuing its derivatives. Inputs to these valuation  techniques include published forward prices, volatilities, and credit risk considerations, including the incorporation  of published interest rates and credit spreads. All of the significant inputs are observable, either directly or indirectly;  therefore, the Company’s derivative instruments are included within the Level 2 fair value hierarchy. As at 31 December 2014, the Company had $95 million and $35 million of principal debt outstanding on the Senior  Credit Facility and the Junior Credit Facility, respectively. The estimated fair value of the Senior Credit Facility  approximated its carrying amount due to the floating interest rate paid on such debt to be set for a period of three  months or less. The estimated fair value of the Junior Credit Facility was approximately $41.8 million, based on  indirect, observable inputs (Level 2) regarding interest rates available to the Company. The fair value of the Junior  Credit Facility was determined by using a discounted cash flow model using a discount rate that reflects the  Company’s assumed borrowing rate at the end of the reporting period.  The carrying amounts of cash, accounts receivable, accounts payable and accrued liabilities approximate fair value  due to their short-term nature. Year ended 31 December  2014  US$’000  2013  US$’000  Cash advances to other operators  3,270  685 Escrow accounts  1,000  1,498  Oil inventory on hand, at cost  1,331  1,088  Equipment inventory, at cost  1,315  -  Prepaid expenses 1,401  753 Other  19  14 Total other current assets  8,336  4,038  - 82 - 