NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued  The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the  acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the net identifiable  asset acquired, if any, is recorded as goodwill. If those amounts are less than the fair value of the net identifiable  assets of the subsidiary acquired and the measurement of all amounts has been reviewed, the difference is  recognised directly in the consolidated statement of profit or loss and other comprehensive income as a bargain  purchase. Adjustments to the purchase price and excess on consideration transferred may be made up to one year  from the acquisition date.  o) Assets Held for Sale  p) Critical Accounting Estimates and Judgements  Estimates of reserve quantities  The Company classifies property as held for sale when management commits to a plan to sell the property, the plan  has appropriate approvals, the sale of the property is probable within the next twelve months, and certain other  criteria are met. At such time, the respective assets and liabilities are presented separately on the Company’s  consolidated statement of financial position and amortisation is no longer recognized. Assets held for sale are  reported at the lower of their carrying amount or their estimated fair value, less the costs to sell the assets. The  Company recognizes an impairment loss if the current net book value of the property exceeds its fair value, less  selling costs. The company did not have any assets classified as held for sale as at 31 December 2014. As at 31  December 2013, all of the Company’s Williston properties were classified as held for sale. The Directors evaluate estimates and judgements incorporated into the financial report based on historical  knowledge and best available current information. Estimates assume a reasonable expectation of future events and  are based on current trends and economic data obtained both externally and within the Group. Revisions to  accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that  period, or in the period of the revision and future periods if the revision affects both current and future periods.  Management has made the following judgements, which have the most significant effect on the amounts recognised  in the consolidated financial statements.  The estimated quantities of hydrocarbon reserves reported by the Group are integral to the calculation of  amortisation (depletion) and to assessments of possible impairment of assets. Estimated reserve quantities are  based upon interpretations of geological and geophysical models and assessment of the technical feasibility and  commercial viability of producing the reserves. Management prepares reserve estimates which conform to  guidelines prepared by the Society of Petroleum Engineers. Management also prepares reserve estimates under SEC  guidelines. Reserve estimates conforming to the guidelines prepared by the Society of Petroleum Engineers are  utilized for accounting purposes. These assessments require assumptions to be made regarding future development  and production costs, commodity prices, exchange rates and fiscal regimes. The estimates of reserves may change  from period to period as the economic assumptions used to estimate the reserves can change from period to period,  and as additional geological data is generated during the course of operations.  - 68 - 