NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  NOTE 6 – GAIN ON SALE OF NON-CURRENT ASSETS continued Disposals in 2013  In the fourth quarter of 2013, the Company sold all of its interests in the Phoenix prospect, located in the Williston  Basin, for gross proceeds of $39.8 million. It was determined that approximately $26.0 million of the Company’s  carrying costs related to its Phoenix development and production properties at the time of the disposal. The sale  resulted in a pre-tax gain of $8.2 million, which is included in the gain on sale of non-current assets in the  consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2013. During 2014, the Company finalized adjustments to the purchase price for the Phoenix sale, which resulted in a net  reduction of $0.9 million, which is included in the gain on sale of non-current assets in the consolidated statement  of profit or loss and other comprehensive income for the year ended 31 December 2014.  The Company deferred majority of the taxable gain on the sale of the Phoenix development by acquiring qualified  replacement properties or utilizing IDCs from its development program. 2014 2013 Year ended 31 December US$’000 US$’000 a) The components of income tax expense comprise:   Current tax benefit/(expense)  (17)  21,398   Deferred tax benefit/(expense)  858  (26,965)  Total income tax benefit/(expense)  841  (5,567)  b) The prima facie tax on income from ordinary activities  before income tax is reconciled to the income tax as follows:  Profit before income tax  14,480  21,509  Prima facie tax expense at the Group’s statutory income tax rate of 30% (2013:30%)  4,344  6,453  Increase (decrease) in tax expense resulting from:  -  Difference of tax rate in US controlled entities  220  1,607  Impact of direct accounting from US controlled entities $^{(1)}$  (3,044)  72  -  Employee options  428  -  Excess depletion  (489)  -  Other allowable items  295  144  Tax adjustments relating to prior years  (1,063)  (984)  -  Change in apportioned state tax rates in US controlled  entities $^{(2)}$  (992)  (1,520)  -  Tax consolidation election $^{(3)}$  (3,058)  -  Change in unrecognized tax losses  2,518  (205)  Total Income tax (benefit)/expense (841)  5,567  NOTE 7 – INCOME TAX EXPENSE  - 76 - 