NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  NOTE 14 – FAIR VALUE MEASUREMENT  The following table presents financial assets and liabilities measured at fair value in the consolidated statement of  financial position in accordance with the fair value hierarchy. This hierarchy groups financial assets and liabilities  into three levels based on the significance of inputs used in measuring the fair value of the financial assets and  liabilities. The fair value hierarchy has the following levels:  The Level within which the financial asset or liability is classified is determined based on the lowest level of significant  input to the fair value measurement. The financial assets and liabilities measured at fair value in the statement of  financial position are grouped into the fair value hierarchy as follows:  Consolidated 31 December 2014  (US$’000)  Level 1  Level 2  Level 3 Total  Assets measured at fair value Derivative commodity contracts  -  9,476  -  9,476  Interest rate swap contracts  107  107  Development and production  assets (1)  -  -  455,084  455,084  Liabilities measured at fair value Interest rate swap contracts  -  (130)  -  (130)  Net fair value - 9,453  455,084 464,537 (1) Excludes work-in-progress and restoration provision assets totaling $63.9 million.  Consolidated 31 December 2013  (US$’000)  Level 1  Level 2  Level 3 Total  Assets measured at fair value Interest rate swap contract -  176  -  176  Liabilities measured at fair value Derivative commodity contracts -  (219)  -  (219)  Interest rate swap contracts  (147)  (147)  Net fair value - (190)  - (190) During the years ended 31 December 2014 and 2013, respectively, there were no transfers between level 1 and level  2 fair value measurements, and no transfer into or out of level 3 fair value measurements.  - 81 -  Level 1:  quoted prices (unadjusted) in active markets for identical assets or liabilities;  Level 2:  inputs other than quoted prices included within Level 1 that are observable for the asset or  liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and  Level 3:  inputs for the asset or liability that are not based on observable market data (unobservable inputs). 