- 19 -  The following table presents a reconciliation of the profit (loss) attributable to owners of Sundance to Adjusted EBITDAX:  For the month of December 2014, the Company achieved record production of 9,434 Boe/d, which included 869 Boe/d of  flared gas from wells waiting to hook-up to pipelines. The December 2014 exit rate increased 88% over prior year’s exit rate  of 5,028 Boe/d. During the year ended 31 December 2014, the Company produced 2.4 MMBoe, which included 0.2 MMBoe  of flared gas. This result was more than double the production in prior year, primarily as a result of increased drilling activity  and production in the Eagle Ford Basin.  The Company’s exploration and development activities are focused in the Eagle Ford and the Mississippian/Woodford  Formations. Costs incurred for development and production expenditures for the Eagle Ford and Mississippian/Woodford  Formations during the year ended 31 December 2014 totalled $324.0 million, which included $295.9 million of drilling and  development expenditure related to our 2014 plan, $3.8 million on infrastructure, and $24.3 million of drilling and  development expenditure related to our 2015 plan. This investment resulted in the addition of 75 gross (42.7 net) wells into  production, including 50 gross (39.5 net) Sundance-operated horizontal wells. An additional 24 gross (13.7 net) wells were  drilling, being prepared for fracture stimulation or testing as at 31 December 2014, an increase of 7 gross (3.0 net) compared  to the beginning of the year.  In April 2014, the Company acquired approximately 4,800 net acres in the Eagle Ford for an initial purchase price of  approximately $10.5 million and two separate earn out payments due upon commencement of drilling in each of three blocks  of acreage (total for all three blocks of $7.7 million) and payout of the first two wells drilled on each block of the acreage  ($7.7 million). The term of the agreement is two years and provides a one year extension for $500 per acre extended. This  acquired acreage is adjacent to our existing acreage in McMullen County, Texas.  In July 2014, the Company completed the acquisition of approximately 5,700 net Eagle Ford acres in Dimmit County, South  Texas, for approximately $36 million and a commitment to drill four Eagle Ford wells. The Company also has the option, at its  sole discretion, to acquire the Seller’s remaining working interest for an additional $45 million for the earlier of one year from  closing the acquisition or six months from first production of hydrocarbons.  Acquisitions  Exploration and Development Year ended 31 December  (In US$‘000s)  2014  2013  IFRS Profit Loss Reconciliation to Adjusted EBITDAX:  Profit attributable to owners of Sundance .................................................. 15,321  15,942  Income tax (benefit)/expense...................................................................... (841)  5,567  Finance costs, net of amounts capitalised and interest received ................ 494  (232)  (Gain) Loss on derivative financial instruments ........................................... (10,792)  554  Settlement of derivative financial instruments............................................ 1,150  282  Depreciation and amortisation expense...................................................... 85,584  36,225  Impairment of non-current assets ...............................................................  71,212  -  Exploration expense..................................................................................... 10,934  -  Stock compensation, value of services ........................................................ 1,915  1,590  Gain on sale of non-current assets .............................................................. (48,604)  (7,335)  Adjusted EBITDAX ....................................................................................... 126,373  52,594  EBITDAX Margin.......................................................................................... 79%  62% 