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The unaudited interim <i>Consolidated Financial Statements</i> included in this Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America (&#8220;US GAAP&#8221;) and present our financial position, results of operations, cash flows and changes in stockholder&#8217;s equity. These financial statements should be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company&#8217;s Annual Report on Form 10-K for the year ended December 31, 2014. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company is in the business of exploring for oil and gas, primarily in Central and East Asia. If the Company discovers sufficient reserves of oil or gas, it intends to exploit them. The Company has not commenced planned principal operations and therefore has not realized any revenues to date. The Company carries out its operations both directly and through participation in ventures with other oil and gas companies. It is actively involved in exploration projects in Tajikistan and Mongolia. In addition, the Company recently purchased a stake in producing oilfields in Tajikistan. As the Company currently depends upon funding from various sources to continue operations and to implement its growth strategy, the Company&#8217;s activities are subject to significant risks and uncertainties, including failing to secure additional funding to operationalize the Company&#8217;s licenses.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company, formerly known as Express Systems Corporation, was incorporated in the State of Nevada on July 9, 1998.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> On April 10, 2007, the Company completed the Exchange Transaction whereby it acquired its then sole subsidiary DWM Petroleum AG, Baar (&#8220;DWM Petroleum&#8221;) pursuant to an exchange agreement signed in November 2006 whereby 100% of the shares of DWM Petroleum were exchanged for 80,000,000 common shares of the Company. As part of the closing of this exchange transaction, the Company issued 800,000 shares as finders&#8217; fees at the closing price of USD3.20. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The acquisition of DWM Petroleum was accounted for as a merger of a private operating company into a non-operating public shell. Consequently, the Company is the continuing legal registrant for regulatory purposes and DWM Petroleum is treated as the continuing accounting acquirer for accounting and reporting purposes. The assets and liabilities of DWM Petroleum remained at historic cost. Under accounting principles generally accepted in the United States of America, in transactions involving the merger of a private operating company into a non-operating public shell, the transaction is equivalent to the issuance of stock by DWM Petroleum for the net monetary assets of the Company, accompanied by a recapitalization. The accounting is identical to a reverse acquisition, except that no goodwill or other intangibles are recorded.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company has a focused strategy on exploration and developing oil and gas resources in Central Asia and East Asia (Tajikistan and Mongolia).</p> 1.00 80000000 800000 3.20 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>2.</b> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> <b>GOING CONCERN</b> </p> </td> </tr> </table> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> The condensed consolidated financial statements have been prepared on the assumption that the Group will continue as a going concern. The Group has no operating income and therefore will remain dependent upon continued funding from its shareholders or other sources. Our cash balance as of March 31, 2015 was USD706,403, of which USD98,489 has been restricted leaving a balance of USD607,914. Additionally, the Group has 500,000 shares in PMI valuing the investment at USD19,770. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">These matters raise substantial doubt about the Group&#8217;s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> Based on our expected monthly burn rate of USD354,335 on basic operational activities we estimate that we have sufficient working capital to fund operations for two months. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In order to continue to fund operations for the next twelve months and implement the geological work program for our projects in Central Asia as well as to finance continuing operations, the Group will require further funds. We are currently in negotiations to receive funds through additional equity and/or debt financing through either the Stichting VB Vagobel transaction disclosed to the market on September 9, 2014 or through the US-Dubai consortium outlined in a press release dated April 1, 2015. Furthermore, the Company is in negotiations with a third party on a bridge facility. As of May 20, 2015 Vagobel was in material breach of the contract. The Company has informed Stichting VB Vagobel of this material breach of the contract and since Vagobel has not cured the breach, the Company is evaluating the next steps with its Dutch counsel. If we are not able to raise the required funds, we would consider farming-out projects in order to reduce our financial commitments. If the Company is unable to obtain such funding, or complete farming-out projects, the Company will not be able to continue its business. Any additional equity financing may be dilutive to shareholders, and debt financing, if available, will increase expenses and may involve restrictive covenants. The Company will be required to raise additional capital on terms which are uncertain, especially under the current capital market conditions. Under these circumstances, if the Company is unable to obtain capital or is required to raise it on undesirable terms, it may have a material adverse effect on the Company's financial condition.</p> 706403 98489 607914 500000 19770 354335 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>3.</b> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> <b>ACCOUNTING POLICIES</b> </p> </td> </tr> </table> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The accompanying financial data as of March 31, 2015 and December 31, 2014 and for the three month periods ended March 31, 2015 and 2014, has been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The complete accounting policies followed by the Group are set forth in Note 3 to the audited consolidated financial statements contained in the Group's Annual Report on Form 10-K for the year ended December 31, 2014.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures, if any, of contingent assets and liabilities at the date of the financial statements. Actual results could differ from these estimates.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In the opinion of management, all adjustments (which include normal recurring adjustments, except as disclosed herein) necessary to present a fair statement of financial position as of March 31, 2015 and December 31, 2014, results of operations for the three month periods ended March 31, 2015 and 2014, cash flows for the three month periods ended March 31, 2015 and 2014 and statement of shareholders&#8217; equity/(deficit) for the period from January 1, 2015 to March 31, 2015, as applicable, have been made. The result of operations for the three month periods ended March 31, 2015 is not necessarily indicative of the operating results for the full fiscal year or any future periods.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> On January 15, 2015, MNP Petroleum Corporation acquired a 65% equity interest in EPA.at Beteiligungs-gesellschaft mbH (&#8220;EPA&#8221;) shown in note 7. Due to this acquisition, the Group has updated its accounting policies as follows. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Investments</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Investments in the common stock of entities in which the company owns a minority interest and is unable to exercise significant influence are accounted for using the cost method. If the Company is unable to obtain consolidated financial statements on a timely basis, it accounts for its investments using the cost method.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The fair value of our cost method investment is not estimated as there have been no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment and we have determined that it is not practicable to estimate the fair value of the investment. Any earnings distributed by the investee are presented as dividend income on the statements of comprehensive income/loss.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Reclassifications</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> In the prior period balance sheet an amount of USD586,697 was reclassified from &#8220;Prepaid expenses and other current assets&#8221; to &#8220;Other non-current assets&#8221; to conform to the current period presentation since this amount constitutes prepayments for &#8220;Oil and gas properties (unproved)&#8221; and therefore is non-current in nature. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Investments</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Investments in the common stock of entities in which the company owns a minority interest and is unable to exercise significant influence are accounted for using the cost method. If the Company is unable to obtain consolidated financial statements on a timely basis, it accounts for its investments using the cost method.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The fair value of our cost method investment is not estimated as there have been no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment and we have determined that it is not practicable to estimate the fair value of the investment. Any earnings distributed by the investee are presented as dividend income on the statements of comprehensive income/loss.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Reclassifications</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> In the prior period balance sheet an amount of USD586,697 was reclassified from &#8220;Prepaid expenses and other current assets&#8221; to &#8220;Other non-current assets&#8221; to conform to the current period presentation since this amount constitutes prepayments for &#8220;Oil and gas properties (unproved)&#8221; and therefore is non-current in nature. </p> 0.65 586697 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>4.</b> </td> <td> <p align="justify" style="font-family: times new 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style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%">&#160;</td> <td align="right" nowrap="nowrap" style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="10%"> <b>Leasehold</b> <br/> <b>improvements</b> </td> <td align="left" nowrap="nowrap" style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%">&#160;</td> <td align="left" nowrap="nowrap" style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%">&#160;</td> <td align="right" nowrap="nowrap" style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="10%"> <b>Total</b> </td> <td align="left" nowrap="nowrap" style="BORDER-TOP: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" valign="bottom"> <b>Cost at Jan 1, 2015</b> </td> <td 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0 0 -32989 -68747 -1308 -103044 24115 52815 6324 83254 24360 47026 5961 77347 9486 12150 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>7.</b> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> <b>INVESTMENT</b> </p> </td> </tr> </table> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> On January 15, 2015, MNP Petroleum Corporation acquired a 65% interest in EPA.at Beteiligungs-gesellschaft mbH (&#8220;EPA&#8221;) for the purpose of diversifying its portfolio of oil and gas exploration and production assets. Total consideration paid was USD12,000,000. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> EPA, a company registered in Vienna, Austria, holds a 57.42% interest in the company Petroleum Sugd LLC (&#8220;PSL&#8221;), which owns 10 producing oil and gas fields in the north of Tajikistan. Through its investment, EPA participates in the profits from the sale of oil and gas. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> The acquisition of EPA was accounted for using the cost method as although the Company owns a 65% equity interest, under ASC 810, EPA is considered to be a variable interest entity and the other EPA shareholder has veto rights which limit the power of the Company to make significant decisions. In addition, as Petroleum Sugd LLC operates in the Republic of Tajikistan it is not subject to such stringent reporting deadlines as in the US. 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font-size: 10pt;"> <b>Share repurchase program</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> On May 13, 2014, MNP Petroleum Corp. announced that, subject to regulatory approval, it intends to repurchase up to 8,296,614 of its common shares, or up to five percent of the 172,592,292 common shares that are currently issued, in a normal course issuer bid to be conducted by Jennings Capital Inc. All purchases of common shares under the bid will be effected on the TSX Venture Exchange or the OTCQB in the United States (or such other stock exchange or quotation system upon which the company&#8217;s shares may then be listed or quoted) and, in any event, in accordance with the rules and policies of the TSX Venture Exchange and applicable securities laws. The shares are being purchased because MNP believes that its common shares currently trade in a price range that does not adequately reflect their underlying value, based on its business prospects, assets and financial position. The Company repurchased shares of its common stock in the open market, which were booked as treasury shares upon repurchase. Under the normal course issuer bid, MNP will not repurchase any securities when it is in possession of undisclosed material information or during any &#8216;blackout&#8217; periods imposed by its Insider Trading Policy. 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100% </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> EPA.at Beteiligungsgesellschaft mbH <sup>(10)</sup> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="23%">Austria</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="23%"> 65% </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="23%"> - </td> </tr> <tr bgcolor="#e6efff" valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> Petroleum Sugd LLC <sup>(11)</sup> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="23%">Tajikistan</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="23%"> 37.3% </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" width="23%"> - </td> </tr> </table> 1.00 1.00 1.00 1.00 0.0007 0.006 0.90 0.90 1.00 1.00 1.00 1.00 0.74 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<td align="left" valign="bottom" width="12%">&#160;</td> <td align="left" valign="bottom" width="2%">&#160;</td> <td align="left" valign="bottom" width="1%">&#160;</td> <td align="left" valign="bottom" width="12%">&#160;</td> <td align="left" valign="bottom" width="2%">&#160;</td> </tr> <tr bgcolor="#e6efff" valign="top"> <td align="left" valign="bottom">Payments to directors for office rent</td> <td align="left" valign="bottom" width="1%">&#160;</td> <td align="right" valign="bottom" width="12%"> 6,446 </td> <td align="left" valign="bottom" width="2%">&#160;</td> <td align="left" valign="bottom" width="1%">&#160;</td> <td align="right" valign="bottom" width="12%"> 18,490 </td> <td align="left" valign="bottom" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" valign="bottom">Payments to related companies controlled by</td> <td align="left" valign="bottom" width="1%">&#160;</td> <td align="left" valign="bottom" width="12%">&#160;</td> <td align="left" valign="bottom" width="2%">&#160;</td> <td align="left" valign="bottom" width="1%">&#160;</td> <td align="left" valign="bottom" width="12%">&#160;</td> <td align="left" valign="bottom" width="2%">&#160;</td> </tr> <tr bgcolor="#e6efff" valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom">directors for rendered consulting services</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 58,581 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> 74,159 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%">&#160;</td> </tr> </table> 0 -278 44832 0 6446 18490 58581 74159 1.00 0.74 1.00 1.00 1.13 0.5742 0.65 12000000 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>12.</b> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> <b>COMMITMENTS &amp; CONTINGENT LIABILITIES</b> </p> </td> </tr> </table> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Legal actions and claims (Kyrgyz Republic, Republic of Tajikistan, Mongolia and Chile)</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In the ordinary course of business, members of the Group doing business in Mongolia, Republic of Tajikistan, the Kyrgyz Republic, and Chile may be subject to legal actions and complaints. Management believes that the ultimate liability, if any, arising from such actions or complaints will not have a material adverse effect on the financial condition, the results of future operations or cash flows of the associates/subsidiaries in Mongolia, Republic of Tajikistan, the Kyrgyz Republic and Chile.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Management believes that the members of the Group are in substantial compliance with the tax laws affecting their respective operations in the Kyrgyz Republic, Republic of Tajikistan and Mongolia. However, the risk remains that relevant authorities could take differing positions with regards to interpretative issues.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Work program and social responsibility project</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> On June 10, 2014, the governor of the Farkhor district of Tajikistan decreed that the Petroleum Sugd has a two year funding obligation related to a social responsibility project concerning the construction of a secondary school in this district. Additionally, in the fourth quarter of 2014, Petroleum Sugd LLC completed its 2015 work program budget. EPA, as a 57.42% owner of Petroleum Sugd has a funding obligation that amounts to USD14.9 million relating to its portion of this 2015 work program for Petroleum Sugd in Tajikistan. The Company agreed to fulfill these commitments on EPA&#8217;s behalf. </p> 0.5742 14900000 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>13.</b> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> <b>PERSONNEL COSTS AND EMPLOYEE BENEFIT PLANS</b> </p> </td> </tr> </table> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Defined benefit plan</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company maintains Swiss defined benefit plans for eight of its employees. These plans are part of independent collective funds providing pensions combined with life and disability insurance. The assets of the funded plans are held independently of the Company&#8217;s assets in a legally distinct and independent collective trust fund which serves various unrelated employers. The funds&#8217; benefit obligations are fully reinsured by AXA Winterthur Insurance Company. The plans are valued by independent actuaries using the projected unit credit method. The liabilities correspond to the projected benefit obligations of which the discounted net present value is calculated based on years of employment, expected salary increases, and pension adjustments.</p> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" rowspan="2" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle"> <b>Pension expense</b> </td> <td align="center" colspan="2" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle" width="30%"> <i>Three month period ended</i> </td> </tr> <tr valign="top"> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="15%"> <b>Mar 31, 2015</b> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="15%"> <b>Mar 31, 2014</b> </td> </tr> <tr bgcolor="#e6efff" valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Net service cost</td> <td align="right" width="15%"> 20,519 </td> <td align="right" width="15%"> 4,106 </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Interest cost</td> <td align="right" width="15%"> 3,033 </td> <td align="right" width="15%"> 5,404 </td> </tr> <tr bgcolor="#e6efff" valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Expected return on assets</td> <td align="right" width="15%"> ( 2,197) </td> <td align="right" width="15%"> ( 4,417) </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Amortization of loss</td> <td align="right" width="15%"> 10,559 </td> <td align="right" width="15%"> 5,812 </td> </tr> <tr bgcolor="#e6efff" valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"> <b>Net periodic pension cost</b> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> <b> 31,913 </b> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> <b> 10,906 </b> </td> </tr> </table> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> During the three month periods ended March 31, 2015 and 2014, the Company made cash contributions of USD128,121 and USD112,364, respectively, to its defined benefit pension plan. The Company does not expect to make any additional cash contributions to its defined benefit pension plans during the remainder of 2015. </p> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" rowspan="2" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle"> <b>Pension expense</b> </td> <td align="center" colspan="2" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle" width="30%"> <i>Three month period ended</i> </td> </tr> <tr valign="top"> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="15%"> <b>Mar 31, 2015</b> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="15%"> <b>Mar 31, 2014</b> </td> </tr> <tr bgcolor="#e6efff" valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Net service cost</td> <td align="right" width="15%"> 20,519 </td> <td align="right" width="15%"> 4,106 </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Interest cost</td> <td align="right" width="15%"> 3,033 </td> <td align="right" width="15%"> 5,404 </td> </tr> <tr bgcolor="#e6efff" valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Expected return on assets</td> <td align="right" width="15%"> ( 2,197) </td> <td align="right" width="15%"> ( 4,417) </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Amortization of loss</td> <td align="right" width="15%"> 10,559 </td> <td align="right" width="15%"> 5,812 </td> </tr> <tr bgcolor="#e6efff" valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"> <b>Net periodic pension cost</b> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> <b> 31,913 </b> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> <b> 10,906 </b> </td> </tr> </table> 20519 4106 3033 5404 2197 4417 10559 5812 31913 10906 128121 112364 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>14.</b> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> <b>FAIR VALUE MEASUREMENT</b> </p> </td> </tr> </table> <p align="justify" style="margin-left: 5%; font-family: times new roman,times,serif; font-size: 10pt;"> <b>14.1.</b> <b>Fair Value Measurements</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Financial assets carried at fair value are classified in one of the three categories as follows. 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solid" width="13%"> 19,770 </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="13%"> - </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="13%"> - </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 2px solid"> <b>Total</b> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="13%"> <b> 19,770 </b> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="13%"> <b> - </b> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="13%"> <b> - </b> </td> </tr> </table> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Financial assets and liabilities carried at fair value as of December 31, 2014:</p> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"> <b>Financial assets 2014 (in USD)</b> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="13%"> <b>Level 1</b> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="13%"> <b>Level 2</b> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="13%"> <b>Level 3</b> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid">Investment in associate (Petromanas)</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="13%"> 206,382 </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="13%"> - </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="13%"> - </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 2px solid"> <b>Total</b> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="13%"> 206,382 </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="13%"> <b> - </b> </td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="13%"> <b> - </b> </td> </tr> </table> <p align="justify" style="margin-left: 5%; font-family: times new roman,times,serif; font-size: 10pt;"> <b>14.2.</b> <b>Fair Value of Financial Instruments</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">In addition to the methods and assumptions the Company uses to record the fair value of financial instruments as discussed in the Fair Value Measurements section above, the Company used the following methods and assumptions to estimate the fair value of its financial instruments.</p> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="5%">&#160;</td> <td align="left"> <b>&#8226;</b> </td> <td align="left" width="90%"> <b>Cash and cash equivalents &#8211;</b> carrying amount approximated fair value. </td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left"> <b>&#8226;</b> </td> <td align="left" width="90%"> <b>Restricted cash &#8211;</b> carrying amount approximated fair value. </td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left"> <b>&#8226;</b> </td> <td align="left" width="90%"> <b>Accounts receivable &#8211;</b> carrying amount approximated fair value. </td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left"> <b>&#8226;</b> </td> <td align="left" width="90%"> <b>Investment in Petromanas</b> &#8211; the fair value was calculated based on quoted market prices. </td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left"> <b>&#8226;</b> </td> <td align="left" width="90%"> <b>Accounts Payable</b> &#8211; carrying amount approximated fair value. </td> </tr> </table> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The fair value of the Company&#8217;s financial instruments is presented in the table below (in USD):</p> <div> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid">&#160;</td> <td align="left" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid; BORDER-LEFT: #000000 1px solid" width="1%">&#160;</td> <td align="center" colspan="4" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" width="19%"> <b>Mar 31, 2015</b> </td> <td align="left" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" width="2%">&#160;</td> <td align="left" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" 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width="8%"> 1,165,472 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="8%"> 1,165,472 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="8%"> 1 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="8%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> </tr> </table> </div> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"> <b>Financial assets 2015 (in USD)</b> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="13%"> <b>Level 1</b> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="13%"> <b>Level 2</b> </td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="13%"> <b>Level 3</b> </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid">Investment in associate (Petromanas)</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="13%"> 19,770 </td> <td 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font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>16.</b> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> <b>SUBSEQUENT EVENT(S)</b> </p> </td> </tr> </table> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">N/A</p> 七次郎在线观看,久青草国产在线视频,,一夜七次郎免费线路