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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 <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>2.</b> &nbsp;&nbsp;&nbsp; <b>GOING CONCERN</b></p> <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. The Company&#8217;s cash balance as of June 30, 2015 was USD170,232, of which USD100,416 has been restricted leaving a balance of USD69,816.</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 the Group&#8217;s expected monthly burn rate of USD349,616 on basic operational activities, management estimates that the Company has sufficient working capital to fund operations for one month.</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 work program for the Group&#8217;s projects in Central Asia as well as to finance continuing operations, the Group will require further funds.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> The Company is currently negotiating additional equity and debt facilities though there can be no assurance that these negotiations will complete and result in a financing. The Company&#8217;s current efforts include continuing discussions with Stichting VB Vagobel, which is in material breach of its obligations to complete a transaction initially disclosed on September 9, 2014. The Company has given to Stichting VB Vagobel formal notice that it is in material breach of contract and Vagobel has failed to cure the breach. As Stichting VB Vagobel is physically located in the Netherlands, the Company has retained Dutch counsel and is evaluating next steps.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> The Company is also negotiating a potential transaction with a US-Dubai consortium. This transaction was originally announced in a press release dated April 1, 2015, and discussions are ongoing.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> On July 15, 2015 MNP Petroleum Corp., through its subsidiary TF Petroleum AG (&#8220;TFP&#8221;), and C.E.G. International Ltd. (&#8220;CEG&#8221;), part of a Dubai based renowned Group of Companies, signed a Debt Finance Agreement. Pursuant to the Agreement CEG will procure TFP a credit facility issued by a prime western bank to secure a loan for the Company which is confirmed to be issued by an Austrian based bank. The facility is valid for 12 months with a face value of EUR 10 million (approximately USD 11 million). Also pursuant to the Finance Agreement MNP has agreed to pledge part of its assets as collateral. Both MNP and CEG are in the final stages of completing the process with the banks. However, the proceeds from this bridge provide only temporary relief while the Company pursues a larger facility.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> If the Company is not able to raise the required funds, it may consider other alternatives, including a possible farm-out of one or more of its projects in order to reduce short term financial commitments. If the Company is unable to obtain the funding that it needs or arrive at an acceptable alternative solution, the Company will not be able to continue its business. In addition, any 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. 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&#8217;s financial condition.</p> 170232 100416 69816 349616 12 10000000 11000000 <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>3.</b> &#160;&#160;&#160; <b>ACCOUNTING POLICIES</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The accompanying financial data as of June 30, 2015 and December 31, 2014 and for the three and six month periods ended June 30, 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&#8216;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 June 30, 2015 and December 31, 2014, results of operations for the three and six month periods ended June 30, 2015 and 2014, cash flows for the six month periods ended June 30, 2015 and 2014 and statement of shareholders&#8217; equity for the period from January 1, 2015 to June 30, 2015, as applicable, have been made. The result of operations for the three and six month periods ended June 30, 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, DWM Petroleum AG, the Company&#8217;s wholly-owned Swiss subsidiary, acquired a 65% equity interest in EPA.at Beteiligungsgesellschaft mbH (&#8220;EPA&#8221;). The details of this acquisition are discussed in note 7 to these financial statements, below. 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 the Company&#8217;s 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 the Company has determined that it is not practicable to estimate the fair value of the investment at this time. Any earnings distributed by the investee are presented as dividend income on the statements of comprehensive 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 year 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 the Company&#8217;s 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 the Company has determined that it is not practicable to estimate the fair value of the investment at this time. Any earnings distributed by the investee are presented as dividend income on the statements of comprehensive 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 year 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 <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>4.</b> &#160;&#160;&#160; <b>RECENT ACCOUNTING PRONOUNCEMENTS</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Recently adopted accounting pronouncements</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> In August 2014, the FASB released Accounting Standards Update 2014-15, <i>Disclosure of Uncertainties about an Entity&#8217;s Ability to Continue as a Going Concern</i> . This ASU requires management to determine whether substantial doubt exists regarding the entity&#8217;s going concern presumption. If substantial doubt exists but is not alleviated by management&#8217;s plans, the footnotes must specifically state that &#8220;there is substantial doubt about the entity&#8217;s ability to continue as a going concern within one year after the financial statements are issued.&#8221; In addition, if substantial doubt exists entities must disclose (a) principal conditions or events that raise substantial doubt about the entity&#8217;s ability to continue as a going concern (before consideration of management&#8217;s plans, if any); (b) management&#8217;s evaluation of the significance of those conditions or events in relation to the entity&#8217;s ability to meet its obligations; and (c) management&#8217;s plans that are intended to mitigate the conditions or events that raise substantial doubt, or that did alleviate substantial doubt, about the entity&#8217;s ability to continue as a going concern. This ASU applies prospectively to all entities for annual periods ending after December 15, 2016, and to annual and interim periods thereafter. Early adoption is permitted. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The Company is in the process of evaluating the impact of ASU 2014-15 and has not adopted it for this reporting period. There have been no other new accounting pronouncements to date in 2015 that are expected to have a material effect on the Company&#8217;s consolidated financial statements.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>5.</b> &#160;&#160;&#160; <b>CASH AND CASH EQUIVALENTS</b> </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="right" style="BORDER-BOTTOM: #000000 1px solid" valign="middle">&#160;</td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b> USD <br/> </b> <b>(held in USD)</b> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b>USD</b> <br/> <b>(held in EUR)</b> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b>USD</b> <br/> <b>(held in CHF)</b> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b>USD</b> <br/> <b>(held in other</b> <br/> <b>currencies)</b> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b>USD Total</b> <br/> <b>Jun 30, 2015</b> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b>USD Total</b> <br/> <b>Dec 31, 2014</b> </td> </tr> <tr> <td>&#160;</td> <td width="12%">&#160;</td> <td width="12%">&#160;</td> <td width="12%">&#160;</td> <td width="12%">&#160;</td> <td width="12%">&#160;</td> <td width="12%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Cash and cash equivalents</td> <td align="right" bgcolor="#e6efff" width="12%"> 27,993 </td> <td align="right" bgcolor="#e6efff" width="12%"> 21,174 </td> <td align="right" bgcolor="#e6efff" width="12%"> 18,978 </td> <td align="right" bgcolor="#e6efff" width="12%"> 1,671 </td> <td align="right" bgcolor="#e6efff" width="12%"> 69,816 </td> <td align="right" bgcolor="#e6efff" width="12%"> 1,369,778 </td> </tr> </table> </div> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Cash and cash equivalents are available to the Group without restriction or limitation on withdrawal and/or use of these funds. The Group&#8217;s cash equivalents are placed with high credit rated financial institutions. The carrying amount of these assets approximates their fair value.</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="right" style="BORDER-BOTTOM: #000000 1px solid" valign="middle">&#160;</td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b> USD <br/> </b> <b>(held in USD)</b> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b>USD</b> <br/> <b>(held in EUR)</b> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b>USD</b> <br/> <b>(held in CHF)</b> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b>USD</b> <br/> <b>(held in other</b> <br/> <b>currencies)</b> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b>USD Total</b> <br/> <b>Jun 30, 2015</b> </td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b>USD Total</b> <br/> <b>Dec 31, 2014</b> </td> </tr> <tr> <td>&#160;</td> <td width="12%">&#160;</td> <td width="12%">&#160;</td> <td width="12%">&#160;</td> <td width="12%">&#160;</td> <td width="12%">&#160;</td> <td width="12%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff">Cash and cash equivalents</td> <td align="right" bgcolor="#e6efff" width="12%"> 27,993 </td> <td align="right" bgcolor="#e6efff" width="12%"> 21,174 </td> <td align="right" bgcolor="#e6efff" width="12%"> 18,978 </td> <td align="right" bgcolor="#e6efff" width="12%"> 1,671 </td> <td align="right" bgcolor="#e6efff" width="12%"> 69,816 </td> <td align="right" bgcolor="#e6efff" width="12%"> 1,369,778 </td> </tr> </table> 27993 21174 18978 1671 69816 1369778 <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>6.</b> &#160;&#160;&#160; <b>TANGIBLE FIXED ASSETS</b> </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-RIGHT: #000000 2px solid; BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle"> <b>2015 (in USD)</b> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%">&#160;</td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b>Office equipment</b> <br/> <b>&amp; furniture</b> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%">&#160;</td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%">&#160;</td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b>Vehicles</b> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%">&#160;</td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%">&#160;</td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b>Leasehold</b> <br/> <b>improvements</b> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%">&#160;</td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="1%">&#160;</td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="12%"> <b>Total</b> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" valign="middle" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid"> <b>Cost at Jan 1, 2015</b> </td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> 53,770 </b> </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> 115,773 </b> </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> 7,269 </b> </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> 176,812 </b> </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid">Additions</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 3,579 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> - </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> - </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 3,579 </td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid">Disposals</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid">Cost at Jun 30, 2015</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 57,349 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 115,773 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 7,269 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 180,391 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width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid">Accumulated depreciation at Jun 30, 2015</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> (36,327 </td> <td align="left" width="2%">)</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> (74,535 </td> <td align="left" width="2%">)</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> (1,672 </td> <td align="left" width="2%">)</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> (112,534 </td> <td align="left" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid"> <b>Net book value at Jan 1, 2015</b> </td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> 24,115 </b> </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> 52,815 </b> </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> 6,324 </b> </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> 83,254 </b> </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"> <b>Net book value 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style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> </tr> </table> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> Depreciation expense for the six month periods ended June 30, 2015 and 2014 was USD18,976 and USD24,270 respectively. 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</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid">Cost at Jun 30, 2015</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 57,349 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 115,773 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 7,269 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> 180,391 </td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid"> <b>Accumulated depreciation at Jan 1, 2015</b> </td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> (29,655 </b> </td> <td align="left" bgcolor="#e6efff" width="2%"> <b>)</b> </td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> (62,958 </b> </td> <td align="left" bgcolor="#e6efff" width="2%"> <b>)</b> </td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> (945 </b> </td> <td align="left" bgcolor="#e6efff" width="2%"> <b>)</b> </td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> (93,558 </b> </td> <td align="left" bgcolor="#e6efff" width="2%"> <b>)</b> </td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid">Depreciation</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> (6,672 </td> <td align="left" width="2%">)</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> (11,577 </td> <td align="left" width="2%">)</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> (727 </td> <td align="left" width="2%">)</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> (18,976 </td> <td align="left" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid">Disposals</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid">Accumulated depreciation at Jun 30, 2015</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> (36,327 </td> <td align="left" width="2%">)</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> (74,535 </td> <td align="left" width="2%">)</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> (1,672 </td> <td align="left" width="2%">)</td> <td align="left" width="1%">&#160;</td> <td align="right" width="12%"> (112,534 </td> <td align="left" width="2%">)</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 2px solid"> <b>Net book value at Jan 1, 2015</b> </td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> 24,115 </b> </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> 52,815 </b> </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> 6,324 </b> </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="12%"> <b> 83,254 </b> </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 2px solid; BORDER-BOTTOM: #000000 2px solid"> <b>Net book value at Jun 30, 2015</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> <b> 21,022 </b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> <b> 41,238 </b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> <b> 5,597 </b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> <b> 67,857 </b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> </tr> </table> 53770 115773 7269 176812 3579 0 0 3579 0 0 0 0 57349 115773 7269 180391 -29655 -62958 -945 -93558 -6672 -11577 -727 -18976 0 0 0 0 -36327 -74535 -1672 -112534 24115 52815 6324 83254 21022 41238 5597 67857 18976 24270 9490 12120 <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>7.</b> &#160;&#160;&#160; <b>INVESTMENT</b> </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> On January 15, 2015, DWM Petroleum AG acquired a 65% interest in EPA.at Beteiligungsgesellschaft mbH (&#8220;EPA&#8221;) for the purpose of diversifying its portfolio of oil and gas 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. The difference between the financial reporting dates of the investee and the Company is over the allowed period in accordance with ASC 323, and as such the investment may not be presented under the equity method. </p> <div align="center"> <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="60%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"> <b>Investments at cost (in USD)</b> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="22%"> <b>Jun 30, 2015</b> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" style="BORDER-TOP: #000000 2px solid; 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font-size: 10pt;">During the six month period ended June 30, 2015, the investment balance has not been evaluated for impairment.</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="60%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"> <b>Investments at cost (in USD)</b> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="22%"> <b>Jun 30, 2015</b> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-TOP: #000000 2px solid; 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font-size: 10pt;"> <b>8.</b> &#160;&#160;&#160; <b>OIL AND GAS PROPERTIES</b> </p> <div align="center"> <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="60%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid"> <b>Capitalized exploration costs</b> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="22%"> <b>Jun 30, 2015</b> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="22%"> <b>Dec 31, 2014</b> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Unproved, not subject to depletion</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="22%"> 1,008,638 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="22%"> 687,645 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Proved subject to depletion</td> <td align="left" width="1%">&#160;</td> <td align="right" width="22%"> - </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="22%"> - </td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Accumulated depletion</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="22%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="22%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; 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As at June 30, 2015, the Company has not received any response to its request.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> During the year ended December 31, 2014, the Company&#8217;s capitalized balance of USD687,645 consisted of the following: well site preparation costs of Kayrakkum B in the Republic of Tajikistan in the amount of USD514,368 and one well design and the cost of certain drilling equipment in Mongolia in the amount USD173,277. </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> Additionally, as of June 30, 2015, the Company has reclassed USD315,553 from prepaid expenses to oil and gas properties for casings and well heads that have been received, and it capitalized USD5,440 relating to the storage of this well site equipment in the Republic of Tajikistan. </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="60%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; 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font-size: 10pt;"> The Amended 2011 Stock Option Plan, which was approved at Annual Shareholders Meeting dated February 20, 2014, authorizes the Company to issue options to purchase such number of the Company&#8217;s common shares as is equal to an aggregate, together with options issued under any prior plan, of up to 34,500,000 shares of the Company&#8217;s common stock (it is the type of stock option plan referred to as a &#8220;fixed&#8221; stock option plan). </p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">If all or any portion of any stock option granted under the 2011 Stock Option Plan expires or terminates without having been exercised in full, the unexercised balance will be returned to the pool of stock available for grant under the 2011 Stock Option Plan.</p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Recognition of Stock-based Compensation Costs</b> </p> <p align="justify" style="font-family: times new roman,times,serif; 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style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> <b>Jun 30, 2015</b> </td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> <b>Jun 30, 2014</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid">Option grants</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> 11,695 </td> <td 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style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 12,698 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 27,727 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="12%"> 25,544 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> </tr> </table> 11695 20980 34996 42294 11695 20980 34996 42294 2226 8282 7269 16750 9469 12698 27727 25544 34500000 10293 0.89 <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>10.</b> &nbsp;&nbsp; <b>SHAREHOLDERS&#8217; EQUITY</b></p> 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style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid"> Petromanas Energy Inc., Calgary <sup>(3)</sup> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Canada</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 0.07% </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 0.6% </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> CJSC Somon Oil Company, Dushanbe <sup>(4)</sup> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Republic of Tajikistan</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 90% </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 90% </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" 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style="BORDER-BOTTOM: #000000 1px solid" width="21%">Mongolia</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 74% </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 74% </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> Gobi Energy Partners GmbH <sup>(8)</sup> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Switzerland</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 74% </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 74% </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid"> TF Petroleum AG <sup>(9)</sup> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Switzerland</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> EPA.at Beteiligungsgesellschaft mbH <sup>(10)</sup> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Austria</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 65% </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> - </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid"> Petroleum Sugd LLC <sup>(11)</sup> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Tajikistan</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 37.3% </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> - </td> </tr> </table> <br/> <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 width="5%">&#160;</td> <td valign="top" width="5%">(1)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Included Branch in Albania that was sold in February 2010.</p> </td> </tr> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">(2)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Founded in 2007.</p> </td> </tr> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">(3)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">Petromanas Energy Inc. participation resulted from partial sale of Manas Adriatic GmbH; fair value method applied.</p> </td> </tr> <tr> <td width="5%">&#160;</td> <td valign="top" width="5%">(4)</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">CJSC Somon Oil Company was founded by DWM Petroleum AG. 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<td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid"> Manas Management Services Ltd., Nassau <sup>(5)</sup> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Bahamas</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 1px solid"> Manas Chile Energia Limitada, Santiago <sup>(6)</sup> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="21%">Chile</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="21%"> 100% </td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid"> Gobi Energy Partners LLC, Ulaan Baator <sup>(7)</sup> </td> <td 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148432 1.00 0.74 1.00 1.00 1.13 0.5742 0.65 12000000 <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>12.</b> &#160;&#160; <b>COMMITMENTS &amp; CONTINGENT LIABILITIES</b> </p> <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)</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, and the Kyrgyz Republic may be subject to legal actions and complaints. 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font-size: 10pt;"> During the six month periods ended June 30, 2015 and 2014, the Company made cash contributions of USD128,121 and USD115,067, respectively, to its defined benefit pension plan. 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font-size: 10pt;"> <b>14.</b> &#160;&#160; <b>FAIR VALUE MEASUREMENT</b> </p> <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. 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width="15%"> 206,382 </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="15%"> - </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="15%"> - </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 2px solid"> <b>Total</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> 206,382 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> <b> - </b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> <b> - </b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> </tr> </table> </div> <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> <ul style="TEXT-ALIGN: justify"> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Cash and cash equivalents &#8211;</b> carrying amount approximated fair value. </li> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Restricted cash &#8211;</b> carrying amount approximated fair value. </li> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Accounts receivable &#8211;</b> carrying amount approximated fair value. </li> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Investment in Petromanas</b> &#8211; the fair value was calculated based on quoted market prices. </li> <li style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>Accounts Payable</b> &#8211; carrying amount approximated fair value. </li> </ul> <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" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid" valign="middle">&#160;</td> <td align="left" style="BORDER-TOP: #000000 2px solid" valign="middle" width="1%">&#160;</td> <td align="center" colspan="4" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle"> <b>Jun 30, 2015</b> </td> <td align="center" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle" width="2%">&#160;</td> <td align="center" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle" width="1%">&#160;</td> <td align="center" colspan="4" nowrap="nowrap" 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align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> 69,816 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> 69,816 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> 1,369,778 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> 1,369,778 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> 1 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%">Note 5</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Restricted cash</td> <td align="left" width="1%">&#160;</td> <td align="right" width="10%"> 100,416 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="10%"> 100,416 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="10%"> 208,621 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="10%"> 208,621 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="10%"> 1 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="left" width="10%">&#160;</td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Transactions prepayment</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> 12,000,000 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> 12,000,000 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> 1 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" bgcolor="#e6efff" width="10%">&#160;</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Accounts receivable</td> <td align="left" width="1%">&#160;</td> <td align="right" width="10%"> 45,406 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="10%"> 45,406 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="10%"> 14,359 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="10%"> 14,359 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="10%"> 1 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="left" width="10%">&#160;</td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Investment in Petromanas</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> 206,382 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> 206,382 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> 1 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" bgcolor="#e6efff" width="10%">&#160;</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid">Accounts Payable</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1,775,577 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1,775,577 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1,165,472 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1,165,472 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="10%">&#160;</td> <td align="left" 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="80%"> <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="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="15%"> <b>Level 1</b> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="15%"> <b>Level 2</b> </td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-TOP: #000000 2px solid; BORDER-BOTTOM: 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width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> - </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-BOTTOM: #000000 2px solid"> <b>Total</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> 206,382 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> <b> - </b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="15%"> <b> - </b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> </tr> </table> 206382 0 0 206382 0 0 <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-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid" valign="middle">&#160;</td> <td align="left" style="BORDER-TOP: #000000 2px solid" valign="middle" width="1%">&#160;</td> <td align="center" colspan="4" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle"> <b>Jun 30, 2015</b> </td> <td align="center" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle" width="2%">&#160;</td> <td align="center" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle" width="1%">&#160;</td> <td align="center" colspan="4" nowrap="nowrap" style="BORDER-TOP: #000000 2px solid" valign="middle"> <b>Dec 31, 2014</b> </td> 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</tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">Accounts receivable</td> <td align="left" width="1%">&#160;</td> <td align="right" width="10%"> 45,406 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="10%"> 45,406 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="10%"> 14,359 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="10%"> 14,359 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="right" width="10%"> 1 </td> <td align="left" width="2%">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="left" width="10%">&#160;</td> <td align="left" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Investment in Petromanas</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> - </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> 206,382 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> 206,382 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" width="10%"> 1 </td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" width="1%">&#160;</td> <td align="left" bgcolor="#e6efff" width="10%">&#160;</td> <td align="left" bgcolor="#e6efff" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid">Accounts Payable</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1,775,577 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1,775,577 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="10%"> 1,165,472 </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" 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<p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">Basic earnings per share result by dividing the Company&#8217;s net income (or net loss) by the weighted average number of shares outstanding for the contemplated period. 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bgcolor="#e6efff" valign="bottom" width="1%">&#160;</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="12%">&#160;</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid"> <p style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> &#160;&#160;&#160;&#160;&#160;&#160; - stock options and non-vested stock under <br/> &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; employee compensation plans </p> </td> <td align="left" valign="bottom" width="1%">&#160;</td> <td align="right" valign="bottom" width="12%"> - </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%"> - </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%"> - </td> 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<b> 172,592,292 </b> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> <b> 166,112,792 </b> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> <b> 172,592,292 </b> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%">&#160;</td> </tr> </table> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;">The following table shows the 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solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> <b>Jun 30, 2014</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">Options</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> 12,300,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> 12,100,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> 12,300,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> 12,100,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"> <b>Total</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="14%"> <b> 12,300,000 </b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="14%"> <b> 12,100,000 </b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="14%"> <b> 12,300,000 </b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="14%"> <b> 12,100,000 </b> </td> <td align="left" 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-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid">&#160;</td> <td align="left" style="BORDER-TOP: #000000 2px solid" width="1%">&#160;</td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> <i>Three months ended</i> </td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="2%">&#160;</td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="1%">&#160;</td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> <i>Six months ended</i> </td> <td align="left" style="BORDER-TOP: #000000 2px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> <b>Jun 30, 2015</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> <b>Jun 30, 2014</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> <b>Jun 30, 2015</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="12%"> <b>Jun 30, 2014</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid">Company posted</td> <td align="left" bgcolor="#e6efff" valign="bottom" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" valign="bottom" width="12%">Net 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bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> <b> 166,112,792 </b> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> <b> 172,592,292 </b> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> <b> 166,112,792 </b> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="12%"> <b> 172,592,292 </b> </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="2%">&#160;</td> </tr> </table> 166112792 172592292 166112792 172592292 0 0 0 0 166112792 172592292 166112792 172592292 <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="80%"> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 2px solid">&#160;</td> <td align="left" style="BORDER-TOP: #000000 2px solid" width="1%">&#160;</td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> <i>Three months ended</i> </td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="2%">&#160;</td> <td align="center" style="BORDER-TOP: #000000 2px solid" width="1%">&#160;</td> <td align="center" colspan="4" style="BORDER-TOP: #000000 2px solid"> <i>Six months ended</i> </td> <td align="right" style="BORDER-TOP: #000000 2px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"> <b>Stock equivalent</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> <b>Jun 30, 2015</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> <b>Jun 30, 2014</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> <b>Jun 30, 2015</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> <b>Jun 30, 2014</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" bgcolor="#e6efff" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">Options</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> 12,300,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> 12,100,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> 12,300,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="14%"> 12,100,000 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td align="left" style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"> <b>Total</b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="14%"> <b> 12,300,000 </b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="14%"> <b> 12,100,000 </b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="14%"> <b> 12,300,000 </b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="1%">&#160;</td> <td align="right" style="BORDER-BOTTOM: #000000 2px solid" width="14%"> <b> 12,100,000 </b> </td> <td align="left" style="BORDER-BOTTOM: #000000 2px solid" width="2%">&#160;</td> </tr> </table> 12300000 12100000 12300000 12100000 12300000 12100000 12300000 12100000 <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> <b>16.</b> &nbsp;&nbsp; <b>SUBSEQUENT EVENT(S)</b></p> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;"> On July 15, 2015 MNP Petroleum Corp., through its subsidiary TF Petroleum AG (&#8220;TFP&#8221;), and C.E.G. International Ltd. (&#8220;CEG&#8221;), part of a Dubai based renowned Group of Companies, signed a Debt Finance Agreement. Pursuant to the Agreement CEG will procure TFP a credit facility issued by a prime western bank to secure a loan for the Company which is confirmed to be issued by an Austrian based bank. The facility is valid for 12 months with a face value of EUR 10 million (approximately USD 11 million). Also pursuant to the Finance Agreement MNP has agreed to pledge part of its assets as collateral. Both MNP and CEG are in the final stages of completing the process with the banks.</p> 12 10000000 11000000 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