200 Annual Report 2025 NOTES TO THE FINANCIAL STATEMENTS 4 OIL AND GAS PROPERTIES (CONTINUED) Financial year ended 31 December 2024 (continued) Acquisition of additional 15% interest in producing Yme Field (continued) (d) Measurement of fair values Management primarily used a discounted cash flow model (net present value of expected future cash flows) to determine the fair value of the oil and gas properties. The model incorporated expected future cash flows based on estimates of projected revenues, production costs and capital expenditures as at the acquisition date. The cash flows were estimated using post-tax basis in accordance with the industry practice where the value of any acquisition of licences on the Norwegian Continental Shelf was not grossed up with a tax amortisation benefit. The trade and other receivables comprised gross contractual amounts due of US$3,578,000, of which none were expected to be uncollectible at the date of the acquisition. (e) Gain on acquisition Gain on acquisition was recognised as follows: 2024 Note US$’000 Total cash consideration 18,128 Fair value of identifiable net liabilities assumed (15,998) Bargain purchase on acquisition of additional interest in oil and gas licences, recognised in ‘other income’ in the consolidated statement of comprehensive income 26 2,130 (f) Revenue and profit contribution If the acquisition had occurred on 1 January 2024, management estimated that the Group’s consolidated revenue would have increased by US$75,421,000, and consolidated loss before tax for the year ended 31 December 2024 would have reduced by US$58,681,000.
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