Consideration paid net of cash acquired
Assets acquired and liabilities assumed Amount $ 199 31,957 5,015 (8,374) $ 28,797
Net financial assets Capital assets Goodwill Future income tax liability Total net assets acquired
Note 6 – Capital Assets December 31, 2010 Crude oil assets Corporate and other
December 31, 2009 Crude oil assets Corporate and other
Cost
Accumulated Depletion and Depreciation
Net Book Value
$ 1,421,004 19,637 $ 1,440,641
$ 588,965 6,415 $ 595,380
$ 832,039 13,222 $ 845,261
Cost
Accumulated Depletion and Depreciation
Net Book Value
$ 880,509 16,490 $ 896,999
$ 320,244 3,576 $ 323,820
$ 560,265 12,914 $ 573,179
At December 31, 2010, crude oil assets included $202.8 million (2009 – $84.7 million) relating to unproved properties that have been excluded from the depletion calculation. The majority of unproved properties are in Colombia except for $50.2 million in Peru (2009 – $11.3 million). The Peruvian unproved properties together with the $5.0 million of goodwill arising from the PanAndean acquisition represent the Company’s significant assets in Peru at December 31, 2010. An impairment test calculation was performed for the Colombian cost centre at December 31, 2010 in which the estimated undiscounted future net cash flows associated with the proved reserves exceeded the carrying amounts. In determining the undiscounted future net cash flow, the Company utilized the following benchmark prices: Year
WTI Crude Oil(1) – $/bbl
2011
88.00
2012
90.78
2013
93.64
2014
96.57
2015
99.58
Thereafter inflation % change
2.0%
(1) Actual prices used in the impairment tests were adjusted for crude oil quality differentials, transportation and marketing costs specific to the Company’s operations.
2010 Financial Report 31
FINANCIAL STATEMENTS
Amount $ 29,555 (758) $ 28,797
Cash paid Cash acquired Total consideration paid net of cash acquired