Ann: Oilbarrel Conference Presentation , page-10

Boz, Whilst the $50m carry from Vitol is an asset, it is not an asset that can be booked to the balance sheet. Essentially, RIA will only book capex and therefore NAV for the capex that they have spent on the development, therefore they have to write down the asset as this is no longer a net asset value to RIA and they cannot offset this with cash as they didn't receive any.

Whilst they have not stated the full reason for the writedown, I suspect at least part of it is due to the outcomes of the 2012 drilling campaign. The year to June 2013, was the first final results that they have posted since the programme was completed, and the new CPS was released at the start of the year highlighting lower gas volumes in Gazelle, therefore I think the carrying value for the gas was too high, as the resources are now expected to be lower than previously thought due to higher GWC, therefore lower value on the balance sheet. The 2nd component would have been the Vitol transaction.