Southern Arc's written off investment from the pastNickel Oil and Gas Corp. At December 31, 2011, the Company concluded that the decline in the value of its equity investment in Nickel Oil & Gas Corp. (“Nickel”), due to continued low natural gas prices, was other than temporary. Therefore, the Company wrote the remaining value of the investment down to $nil and recorded an impairment loss of $305,582 during the year ended June 30, 2012. As at June 30, 2014 and June 30, 2013, the Company held 15.3 million Nickel shares (37.6% of Nickel’s outstanding shares) with a carrying value of $nil (June 30, 2013 and June 30, 2012: $nil).