Note 9 - Restricted Cash and Performance Bonds

6 Months Ended

Jun. 30, 2013

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents Disclosure [Text Block]

Note 9 — Restricted Cash and Performance Bonds

Below is a summary of restricted cash as of June 30, 2013 and December 31, 2012:

	June 30, 2013		December 31, 2012
	(in thousands)
Performance bonds totaling $5.7 million for properties in Peru	$	3,460	$	3,338
Insurance bonds for import duties related to a construction vessel		-		825
Performance obligations and commitments for the gas-to power site		650		650
Secured letters of credit		250		259
$75.0 million secured debt facility		-		35,000
$40.0 million secured debt facility		4,759		32,727
Unsecured performance bond totaling $0.2 million for office lease agreement		-		-
Restricted cash	$	9,119	$	72,799
Current portion of restricted cash as of the end of the period	$	5,010	$	25,129
Long-term portion of restricted cash as of the end of the period	$	4,109	$	47,670

The $75.0 million secured debt facility entered into by the Company in July 2011 required the Company to establish a $2.5 million debt service reserve account during the first 15 months the debt facility was outstanding.  After the first 15-month period, the Company was required to keep a balance in the debt service reserve account equal to the aggregate amount of principal and interest due on the next quarterly repayment date. The requirement was subsequently amended subject to the closing of the sale of a 49% participating interest in Block Z-1 to require the funding of the debt service reserve account related to the $75.0 million secured debt facility in the amount of outstanding principal. The remaining principal balance related to the $75.0 million secured debt facility was repaid in May 2013 utilizing the funds in the debt service reserve account related to this debt facility, bringing both the current and non-current balances to zero at June 30, 2013. The restricted cash related to the current and non-current portion of the $75.0 million secured debt financing was $9.5 million and $25.5 million, respectively, at December 31, 2012.

The $40.0 million secured debt facility entered into by the Company in January 2011 required the Company to establish a $2.0 million debt service reserve account during the first 18-month period and, thereafter, the Company must have maintained a balance in the debt service reserve account equal to the aggregate amount of payments of principal and interest on the $40.0 million secured debt facility due immediately on the succeeding principal repayment date. The requirement was amended subject to the closing of the sale of a 49% participating interest in Block Z-1 to require the funding of the debt service reserve account related to the $40.0 million secured debt facility in the amount of outstanding principal. The requirement was subsequently changed when the Company amended and restated the $40.0 million secured debt facility in May 2013 to maintaining a balance in the debt service reserve account equal to the aggregate amount of payments of principal and interest on the $40.0 million secured debt facility due immediately on the succeeding principal repayment date. The restricted cash related to the current and non-current portion of the $40.0 million secured debt financing was $4.8 million and none, respectively, at June 30, 2013. The restricted cash related to the current and non-current portion of the $40.0 million secured debt financing was $14.5 million and $18.2 million, respectively, at December 31, 2012.

All of the performance and insurance bonds are issued by Peruvian banks and their terms are governed by the corresponding license contracts, customs laws, credit agreements, legal requirements or rental practices.