Note 17 - Income Tax

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 17 — Income Tax

The following is a summary of income (loss) before income taxes and income tax expense (benefit) for the three and six months ended June 30, 2013 and 2012:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(in thousands)
Income (loss) before income taxes:
United States	$	(5,543	)	$	446		$	(9,193	)	$	(8,345	)
Foreign		(14,474	)		(10,368	)		(23,278	)		(33,178	)
	$	(20,017	)	$	(9,922	)	$	(32,471	)	$	(41,523	)
Income tax expense (benefit):
United States	$	(322	)	$	569		$	668		$	979
Foreign		(55	)		(1,991	)		(715	)		(6,711	)
	$	(377	)	$	(1,422	)	$	(47	)	$	(5,732	)

The Company has recognized a gross deferred tax asset related to net operating loss carryforwards attributable to the United States, before application of the valuation allowances. The Company has a valuation allowance for the full amount of the domestic net deferred tax asset, as it believes, based on the weight of available evidence, that it is more likely than not that the deferred tax asset will not be realized prior to the expiration of net operating loss carryforwards in various amounts through 2032. Furthermore, because the Company has no operations within the U.S. taxing jurisdiction, it is likely that sufficient generation of revenue to offset the Company’s deferred tax asset is remote.

The difference from the 22% statutory rate provided for under the Block Z-1 License Contract is due to other Peruvian operations that have a different statutory tax rate, certain expenses which are not deductible in Peru and a change in the timing of when certain expenses are deductible.

Estimated interest and penalties related to potential underpayment on unrecognized tax benefits, if any, are classified as a component of tax expense in the Consolidated Statement of Operations. The Company did not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the three or six months ended June 30, 2013 or 2012, respectively. The Company did not have any uncertain tax positions generated from unrecognized tax benefits resulting from differences between positions taken in tax returns and amounts recognized in the financial statements as of June 30, 2013 or December 31, 2012.