Note 3 - Receivables, Accounts Payable and Accrued Liabilities

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 3 — Receivables, Accounts Payable and Accrued Liabilities

Accounts Receivable

The Company’s accounts receivable amounts include receivables from oil sales. Also included in accounts receivable are amounts due from the Company’s joint venture partner. The June 30, 2013 and December 31, 2012 accounts receivable amounts were $8.6 million and $24.5 million, respectively. At June 30, 2013 and December 31, 2012, accounts receivable included $4.4 million and $15.9 million, respectively, from the Company’s joint venture partner.

Income Taxes Receivable and Current Income Taxes Payable

The Company’s June 30, 2013 and December 31, 2012 income tax receivable amounts were $1.8 million and none, respectively. The June 30, 2013 and December 31, 2012 current income taxes payable amounts were none and $10.5 million, respectively.

Value-Added Tax Receivable

Value-added tax (referred to as “IGV” in Peru) is generally imposed on goods and services at a rate of 18% effective March 2011 and was 19% in previous periods.

The Company is recovering its IGV receivable with IGV payables associated with oil sales under the normal IGV recovery process.

Under the SPA and carry agreement entered into with Pacific Rubiales related to the sale of a 49% participating interest in Block Z-1, Pacific Rubiales funded the IGV incurred for 100% of the capital and exploratory expenditures of Block Z-1. Upon closing of the transaction, the IGV balance related to this funding was transferred to Pacific Rubiales along with their respective share of assets. See Note-2, “Divestiture.”

Activity related to the Company’s value-added tax receivable for the six months ended June 30, 2013 and the year ended December 31, 2012 is as follows:

	June 30, 2013			December 31, 2012
	(in thousands)
Value-added tax receivable as of the beginning of the period	$	21,784		$	24,720
IGV accrued related to expenditures during period		7,445			67,846
IGV reduced related to sale of oil during period		(12,934	)		(46,586	)
IGV related to the sale of a 49% participating interest in Block Z-1		-			(24,196	)
Value-added tax receivable as of the end of the period	$	16,295		$	21,784
Current portion of value-added tax receivable as of the end of the period	$	14,817		$	20,569
Long-term portion of value-added tax receivable as of the end of the period	$	1,478		$	1,215

See Note-5, “Prepaid and Other Current Assets and Other Non-Current Assets” for further information on the long-term portion of the value-added tax receivable.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist mainly of accounts payable and accrued liabilities related to costs for which goods and services have been received in support of the Company’s oil and gas operations, including drilling operations, seismic, lease operating costs, and amounts payable to the Company’s joint venture partner.

The June 30, 2013 and December 31, 2012 accounts payable amounts were $40.7 million and $22.0 million, respectively. At June 30, 2013 and December 31, 2012, accounts payable included $35.5 million and $4.4 million, respectively, due to the Company’s joint venture partner.    

The June 30, 2013 and December 31, 2012 accrued liabilities amounts were $19.2 million and $34.0 million, respectively.