Note 7 - Prepaid and Other Current Assets and Other Non-Current Assets

12 Months Ended

Dec. 31, 2014

Prepaid And Other Current Assets And Other Non Current Assets Disclosure [Abstract]

Prepaid And Other Current Assets And Other Non Current Assets Disclosure [Text Block]

Note 7 — Prepaid and Other Current Assets and Other Non-Current Assets

Below is a summary of prepaid and other current assets as of December 31, 2014 and 2013:

	December 31, 2014		December 31, 2013
	(in thousands)
Prepaid expenses and other	$	3,184	$	4,327
Prepaid insurance		976		1,092
Debt issue costs, net		1,944		-
Prepaid and other current assets	$	6,104	$	5,419

Prepaid expenses and other are related to prepayments for drilling services, equipment rental and material procurement, debt issue costs, net and deposits that are rent deposits in connection with the Company’s offices in Houston and Peru. Prepaid insurance consists of premiums related to the Company’s operations as well as general liability and directors’ and officers’ insurance policies.

Below is a summary of other non-current assets as of December 31, 2014 and 2013:

	December 31,		December 31,
	2014		2013
	(in thousands)
Debt issue costs, net	$	-	$	3,293
Value-added tax receivable		2,150		1,772
Other non-current assets	$	2,150	$	5,065

Debt issue costs, net, consist of direct transaction costs incurred by the Company in connection with its debt raising efforts, less the amortization of the debt issuance costs to date.

As a result of the Company being in default under the 2015 Convertible Notes and the 2017 Convertible Notes and the Company’s voluntarily filing for reorganization under the Chapter 11 of the Bankruptcy Code on March 9, 2015, the Company’s debt issue costs has been classified as a current asset. Based on the outcome of the Bankruptcy Court proceedings, the debt issue costs may have no future benefit to the Company and may be written off.

The debt issue costs, net associated with the 2015 Convertible Notes and the 2017 Convertible Notes were $0.1 million and $1.8 million at December 31, 2014, and these amounts were classified as current assets. The debt issue costs, net associated with the 2015 Convertible Notes and the 2017 Convertible Notes were $1.1 million and $2.2 million at December 31, 2013, and these amounts were classified as non-current assets.

The following table shows the amount of debt issue costs amortized into interest expense for the year ended December 31, 2014, 2013 and 2012, respectively:

	Year Ended December 31,
	2014		2013		2012
	(in thousands)
Amortization of debt issue costs	$	1,372	$	2,365	$	3,135

For further information regarding the Company’s debt, see Note-12, “Debt Obligations.”

At December 31, 2014 and December 31, 2013, the Company classified $2.2 million and $1.8 million, respectively, of its value-added tax receivable balance as a long-term asset as it believed it would take longer than one year to receive the benefit of this portion of the value-added tax receivable. For further information see Note-5, “Receivables, Accounts Payable and Accrued Liabilities.”