Note 10 - Restricted Cash and Performance Bonds

12 Months Ended

Dec. 31, 2014

Disclosure Text Block Supplement [Abstract]

Restricted Assets Disclosure [Text Block]

Note 10 — Restricted Cash and Performance Bonds

Below is a summary of restricted cash as of December 31, 2014 and December 31, 2013:

	December 31, 2014		December 31, 2013
	(in thousands)
Performance bonds totaling $5.7 million for properties in Peru	$	1,559	$	3,459
Performance obligations and commitments for the gas-to-power site		650		650
Secured letters of credit		-		250
$40.0 million secured debt facility		-		1,000
Unsecured performance bond totaling $0.1 million for office lease agreement		-		-
Restricted cash	$	2,209	$	5,359
Current portion of restricted cash as of the end of the period	$	-	$	1,250
Long-term portion of restricted cash as of the end of the period	$	2,209	$	4,109

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 December 31, 2013.

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, to maintain a balance in the debt service reserve account equal to the aggregate amount of principal and interest payment on the $40.0 million secured debt facility due 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 increase the funding of the debt service reserve account related to the $40.0 million secured debt facility to 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 for the Company to maintain a balance in the debt service reserve account equal to the aggregate amount of principal and interest payment on the $40.0 million secured debt facility due on the succeeding principal repayment date. The remaining principal balance related to the $40.0 million secured debt facility was repaid in September 2013 utilizing $3.8 million of funds from the debt service reserve account related to this debt facility. As a result of the repayment of the remaining principal balance of the $40.0 million secured debt facility, it was agreed that the restricted cash balance would remain at $1.0 million relating to the Performance Based Arranger Fee for the $75.0 million secured debt facility through July 2014. In July 2014 the $1.0 million was released to the Company and the debt service reserve account was terminated. Therefore, the restricted cash balance related to the current and non-current portion of the $40.0 million secured debt financing were both zero at December 31, 2014. The restricted cash balance related to the current and non-current portion of the $40.0 million secured debt financing was $1.0 million and none, respectively, at December 31, 2013.

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