Note 17 - Revenue

12 Months Ended

Dec. 31, 2014

Oil Revenue Disclosure [Abstract]

Oil Revenue Disclosure [Text Block]

Note 17 — Revenue

The oil produced is delivered by vessel to the refinery owned by the Peruvian national oil company, Petroleos del Peru - PETROPERU S.A. (“Petroperu”), in Talara, located approximately 70 miles south of the platforms.  Produced oil is kept in production inventory until inventory quantities are at a sufficient level to make a delivery to the refinery in Talara.  Although all of the Company’s oil sales are to Petroperu, it believes the loss of Petroperu as its sole customer would not materially impact the Company’s business because it could readily find other purchasers for the Company’s oil production both in Peru and throughout the world.

The Company’s revenues are reported net of royalties owed to the government of Peru. Royalties are assessed by Perupetro, as stipulated in the Block Z-1 License Contract based on production.

The following table shows the amount of royalty costs of approximately 5% of gross revenues for the year ended December 31:

	Year Ended December 31,
	2014		2013		2012
	(in thousands)
Royalty costs	$	4,674	$	2,707	$	6,605