Segment and Geographic Reporting

12 Months Ended

Dec. 31, 2011

Segment and Geographic Reporting [Abstract]

Segment and Geographic Reporting

4.Segment and Geographic Reporting

The Company is primarily engaged in the exploration and production of oil and natural gas. The Company's reportable segments are Colombia, Argentina and Peru based on a geographic organization. The Company's operations in Brazil are not a reportable segment because the level of activity in Brazil was not significant at December 31, 2011. During the three months ended March 31, 2011, Peru became a reportable segment due to the significance of its loss before income taxes compared with the consolidated results of operations. Prior year segmented disclosure has been conformed to this presentation with the Peru reportable segment's results and asset information disaggregated from the “All Other” category. The All Other category represents the Company's corporate activities and operations in Brazil.

The accounting policies of the reportable segments are the same as those described in Note 2. The Company evaluates segment performance based on income or loss before income taxes. The results of the Colombia, Argentina and Peru reportable segments include the operations of Petrolifera subsequent to March 18, 2011, the date of acquisition of Petrolifera (Note 3).

The following tables present information on the Company's reportable segments and other activities:

		Year Ended December 31, 2011
(Thousands of U.S. Dollars except per unit of production amounts)		Colombia	Argentina			Peru			All Other			Total
Oil and natural gas sales	$	543,999		48,016			-			4,176			$	596,191
Interest income		492		66			140			518				1,216
DD&A expenses		141,133		45,506			42,035			2,561				231,235
DD&A - per unit of production		26.17		49.61			-			59.48				36.39
Income (loss) before income taxes		313,516		(32,635	)		(46,249	)		(385	)			234,247
Segment capital expenditures (1)	$	202,551		36,289			36,224			52,583			$	327,647

	Year Ended December 31, 2010
(Thousands of U.S. Dollars except per unit of production amounts)	Colombia		Argentina			Peru			All Other			Total
Oil and natural gas sales	$	359,302	$	13,984		$	-		$	-		$	373,286
Interest income		460		26			-			688			1,174
DD&A expenses		133,728		29,416			40			389			163,573
DD&A - per unit of production		26.80		103.56			-			-			31.02
Income (loss) before income taxes		142,486		(27,247	)		(1,430	)		(19,403	)		94,406
Segment capital expenditures (1)	$	105,482	$	33,930		$	15,029		$	22,598		$	177,039

	Year Ended December 31, 2009
(Thousands of U.S. Dollars except per unit of production amounts)	Colombia		Argentina			Peru			All Other			Total
Oil and natural gas sales	$	248,834	$	13,795		$	-		$	-		$	262,629
Interest income		466		127			-			494			1,087
DD&A expenses		127,213		8,339			-			311			135,863
DD&A - per unit of production		29.64		24.72			-			-			29.35
Income (loss) before income taxes		55,827		(4,230	)		(396	)		(12,906	)		38,295
Segment capital expenditures (1)	$	81,364	$	4,532		$	1,606		$	622		$	88,124

(1) Net of proceeds from the farm out of a 50% interest in the Santa Victoria Block and the sale of a blow-out preventer in Argentina in 2011 (see Note 6), the Garibay overriding royalty in Colombia in 2010 (see Note 6) and the Guachiria Blocks in Colombia in 2009 (see Note 6).

The Company's revenues are derived principally from uncollateralized sales to customers in the oil and natural gas industry. The concentration of credit risk in a single industry affects the Company's overall exposure to credit risk because customers may be similarly affected by changes in economic and other conditions.

In 2011, the Company had one significant customer for its Colombian oil, Ecopetrol S.A. (“Ecopetrol”). Sales to Ecopetrol accounted for 87%, 96% and 94% of the Company's revenues in 2011, 2010 and 2009, respectively. In 2011 in Argentina, the Company had three significant customers, Refineria del Norte S.A (“Refiner”), Shell C.A.P.S.A. (“Shell”) and YPF S.A. (“YPF”). Sales to Shell, Refiner and YPF accounted for 3%, 3% and 2% respectively of the Company's oil and natural gas sales in 2011. Sales to Refiner accounted for 4% and 6% of the Company's revenues in 2010 and 2009.

During the year ended December 31, 2011, interest expense of $1.6 million was recorded in G&A in Argentina (2010 and 2009 – nil).

	As at December 31, 2011
(Thousands of U.S. Dollars)	Colombia		Argentina			Peru		All Other		Total
Property, plant and equipment	$	816,396			129,072		34,305		65,069		$	1,044,842
Goodwill		102,581			-		-		-			102,581
Other assets		269,843			34,672		9,597		165,245			479,357
Total Assets	$	1,188,820		$	163,744	$	43,902	$	230,314		$	1,626,780

	As at December 31, 2010
(Thousands of U.S. Dollars)	Colombia		Argentina		Peru		All Other		Total
Property, plant and equipment	$	654,416	$	29,031	$	28,578	$	14,999	$	727,024
Goodwill		102,581		-		-		-		102,581
Other assets		155,798		15,220		18,575		230,056		419,649
Total Assets	$	912,795	$	44,251	$	47,153	$	245,055	$	1,249,254