Investment in Global

6 Months Ended

Jun. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Investment in Global

(4) INVESTMENT IN GLOBAL

Our non-current available-for-sale investment consists of our ownership of approximately 34% of Global’s outstanding ordinary shares. At June 30, 2013 and December 31, 2012, our investment in Global was equal to the market value of Global’s ordinary shares as follows (in thousands, except for closing price and exchange rate amounts):

	June 30, 2013		December 31, 2012
Shares of Global Stock Held by HKN		12,357		12,357
Closing Price of Global Stock	£	0.74	£	1.18
Foreign Currency Exchange Rate		1.5211		1.6259
Market Value of Investment in Global	$	13,909	$	23,607

 The foreign currency translation adjustment of approximately $1.3 million and the unrealized loss on investment of $8.4 million for the changes in market value between the two periods were recorded to other comprehensive income in stockholders’ equity during the six months ended June 30, 2013.

Our policy is to review our investment in Global semi-annually or more often if any indicators of impairment become known. We continuously monitor macroeconomic indicators and track Global’s stock price volatility for any downward trends in the market. We also review public financial information including Global’s issued financial statements, investor presentations, as well as financial analysts’ reviews and recommendations for any indicators of an other than temporary impairment in our carrying value. Additionally, we monitor public reports regarding the reserves in Colombia’s Middle Magdalena basin in which Global operates. We also assess internally our ability and intent to hold our investment in Global should the fair value drop below our cost. Any resulting other than temporary impairment would be immediately recognized in earnings. We have not recognized any such impairment as of June 30, 2013. We currently have a cumulative unrealized gain position on our investment in Global of $3.6 million.