Investment in Global

12 Months Ended

Dec. 31, 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 35% of Global’s outstanding ordinary shares at December 31, 2013.

During 2013, we purchased an additional 105 thousand shares of Global for $171 thousand, increasing our ownership from 34.22% to 34.51%. During 2012, we purchased 230 thousand shares of Global for $411 thousand. At December 31, 2013 and 2012, our investment in Global was equal to the market value of Global’s ordinary shares as follows (in thousands, except share amounts):

	December 31, 2013		December 31, 2012
Shares of Global Stock Held by HKN		12,462		12,357
Closing Price of Global Stock	£	0.94	£	1.18
Foreign Currency Exchange Rate		1.6574		1.6259
Market Value of Investment in Global	$	19,312	$	23,607

The foreign currency translation adjustment of approximately $160 thousand and the unrealized loss on investment of $4.6 million for these changes in market value between the two periods were recorded to other comprehensive income in stockholders’ equity during the year ended December 31, 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 published financial statements and 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 December 31, 2013. We currently have a cumulative unrealized gain position on our investment in Global of $8.8 million.