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Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2011
Summary of Significant Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Note 2 — Summary of Significant Accounting Policies
Principles of Consolidation
     The consolidated financial statements include the accounts of all wholly-owned and majority-owned subsidiaries. All intercompany profits, transactions and balances have been eliminated.
Reporting and Functional Currency
     The United States Dollar (“U.S. Dollar”) is the reporting and functional currency for all of our controlled subsidiaries and Petrodelta. Amounts denominated in non-U.S. Dollar currencies are re-measured in U.S. Dollars, and all currency gains or losses are recorded in the consolidated statement of operations. We attempt to manage our operations in such a manner as to reduce our exposure to foreign exchange losses. However, there are many factors that affect foreign exchange rates and resulting exchange gains and losses, many of which are beyond our influence.
     Harvest Vinccler does not have currency exchange risk other than the official prevailing exchange rate that applies to their operating costs denominated in Venezuela Bolivars (“Bolivars”) (4.30 Bolivars per U.S. Dollar). However, during the three and six months ended June 30, 2011, Harvest Vinccler exchanged approximately $0.1 million and $0.4 million, respectively through Sistema de Transacciones con Títulos en Moneda Extranjera (“SITME”) and received an average exchange rate of 5.21 Bolivars and 5.19 Bolivars, respectively, per U.S. Dollar. During the three and six months ended June 30, 2010, no such exchanges took place. Harvest Vinccler currently does not have any U.S. Dollars pending government approval for settlement for Bolivars at the official exchange rate or the SITME exchange rate.
     The monetary assets that are exposed to exchange rate fluctuations are cash, accounts receivable, prepaid expenses and other current assets. The monetary liabilities that are exposed to exchange rate fluctuations are accounts payable, accruals and other current liabilities. All monetary assets and liabilities incurred at the official Bolivar exchange rate are settled at the official Bolivar exchange rate. At June 30, 2011, the balances in Harvest Vinccler’s Bolivar denominated monetary assets and liabilities accounts that are exposed to exchange rate changes are 3.1 million Bolivars and 4.3 million Bolivars, respectively.
     See Note 8 — Investment in Equity Affiliates — Petrodelta for a discussion of currency exchange risk on Petrodelta’s business.
Revenue Recognition
     We record revenue for our U.S. oil and natural gas operations when we deliver our production to the customer and collectability is reasonably assured. Revenues from the production of oil and natural gas on properties in which we have joint ownership are recorded under the sales method. Differences between these sales and our entitled share of production are not significant. See Note 3 — Dispositions.
Cash and Cash Equivalents
     Cash equivalents include money market funds and short-term certificates of deposit with original maturity dates of less than three months.
Restricted Cash
     Restricted cash is classified as current or non-current based on the terms of the agreement. Restricted cash at June 30, 2011 represents cash held in a U.S. bank used as collateral for two standby letters of credit issued in support of the drilling of the Dussafu Ruche Marin-1 (“DRM-1”) exploratory well on the Dussafu Marin Permit (“Dussafu PSC”) (see Note 11 — Gabon).
Financial Instruments
     Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, and notes payable. Cash and cash equivalents are placed with commercial banks with high credit ratings. This diversified investment policy limits our exposure both to credit risk and to concentrations of credit risk.
     Total long-term debt at June 30, 2011 consisted of $32 million of fixed-rate unsecured senior convertible notes maturing in 2013 unless earlier redeemed, purchased or converted. At December 31, 2010, total long-term debt consisted of $32 million of fixed-rate unsecured senior convertible notes maturing in 2013 unless earlier redeemed, purchased or converted and $60 million of fixed-rate unsecured term loan facility maturing in 2012. See Note 4 — Long-Term Debt.
Accounts and Notes Receivable
     Notes receivable relate to prospect leasing cost financing arrangements, bear interest and can have due dates that are less than one year or more than one year. Amounts outstanding under the notes bear interest at a rate based on the current prime rate and are recorded at face value. Interest is recognized over the life of the note. We may or may not require collateral for the notes.
     Each note is analyzed to determine if it is impaired pursuant to Accounting Standards Updates (“ASU”) 2010-20. A note is impaired if it is probable that we will not collect all principal and interest contractually due. We do not accrue interest when a note is considered impaired. All cash receipts on impaired notes are applied to reduce the accrued interest on the note until the interest is made current and, thereafter, applied to reduce the principal amount of such notes.
     At June 30, 2011 and December 31, 2010, note receivable plus accrued interest was approximately $3.3 million and $3.4 million, respectively, and was secured by a portion of the production from the Bar F #1-20-3-2 in Utah. With the sale of our oil and gas assets in Utah’s Uinta Basin (“Antelope Project”) effective March 1, 2011, the note receivable plus accrued interest will be settled upon finalization of certain terms of the Joint Exploration and Development Agreement (“JEDA”) which defined the participating parties’ obligations over our Antelope Project. See Note 3 — Dispositions, Note 5 — Commitments and Contingencies, and Note 9 — United States Operations, Western United States — Antelope.
Other Assets
     At June 30, 2011, other assets consist of investigative costs of $0.4 million associated with new business development projects and deferred financing costs of $1.4 million. The investigative costs are reclassified to oil and gas properties or expensed depending on management’s assessment of the likely outcome of the project. During the six months ended June 30, 2011, no investigative costs related to new business development were reclassified to oil and gas properties or expensed. At December 31, 2010, other assets consisted of investigative costs of $0.3 million associated with new business development projects and deferred financing costs of $2.2 million.
     Deferred financing costs relate to specific financing and are amortized over the life of the financing to which the costs relate. See Note 4 — Long-Term Debt.
     Other Assets at June 30, 2011 also includes a blocked payment of $0.7 million net to our 66.667 percent interest in accordance with the U.S. sanctions against Libya as set forth in Executive Order 13566 of February 25, 2011, and administered by the United States Treasury Department’s Office of Foreign Assets Control (“OFAC”). See Note 5 — Commitments and Contingencies.
Investment in Equity Affiliates
     Investments in unconsolidated companies in which we have less than a 50 percent interest and have significant influence are accounted for under the equity method of accounting. Investment in Equity Affiliates is increased by additional investments and earnings and decreased by dividends and losses. We review our Investment in Equity Affiliates for impairment whenever events and circumstances indicate a decline in the recoverability of its carrying value. There are many factors to consider when evaluating an equity investment for possible impairment. Currency devaluations, inflationary economies and cash flow analysis are some of the factors we consider in our evaluation for possible impairment. At June 30, 2011 and December 31, 2010, there were no events that caused us to evaluate our investment in equity affiliates for impairment.
Property and Equipment
     We use the successful efforts method of accounting for oil and gas properties.
Suspended Exploratory Drilling Costs
Budong PSC
     At June 30, 2011, oil and gas properties included capitalized suspended exploratory drilling costs of $13.9 million related to drilling in the Budong-Budong Production Sharing Contract (“Budong PSC”) of the Lariang-1 (“LG-1”). The LG-1 targeted the Miocene and Eocene reservoirs to a planned depth of approximately 7,200 feet. The LG-1 was drilled to a total depth of 5,311 feet and encountered multiple oil and gas shows within the secondary Miocene objective. At a depth of 5,300 feet, losses of heavy drilling mud into the formation were encountered which, when coupled with the very high formation pressures, led the partners to the decision to discontinue drilling and plug and abandon the well for safety reasons on April 8, 2011. The primary Eocene targets had not been reached, as the well was planned for a total measured depth of approximately 7,200 feet. While the results to date have not definitively determined the commerciality of development of the LG-1, we believe that the well results confirm that the Miocene formation exhibits sufficient quantities of hydrocarbons to justify potential development pending further appraisal. See Note 10 — Indonesia.
Capitalized Interest
     We capitalize interest costs for qualifying oil and gas properties. The capitalization period begins when expenditures are incurred on qualified properties, activities begin which are necessary to prepare the property for production and interest costs have been incurred. The capitalization period continues as long as these events occur. The average additions for the period are used in the interest capitalization calculation. During the three and six months ended June 30, 2011, we capitalized interest costs of $0.2 million and $1.0 million, respectively, for qualifying oil and gas property additions. During the three and six months ended June 30, 2010, we capitalized interest costs of $0.2 million, respectively, for qualifying oil and gas property additions.
Fair Value Measurements
     Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
     At June 30, 2011 and December 31, 2010, cash and cash equivalents include $128.4 million and $51.0 million, respectively, in a money market fund comprised of high quality, short term investments with minimal credit risk which are reported at fair value. The fair value measurement of these securities is based on quoted prices in active markets (level 1 input) for identical assets. The estimated fair value of our senior convertible notes based on observable market information (level 2 input) as of June 30, 2011 and December 31, 2010 was $62.7 million and $61.7 million, respectively. The estimated fair value of our term loan facility based on internally developed discounted cash flow model and inputs based on management’s best estimates (level 3 input) for identical liabilities as of December 31, 2010 was $49.2 million.
     Our current assets and liabilities accounts include financial instruments, the most significant of which are accounts receivables and trade payables. We believe the carrying values of our current assets and liabilities approximate fair value, with the exception of the note receivable. Because this note receivable is not publicly-traded and not easily transferable, the estimated fair value of our note receivable is based on the market approach and time value of money which approximates the note receivable book value of $3.3 million and $3.4 million at June 30, 2011 and December 31, 2010, respectively. The majority of inputs used in the fair value calculation of the note receivable are Level 3 inputs and are consistent with the information used in determining impairment of the note receivable.
     The following is a reconciliation of the net beginning and ending balances recorded for financial assets and liabilities classified as Level 3 in the fair value hierarchy.
                 
    June 30,     December 31,  
    2011     2010  
    (in thousands)  
Financial assets:
               
Beginning balance
  $ 3,420     $ 3,265  
Issuances
    —       200  
Accrued interest
    200       398  
Payments
    (285 )     (443 )
 
           
Ending balance
  $ 3,335     $ 3,420  
 
           
 
               
Financial liabilities:
               
Beginning balance
  $ 49,237     $ —  
Debt issuance
    —       60,000  
Discount on debt
    —       (11,122 )
Amortization of discount on debt
    10,763       359  
Payments
    (60,000 )     —  
 
           
Ending balance
  $ —     $ 49,237  
 
           
Asset Retirement Liability
     Accounting Standards Codification (“ASC”) 410, “Asset Retirement and Environmental Obligations” (“ASC 410”), requires entities to record the fair value of a liability for a legal obligation to retire an asset in the period in which the liability is incurred if a reasonable estimate of fair value can be made. No wells were abandoned during the six months ended June 30, 2011 or the year ended December 31, 2010. Changes in asset retirement obligations during the six months ended June 30, 2011 and the year ended December 31, 2010 were as follows:
                 
    June 30,     December 31,  
    2011     2010  
    (in thousands)  
Asset retirement obligations beginning of period
  $ 663     $ 50  
Liabilities recorded during the period
    52       382  
Liabilities settled during the period
    —       —  
Revisions in estimated cash flows
    (120 )     197  
Accretion expense
    4       34  
Reclassify to gain on sale of assets
    (599 )     —  
 
           
Asset retirement obligations end of period
  $ —     $ 663  
 
           
Noncontrolling Interests
     Changes in noncontrolling interest during the six months ended June 30, 2011 and 2010, were as follows:
                 
    June 30,     June 30,  
    2011     2010  
    (in thousands)  
Balance at beginning of period
  $ 70,051     $ 57,406  
Net income attributable to noncontrolling interest
    6,911       8,965  
 
           
Balance at end of period
  $ 76,962     $ 66,371  
 
           
Earnings Per Share
     Basic earnings per common share (“EPS”) are computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock.
                                 
    Three Months Ended June 30,  
    2011     2010  
    Basic     Diluted     Basic     Diluted  
    (in thousands, except per share data)  
Loss from continuing operations(a)
  $ (9,163 )   $ (9,163 )   $ (1,099 )   $ (1,099 )
Discontinued operations
    99,213       99,213       803       803  
 
                       
Net income (loss) attributable to Harvest
  $ 90,050     $ 90,050     $ (296 )   $ (296 )
 
                       
Weighted average common shares outstanding
    34,039       34,039       33,399       33,399  
Effect of dilutive securities
    —       6,162       —       —  
 
                       
Weighted average common shares, including dilutive effect
    34,039       40,201       33,399       33,399  
 
                       
Per share:
                               
Loss from continuing operations(a)
  $ (0.27 )   $ (0.23 )   $ (0.03 )   $ (0.03 )
Discontinued operations
  $ 2.92     $ 2.47     $ 0.02     $ 0.02  
Net income (loss) attributable to Harvest
  $ 2.65     $ 2.24     $ (0.01 )   $ (0.01 )
                                 
    Six Months Ended June 30,  
    2011     2010  
    Basic     Diluted     Basic     Diluted  
    (in thousands, except per share data)          
Income (loss) from continuing operations(a)
  $ (5,127 )   $ (5,127 )   $ 21,476     $ 21,476  
Discontinued operations
    95,947       95,947       2,818       2,818  
 
                       
Net income attributable to Harvest
  $ 90,820     $ 90,820     $ 24,294     $ 24,294  
 
                       
Weighted average common shares outstanding
    33,992       33,992       33,337       33,337  
Effect of dilutive securities
    —       5,841       —       4,038  
 
                       
Weighted average common shares, including dilutive effect
    33,992       39,833       33,337       37,375  
 
                       
Per share:
                               
Income (loss) from continuing operations(a)
  $ (0.15 )   $ (0.13 )   $ 0.64     $ 0.57  
Discontinued operations
  $ 2.82     $ 2.41     $ 0.09     $ 0.08  
Net income attributable to Harvest
  $ 2.67     $ 2.28     $ 0.73     $ 0.65  
 
(a)   Excludes net income attributable to noncontrolling interest.
     For the three months ended June 30, 2011 and 2010, the per share calculations above exclude 0.7 million and 3.8 million options, respectively, because their exercise price exceeded the average stock price for the period. The per share calculations above for the three months ended June 30, 2011 also exclude 1.6 million warrants because their exercise price exceeded the average stock price for the period. For the three months ended June 30, 2010, the per share calculations above exclude 5.6 million convertible shares because they were anti-dilutive. We did not have any warrants outstanding during the three months ended June 30, 2010.
     For the six months ended June 30, 2011 and 2010, the per share calculations above exclude 0.3 million and 3.8 million options, respectively, because their exercise price exceeded the average stock price for the period. The per share calculations above for the six months ended June 30, 2011 also exclude 1.6 million warrants because their exercise price exceeded the average stock price for the period. For the six months ended June 30, 2010, the per share calculations above exclude 5.6 million convertible shares because they were anti-dilutive. We did not have any warrants outstanding during the six months ended June 30, 2010.
     Stock options for 41,666 shares were exercised in the six months ended June 30, 2011 resulting in cash proceeds of $0.4 million. Stock options for 0.1 million shares were exercised in the six months ended June 30, 2010 resulting in cash proceeds of $0.1 million.
New Accounting Pronouncements
     In April 2011, the Financial Accounting Standard Board (“FASB”) issued ASU No. 2011-04, which is included in ASC 820, “Fair Value Measurement” (“ASC 820”). This update explains how to measure fair value. It does not require additional fair value measurements and is not intended to establish valuation standards or affect valuation practices outside of financial reporting. ASU No. 2011-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Early adoption is not permitted. The adoption of ASU No. 2011-04 is not expected to have a material impact on our consolidated financial position, results of operation or cash flows.
     In June 2011, the FASB issued ASU No. 2011-05, which is included in ASC 220, “Comprehensive Income” (“ASC 220”). This update requires that all nonowner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU No. 2011-05 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and will be applied restrospectively. Early adoption is permitted. The adoption of ASU No. 2011-05 will impact the presentation of our results of operations.
Revisions
     Net income from discontinued operations for the three months ended March 31, 2011 and 2010 was revised to include approximately $0.4 million and $0.3 million, respectively, of general and administrative expense related to the sale of our Antelope Project. These revisions did not impact consolidated net income for the three months ended March 31, 2011 and 2010, and we concluded the adjustments were not material to our Quarterly Report on Form 10-Q for the three months ended March 31, 2011. These revisions have been reflected in the six months ended June 30, 2011.
Reclassifications
     Certain items in 2010 have been reclassified to conform to the 2011 financial statement presentation.