INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2014

INCOME TAXES

Components of deferred tax assets

Components of deferred tax assets as of June 30, 2014 and 2013 are as follows (in thousands):

	2014			2013
Current deferred tax assets:
Other current deferred tax assets	$	—		$	162
Total current temporary differences	—			162
Less: valuation allowance	—			(162		)
Net current deferred tax assets	$	—		$	—
Non-current deferred tax assets
Stock compensation	$	2,276		$	2,314
Property and Equipment	55			—
Oil and gas properties	16,277			20,244
Capital loss	167			143
Total non-current deferred tax assets	$	18,775		$	22,701
Non-current deferred tax liabilities
Property and Equipment	—			(21		)
Net operating losses	31,943			28,006
	50,718			50,686
Less: valuation allowance	(50,718		)	(50,686		)
Net non-current deferred tax assets (liabilities)	$	—		$	—

Reconciliation of actual taxes

A reconciliation of the actual taxes to the U.S. statutory tax rate for the years ended June 30, 2014, 2013 and 2012 is as follows (in thousands):

	2014			2013			2012
Income tax (benefit) at the statutory federal rate (35%)	$	(5,991	)	$	(6,461	)	$	(52,256	)
Increase (decrease) resulting from nondeductible stock compensation	120			349			1,454		)
Reduction of net operating losses related to excess tax benefits from non-qualifying stock options	—			(68		)	854
Deemed taxable income not recognized for book purposes from Tullow carried well costs	—			12,950			—
Non-deductible capital loss	—			7,875			—
Reserve against US net operating loss upon transfer of the Concession to non-US tax jurisdiction	—			5,485			—
Foreign Rate Differential	5,619			1,268			—
Other, net	220			(1,052		)	1,403
Change in valuation allowance	32			(20,346		)	48,545
Net income tax expense	$	—		$	—		$	—

Summary of activity related to gross unrecognized tax benefits

The following table summarizes the activity related to our gross unrecognized tax benefits from July 1, 2011 to June 30, 2014 (in thousands):

	Federal, State and Foreign Tax
	(In thousands)
Balance at July 1, 2011	$	5,485
Additions to tax positions related to the current year	—
Additions to tax positions related to prior years	—
Statute expirations	—
Balance at June 30, 2012	$	5,485
Additions to tax positions related to the current year	—
Additions to tax positions related to prior years	—
Statute expirations	—
Balance at June 30, 2013	$	5,485
Additions to tax positions related to the current year	—
Additions to tax positions related to prior years	—
Statute expirations	—
Balance at June 30, 2014	$	5,485