Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 06, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'GRAN TIERRA ENERGY INC. | ' |
Entity Central Index Key | '0001273441 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 272,193,233 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Retained Earnings (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
REVENUE AND OTHER INCOME | ' | ' | ' | ' |
Oil and natural gas sales | $188,974 | $168,616 | $561,935 | $438,406 |
Interest income | 684 | 317 | 1,904 | 1,628 |
Total revenue and other income | 189,658 | 168,933 | 563,839 | 440,034 |
EXPENSES | ' | ' | ' | ' |
Operating | 35,588 | 36,295 | 108,505 | 88,115 |
Depletion, depreciation, accretion and impairment (Note 4) | 58,875 | 45,044 | 180,309 | 137,982 |
General and administrative | 14,673 | 12,896 | 37,840 | 46,394 |
Foreign exchange loss (gain) | 1,880 | -1,315 | -15,329 | 27,867 |
Other loss (Note 8) | 0 | 0 | 4,400 | 0 |
Total expenses | 111,016 | 92,920 | 315,725 | 300,358 |
INCOME BEFORE INCOME TAXES | 78,642 | 76,013 | 248,114 | 139,676 |
Income tax expense (Note 7) | -45,585 | -31,408 | -109,361 | -82,280 |
NET INCOME AND COMPREHENSIVE INCOME | 33,057 | 44,605 | 138,753 | 57,396 |
RETAINED EARNINGS, BEGINNING OF PERIOD | 390,369 | 197,805 | 284,673 | 185,014 |
RETAINED EARNINGS, END OF PERIOD | $423,426 | $242,410 | $423,426 | $242,410 |
NET INCOME PER SHARE — BASIC (in dollars per share) | $0.12 | $0.16 | $0.49 | $0.20 |
NET INCOME PER SHARE — DILUTED (in dollars per share) | $0.12 | $0.16 | $0.49 | $0.20 |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (Note 5) | 283,092,224 | 281,695,212 | 282,687,871 | 280,387,484 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (Note 5) | 286,026,519 | 284,605,162 | 285,820,007 | 283,968,384 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $353,064 | $212,624 |
Restricted cash | 3,819 | 1,404 |
Accounts receivable | 143,915 | 119,844 |
Inventory (Note 4) | 16,404 | 33,468 |
Taxes receivable | 6,069 | 39,922 |
Prepaids | 5,365 | 4,074 |
Deferred tax assets (Note 7) | 2,090 | 2,517 |
Total Current Assets | 530,726 | 413,853 |
Oil and Gas Properties (using the full cost method of accounting) | ' | ' |
Proved | 790,193 | 813,247 |
Unproved | 435,082 | 383,414 |
Total Oil and Gas Properties | 1,225,275 | 1,196,661 |
Other capital assets | 9,101 | 8,765 |
Total Property, Plant and Equipment (Note 4) | 1,234,376 | 1,205,426 |
Other Long-Term Assets | ' | ' |
Restricted cash | 3,305 | 1,619 |
Deferred tax assets (Note 7) | 2,076 | 1,401 |
Taxes receivable | 14,608 | 1,374 |
Other long-term assets | 6,746 | 6,621 |
Goodwill | 102,581 | 102,581 |
Total Other Long-Term Assets | 129,316 | 113,596 |
Total Assets | 1,894,418 | 1,732,875 |
Current Liabilities | ' | ' |
Accounts payable | 70,783 | 102,263 |
Accrued liabilities | 79,934 | 66,418 |
Taxes payable | 88,757 | 22,339 |
Deferred tax liabilities (Note 7) | 1,643 | 337 |
Asset retirement obligation (Note 6) | 0 | 28 |
Total Current Liabilities | 241,117 | 191,385 |
Long-Term Liabilities | ' | ' |
Deferred tax liabilities (Note 7) | 183,925 | 225,195 |
Equity tax payable (Note 7) | 0 | 3,562 |
Asset retirement obligation (Note 6) | 20,388 | 18,264 |
Other long-term liabilities | 9,015 | 3,038 |
Total Long-Term Liabilities | 213,328 | 250,059 |
Contingencies (Note 8) | ' | ' |
Shareholders’ Equity | ' | ' |
Common Stock (Note 5) (271,872,896 and 268,482,445 shares of Common Stock and 11,278,855 and 13,421,488 exchangeable shares, par value $0.001 per share, issued and outstanding as at September 30, 2013 and December 31, 2012, respectively) | 10,020 | 7,986 |
Additional paid in capital | 1,006,527 | 998,772 |
Retained earnings | 423,426 | 284,673 |
Total Shareholders’ Equity | 1,439,973 | 1,291,431 |
Total Liabilities and Shareholders’ Equity | $1,894,418 | $1,732,875 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Common shares, par value (in dollars per share) | $0.00 | $0.00 |
Common shares, issued | 271,872,896 | 268,482,445 |
Common shares, outstanding | 271,872,896 | 268,482,445 |
Exchangeable shares, issued | 11,278,855 | 13,421,488 |
Exchangeable shares, outstanding | 11,278,855 | 13,421,488 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Activities | ' | ' | ' | ' |
Net income | ' | ' | $138,753 | $57,396 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' |
Depletion, depreciation, accretion and impairment | 58,875 | 45,044 | 180,309 | 137,982 |
Deferred tax recovery (Note 7) | ' | ' | -23,791 | -8,855 |
Stock-based compensation (Note 5) | ' | ' | 6,113 | 9,854 |
Unrealized foreign exchange (gain) loss | ' | ' | -16,853 | 14,072 |
Cash settlement of asset retirement obligation | ' | ' | -927 | -404 |
Equity tax | ' | ' | -3,345 | -3,534 |
Other loss (Note 8) | 0 | 0 | 4,400 | 0 |
Net change in assets and liabilities from operating activities | ' | ' | ' | ' |
Accounts receivable and other long-term assets | ' | ' | -26,284 | -96,656 |
Inventory | ' | ' | 12,366 | -9,769 |
Prepaids | ' | ' | -1,291 | 1,087 |
Accounts payable and accrued and other liabilities | ' | ' | -7,593 | -25,960 |
Taxes receivable and payable | ' | ' | 87,230 | -59,281 |
Net cash provided by operating activities | ' | ' | 349,087 | 15,932 |
Investing Activities | ' | ' | ' | ' |
Increase in restricted cash | ' | ' | -4,101 | -21,704 |
Additions to property, plant and equipment | ' | ' | -267,642 | -222,119 |
Proceeds from oil and gas properties (Note 4) | ' | ' | 59,621 | 0 |
Net cash used in investing activities | ' | ' | -212,122 | -243,823 |
Financing Activities | ' | ' | ' | ' |
Proceeds from issuance of shares of Common Stock (Note 5) | ' | ' | 3,475 | 3,797 |
Net cash provided by financing activities | ' | ' | 3,475 | 3,797 |
Net increase (decrease) in cash and cash equivalents | ' | ' | 140,440 | -224,094 |
Cash and cash equivalents, beginning of period | ' | ' | 212,624 | 351,685 |
Cash and cash equivalents, end of period | 353,064 | 127,591 | 353,064 | 127,591 |
Cash | 296,520 | 99,442 | 296,520 | 99,442 |
Term deposits | 56,544 | 28,149 | 56,544 | 28,149 |
Supplemental cash flow disclosures: | ' | ' | ' | ' |
Cash paid for income taxes | ' | ' | 38,978 | 140,069 |
Non-cash investing activities: | ' | ' | ' | ' |
Non-cash net assets and liabilities related to property, plant and equipment, end of period | $65,645 | $33,961 | $65,645 | $33,961 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Shareholders' Equity (USD $) | Total | Share Capital [Member] | Additional Paid-in Capital [Member] | Warrants [Member] | Retained Earnings [Member] |
In Thousands, unless otherwise specified | |||||
Balance, beginning of period at Dec. 31, 2011 | ' | $7,510 | $980,014 | $1,780 | $185,014 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Issue of shares of Common Stock (Note 5) | ' | 476 | 2,902 | ' | ' |
Exercise of warrants | ' | ' | 1,590 | -1,590 | ' |
Expiry of warrants | ' | ' | 190 | -190 | ' |
Exercise of stock options (Note 5) | ' | ' | 960 | ' | ' |
Stock-based compensation (Note 5) | ' | ' | 13,116 | ' | ' |
Net income | ' | ' | ' | ' | 99,659 |
Balance, end of period at Dec. 31, 2012 | 1,291,431 | 7,986 | 998,772 | 0 | 284,673 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Issue of shares of Common Stock (Note 5) | ' | 2,034 | 0 | ' | ' |
Exercise of warrants | ' | ' | 0 | 0 | ' |
Expiry of warrants | ' | ' | 0 | 0 | ' |
Exercise of stock options (Note 5) | ' | ' | 1,441 | ' | ' |
Stock-based compensation (Note 5) | ' | ' | 6,314 | ' | ' |
Net income | 138,753 | ' | ' | ' | 138,753 |
Balance, end of period at Sep. 30, 2013 | $1,439,973 | $10,020 | $1,006,527 | $0 | $423,426 |
Description_of_Business
Description of Business | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business | ' |
Description of Business | |
Gran Tierra Energy Inc., a Nevada corporation (the “Company” or “Gran Tierra”), is a publicly traded oil and gas company engaged in the acquisition, exploration, development and production of oil and natural gas properties. The Company’s principal business activities are in Colombia, Argentina, Peru and Brazil. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
Significant Accounting Policies | |
These interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The information furnished herein reflects all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of results for the interim periods. | |
The note disclosure requirements of annual consolidated financial statements provide additional disclosures to that required for interim unaudited condensed consolidated financial statements. Accordingly, these interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements as at and for the year ended December 31, 2012, included in the Company’s 2012 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 26, 2013. | |
The Company’s significant accounting policies are described in Note 2 of the consolidated financial statements which are included in the Company’s 2012 Annual Report on Form 10-K and are the same policies followed in these interim unaudited condensed consolidated financial statements, except as disclosed below. The Company has evaluated all subsequent events through to the date these interim unaudited condensed consolidated financial statements were issued. | |
Restricted Stock Units | |
In May 2013, the Company's Board of Directors determined that the Company will annually grant time-vested restricted stock units ("RSUs") to officers, employees and consultants. RSUs entitle the holder to receive, at the option of the Company, either the underlying number of shares of the Company's Common Stock upon vesting of such shares or a cash payment equal to the value of the underlying shares. The Company expects its practice will be to settle RSUs in cash and, therefore, RSUs are accounted for as liability instruments. Compensation expense for RSUs granted is based on the estimated fair value, which is determined using the closing share price, at each reporting date, and the expense, net of estimated forfeitures, is recognized over the requisite service period using the accelerated method, with a corresponding change to liabilities. An adjustment is made to compensation expense for any difference between the estimated forfeitures and the actual forfeitures related to vested awards. Additionally, the Company will continue to grant options to purchase shares of Common Stock to certain directors, officers, employees and consultants. Stock-based compensation expense relating to RSUs and stock options is capitalized as part of oil and natural gas properties or expensed as part of operating expenses or general and administrative (“G&A”) expenses, as appropriate. | |
Recently Issued Accounting Pronouncements | |
Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is fixed at the Reporting Date | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013- 04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is fixed at the Reporting Date”. The ASU provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. Examples of obligations within the scope of this update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The implementation of this update is not expected to materially impact the Company’s consolidated financial position, results of operations or cash flows. | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". The ASU provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The implementation of this update is not expected to materially impact the Company’s consolidated financial position, results of operations or cash flows. |
Segment_and_Geographic_Reporti
Segment and Geographic Reporting | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Segment and Geographic Reporting | ' | |||||||||||||||||||||||
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, Peru and Brazil based on geographic organization. The level of activity in Peru and Brazil was not significant at September 30, 2013, or December 31, 2012; however, the Company has separately disclosed its results of operations in Peru and Brazil as reportable segments. The All Other category represents the Company’s corporate activities. | ||||||||||||||||||||||||
The accounting policies of the reportable segments are the same as those described in Note 2. The Company evaluates reportable segment performance based on income or loss before income taxes. | ||||||||||||||||||||||||
The following tables present information on the Company’s reportable segments and other activities: | ||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Oil and natural gas sales | $ | 164,241 | $ | 18,149 | $ | — | $ | 6,584 | $ | — | $ | 188,974 | ||||||||||||
Interest income | 111 | 164 | — | 281 | 128 | 684 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment | 46,821 | 7,606 | 73 | 4,129 | 246 | 58,875 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment - per unit of production | 27.48 | 30.51 | — | 59.72 | — | 29.12 | ||||||||||||||||||
Income (loss) before income taxes | 89,214 | (4,164 | ) | (1,404 | ) | (337 | ) | (4,667 | ) | 78,642 | ||||||||||||||
Segment capital expenditures (1) | $ | 39,608 | $ | 8,159 | $ | 11,063 | $ | (22,500 | ) | $ | 289 | $ | 36,619 | |||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Oil and natural gas sales | $ | 145,610 | $ | 22,332 | $ | — | $ | 674 | $ | — | $ | 168,616 | ||||||||||||
Interest income | 171 | 10 | — | 40 | 96 | 317 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment | 35,255 | 9,165 | 68 | 305 | 251 | 45,044 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment - per unit of production | 24.46 | 26.6 | — | 40.35 | — | 25.12 | ||||||||||||||||||
Income (loss) before income taxes | 79,915 | 1,777 | (847 | ) | (1,170 | ) | (3,662 | ) | 76,013 | |||||||||||||||
Segment capital expenditures | $ | 35,880 | $ | 11,568 | $ | 11,204 | $ | 2,838 | $ | 300 | $ | 61,790 | ||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Oil and natural gas sales | $ | 488,577 | $ | 54,620 | $ | — | $ | 18,738 | $ | — | $ | 561,935 | ||||||||||||
Interest income | 415 | 710 | 27 | 292 | 460 | 1,904 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment | 141,141 | 22,986 | 272 | 15,143 | 767 | 180,309 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment - per unit of production | 27.58 | 27.79 | — | 75.74 | — | 29.35 | ||||||||||||||||||
Income (loss) before income taxes | 275,353 | (6,183 | ) | (4,984 | ) | (3,663 | ) | (12,409 | ) | 248,114 | ||||||||||||||
Segment capital expenditures (1) | $ | 118,758 | $ | 12,424 | $ | 59,911 | $ | 12,021 | $ | 528 | $ | 203,642 | ||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Oil and natural gas sales | $ | 376,261 | $ | 59,183 | $ | — | $ | 2,962 | $ | — | $ | 438,406 | ||||||||||||
Interest income | 598 | 96 | 15 | 607 | 312 | 1,628 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment | 90,625 | 23,080 | 1,174 | 22,379 | 724 | 137,982 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment - per unit of production | 24.96 | 24.54 | — | 708.76 | — | 29.98 | ||||||||||||||||||
Income (loss) before income taxes | 182,516 | 2,568 | (4,147 | ) | (24,467 | ) | (16,794 | ) | 139,676 | |||||||||||||||
Segment capital expenditures | $ | 98,476 | $ | 28,412 | $ | 43,866 | $ | 44,536 | $ | 695 | $ | 215,985 | ||||||||||||
(1) In the third quarter of 2013, segment capital expenditures in Brazil are net of proceeds of $54.0 million relating to termination of a farm-in agreement. Additionally, segment capital expenditures for the nine months ended September 30, 2013, are net of proceeds of $4.1 million relating to the Company's assumption of the remaining 50% working interest in the Santa Victoria Block in Argentina and $1.5 million relating to the Company's sale of its 15% working interest in the Mecaya Block in Colombia (Note 4). | ||||||||||||||||||||||||
As at September 30, 2013 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Property, plant and equipment | $ | 822,522 | $ | 128,799 | $ | 155,579 | $ | 124,418 | $ | 3,058 | $ | 1,234,376 | ||||||||||||
Goodwill | 102,581 | — | — | — | — | 102,581 | ||||||||||||||||||
Other assets | 267,186 | 37,320 | 18,285 | 50,555 | 184,115 | 557,461 | ||||||||||||||||||
Total Assets | $ | 1,192,289 | $ | 166,119 | $ | 173,864 | $ | 174,973 | $ | 187,173 | $ | 1,894,418 | ||||||||||||
As at December 31, 2012 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Property, plant and equipment | $ | 840,027 | $ | 138,768 | $ | 95,940 | $ | 127,394 | $ | 3,297 | $ | 1,205,426 | ||||||||||||
Goodwill | 102,581 | — | — | — | — | 102,581 | ||||||||||||||||||
Other assets | 222,220 | 47,038 | 10,880 | 8,498 | 136,232 | 424,868 | ||||||||||||||||||
Total Assets | $ | 1,164,828 | $ | 185,806 | $ | 106,820 | $ | 135,892 | $ | 139,529 | $ | 1,732,875 | ||||||||||||
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 the nine months ended September 30, 2013, the Company had two significant customers in Colombia: Ecopetrol S.A. ("Ecopetrol") and one other customer, which accounted for 52% and 29%, respectively, of the Company's consolidated oil and natural gas sales. For the three months ended September 30, 2013, these customers accounted for 56% and 28%, respectively, of the Company's consolidated oil and natural gas sales. In the nine months ended September 30, 2012, the Company had one significant customer in Colombia: Ecopetrol. For the three and nine months ended September 30, 2012, sales to Ecopetrol accounted for 71% and 77%, respectively, of the Company's consolidated oil and natural gas sales. For the three months ended September 30, 2012, the Company had an additional short-term significant customer , which accounted for 13% of the Company's revenues during the period. |
Property_Plant_and_Equipment_a
Property, Plant and Equipment and Inventory | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||||||||||||
Property, Plant and Equipment and Inventory | ' | |||||||||||||||||||||||
Property, Plant and Equipment and Inventory | ||||||||||||||||||||||||
Property, Plant and Equipment | ||||||||||||||||||||||||
As at September 30, 2013 | As at December 31, 2012 | |||||||||||||||||||||||
(Thousands of U.S. Dollars) | Cost | Accumulated | Net book value | Cost | Accumulated | Net book value | ||||||||||||||||||
depletion, | depletion, | |||||||||||||||||||||||
depreciation | depreciation | |||||||||||||||||||||||
and | and | |||||||||||||||||||||||
impairment | impairment | |||||||||||||||||||||||
Oil and natural gas properties | ||||||||||||||||||||||||
Proved | $ | 1,710,788 | $ | (920,595 | ) | $ | 790,193 | $ | 1,562,477 | $ | (749,230 | ) | $ | 813,247 | ||||||||||
Unproved | 435,082 | — | 435,082 | 383,414 | — | 383,414 | ||||||||||||||||||
2,145,870 | (920,595 | ) | 1,225,275 | 1,945,891 | (749,230 | ) | 1,196,661 | |||||||||||||||||
Furniture and fixtures and leasehold improvements | 8,215 | (6,203 | ) | 2,012 | 7,575 | (5,093 | ) | 2,482 | ||||||||||||||||
Computer equipment | 14,018 | (7,458 | ) | 6,560 | 10,971 | (5,248 | ) | 5,723 | ||||||||||||||||
Automobiles | 1,352 | (823 | ) | 529 | 1,376 | (816 | ) | 560 | ||||||||||||||||
Total Property, Plant and Equipment | $ | 2,169,455 | $ | (935,079 | ) | $ | 1,234,376 | $ | 1,965,813 | $ | (760,387 | ) | $ | 1,205,426 | ||||||||||
Depletion and depreciation expense on property, plant and equipment for the three months ended September 30, 2013, was $59.1 million (three months ended September 30, 2012 - $43.0 million) and for the nine months ended September 30, 2013, was $172.7 million (nine months ended September 30, 2012 - $120.8 million). A portion of depletion and depreciation expense was recorded as inventory in each period and adjusted for inventory changes. | ||||||||||||||||||||||||
In the second quarter of 2013, the Company recorded a ceiling test impairment loss of $2.0 million in the Company's Brazil cost center as a result of lower realized prices and increased operating costs. | ||||||||||||||||||||||||
In the first quarter of 2012, the Company recorded a ceiling test impairment loss in the Company’s Brazil cost center of $20.2 million. This impairment loss resulted from the recognition of $23.8 million of capital expenditures in relation to the Block BM-CAL-10 farm-out agreement in the first quarter of 2012. On February 17, 2012, in accordance with the terms of the farm-out agreement for Block BM-CAL-10 in Brazil, the Company gave notice to its joint venture partner that it would not enter into and assume its share of the work obligations of the second exploration period of the block. As a result, the farm-out agreement terminated and the Company did not receive any interest in this block. Pursuant to the farm-out agreement, the Company was obligated to make payment for a certain percentage of the costs relating to Block BM-CAL-10, which relate primarily to a well that was drilled during the term of the farm-out agreement. The notice of withdrawal was a trigger for payment of amounts that would otherwise have been due if the farm-out agreement had closed and the Company had acquired a working interest. | ||||||||||||||||||||||||
In the second quarter of 2013, the Company assumed its partner's 50% working interest in the Santa Victoria Block in Argentina and received cash consideration of $4.1 million from its partner, comprising the balance owing for carry consideration and compensation for the second exploration phase work commitment. The Company also received proceeds of $1.5 million relating to a sale of its 15% working interest in the Mecaya Block in Colombia. | ||||||||||||||||||||||||
During the third quarter of 2013, the Company received a net payment of $54.0 million (before income taxes) from a third party in connection with termination of a farm-in agreement in the Recôncavo Basin relating to Block REC-T-129, Block REC-T-142, Block REC-T-155 and Block REC-T-224. | ||||||||||||||||||||||||
The Company successfully bid on three blocks in the 2013 Brazil Bid Round administered by Brazil's Agência Nacional de Petróleo, Gás Natural e Biocombustíveis ("ANP") and, in the third quarter of 2013, paid a signature bonus of $14.4 million upon finalization of the concession agreement. | ||||||||||||||||||||||||
In Brazil, the exploration phase of the concession agreements on Blocks REC-T-129, REC-T-142 and REC-T-155 is due to expire on November 24, 2013; however, under the concession agreements the Company is able and has submitted an application to the ANP for extension of the exploration phase of these blocks. Additionally, the exploration phase of the concession agreement on Block REC-T-224 is due to expire on December 11, 2013, but we plan to apply for an extension of the exploration phase of this block. At September 30, 2013, unproved properties included $59.6 million relating to these four blocks. Management assessed these blocks for impairment at September 30, 2013 and concluded no impairment had occurred. | ||||||||||||||||||||||||
In Argentina, Rio Negro Province has enacted legislation that changes the royalty regime associated with concession agreement extensions. The Company is negotiating concession agreement extensions and royalty rates for its Puesto Morales, Puesto Morales Este, Rinconada Norte and Rinconada Sur Blocks and expects that royalty rates in Rio Negro Province will likely increase and a bonus payment, not determinable at this time, may be payable for the concession agreement extensions. | ||||||||||||||||||||||||
The amounts of G&A expenses and stock-based compensation capitalized in each of the Company's cost centers were as follows: | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Argentina | Peru | Brazil | Total | |||||||||||||||||||
Capitalized G&A, including stock-based compensation | $ | 14,746 | $ | 2,896 | $ | 5,981 | $ | 5,813 | $ | 29,436 | ||||||||||||||
Capitalized stock-based compensation | $ | 794 | $ | 171 | $ | 571 | $ | 566 | $ | 2,102 | ||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Argentina | Peru | Brazil | Total | |||||||||||||||||||
Capitalized G&A, including stock-based compensation | $ | 9,279 | $ | 3,480 | $ | 3,670 | $ | 2,653 | $ | 19,082 | ||||||||||||||
Capitalized stock-based compensation | $ | 376 | $ | 275 | $ | — | $ | 216 | $ | 867 | ||||||||||||||
Unproved oil and natural gas properties consist of exploration lands held in Colombia, Argentina, Peru and Brazil. As at September 30, 2013, the Company had $163.0 million (December 31, 2012 - $175.9 million) of unproved assets in Colombia, $39.5 million (December 31, 2012 - $42.3 million) of unproved assets in Argentina, $154.6 million (December 31, 2012 - $95.1 million) of unproved assets in Peru, and $78.0 million (December 31, 2012 - $70.1 million) of unproved assets in Brazil for a total of $435.1 million (December 31, 2012 - $383.4 million). These properties are being held for their exploration value and are not being depleted pending determination of the existence of proved reserves. Gran Tierra will continue to assess the unproved properties over the next several years as proved reserves are established and as exploration dictates whether or not future areas will be developed. The Company expects that approximately 62% of costs not subject to depletion at September 30, 2013, will be transferred to the depletable base within the next five years and the remainder in the next five to 10 years. | ||||||||||||||||||||||||
Inventory | ||||||||||||||||||||||||
At September 30, 2013, oil and supplies inventories were $14.6 million and $1.8 million, respectively (December 31, 2012 - $31.2 million and $2.3 million, respectively). |
Share_Capital
Share Capital | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Share Capital | ' | ||||||||||||||||
Share Capital | |||||||||||||||||
The Company’s authorized share capital consists of 595,000,002 shares of capital stock, of which 570 million are designated as Common Stock, par value $0.001 per share, 25 million are designated as Preferred Stock, par value $0.001 per share, and two shares are designated as special voting stock, par value $0.001 per share. | |||||||||||||||||
As at September 30, 2013, outstanding share capital consists of 271,872,896 shares of Common Stock of the Company, 6,744,728 exchangeable shares of Gran Tierra Exchangeco Inc., (the "Exchangeco exchangeable shares") and 4,534,127 exchangeable shares of Gran Tierra Goldstrike Inc. (the "Goldstrike exchangeable shares"). The redemption date of the Exchangeco exchangeable shares was previously established as November 14, 2013 (or at an earlier date under certain specified circumstances). However, pursuant to resolutions of the board of directors of Gran Tierra Exchangeco Inc., effective October 25, 2013, the redemption date for the Exchangeco exchangeable shares was extended to such later date as may be established by the board of directors of Gran Tierra Exchangeco Inc. at its discretion. The redemption date of the Goldstrike exchangeable shares was previously established as November 10, 2013. However, pursuant to resolutions of the board of directors of Gran Tierra Goldstrike Inc., effective October 31, 2013, the redemption date for the Goldstrike exchangeable shares was extended to such later date as may be established by the board of directors of Gran Tierra Goldstrike Inc. at its discretion. During the nine months ended September 30, 2013, 1,247,818 shares of Common Stock were issued upon the exercise of stock options, 452,950 shares of Common Stock were issued upon the exchange of the Exchangeco exchangeable shares and 1,689,683 shares of Common Stock were issued upon the exchange of the Goldstrike exchangeable shares. | |||||||||||||||||
The holders of shares of Common Stock are entitled to one vote for each share on all matters submitted to a stockholder vote and are entitled to share in all dividends that the Company’s board of directors, in its discretion, declares from legally available funds. The holders of Common Stock have no pre-emptive rights, no conversion rights, and there are no redemption provisions applicable to the shares. | |||||||||||||||||
The Exchangeco exchangeable shares were issued upon acquisition of Solana Resources Limited. The Goldstrike exchangeable shares were issued upon the business combination between Gran Tierra Energy Inc., an Alberta corporation, and Goldstrike, Inc., which is now the Company. Holders of exchangeable shares have substantially the same rights as holders of shares of Common Stock. Each exchangeable share is exchangeable into one share of Common Stock of the Company. | |||||||||||||||||
Restricted Stock Units and Stock Options | |||||||||||||||||
In May 2013, the Company issued RSUs and stock options, which will vest as to 1/3 of the awards on each of March 1, 2014, March 1, 2015 and March 1, 2016. The term of options granted starting May 2013 is five years or three months after the grantee’s end of service to the Company, whichever occurs first. Options granted prior to May 2013 continue to have a term of ten years or three months after the grantee’s end of service to the Company, whichever occurs first. Once an RSU is vested, it is immediately settled and considered to be at the end of its term. | |||||||||||||||||
The following table provides information about long-term incentive plan ("LTIP") activity for the nine months ended September 30, 2013: | |||||||||||||||||
RSUs | Options | ||||||||||||||||
Number of Outstanding Share Units | Number of Outstanding Options | Weighted Average Exercise Price $/Option | |||||||||||||||
Balance, December 31, 2012 | — | 15,399,662 | 5.11 | ||||||||||||||
Granted | 939,365 | 2,066,935 | 6.27 | ||||||||||||||
Exercised | — | (1,247,818 | ) | (2.79 | ) | ||||||||||||
Forfeited | (21,655 | ) | (284,835 | ) | (6.17 | ) | |||||||||||
Expired | — | (102,593 | ) | (6.57 | ) | ||||||||||||
Balance, September 30, 2013 | 917,710 | 15,831,351 | 5.42 | ||||||||||||||
For the nine months ended September 30, 2013, 1,247,818 shares of Common Stock were issued for cash proceeds of $3.5 million upon the exercise of 1,247,818 stock options (nine months ended September 30, 2012 - $3.8 million). | |||||||||||||||||
The weighted average grant date fair value for options granted in the three months ended September 30, 2013, was $2.34 (three months ended September 30, 2012 - $2.62) and for the nine months ended September 30, 2013, was $2.62 (nine months ended September 30, 2012 - $3.36). As a result of the change in the term of stock options to five years for stock options granted starting May 2013, the weighted average volatility used in the Black-Scholes option pricing model was reduced to 43% for the three months ended September 30, 2013 and 53% for the nine months ended September 30, 2013, from 75% for the year ended December 31, 2012, resulting in a lower grant date fair value per share than in prior periods. | |||||||||||||||||
The amounts recognized for stock-based compensation were as follows: | |||||||||||||||||
(Thousands of U.S. Dollars) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Compensation costs for stock options | $ | 2,132 | $ | 3,268 | $ | 6,314 | $ | 10,721 | |||||||||
Compensation costs for RSUs | 1,282 | — | 1,901 | — | |||||||||||||
3,414 | 3,268 | 8,215 | 10,721 | ||||||||||||||
Less: stock-based compensation costs capitalized | (1,717 | ) | (336 | ) | (2,102 | ) | (867 | ) | |||||||||
Total stock-based compensation expense | $ | 1,697 | $ | 2,932 | $ | 6,113 | $ | 9,854 | |||||||||
Of the total compensation expense for the three months ended September 30, 2013, $1.3 million (three months ended September 30, 2012 - $2.6 million) was recorded in G&A expenses and $0.4 million (three months ended September 30, 2012 – $0.3 million) was recorded in operating expenses. Of the total compensation expense for the nine months ended September 30, 2013, $5.3 million (nine months ended September 30, 2012 – $8.9 million) was recorded in G&A expenses and $0.8 million (nine months ended September 30, 2012 – $0.9 million) was recorded in operating expenses. | |||||||||||||||||
At September 30, 2013, there was $11.3 million (December 31, 2012 - $8.2 million) of unrecognized compensation cost related to unvested LTIP units which is expected to be recognized over a weighted average period of 2.1 years. | |||||||||||||||||
Net income per share | |||||||||||||||||
Basic net income per share is calculated by dividing net income attributable to common shareholders by the weighted average number of shares of Common Stock and exchangeable shares issued and outstanding during each period. Diluted net income per share is calculated by adjusting the weighted average number of shares of Common Stock and exchangeable shares outstanding for the dilutive effect, if any, of share equivalents. The Company uses the treasury stock method to determine the dilutive effect. This method assumes that all Common Stock equivalents have been exercised at the beginning of the period (or at the time of issuance, if later), and that the funds obtained thereby were used to purchase shares of Common Stock of the Company at the volume weighted average trading price of shares of Common Stock during the period. | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average number of common and exchangeable shares outstanding | 283,092,224 | 281,695,212 | 282,687,871 | 280,387,484 | |||||||||||||
Shares issuable pursuant to warrants | — | — | — | 235,582 | |||||||||||||
Shares issuable pursuant to stock options | 12,428,489 | 5,643,730 | 10,823,968 | 5,947,880 | |||||||||||||
Shares assumed to be purchased from proceeds of stock options | (9,494,194 | ) | (2,733,780 | ) | (7,691,832 | ) | (2,602,562 | ) | |||||||||
Weighted average number of diluted common and exchangeable shares outstanding | 286,026,519 | 284,605,162 | 285,820,007 | 283,968,384 | |||||||||||||
For the three months ended September 30, 2013, 3,472,472 options (three months ended September 30, 2012 - 9,957,585 options) were excluded from the diluted income per share calculation as the options were anti-dilutive. For the nine months ended September 30, 2013, 5,584,732 options (nine months ended September 30, 2012 - 9,808,758 options) were excluded from the diluted income per share calculation as the options were anti-dilutive. |
Asset_Retirement_Obligation
Asset Retirement Obligation | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Asset Retirement Obligation [Abstract] | ' | |||||||
Asset Retirement Obligation | ' | |||||||
Asset Retirement Obligation | ||||||||
Changes in the carrying amounts of the asset retirement obligation associated with the Company’s oil and natural gas properties were as follows: | ||||||||
Nine Months Ended | Year Ended | |||||||
(Thousands of U.S. Dollars) | September 30, 2013 | 31-Dec-12 | ||||||
Balance, beginning of year | $ | 18,292 | $ | 12,669 | ||||
Settlements | (2,068 | ) | (404 | ) | ||||
Liability incurred | 1,397 | 5,190 | ||||||
Liability assumed in a business combination | — | 410 | ||||||
Foreign exchange | (23 | ) | 45 | |||||
Accretion | 918 | 998 | ||||||
Revisions in estimated liability | 1,872 | (616 | ) | |||||
Balance, end of period | $ | 20,388 | $ | 18,292 | ||||
Asset retirement obligation - current | $ | — | $ | 28 | ||||
Asset retirement obligation - long-term | 20,388 | 18,264 | ||||||
Balance, end of period | $ | 20,388 | $ | 18,292 | ||||
For the nine months ended September 30, 2013, settlements included cash payments of $0.9 million with the balance in accounts payable and accrued liabilities at September 30, 2013. Revisions to estimated liabilities relate primarily to changes in estimates of asset retirement costs and include, but are not limited to, revisions of estimated inflation rates, changes in property lives and the expected timing of settling the asset retirement obligation. At September 30, 2013, the fair value of assets that are legally restricted for purposes of settling the asset retirement obligation was $1.9 million (December 31, 2012 - $1.3 million). |
Taxes
Taxes | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Taxes | ' | |||||||
Taxes | ||||||||
The income tax expense reported differs from the amount computed by applying the U.S. statutory rate to income before income taxes for the following reasons: | ||||||||
Nine Months Ended September 30, | ||||||||
(Thousands of U.S. Dollars) | 2013 | 2012 | ||||||
Income (loss) before income taxes | ||||||||
United States | $ | (8,488 | ) | $ | (7,942 | ) | ||
Foreign | 256,602 | 147,618 | ||||||
248,114 | 139,676 | |||||||
35 | % | 35 | % | |||||
Income tax expense expected | 86,840 | 48,887 | ||||||
Foreign currency translation adjustments | (7,649 | ) | 8,025 | |||||
Impact of foreign taxes | 1,908 | 2,716 | ||||||
Stock-based compensation | 1,943 | 3,277 | ||||||
Increase in valuation allowance | 22,700 | 9,304 | ||||||
Branch and other foreign loss pick-up | (2,013 | ) | (4,358 | ) | ||||
Non-deductible third party royalty in Colombia | 8,812 | 9,951 | ||||||
Other permanent differences | (3,180 | ) | 4,478 | |||||
Total income tax expense | $ | 109,361 | $ | 82,280 | ||||
Current income tax expense | ||||||||
United States | $ | 813 | $ | 778 | ||||
Foreign | 132,339 | 90,357 | ||||||
133,152 | 91,135 | |||||||
Deferred income tax recovery | ||||||||
United States | — | — | ||||||
Foreign | (23,791 | ) | (8,855 | ) | ||||
(23,791 | ) | (8,855 | ) | |||||
Total income tax expense | $ | 109,361 | $ | 82,280 | ||||
As at | ||||||||
(Thousands of U.S. Dollars) | September 30, 2013 | 31-Dec-12 | ||||||
Deferred Tax Assets | ||||||||
Tax benefit of operating loss carryforwards | $ | 53,693 | $ | 51,920 | ||||
Tax basis in excess of book basis | 44,500 | 22,519 | ||||||
Foreign tax credits and other accruals | 30,550 | 30,926 | ||||||
Tax benefit of capital loss carryforwards | 4,835 | 4,779 | ||||||
Deferred tax assets before valuation allowance | 133,578 | 110,144 | ||||||
Valuation allowance | (129,412 | ) | (106,226 | ) | ||||
$ | 4,166 | $ | 3,918 | |||||
Deferred tax assets - current | $ | 2,090 | $ | 2,517 | ||||
Deferred tax assets - long-term | 2,076 | 1,401 | ||||||
4,166 | 3,918 | |||||||
Deferred tax liabilities - current | (1,643 | ) | (337 | ) | ||||
Deferred tax liabilities - long-term | (183,925 | ) | (225,195 | ) | ||||
(185,568 | ) | (225,532 | ) | |||||
Net Deferred Tax Liabilities | $ | (181,402 | ) | $ | (221,614 | ) | ||
As at September 30, 2013, the Company had operating loss carryforwards of $233.7 million (December 31, 2012 - $213.1 million) and capital loss carryforwards of $32.6 million (December 31, 2012 – $35.9 million) before valuation allowance. Of these operating loss carryforwards and capital loss carryforwards, $233.8 million (December 31, 2012 - $215.2 million) were losses generated by the foreign subsidiaries of the Company. In certain jurisdictions, the operating loss carryforwards expire between 2014 and 2033 and the capital loss carryforwards expire between 2014 and 2017, while certain other jurisdictions allow operating losses to be carried forward indefinitely. | ||||||||
As at September 30, 2013, the total amount of Gran Tierra’s unrecognized tax benefit was approximately $19.8 million (December 31, 2012 - $21.8 million), a portion of which, if recognized, would affect the Company’s effective tax rate. To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, such amounts have been accrued and are classified as a component of income taxes in the consolidated statement of operations. | ||||||||
Changes in the Company's unrecognized tax benefit are as follows: | ||||||||
Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
(Thousands of U.S. Dollars) | ||||||||
Unrecognized tax benefit at beginning of period | $ | 21,800 | $ | 20,500 | ||||
Changes for positions relating to prior year | (2,000 | ) | — | |||||
Unrecognized tax benefit at end of period | $ | 19,800 | $ | 20,500 | ||||
The Company and its subsidiaries file income tax returns in the U.S. and certain other foreign jurisdictions. The Company is potentially subject to income tax examinations for the tax years 2005 through 2012 in certain jurisdictions. The Company does not anticipate any material changes to the unrecognized tax benefit disclosed above within the next twelve months. | ||||||||
The equity tax liability at September 30, 2013, and December 31, 2012, includes a Colombian tax of 6% on a legislated measure and was calculated based on the Company’s Colombian segment’s balance sheet equity for tax purposes at January 1, 2011. The tax is payable in eight semi-annual installments over four years, but was expensed in the first quarter of 2011 at the commencement of the four-year period. The equity tax liability also partially related to an equity tax liability assumed upon the 2011 acquisition of Petrolifera Petroleum Limited. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Contingencies | |
Gran Tierra Energy Colombia, Ltd. and Petrolifera Petroleum Exploration (Colombia) Ltd (collectively “GTEC”) and Ecopetrol, the contracting parties of the Guayuyaco Association Contract, are engaged in a dispute regarding the interpretation of the procedure for allocation of oil produced and sold during the long-term test of the Guayuyaco-1 and Guayuyaco-2 wells, prior to GTEC's purchase of the companies originally involved in the dispute. There has been no agreement between the parties, and Ecopetrol filed a lawsuit in the Contravention Administrative Tribunal in the District of Cauca (the "Tribunal") regarding this matter. During the first quarter of 2013, the Tribunal ruled in favor of Ecopetrol and awarded Ecopetrol 44,025 bbl of oil. GTEC has filed an appeal of the ruling to the Supreme Administrative Court (Consejo de Estado) in a second instance procedure. During the nine months ended September 30, 2013, based on market oil prices in Colombia, Gran Tierra accrued $4.4 million in the condensed consolidated financial statements in relation to this dispute. | |
Gran Tierra’s production from the Costayaco field is subject to an additional royalty that applies when cumulative gross production from a commercial field is greater than 5 MMbbl. This additional royalty is calculated on the difference between a trigger price defined by the Agencia Nacional de Hidrocarburos (National Hydrocarbons Agency) (“ANH”) and the sales price. The ANH has requested that the additional compensation be paid with respect to production from wells relating to the Moqueta discovery and has initiated a non-compliance procedure under the Chaza Contract. The Moqueta discovery is not located in the Costayaco Exploitation Area. Further, Gran Tierra views the Costayaco field and the Moqueta discovery as two clearly separate and independent hydrocarbon accumulations. Therefore, it is Gran Tierra’s view that it is clear that, pursuant to the Chaza Contract, the additional compensation payments are only to be paid with respect to production from the Moqueta wells when the accumulated oil production from any new Exploitation Area created with respect to the Moqueta discovery exceeds 5 MMbbl. Discussions with the ANH have not resolved this issue and Gran Tierra has initiated the dispute resolution process and filed an arbitration claim. As at September 30, 2013, total cumulative production from the Moqueta field was 1.9 MMbbl. The estimated compensation which would be payable on cumulative production to date if the ANH’s interpretation is successful is $31.7 million. At this time, no amount has been accrued in the condensed consolidated financial statements nor deducted from the Company's reserves as Gran Tierra does not consider it probable that a loss will be incurred. | |
Additionally, the ANH and Gran Tierra Colombia are engaged in discussions regarding the interpretation of whether certain transportation and related costs are eligible to be deducted in the calculation of the additional royalty. Discussions with the ANH are ongoing. As at September 30, 2013, the estimated compensation which would be payable if the ANH’s interpretation is successful is $23.4 million. At this time, no amount has been accrued in the condensed consolidated financial statements as Gran Tierra does not consider it probable that a loss will be incurred. | |
Gran Tierra has several lawsuits and claims pending. Although the outcome of these lawsuits and disputes cannot be predicted with certainty, Gran Tierra believes the resolution of these matters would not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Gran Tierra records costs as they are incurred or become probable and determinable. | |
Letters of credit | |
At September 30, 2013, the Company had provided promissory notes totaling $49.6 million (December 31, 2012 - $34.2 million) as security for letters of credit relating to work commitment guarantees contained in exploration contracts and other capital or operating requirements. |
Financial_Instruments_Fair_Val
Financial Instruments, Fair Value Measurements and Credit Risk | 9 Months Ended |
Sep. 30, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Financial Instruments, Fair Value Measurements and Credit Risk | ' |
Financial Instruments, Fair Value Measurements and Credit Risk | |
At September 30, 2013, the Company’s financial instruments recognized in the balance sheet consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities, and contingent consideration and contingent liability included in other long-term liabilities. The fair value of long-term restricted cash approximates its carrying value because interest rates are variable and reflective of market rates. Contingent consideration, which relates to the acquisition of the remaining 30% working interest in certain properties in Brazil in October 2012, was recorded on the balance sheet at the acquisition date fair value based on the consideration expected to be transferred and discounted back to present value by applying an appropriate discount rate that reflected the risk factors associated with the payment streams. The discount rate used was determined at the time of measurement in accordance with accepted valuation methods. The contingent liability which relates to a dispute with Ecopetrol (Note 8) was based on the fair value of the amount awarded. The fair value of the contingent consideration and contingent liability is being remeasured at the estimated fair value at each reporting period with the change in fair value recognized as income or expense in operating income. The fair value of the contingent consideration was $1.1 million at September 30, 2013, and December 31, 2012. The fair value of the contingent liability was $4.4 million at September 30, 2013. The fair values of other financial instruments approximate their carrying amounts due to the short-term maturity of these instruments. At September 30, 2013, and December 31, 2012, the Company held no derivative instruments. | |
GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels. Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets and liabilities and have the highest priority. Level 2 and 3 inputs are based on significant other observable inputs and significant unobservable inputs, respectively, and have lower priorities. The Company uses appropriate valuation techniques based on the available inputs to measure the fair values of assets and liabilities. The fair value of the contingent consideration payable in connection with the Brazil acquisition was determined using Level 3 inputs at September 30, 2013, and December 31, 2012. The disclosure in the paragraph above regarding the fair value of other financial instruments is based on Level 1 inputs. | |
Credit risk arises from the potential that the Company may incur a loss if a counterparty to a financial instrument fails to meet its obligation in accordance with agreed terms. The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and accounts receivable. The carrying value of cash and accounts receivable reflects management’s assessment of credit risk. | |
At September 30, 2013, cash and cash equivalents and restricted cash included balances in savings and checking accounts, as well as term deposits and certificates of deposit, placed primarily with financial institutions with strong investment grade ratings or governments, or the equivalent in the Company’s operating areas. Any foreign currency transactions are conducted on a spot basis, with major financial institutions in the Company’s operating areas. | |
Most of the Company’s accounts receivable relate to uncollateralized sales to customers in the oil and natural gas industry and are exposed to typical industry credit risks. The concentration of revenues 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. The Company manages this credit risk by entering into sales contracts with only credit worthy entities and reviewing its exposure to individual entities on a regular basis. For the nine months ended September 30, 2013, the Company had two customers which were significant to the Colombian segment, three customers which were significant to the Argentina segment and one customer which was significant to the Brazilian segment. | |
For the nine months ended September 30, 2013, 87% (nine months ended September 30, 2012 - 86%) of the Company's revenue and other income was generated in Colombia. | |
Additionally, foreign exchange gains and losses mainly result from fluctuation of the U.S. dollar to the Colombian peso due to Gran Tierra’s current and deferred tax liabilities, which are monetary liabilities mainly denominated in the local currency of the Colombian foreign operations. As a result, foreign exchange gains and losses must be calculated on conversion to the U.S. dollar functional currency. A strengthening in the Colombian peso against the U.S. dollar results in foreign exchange losses, estimated at $95,000 for each one peso decrease in the exchange rate of the Colombian peso to one U.S. dollar. | |
The Argentina government has imposed a number of monetary and currency exchange control measures that include restrictions on the free disposition of funds deposited with banks and tight restrictions on transferring funds abroad, with certain exceptions for transfers related to foreign trade and other authorized transactions approved by the Argentina Central Bank. The Argentina Central Bank may require prior authorization and may or may not grant such authorization for Gran Tierra's Argentina subsidiaries to make dividends or loan payments to the Company. During the three months ended June 30, 2013, the Company repatriated $11.1 million from one of its Argentina subsidiaries through loan repayments, authorized by the Argentina Central Bank. These were repayments of loan principal and as such had no withholding tax applied. At September 30, 2013, $20.3 million, or 6%, of the Company's cash and cash equivalents was deposited with banks in Argentina. We expect to use these funds for the Argentina work program and operations in 2013. |
Credit_Facilities
Credit Facilities | 9 Months Ended |
Sep. 30, 2013 | |
Line of Credit Facility [Abstract] | ' |
Credit Facilities | ' |
Credit Facilities | |
At September 30, 2013, a subsidiary of Gran Tierra had a credit facility with a syndicate of banks, led by Wells Fargo Bank National Association as administrative agent. This reserve-based facility has a current borrowing base of $150 million and a maximum borrowing base of up to $300 million and is supported by the present value of the petroleum reserves of two of the Company’s subsidiaries with operating branches in Colombia and the Company's subsidiary in Brazil. Amounts drawn down under the facility bear interest at the U.S. dollar LIBOR rate plus a margin ranging between 2.25% and 3.25% per annum depending on the rate of borrowing base utilization. In addition, a stand-by fee of 0.875% per annum is charged on the unutilized balance of the committed borrowing base and is included in G&A expenses. The credit facility was entered into on August 30, 2013 and became effective on October 31, 2013 for a three-year term. Subsequent to the effective date, the Company has not drawn down any amounts under the new credit facility. Under the terms of the facility, the Company is required to maintain and was in compliance with certain financial and operating covenants. Under the terms of the credit facility, the Company cannot pay any dividends to its shareholders if it is in default under the facility and, if the Company is not in default, then it is required to obtain bank approval for any dividend payments exceeding $2 million in any fiscal year. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
On August 7, 2012, Gran Tierra entered into a contract related to the Brazil drilling program with a company for which one of Gran Tierra’s directors is a shareholder and was a director. During the three and nine months ended September 30, 2013, $4.2 million and $11.8 million, respectively, (three and nine months ended September 30, 2012 - $nil) was incurred and capitalized under this contract. At September 30, 2013, $2.3 million (December 31, 2012 - $1.1 million) was included in accounts payable relating to this contract. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Restricted Stock Units | ' |
Restricted Stock Units | |
In May 2013, the Company's Board of Directors determined that the Company will annually grant time-vested restricted stock units ("RSUs") to officers, employees and consultants. RSUs entitle the holder to receive, at the option of the Company, either the underlying number of shares of the Company's Common Stock upon vesting of such shares or a cash payment equal to the value of the underlying shares. The Company expects its practice will be to settle RSUs in cash and, therefore, RSUs are accounted for as liability instruments. Compensation expense for RSUs granted is based on the estimated fair value, which is determined using the closing share price, at each reporting date, and the expense, net of estimated forfeitures, is recognized over the requisite service period using the accelerated method, with a corresponding change to liabilities. An adjustment is made to compensation expense for any difference between the estimated forfeitures and the actual forfeitures related to vested awards. Additionally, the Company will continue to grant options to purchase shares of Common Stock to certain directors, officers, employees and consultants. Stock-based compensation expense relating to RSUs and stock options is capitalized as part of oil and natural gas properties or expensed as part of operating expenses or general and administrative (“G&A”) expenses, as appropriate. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is fixed at the Reporting Date | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013- 04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is fixed at the Reporting Date”. The ASU provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. Examples of obligations within the scope of this update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The implementation of this update is not expected to materially impact the Company’s consolidated financial position, results of operations or cash flows. | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". The ASU provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The implementation of this update is not expected to materially impact the Company’s consolidated financial position, results of operations or cash flows. |
Segment_and_Geographic_Reporti1
Segment and Geographic Reporting (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Reportable Geographic Segments | ' | |||||||||||||||||||||||
The following tables present information on the Company’s reportable segments and other activities: | ||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Oil and natural gas sales | $ | 164,241 | $ | 18,149 | $ | — | $ | 6,584 | $ | — | $ | 188,974 | ||||||||||||
Interest income | 111 | 164 | — | 281 | 128 | 684 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment | 46,821 | 7,606 | 73 | 4,129 | 246 | 58,875 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment - per unit of production | 27.48 | 30.51 | — | 59.72 | — | 29.12 | ||||||||||||||||||
Income (loss) before income taxes | 89,214 | (4,164 | ) | (1,404 | ) | (337 | ) | (4,667 | ) | 78,642 | ||||||||||||||
Segment capital expenditures (1) | $ | 39,608 | $ | 8,159 | $ | 11,063 | $ | (22,500 | ) | $ | 289 | $ | 36,619 | |||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Oil and natural gas sales | $ | 145,610 | $ | 22,332 | $ | — | $ | 674 | $ | — | $ | 168,616 | ||||||||||||
Interest income | 171 | 10 | — | 40 | 96 | 317 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment | 35,255 | 9,165 | 68 | 305 | 251 | 45,044 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment - per unit of production | 24.46 | 26.6 | — | 40.35 | — | 25.12 | ||||||||||||||||||
Income (loss) before income taxes | 79,915 | 1,777 | (847 | ) | (1,170 | ) | (3,662 | ) | 76,013 | |||||||||||||||
Segment capital expenditures | $ | 35,880 | $ | 11,568 | $ | 11,204 | $ | 2,838 | $ | 300 | $ | 61,790 | ||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Oil and natural gas sales | $ | 488,577 | $ | 54,620 | $ | — | $ | 18,738 | $ | — | $ | 561,935 | ||||||||||||
Interest income | 415 | 710 | 27 | 292 | 460 | 1,904 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment | 141,141 | 22,986 | 272 | 15,143 | 767 | 180,309 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment - per unit of production | 27.58 | 27.79 | — | 75.74 | — | 29.35 | ||||||||||||||||||
Income (loss) before income taxes | 275,353 | (6,183 | ) | (4,984 | ) | (3,663 | ) | (12,409 | ) | 248,114 | ||||||||||||||
Segment capital expenditures (1) | $ | 118,758 | $ | 12,424 | $ | 59,911 | $ | 12,021 | $ | 528 | $ | 203,642 | ||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Oil and natural gas sales | $ | 376,261 | $ | 59,183 | $ | — | $ | 2,962 | $ | — | $ | 438,406 | ||||||||||||
Interest income | 598 | 96 | 15 | 607 | 312 | 1,628 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment | 90,625 | 23,080 | 1,174 | 22,379 | 724 | 137,982 | ||||||||||||||||||
Depletion, depreciation, accretion and impairment - per unit of production | 24.96 | 24.54 | — | 708.76 | — | 29.98 | ||||||||||||||||||
Income (loss) before income taxes | 182,516 | 2,568 | (4,147 | ) | (24,467 | ) | (16,794 | ) | 139,676 | |||||||||||||||
Segment capital expenditures | $ | 98,476 | $ | 28,412 | $ | 43,866 | $ | 44,536 | $ | 695 | $ | 215,985 | ||||||||||||
(1) In the third quarter of 2013, segment capital expenditures in Brazil are net of proceeds of $54.0 million relating to termination of a farm-in agreement. Additionally, segment capital expenditures for the nine months ended September 30, 2013, are net of proceeds of $4.1 million relating to the Company's assumption of the remaining 50% working interest in the Santa Victoria Block in Argentina and $1.5 million relating to the Company's sale of its 15% working interest in the Mecaya Block in Colombia (Note 4). | ||||||||||||||||||||||||
Long-lived Assets by Geographical Area | ' | |||||||||||||||||||||||
As at September 30, 2013 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Property, plant and equipment | $ | 822,522 | $ | 128,799 | $ | 155,579 | $ | 124,418 | $ | 3,058 | $ | 1,234,376 | ||||||||||||
Goodwill | 102,581 | — | — | — | — | 102,581 | ||||||||||||||||||
Other assets | 267,186 | 37,320 | 18,285 | 50,555 | 184,115 | 557,461 | ||||||||||||||||||
Total Assets | $ | 1,192,289 | $ | 166,119 | $ | 173,864 | $ | 174,973 | $ | 187,173 | $ | 1,894,418 | ||||||||||||
As at December 31, 2012 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Argentina | Peru | Brazil | All Other | Total | ||||||||||||||||||
Property, plant and equipment | $ | 840,027 | $ | 138,768 | $ | 95,940 | $ | 127,394 | $ | 3,297 | $ | 1,205,426 | ||||||||||||
Goodwill | 102,581 | — | — | — | — | 102,581 | ||||||||||||||||||
Other assets | 222,220 | 47,038 | 10,880 | 8,498 | 136,232 | 424,868 | ||||||||||||||||||
Total Assets | $ | 1,164,828 | $ | 185,806 | $ | 106,820 | $ | 135,892 | $ | 139,529 | $ | 1,732,875 | ||||||||||||
Property_Plant_and_Equipment_a1
Property, Plant and Equipment and Inventory (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||||||||||||
Schedule of Property, Plant and Equipment | ' | |||||||||||||||||||||||
Property, Plant and Equipment | ||||||||||||||||||||||||
As at September 30, 2013 | As at December 31, 2012 | |||||||||||||||||||||||
(Thousands of U.S. Dollars) | Cost | Accumulated | Net book value | Cost | Accumulated | Net book value | ||||||||||||||||||
depletion, | depletion, | |||||||||||||||||||||||
depreciation | depreciation | |||||||||||||||||||||||
and | and | |||||||||||||||||||||||
impairment | impairment | |||||||||||||||||||||||
Oil and natural gas properties | ||||||||||||||||||||||||
Proved | $ | 1,710,788 | $ | (920,595 | ) | $ | 790,193 | $ | 1,562,477 | $ | (749,230 | ) | $ | 813,247 | ||||||||||
Unproved | 435,082 | — | 435,082 | 383,414 | — | 383,414 | ||||||||||||||||||
2,145,870 | (920,595 | ) | 1,225,275 | 1,945,891 | (749,230 | ) | 1,196,661 | |||||||||||||||||
Furniture and fixtures and leasehold improvements | 8,215 | (6,203 | ) | 2,012 | 7,575 | (5,093 | ) | 2,482 | ||||||||||||||||
Computer equipment | 14,018 | (7,458 | ) | 6,560 | 10,971 | (5,248 | ) | 5,723 | ||||||||||||||||
Automobiles | 1,352 | (823 | ) | 529 | 1,376 | (816 | ) | 560 | ||||||||||||||||
Total Property, Plant and Equipment | $ | 2,169,455 | $ | (935,079 | ) | $ | 1,234,376 | $ | 1,965,813 | $ | (760,387 | ) | $ | 1,205,426 | ||||||||||
Schedule of capitalized general and administrative expenses | ' | |||||||||||||||||||||||
The amounts of G&A expenses and stock-based compensation capitalized in each of the Company's cost centers were as follows: | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Argentina | Peru | Brazil | Total | |||||||||||||||||||
Capitalized G&A, including stock-based compensation | $ | 14,746 | $ | 2,896 | $ | 5,981 | $ | 5,813 | $ | 29,436 | ||||||||||||||
Capitalized stock-based compensation | $ | 794 | $ | 171 | $ | 571 | $ | 566 | $ | 2,102 | ||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Argentina | Peru | Brazil | Total | |||||||||||||||||||
Capitalized G&A, including stock-based compensation | $ | 9,279 | $ | 3,480 | $ | 3,670 | $ | 2,653 | $ | 19,082 | ||||||||||||||
Capitalized stock-based compensation | $ | 376 | $ | 275 | $ | — | $ | 216 | $ | 867 | ||||||||||||||
Share_Capital_Tables
Share Capital (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
RSU's and Stock options outstanding | ' | ||||||||||||||||
The following table provides information about long-term incentive plan ("LTIP") activity for the nine months ended September 30, 2013: | |||||||||||||||||
RSUs | Options | ||||||||||||||||
Number of Outstanding Share Units | Number of Outstanding Options | Weighted Average Exercise Price $/Option | |||||||||||||||
Balance, December 31, 2012 | — | 15,399,662 | 5.11 | ||||||||||||||
Granted | 939,365 | 2,066,935 | 6.27 | ||||||||||||||
Exercised | — | (1,247,818 | ) | (2.79 | ) | ||||||||||||
Forfeited | (21,655 | ) | (284,835 | ) | (6.17 | ) | |||||||||||
Expired | — | (102,593 | ) | (6.57 | ) | ||||||||||||
Balance, September 30, 2013 | 917,710 | 15,831,351 | 5.42 | ||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | ' | ||||||||||||||||
The amounts recognized for stock-based compensation were as follows: | |||||||||||||||||
(Thousands of U.S. Dollars) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Compensation costs for stock options | $ | 2,132 | $ | 3,268 | $ | 6,314 | $ | 10,721 | |||||||||
Compensation costs for RSUs | 1,282 | — | 1,901 | — | |||||||||||||
3,414 | 3,268 | 8,215 | 10,721 | ||||||||||||||
Less: stock-based compensation costs capitalized | (1,717 | ) | (336 | ) | (2,102 | ) | (867 | ) | |||||||||
Total stock-based compensation expense | $ | 1,697 | $ | 2,932 | $ | 6,113 | $ | 9,854 | |||||||||
Weighted average shares outstanding | ' | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average number of common and exchangeable shares outstanding | 283,092,224 | 281,695,212 | 282,687,871 | 280,387,484 | |||||||||||||
Shares issuable pursuant to warrants | — | — | — | 235,582 | |||||||||||||
Shares issuable pursuant to stock options | 12,428,489 | 5,643,730 | 10,823,968 | 5,947,880 | |||||||||||||
Shares assumed to be purchased from proceeds of stock options | (9,494,194 | ) | (2,733,780 | ) | (7,691,832 | ) | (2,602,562 | ) | |||||||||
Weighted average number of diluted common and exchangeable shares outstanding | 286,026,519 | 284,605,162 | 285,820,007 | 283,968,384 | |||||||||||||
Asset_Retirement_Obligation_Ta
Asset Retirement Obligation (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Asset Retirement Obligation [Abstract] | ' | |||||||
Changes in Asset Retirement Obligations | ' | |||||||
Changes in the carrying amounts of the asset retirement obligation associated with the Company’s oil and natural gas properties were as follows: | ||||||||
Nine Months Ended | Year Ended | |||||||
(Thousands of U.S. Dollars) | September 30, 2013 | 31-Dec-12 | ||||||
Balance, beginning of year | $ | 18,292 | $ | 12,669 | ||||
Settlements | (2,068 | ) | (404 | ) | ||||
Liability incurred | 1,397 | 5,190 | ||||||
Liability assumed in a business combination | — | 410 | ||||||
Foreign exchange | (23 | ) | 45 | |||||
Accretion | 918 | 998 | ||||||
Revisions in estimated liability | 1,872 | (616 | ) | |||||
Balance, end of period | $ | 20,388 | $ | 18,292 | ||||
Asset retirement obligation - current | $ | — | $ | 28 | ||||
Asset retirement obligation - long-term | 20,388 | 18,264 | ||||||
Balance, end of period | $ | 20,388 | $ | 18,292 | ||||
Taxes_Tables
Taxes (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income tax expense reported reconciliation to computed statutory rate | ' | |||||||
The income tax expense reported differs from the amount computed by applying the U.S. statutory rate to income before income taxes for the following reasons: | ||||||||
Nine Months Ended September 30, | ||||||||
(Thousands of U.S. Dollars) | 2013 | 2012 | ||||||
Income (loss) before income taxes | ||||||||
United States | $ | (8,488 | ) | $ | (7,942 | ) | ||
Foreign | 256,602 | 147,618 | ||||||
248,114 | 139,676 | |||||||
35 | % | 35 | % | |||||
Income tax expense expected | 86,840 | 48,887 | ||||||
Foreign currency translation adjustments | (7,649 | ) | 8,025 | |||||
Impact of foreign taxes | 1,908 | 2,716 | ||||||
Stock-based compensation | 1,943 | 3,277 | ||||||
Increase in valuation allowance | 22,700 | 9,304 | ||||||
Branch and other foreign loss pick-up | (2,013 | ) | (4,358 | ) | ||||
Non-deductible third party royalty in Colombia | 8,812 | 9,951 | ||||||
Other permanent differences | (3,180 | ) | 4,478 | |||||
Total income tax expense | $ | 109,361 | $ | 82,280 | ||||
Current income tax expense | ||||||||
United States | $ | 813 | $ | 778 | ||||
Foreign | 132,339 | 90,357 | ||||||
133,152 | 91,135 | |||||||
Deferred income tax recovery | ||||||||
United States | — | — | ||||||
Foreign | (23,791 | ) | (8,855 | ) | ||||
(23,791 | ) | (8,855 | ) | |||||
Total income tax expense | $ | 109,361 | $ | 82,280 | ||||
Deferred tax assets and liabilities | ' | |||||||
As at | ||||||||
(Thousands of U.S. Dollars) | September 30, 2013 | 31-Dec-12 | ||||||
Deferred Tax Assets | ||||||||
Tax benefit of operating loss carryforwards | $ | 53,693 | $ | 51,920 | ||||
Tax basis in excess of book basis | 44,500 | 22,519 | ||||||
Foreign tax credits and other accruals | 30,550 | 30,926 | ||||||
Tax benefit of capital loss carryforwards | 4,835 | 4,779 | ||||||
Deferred tax assets before valuation allowance | 133,578 | 110,144 | ||||||
Valuation allowance | (129,412 | ) | (106,226 | ) | ||||
$ | 4,166 | $ | 3,918 | |||||
Deferred tax assets - current | $ | 2,090 | $ | 2,517 | ||||
Deferred tax assets - long-term | 2,076 | 1,401 | ||||||
4,166 | 3,918 | |||||||
Deferred tax liabilities - current | (1,643 | ) | (337 | ) | ||||
Deferred tax liabilities - long-term | (183,925 | ) | (225,195 | ) | ||||
(185,568 | ) | (225,532 | ) | |||||
Net Deferred Tax Liabilities | $ | (181,402 | ) | $ | (221,614 | ) | ||
Schedule of Unrecognized Tax Benefits Roll Forward | ' | |||||||
Changes in the Company's unrecognized tax benefit are as follows: | ||||||||
Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
(Thousands of U.S. Dollars) | ||||||||
Unrecognized tax benefit at beginning of period | $ | 21,800 | $ | 20,500 | ||||
Changes for positions relating to prior year | (2,000 | ) | — | |||||
Unrecognized tax benefit at end of period | $ | 19,800 | $ | 20,500 | ||||
Segment_and_Geographic_Reporti2
Segment and Geographic Reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Oil and natural gas sales | $188,974 | $168,616 | $561,935 | $438,406 | ||
Interest income | 684 | 317 | 1,904 | 1,628 | ||
Depletion, depreciation, accretion and impairment | 58,875 | 45,044 | 180,309 | 137,982 | ||
Depletion, depreciation, accretion and impairment - per unit of production | 29.12 | 25.12 | 29.35 | 29.98 | ||
Income (loss) before income taxes | 78,642 | 76,013 | 248,114 | 139,676 | ||
Segment capital expenditures | 36,619 | [1] | 61,790 | 203,642 | [1] | 215,985 |
Colombia [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Oil and natural gas sales | 164,241 | 145,610 | 488,577 | 376,261 | ||
Interest income | 111 | 171 | 415 | 598 | ||
Depletion, depreciation, accretion and impairment | 46,821 | 35,255 | 141,141 | 90,625 | ||
Depletion, depreciation, accretion and impairment - per unit of production | 27.48 | 24.46 | 27.58 | 24.96 | ||
Income (loss) before income taxes | 89,214 | 79,915 | 275,353 | 182,516 | ||
Segment capital expenditures | 39,608 | [1] | 35,880 | 118,758 | [1] | 98,476 |
Argentina [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Oil and natural gas sales | 18,149 | 22,332 | 54,620 | 59,183 | ||
Interest income | 164 | 10 | 710 | 96 | ||
Depletion, depreciation, accretion and impairment | 7,606 | 9,165 | 22,986 | 23,080 | ||
Depletion, depreciation, accretion and impairment - per unit of production | 30.51 | 26.6 | 27.79 | 24.54 | ||
Income (loss) before income taxes | -4,164 | 1,777 | -6,183 | 2,568 | ||
Segment capital expenditures | 8,159 | [1] | 11,568 | 12,424 | [1] | 28,412 |
Peru [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Oil and natural gas sales | 0 | 0 | 0 | 0 | ||
Interest income | 0 | 0 | 27 | 15 | ||
Depletion, depreciation, accretion and impairment | 73 | 68 | 272 | 1,174 | ||
Depletion, depreciation, accretion and impairment - per unit of production | 0 | 0 | 0 | 0 | ||
Income (loss) before income taxes | -1,404 | -847 | -4,984 | -4,147 | ||
Segment capital expenditures | 11,063 | [1] | 11,204 | 59,911 | [1] | 43,866 |
Brazil [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Oil and natural gas sales | 6,584 | 674 | 18,738 | 2,962 | ||
Interest income | 281 | 40 | 292 | 607 | ||
Depletion, depreciation, accretion and impairment | 4,129 | 305 | 15,143 | 22,379 | ||
Depletion, depreciation, accretion and impairment - per unit of production | 59.72 | 40.35 | 75.74 | 708.76 | ||
Income (loss) before income taxes | -337 | -1,170 | -3,663 | -24,467 | ||
Segment capital expenditures | -22,500 | [1] | 2,838 | 12,021 | [1] | 44,536 |
All Other [Member] | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||
Oil and natural gas sales | 0 | 0 | 0 | 0 | ||
Interest income | 128 | 96 | 460 | 312 | ||
Depletion, depreciation, accretion and impairment | 246 | 251 | 767 | 724 | ||
Depletion, depreciation, accretion and impairment - per unit of production | 0 | 0 | 0 | 0 | ||
Income (loss) before income taxes | -4,667 | -3,662 | -12,409 | -16,794 | ||
Segment capital expenditures | $289 | [1] | $300 | $528 | [1] | $695 |
[1] | In the third quarter of 2013, segment capital expenditures in Brazil are net of proceeds of $54.0 million relating to termination of a farm-in agreement. Additionally, segment capital expenditures for the nine months ended September 30, 2013, are net of proceeds of $4.1 million relating to the Company's assumption of the remaining 50% working interest in the Santa Victoria Block in Argentina and $1.5 million relating to the Company's sale of its 15% working interest in the Mecaya Block in Colombia (Note 4). |
Segment_and_Geographic_Reporti3
Segment and Geographic Reporting Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment | $1,234,376 | $1,205,426 |
Goodwill | 102,581 | 102,581 |
Other assets | 557,461 | 424,868 |
Total Assets | 1,894,418 | 1,732,875 |
Colombia [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment | 822,522 | 840,027 |
Goodwill | 102,581 | 102,581 |
Other assets | 267,186 | 222,220 |
Total Assets | 1,192,289 | 1,164,828 |
Argentina [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment | 128,799 | 138,768 |
Goodwill | 0 | 0 |
Other assets | 37,320 | 47,038 |
Total Assets | 166,119 | 185,806 |
Peru [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment | 155,579 | 95,940 |
Goodwill | 0 | 0 |
Other assets | 18,285 | 10,880 |
Total Assets | 173,864 | 106,820 |
Brazil [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment | 124,418 | 127,394 |
Goodwill | 0 | 0 |
Other assets | 50,555 | 8,498 |
Total Assets | 174,973 | 135,892 |
All Other [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property, plant and equipment | 3,058 | 3,297 |
Goodwill | 0 | 0 |
Other assets | 184,115 | 136,232 |
Total Assets | $187,173 | $139,529 |
Segment_and_Geographic_Reporti4
Segment and Geographic Reporting Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Proceeds from oil and gas properties | ' | ' | 59,621,000 | 0 |
Colombia [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Number of significant customers | ' | ' | 2 | 1 |
Colombia [Member] | Ecopetrol [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Sales to Ecopetrol, as a percentage of total revenue (in hundredths) | 56.00% | 71.00% | 52.00% | 77.00% |
Colombia [Member] | Other Customer Number One [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Number of other significant customers | ' | ' | 1 | ' |
Sales to Ecopetrol, as a percentage of total revenue (in hundredths) | 28.00% | ' | 29.00% | ' |
Colombia [Member] | Other Customer Number Two [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Sales to Ecopetrol, as a percentage of total revenue (in hundredths) | ' | 13.00% | ' | ' |
Brazil [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Proceeds from termination of farm-in agreement | 54,000,000 | ' | ' | ' |
Argentina [Member] | Santa Victoria Block [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Proceeds from assumption of oil and gas property | 4,100,000 | ' | ' | ' |
Working interest assumed from partner | 50.00% | ' | ' | ' |
Colombia [Member] | Mecaya Block [Member] | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Proceeds from oil and gas properties | 1,500,000 | ' | ' | ' |
Working interest sold, percentage | 15.00% | ' | ' | ' |
Property_Plant_and_Equipment_a2
Property, Plant and Equipment and Inventory (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | $2,169,455 | $1,965,813 |
Accumulated depletion, depreciation and impairment | -935,079 | -760,387 |
Total Property, Plant and Equipment (Note 4) | 1,234,376 | 1,205,426 |
Unproved oil and gas property full cost accounting | 435,082 | 383,414 |
Proved [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 1,710,788 | 1,562,477 |
Accumulated depletion, depreciation and impairment | -920,595 | -749,230 |
Total Property, Plant and Equipment (Note 4) | 790,193 | 813,247 |
Unproved [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Accumulated depletion, depreciation and impairment | 0 | 0 |
Total Property, Plant and Equipment (Note 4) | 435,082 | 383,414 |
Unproved oil and gas property full cost accounting | 435,082 | 383,414 |
Oil and natural gas properties depletable base under full cost accounting [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 2,145,870 | 1,945,891 |
Accumulated depletion, depreciation and impairment | -920,595 | -749,230 |
Total Property, Plant and Equipment (Note 4) | 1,225,275 | 1,196,661 |
Furniture and fixtures and leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 8,215 | 7,575 |
Accumulated depletion, depreciation and impairment | -6,203 | -5,093 |
Total Property, Plant and Equipment (Note 4) | 2,012 | 2,482 |
Computer equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 14,018 | 10,971 |
Accumulated depletion, depreciation and impairment | -7,458 | -5,248 |
Total Property, Plant and Equipment (Note 4) | 6,560 | 5,723 |
Automobiles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 1,352 | 1,376 |
Accumulated depletion, depreciation and impairment | -823 | -816 |
Total Property, Plant and Equipment (Note 4) | $529 | $560 |
Amounts_Capitalized_by_Cost_Ce
Amounts Capitalized by Cost Center (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Capitalized G&A, including stock-based compensation | $29,436 | $19,082 |
Capitalized stock-based compensation | 2,102 | 867 |
Colombia [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Capitalized G&A, including stock-based compensation | 14,746 | 9,279 |
Capitalized stock-based compensation | 794 | 376 |
Argentina [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Capitalized G&A, including stock-based compensation | 2,896 | 3,480 |
Capitalized stock-based compensation | 171 | 275 |
Peru [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Capitalized G&A, including stock-based compensation | 5,981 | 3,670 |
Capitalized stock-based compensation | 571 | 0 |
Brazil [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Capitalized G&A, including stock-based compensation | 5,813 | 2,653 |
Capitalized stock-based compensation | $566 | $216 |
Property_Plant_and_Equipment_a3
Property, Plant and Equipment and Inventory Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Minimum [Member] | Maximum [Member] | Block-BM-CAL-10 [Member] | Colombia [Member] | Colombia [Member] | Colombia [Member] | Argentina [Member] | Argentina [Member] | Argentina [Member] | Peru [Member] | Peru [Member] | Brazil [Member] | Brazil [Member] | Brazil [Member] | Brazil [Member] | Brazil [Member] | Brazil [Member] | Four out of Seven Blocks Unproved Oil and Gas Properties [Member] | ||||||
Mecaya Block [Member] | Santa Victoria Block [Member] | block | block | Brazil [Member] | |||||||||||||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and depletion | $59,100,000 | $43,000,000 | $172,700,000 | $120,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of oil and gas properties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 20,200,000 | ' | ' | ' | ' |
Purchase consideration for oil and gas regulatory approval | ' | ' | ' | ' | ' | ' | ' | 23,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working interest assumed from partner | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from assumption of oil and gas property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from oil and gas properties | ' | ' | 59,621,000 | 0 | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working interest sold, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from termination of farm-in agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54,000,000 | ' | ' | ' | ' | ' | ' |
Number of blocks successfully bid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Payments for signature bonus | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,400,000 | ' | ' |
Unproven properties relating to four blocks | 1,234,376,000 | ' | 1,234,376,000 | ' | 1,205,426,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 59,600,000 |
Number of unproved reserves blocks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' |
Unproved assets by cost center | 435,100,000 | ' | 435,100,000 | ' | 383,400,000 | ' | ' | ' | 163,000,000 | 175,900,000 | ' | 39,500,000 | 42,300,000 | ' | 154,600,000 | 95,100,000 | 78,000,000 | ' | ' | 70,100,000 | ' | ' | ' |
Costs transferred to depletable base within 5 years | 62.00% | ' | 62.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Oil and Gas Property, Transfer of Costs to Depletable Base, Time Period | ' | ' | ' | ' | ' | '5 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Crude oil inventories | 14,600,000 | ' | 14,600,000 | ' | 31,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Supplies | $1,800,000 | ' | $1,800,000 | ' | $2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share_Capital_Stock_Options_Ou
Share Capital Stock Options Outstanding (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Number of Outstanding Options | ' |
Balance, December 31, 2012 (in shares) | 15,399,662 |
Granted (in shares) | 2,066,935 |
Exercised (in shares) | -1,247,818 |
Forfeited (in shares) | -284,835 |
Expired (in shares) | -102,593 |
Balance, June 30, 2013 (in shares) | 15,831,351 |
Weighted Average Exercise Price $/Option | ' |
Weighted Average Exercise Price $/Option, beginning balance (in dollars per share) | $5.11 |
Weighted Average Exercise Price $/Option, Granted (in dollars per share) | $6.27 |
Weighted Average Exercise Price $/Options Exercised (in dollars per share) | ($2.79) |
Weighted Average Exercise Price $/Options, Forfeited (in dollars per share) | ($6.17) |
Weighted Average Exercise Price $/Options, Expired (in dollars per share) | ($6.57) |
Weighted Average Exercise Price $/Option, ending balance (in dollars per share) | $5.42 |
RSUs [Member] | ' |
Number of Outstanding Share Units | ' |
Balance, December 31, 2012 (in shares) | 0 |
Granted (in shares) | 939,365 |
Exercised (in shares) | 0 |
Forfeited (in shares) | -21,655 |
Expired (in shares) | 0 |
Balance, June 30, 2013 (in shares) | 917,710 |
Allocation_of_Share_Based_Comp
Allocation of Share Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Compensation cost | $3,414 | $3,268 | $8,215 | $10,721 |
Less: stock-based compensation costs capitalized | -1,717 | -336 | -2,102 | -867 |
Total stock-based compensation expense | 1,697 | 2,932 | 6,113 | 9,854 |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Compensation cost | 2,132 | 3,268 | 6,314 | 10,721 |
RSUs [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Compensation cost | $1,282 | $0 | $1,901 | $0 |
Weighted_Average_Shares_Detail
Weighted Average Shares (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Weighted average number of common and exchangeable shares outstanding | 283,092,224 | 281,695,212 | 282,687,871 | 280,387,484 |
Shares issuable pursuant to warrants | 0 | 0 | 0 | 235,582 |
Shares issuable pursuant to stock options | 12,428,489 | 5,643,730 | 10,823,968 | 5,947,880 |
Shares assumed to be purchased from proceeds of stock options | -9,494,194 | -2,733,780 | -7,691,832 | -2,602,562 |
Weighted average number of diluted common and exchangeable shares outstanding | 286,026,519 | 284,605,162 | 285,820,007 | 283,968,384 |
Share_Capital_Narrative_Detail
Share Capital Narrative (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
31-May-13 | Apr. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Authorized share capital | ' | ' | 595,000,002 | ' | 595,000,002 | ' | ' |
Common stock, authorized | ' | ' | 570,000,000 | ' | 570,000,000 | ' | ' |
Common shares, par value (in dollars per share) | ' | ' | $0.00 | ' | $0.00 | ' | $0.00 |
Preferred stock, authorized | ' | ' | 25,000,000 | ' | 25,000,000 | ' | ' |
Preferred stock, par value (in dollars per share) | ' | ' | $0.00 | ' | $0.00 | ' | ' |
Special voting stock-authorized (in shares) | ' | ' | 2 | ' | 2 | ' | ' |
Special voting stock-par value (in dollars per share) | ' | ' | $0.00 | ' | $0.00 | ' | ' |
Common shares, outstanding | ' | ' | 271,872,896 | ' | 271,872,896 | ' | 268,482,445 |
Stock issued during period upon exercise of stock options (in shares) | ' | ' | ' | ' | 1,247,818 | ' | ' |
Votes per common stock | ' | ' | ' | ' | 1 | ' | ' |
Common voting shares per exchangeable share (in shares) | ' | ' | ' | ' | 1 | ' | ' |
Stock option exercises in period (in shares) | ' | ' | ' | ' | -1,247,818 | ' | ' |
Cash received from exercise of stock options | ' | ' | ' | ' | $3,500,000 | $3,800,000 | ' |
Stock Options [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | 1,697,000 | 2,932,000 | 6,113,000 | 9,854,000 | ' |
Unvested stock options recognition period | ' | ' | ' | ' | '2 years 1 month 6 days | ' | ' |
General and Administrative Expense [Member] | ' | ' | ' | ' | ' | ' | ' |
Stock Options [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | 1,300,000 | 2,600,000 | 5,300,000 | 8,900,000 | ' |
Stock Options [Member] | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Option term | '5 years | '10 years | ' | ' | ' | ' | ' |
Option term after leaving service of company | '3 months | '3 months | ' | ' | ' | ' | ' |
Weighted average volatility rate | ' | ' | 43.00% | ' | 53.00% | ' | 75.00% |
Weighted Average Grant Date Fair Value $/Option, Granted in Period | ' | ' | $2.34 | $2.62 | $2.62 | $3.36 | ' |
Stock Options [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to unvested stock options | ' | ' | 11,300,000 | ' | 11,300,000 | ' | 8,200,000 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Options excluded from the diluted income per share calculation | ' | ' | 3,472,472 | 9,957,585 | 5,584,732 | 9,808,758 | ' |
Stock Options [Member] | Operating Expense [Member] | ' | ' | ' | ' | ' | ' | ' |
Stock Options [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | $400,000 | $300,000 | $800,000 | $900,000 | ' |
Vesting Rateable on March 1, 2014, 2015 and 2016 [Member] | RSUs [Member] | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Award vesting percentage | 33.33% | ' | ' | ' | ' | ' | ' |
Gran Tierra Exchangeco Inc [Member] | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Exchangeable shares outstanding (in shares) | ' | ' | 6,744,728 | ' | 6,744,728 | ' | ' |
Exchange shares issued during period | ' | ' | ' | ' | 452,950 | ' | ' |
Gran Tierra Goldstrike Inc [Member] | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Exchangeable shares outstanding (in shares) | ' | ' | 4,534,127 | ' | 4,534,127 | ' | ' |
Exchange shares issued during period | ' | ' | ' | ' | 1,689,683 | ' | ' |
Asset_Retirement_Obligation_De
Asset Retirement Obligation (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ' | ' | ' |
Balance, beginning of year | $18,292,000 | $12,669,000 | $12,669,000 |
Settlements | -2,068,000 | ' | -404,000 |
Liability incurred | 1,397,000 | ' | 5,190,000 |
Liability assumed in a business combination | 0 | ' | 410,000 |
Foreign exchange | -23,000 | ' | 45,000 |
Accretion | 918,000 | ' | 998,000 |
Revisions in estimated liability | 1,872,000 | ' | -616,000 |
Balance, end of period | 20,388,000 | ' | 18,292,000 |
Asset retirement obligation - current | 0 | ' | 28,000 |
Asset retirement obligation - long-term | 20,388,000 | ' | 18,264,000 |
Cash settlement of asset retirement obligation | -927,000 | -404,000 | ' |
Fair value of legally restricted assets | $1,900,000 | ' | $1,300,000 |
Income_Tax_Reconciliation_Deta
Income Tax Reconciliation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income (loss) before income taxes | ' | ' | ' | ' |
United States | ' | ' | ($8,488) | ($7,942) |
Foreign | ' | ' | 256,602 | 147,618 |
INCOME BEFORE INCOME TAXES | 78,642 | 76,013 | 248,114 | 139,676 |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ' | ' | ' | ' |
Effective income tax rate | ' | ' | 35.00% | 35.00% |
Income tax expense expected | ' | ' | 86,840 | 48,887 |
Foreign currency translation adjustments | ' | ' | -7,649 | 8,025 |
Impact of foreign taxes | ' | ' | 1,908 | 2,716 |
Stock-based compensation | ' | ' | 1,943 | 3,277 |
Increase in valuation allowance | ' | ' | 22,700 | 9,304 |
Branch and other foreign loss pick-up | ' | ' | -2,013 | -4,358 |
Non-deductible third party royalty in Colombia | ' | ' | 8,812 | 9,951 |
Other permanent differences | ' | ' | -3,180 | 4,478 |
Total income tax expense | 45,585 | 31,408 | 109,361 | 82,280 |
Current income tax expense | ' | ' | ' | ' |
United States | ' | ' | 813 | 778 |
Foreign | ' | ' | 132,339 | 90,357 |
Total Current income tax expense | ' | ' | 133,152 | 91,135 |
Deferred income tax recovery | ' | ' | ' | ' |
United States | ' | ' | 0 | 0 |
Foreign | ' | ' | -23,791 | -8,855 |
Total Deferred income tax expense (recovery) | ' | ' | ($23,791) | ($8,855) |
Permanent_Differences_Reconcil
Permanent Differences Reconciliation (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Tax benefit of operating loss carryforwards | $53,693 | $51,920 |
Tax basis in excess of book basis | 44,500 | 22,519 |
Foreign tax credits and other accruals | 30,550 | 30,926 |
Tax benefit of capital loss carryforwards | 4,835 | 4,779 |
Deferred tax assets before valuation allowance | 133,578 | 110,144 |
Valuation allowance | -129,412 | -106,226 |
Deferred tax assets, net | 4,166 | 3,918 |
Deferred tax assets - current | 2,090 | 2,517 |
Deferred tax assets - long-term | 2,076 | 1,401 |
Deferred tax liabilities - current | -1,643 | -337 |
Deferred tax liabilities - long-term | -183,925 | -225,195 |
Deferred tax liabilities, net | -185,568 | -225,532 |
Net Deferred Tax Liabilities | ($181,402) | ($221,614) |
Unrecognized_Tax_Benefits_Roll
Unrecognized Tax Benefits Rollforward (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' |
Unrecognized tax benefit at beginning of period | $21,800 | $20,500 |
Changes for positions relating to prior year | -2,000 | 0 |
Unrecognized tax benefit at end of period | $19,800 | $20,500 |
Taxes_Narrative_Details
Taxes Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2012 | Mar. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
installment | ||||||
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' |
Operating loss carryforwards | ' | ' | $233,700,000 | ' | $213,100,000 | ' |
Capital losses before valuation allowance | ' | ' | 32,600,000 | ' | 35,900,000 | ' |
Net operating loss and capital loss carryforward from foreign subsidiaries | ' | ' | 233,800,000 | ' | 215,200,000 | ' |
Unrecognized tax benefits | 20,500,000 | ' | 19,800,000 | 20,500,000 | 21,800,000 | 20,500,000 |
Unrecognized tax benefits income tax penalties and interest expense | $0 | ' | $0 | $0 | ' | ' |
Equity tax rate (in hundredths) | ' | ' | 6.00% | ' | 6.00% | ' |
Equity tax for foreign operations - Columbia, number of semi-annual installments | ' | 8 | ' | ' | ' | ' |
Equity tax for foreign operations - Columbia, assessment term (in years) | ' | '4 years | ' | ' | ' | ' |
Contingencies_Details
Contingencies (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Pending Litigation Escopetrol [Member] | Pending Litigation Escopetrol [Member] | Pending Litigation Moqueta Discovery [Member] | Pending Litigation Royalty, Transportation and Related Costs [Member] | ||
bbl | bbl | |||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Loss Contingency, Loss in Period, Barrels of Oil | ' | ' | 44,025 | ' | ' | ' |
Value of damages sought for loss contingency | ' | ' | ' | $4.40 | $31.70 | $23.40 |
Threshold by which additional royalty due (barrels) | ' | ' | ' | ' | 5,000,000 | ' |
Total cumulative production of oil field (barrels) | ' | ' | ' | ' | 1,900,000 | ' |
Promissory notes provided as collateral for letters of credit | $49.60 | $34.20 | ' | ' | ' | ' |
Financial_Instruments_Fair_Val1
Financial Instruments, Fair Value Measurements and Credit Risk (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 08, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Colombia [Member] | Colombia [Member] | Colombia [Member] | Colombia [Member] | Argentina [Member] | Argentina [Member] | Brazil [Member] | Pending Litigation Escopetrol [Member] | Block-Brazil [Member] | Block-Brazil [Member] | Block-Brazil [Member] | ||
customer | customer | Sales Revenue, Segment [Member] | Sales Revenue, Segment [Member] | customer | customer | |||||||
Geographic Concentration Risk [Member] | Geographic Concentration Risk [Member] | |||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Participating interest percentage oil and gas property, remaining percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' |
Fair value of contingent consideration payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,100,000 | $1,100,000 |
Value of damages sought for loss contingency | ' | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | ' | ' | ' |
Number of significant customers | ' | 2 | 1 | ' | ' | ' | 3 | 1 | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | ' | 87.00% | 86.00% | ' | ' | ' | ' | ' | ' | ' |
Foreign exchange losses, Colombian peso to U.S. dollar | 95,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from argentinian subsidiary | ' | ' | ' | ' | ' | 11,100,000 | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents on deposit with local Argentinian banks | ' | ' | ' | ' | ' | $20,300,000 | $20,300,000 | ' | ' | ' | ' | ' |
Cash and cash equivalents on deposit with local Argentinian bank, percent | ' | ' | ' | ' | ' | 6.00% | 6.00% | ' | ' | ' | ' | ' |
Credit_Facilities_Details
Credit Facilities (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Subsidiary | Foreign Line of Credit [Member] | Wells Fargo Bank, N.A. [Member] | Wells Fargo Bank, N.A. [Member] | Wells Fargo Bank, N.A. [Member] | Wells Fargo Bank, N.A. [Member] | |
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |||
Colombia [Member] | Minimum [Member] | Maximum [Member] | ||||
Foreign Line of Credit [Member] | LIBOR [Member] | LIBOR [Member] | ||||
Subsequent Event [Member] | ||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' |
Current borrowing capacity | ' | ' | $150,000,000 | ' | ' | ' |
Maximum borrowing capacity | ' | ' | 300,000,000 | ' | ' | ' |
Number of subsidiaries used as collateral for reserve based facility | 2 | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | 2.25% | 3.25% |
Stand-by fee on unutilized balance | ' | ' | 0.88% | ' | ' | ' |
Term of credit facility | ' | ' | ' | '3 years | ' | ' |
Max dividends payment allowable | ' | $2,000,000 | ' | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Accounts payable, Brazil drilling program | $70,783,000 | ' | $70,783,000 | ' | $102,263,000 |
Director - Brazil drilling program related party [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Capitalization of Brazil drilling program | 4,200,000 | 0 | 11,800,000 | 0 | ' |
Accounts payable, Brazil drilling program | $2,300,000 | ' | $2,300,000 | ' | $1,100,000 |