Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 24, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | GRAN TIERRA ENERGY INC. | ||
Entity Central Index Key | 1273441 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $2.20 | ||
Entity Common Stock, Shares Outstanding | 276,108,951 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Retained Earnings (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUE AND OTHER INCOME | |||
Oil and natural gas sales | $559,398 | $646,955 | $503,467 |
Interest income | 2,856 | 2,174 | 1,709 |
Total revenue and other income | 562,254 | 649,129 | 505,176 |
EXPENSES | |||
Operating | 113,949 | 110,172 | 92,207 |
Depletion, depreciation, accretion and impairment | 451,003 | 202,851 | 150,570 |
General and administrative | 51,249 | 41,115 | 46,659 |
Financial instruments loss | 4,722 | 0 | 0 |
Other loss | 0 | 4,400 | 0 |
Other gain | -2,000 | 0 | -9,336 |
Foreign exchange (gain) loss | -39,535 | -18,693 | 28,727 |
Total expenses | 579,388 | 339,845 | 308,827 |
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -17,134 | 309,284 | 196,349 |
Income tax expense | -127,215 | -128,261 | -96,267 |
(Loss) Income from Continuing Operations Attributable to Parent | -144,349 | 181,023 | 100,082 |
Loss from discontinued operations, net of income taxes | -26,990 | -54,735 | -423 |
NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) | -171,339 | 126,288 | 99,659 |
RETAINED EARNINGS, BEGINNING OF YEAR | 410,961 | 284,673 | 185,014 |
RETAINED EARNINGS, END OF YEAR | $239,622 | $410,961 | $284,673 |
BASIC | |||
INCOME (LOSS) FROM CONTINUING OPERATIONS (in dollars per share) | ($0.51) | $0.64 | $0.35 |
LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES (in dollars per share) | ($0.09) | ($0.19) | $0 |
NET INCOME (LOSS) (in dollars per share) | ($0.60) | $0.45 | $0.35 |
DILUTED | |||
INCOME (LOSS) FROM CONTINUING OPERATIONS (in dollars per share) | ($0.51) | $0.63 | $0.35 |
LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES (in dollars per share) | ($0.09) | ($0.19) | $0 |
NET INCOME (LOSS) (in dollars per share) | ($0.60) | $0.44 | $0.35 |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC | 284,715,785 | 282,808,497 | 280,741,255 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED | 284,715,785 | 286,127,897 | 284,172,254 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations and Retained Earnings (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Comprehensive Income (Loss) | ($171,339) | $126,288 | $99,659 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $331,848 | $428,800 |
Restricted cash | 1,836 | 1,478 |
Accounts receivable | 83,227 | 49,703 |
Marketable securities | 7,586 | 0 |
Inventory | 17,298 | 13,725 |
Taxes receivable | 15,843 | 9,980 |
Prepaids | 6,000 | 6,450 |
Deferred tax assets | 1,552 | 2,256 |
Total Current Assets | 465,190 | 512,392 |
Oil and Gas Properties (using the full cost method of accounting) | ||
Proved | 801,075 | 794,069 |
Unproved | 316,856 | 456,001 |
Total Oil and Gas Properties | 1,117,931 | 1,250,070 |
Other capital assets | 11,013 | 10,102 |
Total Property, Plant and Equipment | 1,128,944 | 1,260,172 |
Other Long-Term Assets | ||
Restricted cash | 2,037 | 2,300 |
Deferred tax assets | 601 | 1,407 |
Taxes receivable | 9,684 | 18,535 |
Other long-term assets | 5,013 | 7,163 |
Goodwill | 102,581 | 102,581 |
Total Other Long-Term Assets | 119,916 | 131,986 |
Total Assets | 1,714,050 | 1,904,550 |
Current Liabilities | ||
Accounts payable | 112,401 | 72,400 |
Accrued liabilities | 75,430 | 89,567 |
Foreign currency derivative | 3,057 | 0 |
Taxes payable | 25,412 | 102,887 |
Deferred tax liabilities | 1,040 | 1,193 |
Asset retirement obligation | 8,026 | 518 |
Total Current Liabilities | 225,366 | 266,565 |
Long-Term Liabilities | ||
Deferred tax liabilities | 175,324 | 177,082 |
Asset retirement obligation | 27,786 | 21,455 |
Other long-term liabilities | 8,889 | 9,540 |
Total Long-Term Liabilities | 211,999 | 208,077 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Common Stock (276,072,351 and 272,327,810 shares of Common Stock and 10,119,745 and 10,882,440 exchangeable shares, par value $0.001 per share, issued and outstanding as at December 31, 2014 and December 31, 2013, respectively) | 10,190 | 10,187 |
Additional paid in capital | 1,026,873 | 1,008,760 |
Retained earnings | 239,622 | 410,961 |
Total Shareholders’ Equity | 1,276,685 | 1,429,908 |
Total Liabilities and Shareholders’ Equity | $1,714,050 | $1,904,550 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Common shares, par value (in dollars per share) | $0.00 | $0.00 |
Common shares, issued | 276,072,351 | 272,327,810 |
Common shares, outstanding | 272,327,810 | 268,482,445 |
Exchangeable shares, issued | 10,119,745 | 10,882,440 |
Exchangeable shares, outstanding | 10,119,745 | 10,882,440 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net income (loss) | ($171,339) | $126,288 | $99,659 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Loss from discontinued operations, net of income taxes | 26,990 | 54,735 | 423 |
Depletion, depreciation, accretion and impairment | 451,003 | 202,851 | 150,570 |
Deferred tax expense (recovery) | 34,350 | -28,865 | 26,814 |
Non-cash stock-based compensation | 5,451 | 8,002 | 10,999 |
Unrealized loss on financial instruments | 9,383 | 0 | 0 |
Unrealized foreign exchange (gain) loss | -38,441 | -18,799 | 17,150 |
Cash settlement of asset retirement obligation | -796 | -2,068 | 0 |
Other loss | 0 | 4,400 | 0 |
Other gain | -2,000 | 0 | -9,336 |
Equity tax | -3,283 | -3,345 | -3,534 |
Net change in assets and liabilities from operating activities of continuing operations | |||
Accounts receivable and other long-term assets | -34,473 | 58,955 | -46,764 |
Inventory | -2,891 | 14,168 | -18,253 |
Prepaids | 4 | -2,458 | -416 |
Accounts payable and accrued and other long-term liabilities | 558 | -8,754 | -10,178 |
Taxes receivable and payable | -61,064 | 84,687 | -88,253 |
Net cash provided by operating activities of continuing operations | 213,452 | 489,797 | 128,881 |
Net cash (used in) provided by operating activities of discontinued operations | -4,792 | 31,064 | 27,438 |
Net cash provided by operating activities | 208,660 | 520,861 | 156,319 |
Investing Activities | |||
(Increase) decrease in restricted cash | -96 | -1,590 | 10,954 |
Additions to property, plant and equipment | -347,027 | -343,591 | -238,205 |
Proceeds from oil and gas properties | 0 | 55,524 | 0 |
Cash paid for acquisition | 0 | 0 | -35,495 |
Net cash used in investing activities of continuing operations | -347,123 | -289,657 | -262,746 |
Proceeds from sale of Argentina business unit, net of cash sold and transaction costs | 42,755 | 0 | 0 |
Net cash used in investing activities of discontinued operations | -12,384 | -18,799 | -36,974 |
Net cash provided by (used in) investing activities of discontinued operations | 30,371 | -18,799 | -36,974 |
Net cash used in investing activities | -316,752 | -308,456 | -299,720 |
Financing Activities | |||
Proceeds from issuance of shares of Common Stock | 11,140 | 3,771 | 4,340 |
Net cash provided by financing activities | 11,140 | 3,771 | 4,340 |
Net (decrease) increase in cash and cash equivalents | -96,952 | 216,176 | -139,061 |
Cash and cash equivalents, beginning of year | 428,800 | 212,624 | 351,685 |
Cash and cash equivalents, end of year | 331,848 | 428,800 | 212,624 |
Supplemental cash flow disclosures: | |||
Cash paid for income taxes | 101,179 | 51,183 | 143,498 |
Non-cash investing activities: | |||
Net liabilities related to property, plant and equipment, end of year | 113,874 | 75,580 | 75,393 |
Acquisition of marketable securities as proceeds from sale of Argentina business unit | $13,912 | $0 | $0 |
Consolidated_Statements_of_Sha
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 year 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 | 476 | 2,902 | |||
Exercise of warrants | 1,590 | -1,590 | |||
Expiry of warrants | 190 | -190 | |||
Exercise of stock options | 960 | ||||
Stock-based compensation | 13,116 | ||||
Net income (loss) | 99,659 | 99,659 | |||
Balance, end of year 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 | 2,201 | 0 | |||
Exercise of warrants | 0 | 0 | |||
Expiry of warrants | 0 | 0 | |||
Exercise of stock options | 1,570 | ||||
Stock-based compensation | 8,418 | ||||
Net income (loss) | 126,288 | 126,288 | |||
Balance, end of year at Dec. 31, 2013 | 1,429,908 | 10,187 | 1,008,760 | 0 | 410,961 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issue of shares of Common Stock | 3 | 0 | |||
Exercise of warrants | 0 | 0 | |||
Expiry of warrants | 0 | 0 | |||
Exercise of stock options | 11,137 | ||||
Stock-based compensation | 6,976 | ||||
Net income (loss) | -171,339 | -171,339 | |||
Balance, end of year at Dec. 31, 2014 | $1,276,685 | $10,190 | $1,026,873 | $0 | $239,622 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 31, 2014 | |
Description of Business [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, Peru and Brazil. Until June 25, 2014, the Company also had business activities in Argentina (Note 3). |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies |
The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The Company believes that the information and disclosures presented are adequate to ensure the information presented is not misleading. | |
Significant accounting policies are: | |
Basis of consolidation | |
These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. | |
Discontinued operations | |
On June 25, 2014, the Company completed the sale of its Argentina business unit and the discontinued operations criteria of Accounting Standards Codification ("ASC") 205-20, “Discontinued Operations”, were met. Therefore, the results of the Company’s Argentina business unit are reflected separately as loss from discontinued operations, net of income taxes, in the consolidated statement of operations for the year ended December 31, 2014, on a line immediately after “Loss or income from continuing operations.” Additionally, cash flows of the Company’s Argentina business unit are reflected separately in the consolidated statement of cash flows for the year ended December 31, 2014, as cash provided by or used in operating and investing activities of discontinued operations. Amounts for 2013 and 2012 have been reclassified to conform to the 2014 presentation. The reclassifications had no effect on net income or loss. See Note 3, “Discontinued Operations,” for additional disclosure. The Company did not recognize depletion, depreciation and accretion expenses for the Argentina business unit subsequent to May 29, 2014, the date the assets were classified as held for sale. | |
Use of estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include: oil and natural gas reserves and related present value of future cash flows; depreciation, depletion, amortization and impairment (“DD&A”); impairment assessments of goodwill; timing of transfers from oil and gas properties not subject to depletion to the depletable base; asset retirement obligations; determining the value of the consideration transferred and the net identifiable assets acquired and liabilities assumed in connection with business combinations and determining goodwill; income taxes; legal and other contingencies; stock-based compensation; and determining the fair value of foreign currency derivatives. Although management believes these estimates are reasonable, changes in facts and circumstances or discovery of new information may result in revised estimates and actual results may differ from these estimates. | |
Cash and cash equivalents | |
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. | |
Restricted cash | |
Restricted cash comprises cash and cash equivalents pledged to secure letters of credit and to settle asset retirement obligations. Letters of credit currently secured by cash relate to work commitment guarantees contained in exploration contracts. Cash and claims to cash that are restricted as to withdrawal or use for other than current operations or are designated for expenditure in the acquisition or construction of long-term assets are excluded from the current asset classification. | |
Allowance for doubtful accounts | |
The Company estimates losses on receivables based on known uncollectible accounts, if any, and historical experience of losses incurred and accrues a reserve on a receivable when, based on the judgment of management, it is probable that a receivable will not be collected and the amount of the reserve may be reasonably estimated. The allowance for doubtful receivables was nil at December 31, 2014, and 2013. | |
Marketable securities | |
The Company acquired investments in marketable securities in connection with the sale of its Argentina business unit. Marketable securities were classified as trading securities, in accordance with ASC 320, “Investments – Debt and Equity Securities”, and are recorded in the consolidated balance sheet at fair value. The Company classifies trading securities as current or non-current based on the intent of management, the nature of the trading securities and whether they are readily available for use in current operations. Gains or losses on trading securities are recorded in the statement of operations as financial instruments gains or losses. | |
Foreign currency derivatives | |
The Company purchases Colombian peso non-deliverable forward contracts for purposes of fixing exchange rates at which it will purchase or sell Colombian pesos to settle its income tax installment payments. The Company does not intend to issue or hold derivative financial instruments for speculative trading purposes. | |
The Company records derivative instruments on the balance sheet as either an asset or liability measured at fair value. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative and the resulting designation, which is established at the inception of a derivative. Generally because of the short-term nature of the contracts and their limited use, the Company does not apply hedge accounting and changes in the fair value of those contracts are reflected in net income or loss as financial instrument gains or losses in the consolidated statement of operations. Cash settlements of the Company's derivative arrangements are classified as operating cash flows. | |
The fair value of foreign currency derivatives is based on the estimated maturity value of the foreign exchange non-deliverable forward contracts, using applicable forward exchange rates. The most significant variable to the cash flow calculations is the estimation of forward foreign exchange rates. The resulting net future cash inflows or outflows at maturity of the contracts are the net value of the contract. | |
Inventory | |
Inventory consists of oil in tanks and third party pipelines and supplies and is valued at the lower of cost or market value. The cost of inventory is determined using the weighted average method. Oil inventories include expenditures incurred to produce, upgrade and transport the product to the storage facilities and include operating, depletion and depreciation expenses and cash royalties. | |
Income taxes | |
Income taxes are recognized using the liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax base, and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. Valuation allowances are provided if, after considering available evidence, it is not more likely than not that some or all of the deferred tax assets will be realized. | |
The tax benefit from an uncertain tax position is recognized when it is more likely than not, based on the technical merits of the position, that the position will be sustained on examination by the taxing authorities. Additionally, the amount of the tax benefit recognized is the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. The Company recognizes potential penalties and interest related to unrecognized tax benefits as a component of income tax expense. | |
Oil and gas properties | |
The Company uses the full cost method of accounting for its investment in oil and natural gas properties as defined by the Securities and Exchange Commission (“SEC”). Under this method, the Company capitalizes all acquisition, exploration and development costs incurred for the purpose of finding oil and natural gas reserves, including salaries, benefits and other internal costs directly attributable to these activities. Costs associated with production and general corporate activities; however, are expensed as incurred. Interest costs related to unproved properties and properties under development are also capitalized to oil and natural gas properties. Separate cost centers are maintained for each country in which the Company incurs costs. | |
The Company computes depletion of oil and natural gas properties on a quarterly basis using the unit-of-production method based upon production and estimates of proved reserve quantities. Future development costs related to properties with proved reserves are also included in the amortization base for computation of depletion. The costs of unproved properties are excluded from the amortization base until the properties are evaluated. The cost of exploratory dry wells is transferred to proved properties, and thus is subject to amortization, immediately upon determination that a well is dry in those countries where proved reserves exist. | |
The Company performs a ceiling test calculation each quarter in accordance with SEC Regulation S-X Rule 4-10. In performing its quarterly ceiling test, the Company limits, on a country-by-country basis, the capitalized costs of proved oil and natural gas properties, net of accumulated depletion and deferred income taxes, to the estimated future net cash flows from proved oil and natural gas reserves discounted at 10%, net of related tax effects, plus the lower of cost or fair value of unproved properties included in the costs being amortized. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to net income or loss. Any such write-down will reduce earnings in the period of occurrence and results in a lower DD&A rate in future periods. A write-down may not be reversed in future periods even though higher oil and natural gas prices may subsequently increase the ceiling. | |
The Company calculates future net cash flows by applying the unweighted average of prices in effect on the first day of the month for the preceding 12-month period, adjusted for location and quality differentials. Such prices are utilized except where different prices are fixed and determinable from applicable contracts for the remaining term of those contracts. | |
Unproved properties are not depleted pending the determination of the existence of proved reserves. Costs are transferred into the depletable base on an ongoing basis as the properties are evaluated and proved reserves are established or impairment is determined. Unproved properties are evaluated quarterly to ascertain whether impairment has occurred. This evaluation considers, among other factors, seismic data, requirements to relinquish acreage, drilling results and activity, remaining time in the commitment period, remaining capital plans, and political, economic, and market conditions. During any period in which factors indicate an impairment, the cumulative costs incurred to date for such property are transferred to the full cost pool and are then subject to depletion. For countries where a reserve base has not yet been established, the impairment is charged to earnings. | |
In exploration areas, related geological and geophysical (“G&G”) costs are capitalized in unproved property and evaluated as part of the total capitalized costs associated with a property. G&G costs related to development projects are recorded in proved properties and therefore subject to depletion as incurred. | |
Gains and losses on the sale or other disposition of oil and natural gas properties are not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a country. | |
Asset retirement obligation | |
The Company records an estimated liability for future costs associated with the abandonment of its oil and gas properties including the costs of reclamation of drilling sites. The Company records the fair value of a liability for a legal obligation to retire an asset in the period in which the liability is incurred with an offsetting increase to the related oil and gas properties. The fair value of an asset retirement obligation is measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at the Company’s credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liabilities are accreted to their expected settlement value, while the asset retirement cost is amortized over the estimated productive life of the related assets. The accretion of the asset retirement obligation and amortization of the asset retirement cost are included in DD&A. If estimated future costs of an asset retirement obligation change, an adjustment is recorded to both the asset retirement obligation and oil and gas properties. Revisions to the estimated asset retirement obligation can result from changes in retirement cost estimates, revisions to estimated inflation rates and changes in the estimated timing of abandonment. | |
Other capital assets | |
Other capital assets, including additions and replacements, are recorded at cost upon acquisition and include furniture, fixtures and leasehold improvement, computer equipment and automobiles. Depreciation is provided using the declining-balance method at a 30% annual rate for furniture and fixtures, computer equipment and automobiles. Leasehold improvements are depreciated on a straight-line basis over the shorter of the estimated useful life and the term of the related lease. The cost of repairs and maintenance is charged to expense as incurred. | |
Goodwill | |
Goodwill represents the excess of the aggregate of the consideration transferred over the net identifiable assets acquired and liabilities assumed. The Company assesses qualitative factors annually, or more frequently if necessary, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and whether it is necessary to perform the two-step goodwill impairment test. The impairment test requires allocating goodwill and certain other assets and liabilities to assigned reporting units. The fair value of each reporting unit is estimated and compared with the net book value of the reporting unit. If the estimated fair value of the reporting unit is less than the net book value, including goodwill, then the goodwill is written down to the implied fair value of the goodwill through a charge to expense. Because quoted market prices are not available for the Company’s reporting units, the fair values of the reporting units are estimated based upon estimated future cash flows of the reporting unit. | |
The Company recorded $87.6 million of goodwill in relation to the acquisition of Solana Resources Limited (“Solana”) in 2008 and $15.0 million of goodwill in relation to the Argosy Energy International L.P. acquisition in 2006. The goodwill relates entirely to the Colombia reportable segment. The Company performed a quantitative assessment of goodwill at December 31, 2014, and based on this assessment, no impairment of goodwill was identified. | |
Revenue recognition | |
Revenue from the production of oil and natural gas is recognized when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable, the sale is evidenced by a contract and collection of the revenue is reasonably assured. | |
Gran Tierra’s customer, Ecopetrol S.A. (“Ecopetrol”) takes title at the Port of Tumaco on the Pacific coast of Colombia rather than at the entry into the Ecopetrol-operated Trans-Andean oil pipeline at the Orito Station in the Putumayo basin. In Colombia, the Company has other sales contracts where the sales point is the purchaser's facilities or when oil is loaded into a truck at Gran Tierra's loading facility or an export tanker. In Brazil, the sales point is the Petróleo Brasileiro S.A station. | |
Revenue represents the Company’s share and is recorded net of royalty payments to governments and other mineral interest owners. | |
Stock-based compensation | |
The Company grants 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 grants options to purchase shares of Common Stock to certain directors, officers, employees and consultants. The Company follows the fair-value based method of accounting for stock options granted. Compensation expense for options granted is based on the estimated fair value, using the Black-Scholes option pricing model, at the time of grant and the expense, net of estimated forfeitures, is recognized over the requisite service period using the accelerated method. An adjustment is made to compensation expense for any difference between the estimated forfeitures and the actual forfeitures related to vested awards. The Company uses historical data to estimate expected term used in the Black-Scholes option pricing model, option exercises and employee departure behavior. Expected volatilities used in the fair value estimate are based on historical volatility of the Company’s shares. The risk-free rate for periods within the expected term of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant. | |
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. | |
Foreign currency translation | |
The functional currency of the Company, including its subsidiaries, is the United States dollar. Monetary items are translated into the reporting currency at the exchange rate in effect at the balance sheet date and non-monetary items are translated at historical exchange rates. Revenue and expense items are translated in a manner that produces substantially the same reporting currency amounts that would have resulted had the underlying transactions been translated on the dates they occurred. | |
Depreciation or amortization of assets is translated at the historical exchange rates similar to the assets to which they relate. | |
Gains and losses resulting from foreign currency transactions, which are transactions denominated in a currency other than the entity’s functional currency, are recognized in net income or loss. | |
Net income or loss per share | |
Basic net income or loss per share is calculated by dividing net income or loss 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 or loss 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. | |
Recently Adopted 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 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The implementation of this update did not materially impact the Company’s consolidated financial position, results of operations, cash flows or disclosure. | |
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 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The implementation of this update did not materially impact the Company’s consolidated financial position, results of operations, cash flows, or disclosure. | |
Recently Issued Accounting Pronouncements | |
Revenue from Contracts with Customers | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers". The ASU creates a single source of revenue guidance for all companies in all industries and requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations, determining the transaction price, allocating the transaction price to performance obligations and recognizing the revenue upon satisfaction of performance obligations. The amendments in the ASU can be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of the initial application along with additional disclosures. The ASU will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company is currently assessing the impact the new standard will have on its consolidated financial position, results of operations, cash flows, and disclosure. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
Discontinued Operations | Discontinued Operations | ||||||||||||
On June 25, 2014, the Company, through several of its indirect subsidiaries (the “Selling Subsidiaries”), sold its Argentina business unit to Madalena Energy Inc. ("Madalena") for aggregate consideration of $69.3 million, comprising $55.4 million in cash and $13.9 million in Madalena shares. | |||||||||||||
The sale was made pursuant to agreements entered into by the Selling Subsidiaries (the “Agreements”); specifically, pursuant to the Agreements: (1) Madalena agreed to acquire from Gran Tierra Argentina Holdings ULC, an Alberta corporation (“GTE ULC”), and PCESA Petroleros Canadienses de Ecuador S.A., an Ecuador corporation (“PCESA”), both indirect subsidiaries of the Company, all of the outstanding shares of the Company’s indirect subsidiaries Gran Tierra Energy Argentina S.R.L. (“GTE Argentina”) and P.E.T.J.A. S.A, and agreed to acquire certain debt owed by GTE Argentina, for (a) approximately $44.8 million in cash, plus certain other adjustments and interest, and (b) shares of Madalena stock valued at $13.9 million; and (2) Madalena agreed to acquire from Gran Tierra Petroco Inc., an Alberta corporation (“Petroco”), an indirect subsidiary of the Company, all of the outstanding shares of the Company’s indirect subsidiary Petrolifera Petroleum Limited (“PPL”), and agreed to acquire certain debt owed by PPL , for approximately $10.6 million in cash, plus certain other adjustments and interest. Collectively, GTE Argentina, P.E.T.J.A. S.A., PPL and PPL’s subsidiaries held all of the assets of Gran Tierra's Argentina business unit. | |||||||||||||
Accordingly, the results of the Company’s Argentina business unit are classified as “Loss from discontinued operations, net of income taxes” on the consolidated statements of operations for the year ended December 31, 2014. Additionally, cash flows of the Company’s Argentina business unit are presented separately in the consolidated statement of cash flows for the year ended December 31, 2014, as cash provided by or used in operating and investing activities of discontinued operations. Amounts for 2013 and 2012 have been reclassified to conform to the 2014 presentation. The reclassifications had no effect on net income or loss. | |||||||||||||
Revenue and other income and loss from discontinued operations, net of income taxes, for the three years ended December 31, 2014, were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(Thousands of U.S. Dollars) | 2014 (1) | 2013 | 2012 | ||||||||||
Revenue and other income | $ | 31,985 | $ | 74,514 | $ | 80,011 | |||||||
(Loss) income from operations of discontinued operations before income taxes | $ | (6,252 | ) | $ | (47,448 | ) | $ | 1,015 | |||||
Income tax expense | (1,458 | ) | (7,287 | ) | (1,438 | ) | |||||||
Loss from operations of discontinued operations | (7,710 | ) | (54,735 | ) | (423 | ) | |||||||
Loss on sale before income taxes | (18,235 | ) | — | — | |||||||||
Income tax expense | (1,045 | ) | — | — | |||||||||
Loss on sale | (19,280 | ) | — | — | |||||||||
Loss from discontinued operations, net of income taxes | $ | (26,990 | ) | $ | (54,735 | ) | $ | (423 | ) | ||||
(1) Results from discontinued operations before income taxes for the year ended December 31, 2014, were calculated to the date of sale of June 25, 2014. | |||||||||||||
The Company classified the Argentina business unit as held for sale at May 29, 2014. In the year ended December 31, 2013, the Company recorded a ceiling test impairment loss of $30.8 million in the Company's Argentina cost center as a result of deferred investment and inconclusive waterflood results. | |||||||||||||
At December 31, 2013, assets and liabilities related to discontinued operations were as follows: | |||||||||||||
As at | |||||||||||||
(Thousands of U.S. Dollars) | 31-Dec-13 | ||||||||||||
Current assets (1) | $ | 39,125 | |||||||||||
Property, plant and equipment | 94,446 | ||||||||||||
Other long-term assets | 1,839 | ||||||||||||
$ | 135,410 | ||||||||||||
Current liabilities | $ | 37,612 | |||||||||||
Long-term liabilities | 9,755 | ||||||||||||
$ | 47,367 | ||||||||||||
(1) Included cash of $21.2 million. |
Business_Combinations
Business Combinations | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Business Combinations | Business Combination | |||
On October 8, 2012, the Company received regulatory approval and acquired the remaining 30% working interest in four blocks in Brazil pursuant to the terms of a purchase and sale agreement dated January 20, 2012. With the exception of one block which has three producing wells, the remaining blocks are unproved properties. | ||||
The Company paid initial cash purchase consideration of $28.0 million and an interim period purchase price adjustment of $7.5 million, representing the 30% share of all benefits and costs with respect to the period between the effective date and the completion of the transaction. Contingent consideration up to an additional $3.0 million may be payable dependent on production volumes from the acquired blocks. | ||||
The acquisition was accounted for as a business combination using the acquisition method, with Gran Tierra being the acquirer, whereby the assets acquired and liabilities assumed were recognized at their fair values as at October 8, 2012, the acquisition date, and the results of the blocks were included with those of Gran Tierra from that date. Fair value estimates were made based on significant unobservable (Level 3) inputs and based on the best information available at the time. | ||||
Contingent consideration was recorded on the balance sheet at the acquisition date fair value based on the consideration expected to be transferred, 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 acquisition date fair value of the contingent consideration was $1.1 million and was recorded in other long-term liabilities. The fair value of the contingent consideration is being remeasured at the estimated fair value at each reporting period and any change in fair value will be recognized as income or expense in operating income. There was no significant change in the fair value of the contingent consideration between October 8, 2012, December 31, 2012, December 31, 2013, and December 31, 2014. Any changes in fair value will impact earnings in such reporting period until the contingencies are resolved. | ||||
The following table shows the allocation of the consideration transferred based on the fair values of the assets and liabilities acquired: | ||||
(Thousands of U.S. Dollars) | ||||
Consideration Transferred: | ||||
Cash | $ | 35,495 | ||
Fair value of contingent consideration payable | 1,061 | |||
$ | 36,556 | |||
Allocation of Consideration Transferred: | ||||
Oil and gas properties | ||||
Proved | $ | 24,107 | ||
Unproved | 12,859 | |||
Asset retirement obligation | (410 | ) | ||
$ | 36,556 | |||
Pro forma results (unaudited) | ||||
Pro forma results related to this acquisition have not been disclosed because oil and natural gas sales and net income related to the 30% working interest for the year ended December 31, 2012, were not material in relation to the Company's consolidated financial statements. Production from these blocks was not significant during that period. |
Segment_and_Geographic_Reporti
Segment and Geographic Reporting | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
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, Peru and Brazil based on geographic organization. Prior to classifying the Company’s Argentina business unit as discontinued operations, Argentina was a reportable segment. The All Other category represents the Company’s corporate activities. The amounts disclosed in the tables below exclude the results of the Argentina business unit unless otherwise noted. Certain subsidiaries which were previously included in the All Other category were sold as part of the Argentina business unit, and therefore amounts disclosed in the All Other category have been reclassified to exclude amounts reported in loss from discontinued operations. The Company evaluates reportable segment performance based on income or loss from continuing operations before income taxes. | ||||||||||||||||||||||||||||
The following tables present information on the Company’s reportable segments and other activities: | ||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Peru | Brazil | All Other | Total | |||||||||||||||||||||||
Oil and natural gas sales | $ | 532,196 | $ | — | $ | 27,202 | $ | — | $ | 559,398 | ||||||||||||||||||
Interest income | 569 | 1 | 1,604 | 682 | 2,856 | |||||||||||||||||||||||
DD&A expenses | 174,063 | 265,816 | 9,932 | 1,192 | 451,003 | |||||||||||||||||||||||
DD&A - per unit of production | 27.07 | — | 30.09 | — | 66.71 | |||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 279,924 | (274,207 | ) | 5,921 | (28,772 | ) | (17,134 | ) | ||||||||||||||||||||
Segment capital expenditures | 214,928 | 174,158 | 24,278 | 2,868 | 416,232 | |||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Peru | Brazil | All Other | Total | |||||||||||||||||||||||
Oil and natural gas sales | $ | 624,410 | $ | — | $ | 22,545 | $ | — | $ | 646,955 | ||||||||||||||||||
Interest income | 623 | 27 | 909 | 615 | 2,174 | |||||||||||||||||||||||
DD&A expenses | 184,697 | 362 | 16,761 | 1,031 | 202,851 | |||||||||||||||||||||||
DD&A - per unit of production | 27.23 | — | 70.12 | — | 28.89 | |||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 336,179 | (7,067 | ) | (2,650 | ) | (17,178 | ) | 309,284 | ||||||||||||||||||||
Segment capital expenditures (1) | 188,547 | 82,954 | 23,039 | 775 | 295,315 | |||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Peru | Brazil | All Other | Total | |||||||||||||||||||||||
Oil and natural gas sales | $ | 493,615 | $ | — | $ | 9,852 | $ | — | $ | 503,467 | ||||||||||||||||||
Interest income | 667 | 49 | 607 | 386 | 1,709 | |||||||||||||||||||||||
DD&A expenses | 122,055 | 1,234 | 26,300 | 981 | 150,570 | |||||||||||||||||||||||
DD&A - per unit of production | 25.37 | — | 259.88 | — | 30.65 | |||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 244,474 | (5,493 | ) | (24,543 | ) | (18,089 | ) | 196,349 | ||||||||||||||||||||
Segment capital expenditures (1) | 153,331 | 62,869 | 55,239 | 1,084 | 272,523 | |||||||||||||||||||||||
(1) In 2013, segment capital expenditures are net of proceeds of: $54.0 million relating to termination of a farm-in agreement in Brazil; and $1.5 million relating to the Company's sale of its 15% working interest in the Mecaya Block in Colombia (Note 7). In 2012, the Company paid $35.5 million and recorded $1.1 million of contingent consideration in connection with the acquisition of the remaining 30% working interest in four blocks in Brazil which was accounted for as a business combination and, therefore, these amounts are not reflected in the table above (Note 4). | ||||||||||||||||||||||||||||
As at December 31, 2014 | ||||||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Peru | Brazil | All Other | Total Excluding Discontinued Operations | Discontinued Operations | Total | |||||||||||||||||||||
Property, plant and equipment | $ | 888,822 | $ | 87,028 | $ | 148,457 | $ | 4,637 | $ | 1,128,944 | $ | — | $ | 1,128,944 | ||||||||||||||
Goodwill | 102,581 | — | — | — | $ | 102,581 | — | $ | 102,581 | |||||||||||||||||||
All other assets | 157,549 | 40,613 | 14,724 | 269,639 | $ | 482,525 | — | $ | 482,525 | |||||||||||||||||||
Total Assets | $ | 1,148,952 | $ | 127,641 | $ | 163,181 | $ | 274,276 | $ | 1,714,050 | $ | — | $ | 1,714,050 | ||||||||||||||
As at December 31, 2013 | ||||||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Peru | Brazil | All Other | Total Excluding Discontinued Operations | Discontinued Operations | Total | |||||||||||||||||||||
Property, plant and equipment | $ | 850,359 | $ | 178,531 | $ | 133,874 | $ | 2,962 | $ | 1,165,726 | $ | 94,446 | $ | 1,260,172 | ||||||||||||||
Goodwill | 102,581 | — | — | — | $ | 102,581 | — | $ | 102,581 | |||||||||||||||||||
All other assets | 233,336 | 24,240 | 24,477 | 218,780 | $ | 500,833 | 40,964 | $ | 541,797 | |||||||||||||||||||
Total Assets | $ | 1,186,276 | $ | 202,771 | $ | 158,351 | $ | 221,742 | $ | 1,769,140 | $ | 135,410 | $ | 1,904,550 | ||||||||||||||
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. | ||||||||||||||||||||||||||||
The Company has two significant customers in Colombia: Ecopetrol and one other customer. Sales to Ecopetrol accounted for 52%, 46% and 85% of the Company's consolidated oil and natural gas sales from continuing operations for the years ended December 31, 2014, 2013 and 2012, respectively. Sales to the other significant customer in Colombia accounted for 32%, 42% and 2% of the Company's consolidated oil and natural gas sales from continuing operations for the years ended December 31, 2014, 2013 and 2012. |
Accounts_Receivable_and_Invent
Accounts Receivable and Inventory | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Accounts Receivable and Inventory | Accounts Receivable and Inventory | |||||||
Accounts Receivable | ||||||||
As at December 31, | ||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | ||||||
Trade | $ | 80,058 | $ | 46,113 | ||||
Other | 3,169 | 3,590 | ||||||
$ | 83,227 | $ | 49,703 | |||||
Inventory | ||||||||
At December 31, 2014, oil and supplies inventories were $15.2 million and $2.1 million, respectively (December 31, 2013 - $11.7 million and $2.0 million, respectively). |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||||||||||||||||||
Property, Plant and Equipment | ||||||||||||||||||||||||
As at December 31, 2014 | As at December 31, 2013 | |||||||||||||||||||||||
(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 | $ | 1,876,371 | $ | (1,075,296 | ) | $ | 801,075 | $ | 1,799,544 | $ | (1,005,475 | ) | $ | 794,069 | ||||||||||
Unproved | 316,856 | — | 316,856 | 456,001 | — | 456,001 | ||||||||||||||||||
2,193,227 | (1,075,296 | ) | 1,117,931 | 2,255,545 | (1,005,475 | ) | 1,250,070 | |||||||||||||||||
Furniture and fixtures and leasehold improvements | 11,177 | (8,421 | ) | 2,756 | 8,919 | (6,568 | ) | 2,351 | ||||||||||||||||
Computer equipment | 14,323 | (7,461 | ) | 6,862 | 14,786 | (7,605 | ) | 7,181 | ||||||||||||||||
Automobiles | 1,787 | (392 | ) | 1,395 | 1,381 | (811 | ) | 570 | ||||||||||||||||
Total Property, Plant and Equipment | $ | 2,220,514 | $ | (1,091,570 | ) | $ | 1,128,944 | $ | 2,280,631 | $ | (1,020,459 | ) | $ | 1,260,172 | ||||||||||
In the year ended December 31, 2014, the Company recorded an impairment loss in the Company’s Peru cost center of $265.1 million. This impairment charge related to costs incurred on Block 95. On February 19, 2015, the Company made the decision to cease all further development expenditures on the Bretaña field on Block 95 other than what is necessary to maintain tangible asset integrity and security. The remaining drilling costs which were incurred in the first quarter of 2015 for the Bretaña Sur 95-3-4-1X appraisal well on the Bretaña Field in progress at December 31, 2014, are estimated to be approximately $15.0 million. These costs, together with costs of continued activities on the Bretaña Field, will be recorded as an additional impairment loss in 2015. | ||||||||||||||||||||||||
In the year ended December 31, 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 year ended December 31, 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. | ||||||||||||||||||||||||
Depletion and depreciation expense from continuing operations on property, plant and equipment for the year ended December 31, 2014, was $187.9 million (year ended December 31, 2013 - $194.2 million; year ended December 31, 2012 - $137.1 million). A portion of depletion and depreciation expense was recorded as inventory in each year and adjusted for inventory changes. | ||||||||||||||||||||||||
In the second quarter of 2013, the Company received proceeds of $1.5 million relating to a sale of its 15% working interest in the Mecaya Block in Colombia. | ||||||||||||||||||||||||
In 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 in Brazil. | ||||||||||||||||||||||||
The Company successfully bid on three blocks in the 2013 Brazil Bid Round 11 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 agreements. | ||||||||||||||||||||||||
On June 5, 2012, the Company received regulatory approval of a farm-in agreement on a block in Colombia. This approval triggered a payment of $21.1 million related to drilling costs for a previously drilled oil exploration well, which was recorded as a capital expenditure in the second quarter of 2012. | ||||||||||||||||||||||||
Effective June 1, 2012, the Company entered into an agreement to acquire the remaining 40% working interest in a block in Peru. The block is an unproved property. Purchase consideration was $5.4 million and was recorded as a capital expenditure in the second quarter of 2012. | ||||||||||||||||||||||||
On August 26, 2010, the Company entered into an agreement to acquire a 70% working interest in four blocks in Brazil. The agreement was effective September 1, 2010, subject to regulatory approvals, and the transaction was completed on June 15, 2011. Purchase consideration was $40.1 million and was recorded as capital expenditures in 2011 and 2010. On January 20, 2012, the Company entered into an agreement to acquire the remaining 30% working interest in these four blocks and, on October 8, 2012, received regulatory approval and acquired the remaining 30% working interest. The 30% working interest acquisition was accounted for as a business combination using the acquisition method (Note 4). | ||||||||||||||||||||||||
In September 2011, the Company announced two farm-out agreements with Statoil do Brasil Ltda. ("Statoil") in a joint venture with PetróleoBrasileiro S.A. pursuant to which, the Company would receive an assignment of a non-operated 10% working interest in Block BM-CAL-7 and a non-operated 15% working interest in Block BM-CAL-10. Both blocks are located in the Camamu Basin, offshore Bahia, Brazil. 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 first quarter of 2012, the Company received regulatory approval from the ANP for the Block BM-CAL-7 farm-out agreement. Purchase consideration of $0.7 million was paid and the assignment became effective on April 3, 2012. The Company relinquished its interest in Block 186 of Block BM-CAL-7 effective in the fourth quarter of 2013 and paid a penalty of $1.3 million for not meeting the first exploration phase work obligation to drill a well on this block. | ||||||||||||||||||||||||
Unproved oil and natural gas properties consist of exploration lands held in Colombia, Peru and Brazil. As at December 31, 2014, the Company had $170.5 million (December 31, 2013 - $176.1 million) of unproved assets in Colombia, $85.7 million (December 31, 2013 - $177.5 million) of unproved assets in Peru, and $60.7 million (December 31, 2013 - $84.2 million) of unproved assets in Brazil for a total of $316.9 million (December 31, 2013 - $456.0 million). As at December 31, 2013, the Company had $18.2 million of unproved assets in Argentina, which were sold as part of the sale of the Argentina business unit on June 25, 2014. Unproved oil and natural gas 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 warrants whether or not future areas will be developed. The Company expects that approximately 68% of costs not subject to depletion at December 31, 2014, will be transferred to the depletable base within the next five years and the remainder in the next five to 10 years. | ||||||||||||||||||||||||
The following is a summary of Gran Tierra’s oil and natural gas properties not subject to depletion as at December 31, 2014: | ||||||||||||||||||||||||
Costs Incurred in | ||||||||||||||||||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | 2012 | Prior to 2012 | Total | |||||||||||||||||||
Acquisition costs - Colombia | $ | — | $ | — | $ | — | $ | 75,691 | $ | 75,691 | ||||||||||||||
Acquisition costs - Peru | — | — | — | 21,147 | 21,147 | |||||||||||||||||||
Acquisition costs - Brazil | — | — | 12,859 | 22,666 | 35,525 | |||||||||||||||||||
Exploration costs - Colombia | 39,114 | 28,404 | 9,319 | 17,946 | 94,783 | |||||||||||||||||||
Exploration costs - Peru | 25,341 | 9,849 | 23,312 | 6,018 | 64,520 | |||||||||||||||||||
Exploration costs - Brazil | 9,126 | 10,772 | 2,644 | 2,648 | 25,190 | |||||||||||||||||||
Total oil and natural gas properties not subject to depletion | $ | 73,581 | $ | 49,025 | $ | 48,134 | $ | 146,116 | $ | 316,856 | ||||||||||||||
Share_Capital
Share Capital | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders' Equity Note [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 December 31, 2014, outstanding share capital consists of 276,072,351 shares of Common Stock of the Company, 5,595,118 exchangeable shares of Gran Tierra Exchangeco Inc., (the "Exchangeco exchangeable shares") and 4,524,627 exchangeable shares of Gran Tierra Goldstrike Inc. (the "Goldstrike exchangeable shares"). The Exchangeco exchangeable shares were issued upon the acquisition of Solana. 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. The redemption date for the Exchangeco exchangeable shares and the Goldstrike exchangeable shares is a date to be established by the applicable Board of Directors. During the year ended December 31, 2014, 3,029,853 shares of Common Stock were issued upon the exercise of stock options, 9,500 shares of Common Stock were issued upon the exchange of the Goldstrike exchangeable shares and 747,427 shares of Common Stock were issued upon the exchange of the Exchangeco exchangeable shares. During the year ended December 31, 2014, 42,239 shares of shares of Common Stock and 5,768 Exchangeco exchangeable shares were canceled as a result of shareholders' rights to claim these shares expiring. These shares were originally issued in connection with the acquisition of Solana in 2008. | |||||||||||||
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. 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 accordance with the 2007 Equity Incentive Plan, formed through the approval by shareholders of the amendment and restatement of the 2005 Equity Incentive Plan, the Company’s Board of Directors is authorized to issue options or other rights to acquire shares of the Company’s Common Stock. On June 27, 2012, the shareholders of Gran Tierra approved an amendment to the Company’s 2007 Equity Incentive Plan, which increased the Common Stock available for issuance thereunder from 23,306,100 shares to 39,806,100 shares. | |||||||||||||
The Company grants time-vested RSUs to certain 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. | |||||||||||||
Additionally, the Company grants options to purchase shares of Common Stock to certain directors, officers, employees and consultants. Each option permits the holder to purchase one share of Common Stock at the stated exercise price. At the time of grant, the exercise price equals the market price. Options and RSUs generally vest over three years. The Company does not expect to repurchase any shares in the open market to settle any such exercises. | |||||||||||||
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 fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model based on assumptions noted in the following table: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Dividend yield (per share) | Nil | Nil | Nil | ||||||||||
Volatility | 39% to 42% | 42% to 54% | 59% to 75% | ||||||||||
Weighted average volatility | 41 | % | 53 | % | 75 | % | |||||||
Risk-free interest rate | 0.78% to 1.45% | 0.3% to 0.7% | 0.3% to 0.4% | ||||||||||
Expected term | 4-5 years | 4-5 years | 4-6 years | ||||||||||
The following table provides information about RSU and stock option activity for the year ended December 31, 2014: | |||||||||||||
RSUs | Options | ||||||||||||
Number of Outstanding Share Units | Number of Outstanding Options | Weighted Average Exercise Price $/Option | |||||||||||
Balance, December 31, 2013 | 922,045 | 15,668,458 | 5.41 | ||||||||||
Granted | 925,625 | 2,452,850 | 7 | ||||||||||
Exercised | (509,401 | ) | (3,029,853 | ) | (3.68 | ) | |||||||
Forfeited | (101,306 | ) | (336,468 | ) | (6.59 | ) | |||||||
Expired | — | (964,767 | ) | (7.07 | ) | ||||||||
Balance, December 31, 2014 | 1,236,963 | 13,790,220 | 5.93 | ||||||||||
Exercisable, at December 31, 2014 | 9,799,527 | 5.68 | |||||||||||
Vested, or expected to vest, at December 31, 2014, through the life of the options | 13,551,285 | 5.92 | |||||||||||
For the year ended December 31, 2014, 3,029,853 shares of Common Stock were issued for cash proceeds of $11.1 million upon the exercise of 3,029,853 stock options (2013 – 1,306,317; 2012 – 482,841). For the year ended December 31, 2014, the Company paid $3.4 million to cash settle RSUs (2013 and 2012 - $nil). | |||||||||||||
At December 31, 2014, the weighted average remaining contractual term of outstanding stock options was 5.1 years and of exercisable stock options was 5.3 years. | |||||||||||||
The weighted average grant date fair value for options granted in the year ended December 31, 2014, was $2.47 (2013 - $2.62; 2012 - $3.33). The weighted average grant date fair value for options vested in the year ended December 31, 2014, was $3.63 (2013 - $3.94; 2012 - $3.90). The total fair value of stock options vested during year ended December 31, 2014, was $12.4 million (2013 - $12.4 million; 2012 - $10.2 million). | |||||||||||||
The amounts recognized for stock-based compensation were as follows: | |||||||||||||
(Thousands of U.S. Dollars) | Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Compensation costs for stock options | $ | 6,976 | $ | 8,418 | $ | 13,116 | |||||||
Compensation costs for RSUs | 2,559 | 2,936 | — | ||||||||||
9,535 | 11,354 | 13,116 | |||||||||||
Less: Stock-based compensation costs capitalized | (1,815 | ) | (2,436 | ) | (1,110 | ) | |||||||
Stock-based compensation costs expensed | $ | 7,720 | $ | 8,918 | $ | 12,006 | |||||||
Of the total compensation expense for the year ended December 31, 2014, $6.1 million (2013 - $7.5 million; 2012 - $10.2 million) was recorded in G&A expenses, $0.3 million (2013 – $0.5 million; 2012 - $0.8 million) was recorded in operating expenses and $1.3 million (2013 – $0.9 million; 2012 - $1.0 million) was recorded in loss from discontinued operations. | |||||||||||||
At December 31, 2014, there was $4.8 million (December 31, 2013 - $8.1 million) of unrecognized compensation cost related to unvested stock options and RSUs which is expected to be recognized over a weighted average period of 2.3 years. The vesting of certain RSUs and stock options was accelerated as a result of the sale of the Argentina business unit and the retirement of the Company's former Chief Operating Officer. | |||||||||||||
The aggregate intrinsic value of options outstanding at December 31, 2014, was $3.6 million (2013 - $32.9 million; 2012 -$17.8 million) based on the Company’s closing share price of $3.85 at December 31, 2014 (December 31, 2013 - $7.31; December 31, 2012 - $5.51). The aggregate intrinsic value of options exercisable at December 31, 2014, was $3.6 million (December 31, 2013 - $27.4 million; December 31, 2012 - $17.6 million). The aggregate intrinsic value of options exercised in the year ended December 31, 2014, was $10.3 million (2013 - $3.3 million; 2012 - $1.4 million). The aggregate intrinsic value of options vested, or expected to vest, at December 31, 2014, through the life of the options was $3.6 million and the weighted-average remaining contractual term of these options was 5.1 years. | |||||||||||||
Warrants | |||||||||||||
At December 31, 2014, 2013, and 2012, the Company did not have any warrants outstanding. At December 31, 2011, the Company had 6,298,230 warrants outstanding to purchase 3,149,115 shares of Common Stock for $1.05 per share, expiring between June 20, 2012, and June 30, 2012. During the year ended December 31, 2012, 2,766,834 shares of Common Stock were issued upon the exercise of 5,550,668 warrants, 26,190 shares of Common Stock were issued with 7,143 shares withheld in lieu of a cashless exchange upon the exercise of 66,666 warrants, and 680,896 warrants expired unexercised. | |||||||||||||
Weighted Average Shares Outstanding | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average number of common and exchangeable shares outstanding | 284,715,785 | 282,808,497 | 280,741,255 | ||||||||||
Shares issuable pursuant to warrants | — | — | 175,061 | ||||||||||
Shares issuable pursuant to stock options | — | 12,041,260 | 5,879,929 | ||||||||||
Shares assumed to be purchased from proceeds of stock options | — | (8,721,860 | ) | (2,623,991 | ) | ||||||||
Weighted average number of diluted common and exchangeable shares outstanding | 284,715,785 | 286,127,897 | 284,172,254 | ||||||||||
For the year ended December 31, 2014, 15,621,890 options, on a weighted average basis, (2013 - 4,217,082 options; 2012 - 9,748,874 options) were excluded from the diluted income per share calculation as the options were anti-dilutive. |
Asset_Retirement_Obligation
Asset Retirement Obligation | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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: | ||||||||
Year Ended December 31, | ||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | ||||||
Balance, beginning of year | $ | 21,973 | $ | 18,292 | ||||
Settlements | (1,137 | ) | (2,068 | ) | ||||
Liability incurred | 11,956 | 2,623 | ||||||
Liabilities associated with the Argentina business unit sold | (10,170 | ) | — | |||||
Foreign exchange | (53 | ) | (25 | ) | ||||
Accretion | 1,406 | 1,279 | ||||||
Revisions in estimated liability | 11,837 | 1,872 | ||||||
Balance, end of year | $ | 35,812 | $ | 21,973 | ||||
Asset retirement obligation - current | $ | 8,026 | $ | 518 | ||||
Asset retirement obligation - long-term | 27,786 | 21,455 | ||||||
Balance, end of year | $ | 35,812 | $ | 21,973 | ||||
For the year ended December 31, 2014, settlements included cash payments of $0.8 million with the balance in accounts payable and accrued liabilities at December 31, 2014. Revisions in 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. During the year ended December 31, 2014, estimated asset retirement liabilities were increased by $7.6 million to reflect accelerated revised outcome probabilities and their timing as a result of the decision to cease all further development expenditures on the Bretaña field on Block 95 in Peru other than what is necessary to maintain tangible asset integrity and security. At December 31, 2014, the fair value of assets that are legally restricted for purposes of settling asset retirement obligations was $2.0 million (December 31, 2013 - $1.9 million). These assets are included in restricted cash on the Company's balance sheet. |
Taxes
Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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 or loss from continuing operations before income taxes for the following reasons: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | 2012 | |||||||||
Income (loss) from continuing operations before income taxes | ||||||||||||
United States | $ | (19,744 | ) | $ | (13,566 | ) | $ | (13,918 | ) | |||
Foreign | 2,610 | 322,850 | 210,267 | |||||||||
(17,134 | ) | 309,284 | 196,349 | |||||||||
35 | % | 35 | % | 35 | % | |||||||
Income tax (recovery) expense from continuing operations expected | (5,997 | ) | 108,249 | 68,722 | ||||||||
Foreign currency translation adjustments | (6,520 | ) | (7,185 | ) | 5,250 | |||||||
Impact of foreign taxes | 27,910 | (3,596 | ) | (2,992 | ) | |||||||
Other local taxes | 4,433 | 3,673 | 938 | |||||||||
Stock-based compensation | 2,232 | 2,724 | 3,753 | |||||||||
Increase in valuation allowance | 94,922 | 21,423 | 351 | |||||||||
Non-deductible third party royalty in Colombia | 9,116 | 11,073 | 11,938 | |||||||||
Other permanent differences (1) | 1,119 | (8,100 | ) | 8,307 | ||||||||
Total income tax expense from continuing operations | $ | 127,215 | $ | 128,261 | $ | 96,267 | ||||||
Current income tax expense from continuing operations | ||||||||||||
United States | $ | 1,260 | $ | 1,250 | $ | 1,233 | ||||||
Foreign | 91,605 | 155,876 | 68,220 | |||||||||
92,865 | 157,126 | 69,453 | ||||||||||
Deferred income tax expense (recovery) from continuing operations | ||||||||||||
Foreign | 34,350 | (28,865 | ) | 26,814 | ||||||||
Total income tax expense from continuing operations | $ | 127,215 | $ | 128,261 | $ | 96,267 | ||||||
(1) Other permanent differences in the rate reconciliation are tax effected at the 35% statutory rate. For the years ended December 31, 2013, and 2012, these differences included $7.4 million and $11.3 million, respectively, of tax basis and loss adjustments, $5.0 million and $14.5 million, respectively, of which were offset by changes in the valuation allowance. | ||||||||||||
The Colombian income tax rate was 33% for the year ended December 31, 2012. On December 26, 2012, the Colombian Congress enacted tax reform which effectively increased the income tax rate to 34% from 33%, effective January 1, 2013 until December 31, 2015. As part of this tax reform Colombia reduced the corporate income tax rate from 33% to 25% and introduced a new 9% tax (CREE tax) in addition to the regular corporate income tax. A portion of the CREE tax is considered a minimum tax based on net equity and has not been included as part of the overall income tax expense. | ||||||||||||
In the fourth quarter of 2014, Congressional authorities in Colombia and Peru enacted new legislation containing tax rate changes effective January 1, 2015. In Colombia, the CREE tax that was previously introduced as a temporary measure was made permanent and an additional surtax was introduced for 2015 to 2018 fiscal periods, resulting in an increase of the Colombian deferred tax liability of approximately $31.0 million. Accordingly, the CREE surtax rate during this period will be as follows: 2015: 5%; 2016: 6%; 2017: 8% and 2018: 9%. These increases will result in a consolidated income tax, CREE tax and CREE surtax rate of: 39% for 2015; 40% for 2016; 42% for 2017; and 43% for 2018. Under current legislation, the consolidated rate is set to revert to 34% in 2019 and onwards. In Peru, the legislation contained scheduled reductions to the income tax rate in 2015 through 2019. The tax rates applied to the calculation of deferred income taxes have been adjusted to reflect these changes. | ||||||||||||
As at December 31, | ||||||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | ||||||||||
Deferred Tax Assets | ||||||||||||
Tax benefit of operating loss carryforwards | $ | 51,248 | $ | 47,154 | ||||||||
Tax basis in excess of book basis | 108,120 | 59,168 | ||||||||||
Foreign tax credits and other accruals | 20,369 | 34,894 | ||||||||||
Tax benefit of capital loss carryforwards | 29,984 | 4,769 | ||||||||||
Deferred tax assets before valuation allowance | 209,721 | 145,985 | ||||||||||
Valuation allowance | (207,568 | ) | (142,322 | ) | ||||||||
$ | 2,153 | $ | 3,663 | |||||||||
Deferred tax assets - current | $ | 1,552 | $ | 2,256 | ||||||||
Deferred tax assets - long-term | 601 | 1,407 | ||||||||||
2,153 | 3,663 | |||||||||||
Deferred tax liabilities - current | (1,040 | ) | (1,193 | ) | ||||||||
Deferred tax liabilities - long-term | (175,324 | ) | (177,082 | ) | ||||||||
(176,364 | ) | (178,275 | ) | |||||||||
Net Deferred Tax Liabilities | $ | (174,211 | ) | $ | (174,612 | ) | ||||||
Undistributed earnings of foreign subsidiaries as of December 31, 2014, were considered to be permanently reinvested. A determination of the amount of unrecognized deferred tax liability on these undistributed earnings is not practicable. | ||||||||||||
As at December 31, 2014, the Company had operating loss carryforwards of $167.0 million (December 31, 2013 - $215.4 million) and capital loss carryforwards of $232.2 million (December 31, 2013 – $32.6 million) before valuation allowance. Of these operating loss and capital loss carryforwards, $356.1 million (December 31, 2013 - $213.8 million) were losses generated by the foreign subsidiaries of the Company. In certain jurisdictions, the operating loss carryforwards expire between 2015 and 2034 and the capital loss carryforwards expire between 2016 and 2017, while certain other jurisdictions allow operating and capital losses to be carried forward indefinitely. | ||||||||||||
The valuation allowance increased by $65.2 million during the year ended December 31, 2014. The change in the valuation allowance was primarily due to the impairment loss recorded in Peru, tax credits in the U.S., partially offset by asset write downs taken for tax purposes in Brazil. Also, the Company continues to incur losses in the U.S., Peru, Brazil and Canada. These losses are fully offset by a valuation allowance as their recognition does not meet the “more likely than not” threshold. | ||||||||||||
As at December 31, 2014, the total amount of Gran Tierra’s unrecognized tax benefit related to continuing operations was $3.3 million (December 31, 2013 - $2.9 million; December 31, 2012 - $5.9 million), 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. As at December 31, 2014, the amount of interest and penalties on the unrecognized tax benefit included in current income tax liabilities in the consolidated balance sheet was approximately $2.0 million (December 31, 2013 - $1.6 million). Interest and penalties on the unrecognized tax benefit included in income tax expense from continuing operations for the year ended December 31, 2014 was $0.4 million (2013 - a recovery of $2.1 million; 2012 - $2.0 million). The Company had no other material interest or penalties included in the consolidated statement of operations for the three years ended December 31, 2014, respectively. | ||||||||||||
Changes in the Company's unrecognized tax benefit relating to loss or income from continuing operations are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Thousands of U.S. Dollars) | ||||||||||||
Unrecognized tax benefit relating to loss or income from continuing operations, beginning of year | $ | 2,900 | $ | 5,900 | $ | 4,500 | ||||||
Increases for positions relating to prior year | 400 | — | 1,400 | |||||||||
Decreases for positions relating to prior year | — | (3,000 | ) | — | ||||||||
Unrecognized tax benefit relating to loss or income from continuing operations, end of year | $ | 3,300 | $ | 2,900 | $ | 5,900 | ||||||
The Company and its subsidiaries file income tax returns in U.S. federal and state jurisdictions and certain other foreign jurisdictions. The Company is potentially subject to income tax examinations for the tax years 2007 through 2014 in certain jurisdictions. The Company does not anticipate any material changes to the unrecognized tax benefit disclosed above within the next twelve months. | ||||||||||||
The other gain for the year ended December 31, 2012, of $9.3 million represented a value added tax recovery which occurred upon the completion of a reorganization of subsidiary companies and their Colombian branches in the Colombian reporting segment during the fourth quarter of 2012. | ||||||||||||
At December 31, 2014, accounts payable included the remaining unpaid balance of equity tax liability of $nil (December 31, 2013 - $8.3 million). Equity tax was a Colombian tax of 6% on a legislated measure, calculated based on the Company’s Colombian segment’s balance sheet equity for tax purposes at January 1, 2011. The tax was 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. |
Accounts_Payable_and_Accrued_L
Accounts Payable and Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities | ||||||||
As at December 31, | |||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | |||||||
Trade | $ | 148,998 | $ | 97,947 | |||||
Royalties | 10,788 | 14,969 | |||||||
VAT and withholding tax | 8,573 | 24,882 | |||||||
Employee compensation | 10,900 | 16,525 | |||||||
Other | 8,572 | 7,644 | |||||||
$ | 187,831 | $ | 161,967 | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||||||||||||||||||||||
Purchase Obligations, Firm Agreements and Leases | ||||||||||||||||||||||||||||
As at December 31, 2014, future minimum payments under non-cancelable agreements with remaining terms in excess of one year were as follows: | ||||||||||||||||||||||||||||
Year ending December 31 | ||||||||||||||||||||||||||||
Total | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||||||
(Thousands of U.S. Dollars) | ||||||||||||||||||||||||||||
Oil transportation services | $ | 22,252 | $ | 3,640 | $ | 3,640 | $ | 3,640 | $ | 3,640 | $ | 3,640 | $ | 4,052 | ||||||||||||||
Drilling and G&G | 831 | 588 | 243 | — | — | — | — | |||||||||||||||||||||
Operating leases | 9,637 | 2,631 | 2,627 | 2,614 | 1,765 | — | — | |||||||||||||||||||||
Software and telecommunication | 620 | 260 | 260 | 100 | — | — | — | |||||||||||||||||||||
$ | 33,340 | $ | 7,119 | $ | 6,770 | $ | 6,354 | $ | 5,405 | $ | 3,640 | $ | 4,052 | |||||||||||||||
Gran Tierra leases certain office space, compressors, vehicles, equipment and housing. Total rent expense for the year ended December 31, 2014, was $3.2 million (year ended December 31, 2013 – $3.1 million; year ended December 31, 2012 - $2.7 million). | ||||||||||||||||||||||||||||
Indemnities | ||||||||||||||||||||||||||||
Corporate indemnities have been provided by the Company to directors and officers for various items including, but not limited to, all costs to settle suits or actions due to their association with the Company and its subsidiaries and/or affiliates, subject to certain restrictions. The Company has purchased directors’ and officers’ liability insurance to mitigate the cost of any potential future suits or actions. The maximum amount of any potential future payment cannot be reasonably estimated. The Company may provide indemnifications in the normal course of business that are often standard contractual terms to counterparties in certain transactions such as purchase and sale agreements. The terms of these indemnifications will vary based upon the contract, the nature of which prevents the Company from making a reasonable estimate of the maximum potential amounts that may be required to be paid. | ||||||||||||||||||||||||||||
The Company provided the purchaser of its Argentina business unit with certain indemnifications. The Company remains responsible for certain contingent liabilities related to such indemnifications, subject to defined limitations. The Company does not believe that these obligations are probable of having a material impact on its consolidated financial position, results of operations or cash flows. | ||||||||||||||||||||||||||||
Letters of credit | ||||||||||||||||||||||||||||
At December 31, 2014, the Company had provided promissory notes totaling $86.3 million (December 31, 2013 - $52.5 million) as security for letters of credit relating to work commitment guarantees contained in exploration contracts and other capital or operating requirements. | ||||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||||
Gran Tierra Energy Colombia, Ltd. and Petrolifera Petroleum (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 was 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 year ended December 31, 2013, based on market oil prices in Colombia, Gran Tierra accrued $4.4 million in the consolidated financial statements in relation to this dispute. The value of the award decreased to $2.4 million during the fourth quarter of 2014 due to lower oil prices at December 31, 2014. | ||||||||||||||||||||||||||||
Gran Tierra’s production from the Costayaco Exploitation Area is subject to an additional royalty (the "HPR royalty"), which applies when cumulative gross production from an Exploitation Area is greater than five MMbbl. The HPR royalty is calculated on the difference between a trigger price defined in the Chaza Block exploration and production contract (the "Chaza Contract") and the sales price. The Agencia Nacional de Hidrocarburos (National Hydrocarbons Agency) (“ANH”) has interpreted the Chaza Contract as requiring that the HPR royalty must be paid with respect to all production from the Moqueta Exploitation Area and initiated a noncompliance procedure under the Chaza Contract, which was contested by Gran Tierra because the Moqueta Exploitation Area and the Costayaco Exploitation Area are separate Exploitation Areas. ANH did not proceed with that noncompliance procedure. Gran Tierra also believes that the evidence shows that the Costayaco and Moqueta fields are two clearly separate and independent hydrocarbon accumulations. Therefore, it is Gran Tierra’s view that, pursuant to the terms of the Chaza Contract, the HPR royalty is only to be paid with respect to production from the Moqueta Exploitation Area when the accumulated oil production from that Exploitation Area exceeds five MMbbl. Discussions with the ANH have not resolved this issue and Gran Tierra has initiated the dispute resolution process under the Chaza Contract by filing on January 14, 2013, an arbitration claim before the Center for Arbitration and Conciliation of the Chamber of Commerce of Bogotá, Colombia, seeking a decision that the HPR royalty is not payable until production from the Moqueta Exploitation Area exceeds five MMbbl. Gran Tierra supplemented its claim on May 30, 2013. The ANH filed a response to the claim seeking a declaration that its interpretation is correct and a counterclaim seeking, amongst other remedies, declarations that Gran Tierra breached the Chaza Contract by not paying the disputed HPR royalty, that the amount of the alleged HPR royalty that is payable, and that the Chaza Contract be terminated. | ||||||||||||||||||||||||||||
Gran Tierra filed a response to the ANH's counterclaim and filed its comments on the ANH's defense to Gran Tierra's claim. The ANH filed an amended counterclaim and Gran Tierra filed a response to the ANH's amended counterclaim. As at December 31, 2014, total cumulative production from the Moqueta Exploitation Area was 4.2 MMbbl. The estimated compensation which would be payable on cumulative production to that date if the ANH is successful in the arbitration is $64.1 million. At this time no amount has been accrued in the financial statements nor deducted from the Company's reserves for the disputed HPR royalty as Gran Tierra does not consider it probable that a loss will be incurred. | ||||||||||||||||||||||||||||
Additionally, the ANH and Gran Tierra are engaged in discussions regarding the interpretation of whether certain transportation and related costs are eligible to be deducted in the calculation of the HPR royalty. Discussions with the ANH are ongoing. Based on the Company's understanding of the ANH's position, the estimated compensation which would be payable if the ANH’s interpretation is correct could be up to $40.6 million as at December 31, 2014. At this time no amount has been accrued in the financial statements as Gran Tierra does not consider it probable that a loss will be incurred. | ||||||||||||||||||||||||||||
In addition to the above, Gran Tierra has several other lawsuits and claims pending. Although the outcome of these other 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. |
Financial_Instruments_Fair_Val
Financial Instruments, Fair Value Measurements and Credit Risk | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Financial Instruments, Fair Value Measurements and Credit Risk | Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk | |||||||||||
Financial Instruments | ||||||||||||
At December 31, 2014, the Company’s financial instruments recognized in the balance sheet consist of cash and cash equivalents, restricted cash, accounts receivable, trading securities, accounts payable, accrued liabilities, foreign currency derivatives included in current liabilities and contingent consideration included in other long-term liabilities. | ||||||||||||
Fair Value Measurement | ||||||||||||
The fair value of the trading securities, foreign currency derivatives and contingent consideration are being remeasured at the estimated fair value at each reporting period. | ||||||||||||
The fair value of the trading securities which were received as consideration on the sale of the Company's Argentina business unit (Note 3) was estimated based on quoted market prices in an active market. | ||||||||||||
The fair value of foreign currency derivatives was based on the estimated maturity value of foreign exchange non-deliverable forward contracts using applicable forward exchange rates. The most significant variable to the cash flow calculations is the estimation of forward foreign exchange rates. The resulting future cash inflows or outflows at maturity of the contracts are the net value of the contract. | ||||||||||||
The fair value of the contingent consideration, which relates to the acquisition of the remaining 30% working interest in certain properties in Brazil, was estimated 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 is determined in accordance with accepted valuation methods. | ||||||||||||
The fair value of the trading securities, foreign currency derivative liability and contingent consideration at December 31, 2014 and December 31, 2013 were as follows: | ||||||||||||
As at December 31, | ||||||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | ||||||||||
Trading securities | $ | 7,586 | $ | — | ||||||||
Foreign currency derivative liability | $ | 3,057 | $ | — | ||||||||
Contingent consideration liability (Note 4) | 1,061 | 1,061 | ||||||||||
$ | 4,118 | $ | 1,061 | |||||||||
The following table presents losses or gains on financial instruments recognized in the accompanying consolidated statements of operations: | ||||||||||||
(Thousands of U.S. Dollars) | Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Trading securities loss | $ | 6,326 | $ | — | $ | — | ||||||
Foreign currency derivatives gain | (1,604 | ) | — | — | ||||||||
$ | 4,722 | $ | — | $ | — | |||||||
These losses and gains are presented as financial instruments losses and gains in the consolidated statements of operations and cash flows. There were no sales of trading securities in the year ended December 31, 2014, and the trading securities loss represents an unrealized loss. | ||||||||||||
The fair value of long-term restricted cash approximates its carrying value because interest rates are variable and reflective of market rates. The fair values of other financial instruments approximate their carrying amounts due to the short-term maturity of these 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. | ||||||||||||
At December 31, 2014, the fair value of the trading securities acquired in connection with the disposal of the Argentina business unit (Note 3) was determined using Level 1 inputs. At December 31, 2014, the fair value of the foreign currency derivatives was determined using Level 2 inputs. At December 31, 2014, and December 31, 2013, the fair value of the contingent consideration payable in connection with the Brazil acquisition was determined using Level 3 inputs. The disclosure in the paragraph above regarding the fair value of cash and restricted cash is based on Level 1 inputs. | ||||||||||||
The Company’s non-recurring fair value measurements include asset retirement obligations. The fair value of an asset retirement obligation is measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at the Company’s credit-adjusted risk-free interest rate. The significant level 3 inputs used to calculate such liabilities include estimates of costs to be incurred, the Company’s credit-adjusted risk-free interest rate, inflation rates and estimated dates of abandonment. Accretion expense is recognized over time as the discounted liabilities are accreted to their expected settlement value, while the asset retirement cost is amortized over the estimated productive life of the related assets. | ||||||||||||
Credit Risk | ||||||||||||
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, accounts receivables and foreign currency derivatives. The carrying value of cash, accounts receivable and foreign currency derivatives reflects management’s assessment of credit risk. | ||||||||||||
At December 31, 2014, 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. | ||||||||||||
The Company purchases non-deliverable forward contracts for purposes of fixing exchange rates at which it will purchase or sell Colombian pesos to settle its income tax installment payments. With the exception of these foreign currency derivatives, any foreign currency transactions are conducted on a spot basis with major financial institutions in the Company’s operating areas. | ||||||||||||
At December 31, 2014, the Company had the following open foreign currency derivative positions: | ||||||||||||
Forward contracts | ||||||||||||
Currency | Contract Type | Notional (Millions of Colombian pesos) | Weighted Average Fixed Rate Received (Colombian pesos - U.S. Dollars) | Expiration | ||||||||
Colombian pesos | Buy | 51,597.50 | 2,006 | February and April 2015 | ||||||||
Colombian pesos | Sell | 10,275.30 | 1,895 | Feb-15 | ||||||||
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 year ended December 31, 2014, the Company had two customers which were significant to the Colombian segment, and one customer which was significant to the Brazil segment. | ||||||||||||
To reduce the concentration of exposure to any individual counterparty, the Company utilizes a group of investment-grade rated counterparties, primarily financial institutions, for its derivative transactions. The Company monitors counterparty creditworthiness on an ongoing basis; however, it cannot predict sudden changes in counterparties’ creditworthiness. In addition, even if such changes are not sudden, the Company may be limited in its ability to mitigate an increase in counterparty credit risk. Should one of these counterparties not perform, the Company may not realize the benefit of some of its foreign currency derivative instruments. | ||||||||||||
For the year ended December 31, 2014, 95% (year ended December 31, 2013 - 96%, year ended December 31, 2012 - 98%) of the Company's revenue and other income from continuing operations was generated in Colombia. | ||||||||||||
Foreign Exchange Risk | ||||||||||||
Unrealized foreign exchange gains and losses primarily 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 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 $60,000 for each one peso decrease in the exchange rate of the Colombian peso to one U.S. dollar. | ||||||||||||
In Colombia, the company receives 100% of its revenues in U.S. dollars and the majority of its capital expenditures are in U.S. dollars or are based on U.S. dollar prices. In Brazil, prices for oil are in U.S. dollars, but revenues are received in local currency translated according to current exchange rates. The majority of the Company's capital expenditures within Brazil are based on U.S. dollar prices, but are paid in local currency translated according to current exchange rates. In Peru, capital expenditures are based on U.S. dollar prices and may be paid in local currency or U.S. dollars. |
Credit_Facilities
Credit Facilities | 12 Months Ended |
Dec. 31, 2014 | |
Line of Credit Facility [Abstract] | |
Credit Facilities | Credit Facilities |
At December 31, 2014, 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 that is dependent on the value of our reserves as assessed by the banking syndicate, but in no case would be more than $300 million. The borrowing base for the credit facility 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. As at December 31, 2014, the Company had not drawn down any amounts under this 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 | 12 Months Ended |
Dec. 31, 2014 | |
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 was a director until April 2013. After April 2013, the company ceased to be a related party of Gran Tierra. During the year ended December 31, 2013, $11.9 million was incurred and capitalized under this contract and at December 31, 2013 - $2.0 million was included in accounts payable relating to this contract. Similarly, on August 3, 2010, Gran Tierra entered into a contract related to the Peru drilling program with the same company and $1.7 million was incurred and capitalized under this contract during the year ended December 31, 2012, and at December 31, 2012, $1.1 million was included in accounts payable relating to this contract. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of consolidation | Basis of consolidation |
These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. | |
Discontinued operations | Discontinued operations |
On June 25, 2014, the Company completed the sale of its Argentina business unit and the discontinued operations criteria of Accounting Standards Codification ("ASC") 205-20, “Discontinued Operations”, were met. Therefore, the results of the Company’s Argentina business unit are reflected separately as loss from discontinued operations, net of income taxes, in the consolidated statement of operations for the year ended December 31, 2014, on a line immediately after “Loss or income from continuing operations.” Additionally, cash flows of the Company’s Argentina business unit are reflected separately in the consolidated statement of cash flows for the year ended December 31, 2014, as cash provided by or used in operating and investing activities of discontinued operations. Amounts for 2013 and 2012 have been reclassified to conform to the 2014 presentation. The reclassifications had no effect on net income or loss. See Note 3, “Discontinued Operations,” for additional disclosure. The Company did not recognize depletion, depreciation and accretion expenses for the Argentina business unit subsequent to May 29, 2014, the date the assets were classified as held for sale. | |
Use of estimates | Use of estimates |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include: oil and natural gas reserves and related present value of future cash flows; depreciation, depletion, amortization and impairment (“DD&A”); impairment assessments of goodwill; timing of transfers from oil and gas properties not subject to depletion to the depletable base; asset retirement obligations; determining the value of the consideration transferred and the net identifiable assets acquired and liabilities assumed in connection with business combinations and determining goodwill; income taxes; legal and other contingencies; stock-based compensation; and determining the fair value of foreign currency derivatives. Although management believes these estimates are reasonable, changes in facts and circumstances or discovery of new information may result in revised estimates and actual results may differ from these estimates. | |
Cash and cash equivalents | Cash and cash equivalents |
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. | |
Restricted cash | Restricted cash |
Restricted cash comprises cash and cash equivalents pledged to secure letters of credit and to settle asset retirement obligations. Letters of credit currently secured by cash relate to work commitment guarantees contained in exploration contracts. Cash and claims to cash that are restricted as to withdrawal or use for other than current operations or are designated for expenditure in the acquisition or construction of long-term assets are excluded from the current asset classification. | |
Allowance for doubtful accounts | Allowance for doubtful accounts |
The Company estimates losses on receivables based on known uncollectible accounts, if any, and historical experience of losses incurred and accrues a reserve on a receivable when, based on the judgment of management, it is probable that a receivable will not be collected and the amount of the reserve may be reasonably estimated. | |
Marketable securities | Marketable securities |
The Company acquired investments in marketable securities in connection with the sale of its Argentina business unit. Marketable securities were classified as trading securities, in accordance with ASC 320, “Investments – Debt and Equity Securities”, and are recorded in the consolidated balance sheet at fair value. The Company classifies trading securities as current or non-current based on the intent of management, the nature of the trading securities and whether they are readily available for use in current operations. Gains or losses on trading securities are recorded in the statement of operations as financial instruments gains or losses. | |
Foreign currency derivatives | Foreign currency derivatives |
The Company purchases Colombian peso non-deliverable forward contracts for purposes of fixing exchange rates at which it will purchase or sell Colombian pesos to settle its income tax installment payments. The Company does not intend to issue or hold derivative financial instruments for speculative trading purposes. | |
The Company records derivative instruments on the balance sheet as either an asset or liability measured at fair value. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative and the resulting designation, which is established at the inception of a derivative. Generally because of the short-term nature of the contracts and their limited use, the Company does not apply hedge accounting and changes in the fair value of those contracts are reflected in net income or loss as financial instrument gains or losses in the consolidated statement of operations. Cash settlements of the Company's derivative arrangements are classified as operating cash flows. | |
The fair value of foreign currency derivatives is based on the estimated maturity value of the foreign exchange non-deliverable forward contracts, using applicable forward exchange rates. The most significant variable to the cash flow calculations is the estimation of forward foreign exchange rates. The resulting net future cash inflows or outflows at maturity of the contracts are the net value of the contract. | |
Inventory | Inventory |
Inventory consists of oil in tanks and third party pipelines and supplies and is valued at the lower of cost or market value. The cost of inventory is determined using the weighted average method. Oil inventories include expenditures incurred to produce, upgrade and transport the product to the storage facilities and include operating, depletion and depreciation expenses and cash royalties. | |
Income taxes | Income taxes |
Income taxes are recognized using the liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax base, and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. Valuation allowances are provided if, after considering available evidence, it is not more likely than not that some or all of the deferred tax assets will be realized. | |
The tax benefit from an uncertain tax position is recognized when it is more likely than not, based on the technical merits of the position, that the position will be sustained on examination by the taxing authorities. Additionally, the amount of the tax benefit recognized is the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. The Company recognizes potential penalties and interest related to unrecognized tax benefits as a component of income tax expense. | |
Oil and gas properties | Oil and gas properties |
The Company uses the full cost method of accounting for its investment in oil and natural gas properties as defined by the Securities and Exchange Commission (“SEC”). Under this method, the Company capitalizes all acquisition, exploration and development costs incurred for the purpose of finding oil and natural gas reserves, including salaries, benefits and other internal costs directly attributable to these activities. Costs associated with production and general corporate activities; however, are expensed as incurred. Interest costs related to unproved properties and properties under development are also capitalized to oil and natural gas properties. Separate cost centers are maintained for each country in which the Company incurs costs. | |
The Company computes depletion of oil and natural gas properties on a quarterly basis using the unit-of-production method based upon production and estimates of proved reserve quantities. Future development costs related to properties with proved reserves are also included in the amortization base for computation of depletion. The costs of unproved properties are excluded from the amortization base until the properties are evaluated. The cost of exploratory dry wells is transferred to proved properties, and thus is subject to amortization, immediately upon determination that a well is dry in those countries where proved reserves exist. | |
The Company performs a ceiling test calculation each quarter in accordance with SEC Regulation S-X Rule 4-10. In performing its quarterly ceiling test, the Company limits, on a country-by-country basis, the capitalized costs of proved oil and natural gas properties, net of accumulated depletion and deferred income taxes, to the estimated future net cash flows from proved oil and natural gas reserves discounted at 10%, net of related tax effects, plus the lower of cost or fair value of unproved properties included in the costs being amortized. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to net income or loss. Any such write-down will reduce earnings in the period of occurrence and results in a lower DD&A rate in future periods. A write-down may not be reversed in future periods even though higher oil and natural gas prices may subsequently increase the ceiling. | |
The Company calculates future net cash flows by applying the unweighted average of prices in effect on the first day of the month for the preceding 12-month period, adjusted for location and quality differentials. Such prices are utilized except where different prices are fixed and determinable from applicable contracts for the remaining term of those contracts. | |
Unproved properties are not depleted pending the determination of the existence of proved reserves. Costs are transferred into the depletable base on an ongoing basis as the properties are evaluated and proved reserves are established or impairment is determined. Unproved properties are evaluated quarterly to ascertain whether impairment has occurred. This evaluation considers, among other factors, seismic data, requirements to relinquish acreage, drilling results and activity, remaining time in the commitment period, remaining capital plans, and political, economic, and market conditions. During any period in which factors indicate an impairment, the cumulative costs incurred to date for such property are transferred to the full cost pool and are then subject to depletion. For countries where a reserve base has not yet been established, the impairment is charged to earnings. | |
In exploration areas, related geological and geophysical (“G&G”) costs are capitalized in unproved property and evaluated as part of the total capitalized costs associated with a property. G&G costs related to development projects are recorded in proved properties and therefore subject to depletion as incurred. | |
Gains and losses on the sale or other disposition of oil and natural gas properties are not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a country. | |
Asset retirement obligation | Asset retirement obligation |
The Company records an estimated liability for future costs associated with the abandonment of its oil and gas properties including the costs of reclamation of drilling sites. The Company records the fair value of a liability for a legal obligation to retire an asset in the period in which the liability is incurred with an offsetting increase to the related oil and gas properties. The fair value of an asset retirement obligation is measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at the Company’s credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liabilities are accreted to their expected settlement value, while the asset retirement cost is amortized over the estimated productive life of the related assets. The accretion of the asset retirement obligation and amortization of the asset retirement cost are included in DD&A. If estimated future costs of an asset retirement obligation change, an adjustment is recorded to both the asset retirement obligation and oil and gas properties. Revisions to the estimated asset retirement obligation can result from changes in retirement cost estimates, revisions to estimated inflation rates and changes in the estimated timing of abandonment. | |
Other capital assets | Other capital assets |
Other capital assets, including additions and replacements, are recorded at cost upon acquisition and include furniture, fixtures and leasehold improvement, computer equipment and automobiles. Depreciation is provided using the declining-balance method at a 30% annual rate for furniture and fixtures, computer equipment and automobiles. Leasehold improvements are depreciated on a straight-line basis over the shorter of the estimated useful life and the term of the related lease. The cost of repairs and maintenance is charged to expense as incurred. | |
Goodwill | Goodwill |
Goodwill represents the excess of the aggregate of the consideration transferred over the net identifiable assets acquired and liabilities assumed. The Company assesses qualitative factors annually, or more frequently if necessary, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and whether it is necessary to perform the two-step goodwill impairment test. The impairment test requires allocating goodwill and certain other assets and liabilities to assigned reporting units. The fair value of each reporting unit is estimated and compared with the net book value of the reporting unit. If the estimated fair value of the reporting unit is less than the net book value, including goodwill, then the goodwill is written down to the implied fair value of the goodwill through a charge to expense. Because quoted market prices are not available for the Company’s reporting units, the fair values of the reporting units are estimated based upon estimated future cash flows of the reporting unit. | |
Revenue recognition | Revenue recognition |
Revenue from the production of oil and natural gas is recognized when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable, the sale is evidenced by a contract and collection of the revenue is reasonably assured. | |
Gran Tierra’s customer, Ecopetrol S.A. (“Ecopetrol”) takes title at the Port of Tumaco on the Pacific coast of Colombia rather than at the entry into the Ecopetrol-operated Trans-Andean oil pipeline at the Orito Station in the Putumayo basin. In Colombia, the Company has other sales contracts where the sales point is the purchaser's facilities or when oil is loaded into a truck at Gran Tierra's loading facility or an export tanker. In Brazil, the sales point is the Petróleo Brasileiro S.A station. | |
Revenue represents the Company’s share and is recorded net of royalty payments to governments and other mineral interest owners. | |
Stock-based compensation | Stock-based compensation |
The Company grants 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 grants options to purchase shares of Common Stock to certain directors, officers, employees and consultants. The Company follows the fair-value based method of accounting for stock options granted. Compensation expense for options granted is based on the estimated fair value, using the Black-Scholes option pricing model, at the time of grant and the expense, net of estimated forfeitures, is recognized over the requisite service period using the accelerated method. An adjustment is made to compensation expense for any difference between the estimated forfeitures and the actual forfeitures related to vested awards. The Company uses historical data to estimate expected term used in the Black-Scholes option pricing model, option exercises and employee departure behavior. Expected volatilities used in the fair value estimate are based on historical volatility of the Company’s shares. The risk-free rate for periods within the expected term of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant. | |
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. | |
Foreign currency translations | Foreign currency translation |
The functional currency of the Company, including its subsidiaries, is the United States dollar. Monetary items are translated into the reporting currency at the exchange rate in effect at the balance sheet date and non-monetary items are translated at historical exchange rates. Revenue and expense items are translated in a manner that produces substantially the same reporting currency amounts that would have resulted had the underlying transactions been translated on the dates they occurred. | |
Depreciation or amortization of assets is translated at the historical exchange rates similar to the assets to which they relate. | |
Gains and losses resulting from foreign currency transactions, which are transactions denominated in a currency other than the entity’s functional currency, are recognized in net income or loss. | |
Net income per share | Net income or loss per share |
Basic net income or loss per share is calculated by dividing net income or loss 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 or loss 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. | |
Adopted and Recently Issued Accounting Pronouncements | Recently Adopted 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 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The implementation of this update did not materially impact the Company’s consolidated financial position, results of operations, cash flows or disclosure. | |
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 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The implementation of this update did not materially impact the Company’s consolidated financial position, results of operations, cash flows, or disclosure. | |
Recently Issued Accounting Pronouncements | |
Revenue from Contracts with Customers | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers". The ASU creates a single source of revenue guidance for all companies in all industries and requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations, determining the transaction price, allocating the transaction price to performance obligations and recognizing the revenue upon satisfaction of performance obligations. The amendments in the ASU can be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of the initial application along with additional disclosures. The ASU will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company is currently assessing the impact the new standard will have on its consolidated financial position, results of operations, cash flows, and disclosure. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
Financial disclosures of discontinued operations | At December 31, 2013, assets and liabilities related to discontinued operations were as follows: | ||||||||||||
As at | |||||||||||||
(Thousands of U.S. Dollars) | 31-Dec-13 | ||||||||||||
Current assets (1) | $ | 39,125 | |||||||||||
Property, plant and equipment | 94,446 | ||||||||||||
Other long-term assets | 1,839 | ||||||||||||
$ | 135,410 | ||||||||||||
Current liabilities | $ | 37,612 | |||||||||||
Long-term liabilities | 9,755 | ||||||||||||
$ | 47,367 | ||||||||||||
(1) Included cash of $21.2 million. | |||||||||||||
Revenue and other income and loss from discontinued operations, net of income taxes, for the three years ended December 31, 2014, were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
(Thousands of U.S. Dollars) | 2014 (1) | 2013 | 2012 | ||||||||||
Revenue and other income | $ | 31,985 | $ | 74,514 | $ | 80,011 | |||||||
(Loss) income from operations of discontinued operations before income taxes | $ | (6,252 | ) | $ | (47,448 | ) | $ | 1,015 | |||||
Income tax expense | (1,458 | ) | (7,287 | ) | (1,438 | ) | |||||||
Loss from operations of discontinued operations | (7,710 | ) | (54,735 | ) | (423 | ) | |||||||
Loss on sale before income taxes | (18,235 | ) | — | — | |||||||||
Income tax expense | (1,045 | ) | — | — | |||||||||
Loss on sale | (19,280 | ) | — | — | |||||||||
Loss from discontinued operations, net of income taxes | $ | (26,990 | ) | $ | (54,735 | ) | $ | (423 | ) | ||||
(1) Results from discontinued operations before income taxes for the year ended December 31, 2014, were calculated to the date of sale of June 25, 2014. |
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Schedule of Purchase Price Allocation | The following table shows the allocation of the consideration transferred based on the fair values of the assets and liabilities acquired: | |||
(Thousands of U.S. Dollars) | ||||
Consideration Transferred: | ||||
Cash | $ | 35,495 | ||
Fair value of contingent consideration payable | 1,061 | |||
$ | 36,556 | |||
Allocation of Consideration Transferred: | ||||
Oil and gas properties | ||||
Proved | $ | 24,107 | ||
Unproved | 12,859 | |||
Asset retirement obligation | (410 | ) | ||
$ | 36,556 | |||
Segment_and_Geographic_Reporti1
Segment and Geographic Reporting (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||
Reportable Geographic Segments | The following tables present information on the Company’s reportable segments and other activities: | |||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Peru | Brazil | All Other | Total | |||||||||||||||||||||||
Oil and natural gas sales | $ | 532,196 | $ | — | $ | 27,202 | $ | — | $ | 559,398 | ||||||||||||||||||
Interest income | 569 | 1 | 1,604 | 682 | 2,856 | |||||||||||||||||||||||
DD&A expenses | 174,063 | 265,816 | 9,932 | 1,192 | 451,003 | |||||||||||||||||||||||
DD&A - per unit of production | 27.07 | — | 30.09 | — | 66.71 | |||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 279,924 | (274,207 | ) | 5,921 | (28,772 | ) | (17,134 | ) | ||||||||||||||||||||
Segment capital expenditures | 214,928 | 174,158 | 24,278 | 2,868 | 416,232 | |||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Peru | Brazil | All Other | Total | |||||||||||||||||||||||
Oil and natural gas sales | $ | 624,410 | $ | — | $ | 22,545 | $ | — | $ | 646,955 | ||||||||||||||||||
Interest income | 623 | 27 | 909 | 615 | 2,174 | |||||||||||||||||||||||
DD&A expenses | 184,697 | 362 | 16,761 | 1,031 | 202,851 | |||||||||||||||||||||||
DD&A - per unit of production | 27.23 | — | 70.12 | — | 28.89 | |||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 336,179 | (7,067 | ) | (2,650 | ) | (17,178 | ) | 309,284 | ||||||||||||||||||||
Segment capital expenditures (1) | 188,547 | 82,954 | 23,039 | 775 | 295,315 | |||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
(Thousands of U.S. Dollars, except per unit of production amounts) | Colombia | Peru | Brazil | All Other | Total | |||||||||||||||||||||||
Oil and natural gas sales | $ | 493,615 | $ | — | $ | 9,852 | $ | — | $ | 503,467 | ||||||||||||||||||
Interest income | 667 | 49 | 607 | 386 | 1,709 | |||||||||||||||||||||||
DD&A expenses | 122,055 | 1,234 | 26,300 | 981 | 150,570 | |||||||||||||||||||||||
DD&A - per unit of production | 25.37 | — | 259.88 | — | 30.65 | |||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 244,474 | (5,493 | ) | (24,543 | ) | (18,089 | ) | 196,349 | ||||||||||||||||||||
Segment capital expenditures (1) | 153,331 | 62,869 | 55,239 | 1,084 | 272,523 | |||||||||||||||||||||||
(1) In 2013, segment capital expenditures are net of proceeds of: $54.0 million relating to termination of a farm-in agreement in Brazil; and $1.5 million relating to the Company's sale of its 15% working interest in the Mecaya Block in Colombia (Note 7). In 2012, the Company paid $35.5 million and recorded $1.1 million of contingent consideration in connection with the acquisition of the remaining 30% working interest in four blocks in Brazil which was accounted for as a business combination and, therefore, these amounts are not reflected in the table above (Note 4). | ||||||||||||||||||||||||||||
Long-lived Assets by Geographical Area | ||||||||||||||||||||||||||||
As at December 31, 2014 | ||||||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Peru | Brazil | All Other | Total Excluding Discontinued Operations | Discontinued Operations | Total | |||||||||||||||||||||
Property, plant and equipment | $ | 888,822 | $ | 87,028 | $ | 148,457 | $ | 4,637 | $ | 1,128,944 | $ | — | $ | 1,128,944 | ||||||||||||||
Goodwill | 102,581 | — | — | — | $ | 102,581 | — | $ | 102,581 | |||||||||||||||||||
All other assets | 157,549 | 40,613 | 14,724 | 269,639 | $ | 482,525 | — | $ | 482,525 | |||||||||||||||||||
Total Assets | $ | 1,148,952 | $ | 127,641 | $ | 163,181 | $ | 274,276 | $ | 1,714,050 | $ | — | $ | 1,714,050 | ||||||||||||||
As at December 31, 2013 | ||||||||||||||||||||||||||||
(Thousands of U.S. Dollars) | Colombia | Peru | Brazil | All Other | Total Excluding Discontinued Operations | Discontinued Operations | Total | |||||||||||||||||||||
Property, plant and equipment | $ | 850,359 | $ | 178,531 | $ | 133,874 | $ | 2,962 | $ | 1,165,726 | $ | 94,446 | $ | 1,260,172 | ||||||||||||||
Goodwill | 102,581 | — | — | — | $ | 102,581 | — | $ | 102,581 | |||||||||||||||||||
All other assets | 233,336 | 24,240 | 24,477 | 218,780 | $ | 500,833 | 40,964 | $ | 541,797 | |||||||||||||||||||
Total Assets | $ | 1,186,276 | $ | 202,771 | $ | 158,351 | $ | 221,742 | $ | 1,769,140 | $ | 135,410 | $ | 1,904,550 | ||||||||||||||
Accounts_Receivable_and_Invent1
Accounts Receivable and Inventory (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of Accounts Receivable | Accounts Receivable | |||||||
As at December 31, | ||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | ||||||
Trade | $ | 80,058 | $ | 46,113 | ||||
Other | 3,169 | 3,590 | ||||||
$ | 83,227 | $ | 49,703 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | Property, Plant and Equipment | |||||||||||||||||||||||
As at December 31, 2014 | As at December 31, 2013 | |||||||||||||||||||||||
(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 | $ | 1,876,371 | $ | (1,075,296 | ) | $ | 801,075 | $ | 1,799,544 | $ | (1,005,475 | ) | $ | 794,069 | ||||||||||
Unproved | 316,856 | — | 316,856 | 456,001 | — | 456,001 | ||||||||||||||||||
2,193,227 | (1,075,296 | ) | 1,117,931 | 2,255,545 | (1,005,475 | ) | 1,250,070 | |||||||||||||||||
Furniture and fixtures and leasehold improvements | 11,177 | (8,421 | ) | 2,756 | 8,919 | (6,568 | ) | 2,351 | ||||||||||||||||
Computer equipment | 14,323 | (7,461 | ) | 6,862 | 14,786 | (7,605 | ) | 7,181 | ||||||||||||||||
Automobiles | 1,787 | (392 | ) | 1,395 | 1,381 | (811 | ) | 570 | ||||||||||||||||
Total Property, Plant and Equipment | $ | 2,220,514 | $ | (1,091,570 | ) | $ | 1,128,944 | $ | 2,280,631 | $ | (1,020,459 | ) | $ | 1,260,172 | ||||||||||
Summary of Oil and Natural Gas Properties | The following is a summary of Gran Tierra’s oil and natural gas properties not subject to depletion as at December 31, 2014: | |||||||||||||||||||||||
Costs Incurred in | ||||||||||||||||||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | 2012 | Prior to 2012 | Total | |||||||||||||||||||
Acquisition costs - Colombia | $ | — | $ | — | $ | — | $ | 75,691 | $ | 75,691 | ||||||||||||||
Acquisition costs - Peru | — | — | — | 21,147 | 21,147 | |||||||||||||||||||
Acquisition costs - Brazil | — | — | 12,859 | 22,666 | 35,525 | |||||||||||||||||||
Exploration costs - Colombia | 39,114 | 28,404 | 9,319 | 17,946 | 94,783 | |||||||||||||||||||
Exploration costs - Peru | 25,341 | 9,849 | 23,312 | 6,018 | 64,520 | |||||||||||||||||||
Exploration costs - Brazil | 9,126 | 10,772 | 2,644 | 2,648 | 25,190 | |||||||||||||||||||
Total oil and natural gas properties not subject to depletion | $ | 73,581 | $ | 49,025 | $ | 48,134 | $ | 146,116 | $ | 316,856 | ||||||||||||||
Share_Capital_Tables
Share Capital (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
Assumptions used to estimate the fair value of stock option awards | The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model based on assumptions noted in the following table: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Dividend yield (per share) | Nil | Nil | Nil | ||||||||||
Volatility | 39% to 42% | 42% to 54% | 59% to 75% | ||||||||||
Weighted average volatility | 41 | % | 53 | % | 75 | % | |||||||
Risk-free interest rate | 0.78% to 1.45% | 0.3% to 0.7% | 0.3% to 0.4% | ||||||||||
Expected term | 4-5 years | 4-5 years | 4-6 years | ||||||||||
Stock options outstanding | The following table provides information about RSU and stock option activity for the year ended December 31, 2014: | ||||||||||||
RSUs | Options | ||||||||||||
Number of Outstanding Share Units | Number of Outstanding Options | Weighted Average Exercise Price $/Option | |||||||||||
Balance, December 31, 2013 | 922,045 | 15,668,458 | 5.41 | ||||||||||
Granted | 925,625 | 2,452,850 | 7 | ||||||||||
Exercised | (509,401 | ) | (3,029,853 | ) | (3.68 | ) | |||||||
Forfeited | (101,306 | ) | (336,468 | ) | (6.59 | ) | |||||||
Expired | — | (964,767 | ) | (7.07 | ) | ||||||||
Balance, December 31, 2014 | 1,236,963 | 13,790,220 | 5.93 | ||||||||||
Exercisable, at December 31, 2014 | 9,799,527 | 5.68 | |||||||||||
Vested, or expected to vest, at December 31, 2014, through the life of the options | 13,551,285 | 5.92 | |||||||||||
Amounts recognized for stock-based compensation | The amounts recognized for stock-based compensation were as follows: | ||||||||||||
(Thousands of U.S. Dollars) | Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Compensation costs for stock options | $ | 6,976 | $ | 8,418 | $ | 13,116 | |||||||
Compensation costs for RSUs | 2,559 | 2,936 | — | ||||||||||
9,535 | 11,354 | 13,116 | |||||||||||
Less: Stock-based compensation costs capitalized | (1,815 | ) | (2,436 | ) | (1,110 | ) | |||||||
Stock-based compensation costs expensed | $ | 7,720 | $ | 8,918 | $ | 12,006 | |||||||
Weighted average shares outstanding | Weighted Average Shares Outstanding | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average number of common and exchangeable shares outstanding | 284,715,785 | 282,808,497 | 280,741,255 | ||||||||||
Shares issuable pursuant to warrants | — | — | 175,061 | ||||||||||
Shares issuable pursuant to stock options | — | 12,041,260 | 5,879,929 | ||||||||||
Shares assumed to be purchased from proceeds of stock options | — | (8,721,860 | ) | (2,623,991 | ) | ||||||||
Weighted average number of diluted common and exchangeable shares outstanding | 284,715,785 | 286,127,897 | 284,172,254 | ||||||||||
Asset_Retirement_Obligation_Ta
Asset Retirement Obligation (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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: | |||||||
Year Ended December 31, | ||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | ||||||
Balance, beginning of year | $ | 21,973 | $ | 18,292 | ||||
Settlements | (1,137 | ) | (2,068 | ) | ||||
Liability incurred | 11,956 | 2,623 | ||||||
Liabilities associated with the Argentina business unit sold | (10,170 | ) | — | |||||
Foreign exchange | (53 | ) | (25 | ) | ||||
Accretion | 1,406 | 1,279 | ||||||
Revisions in estimated liability | 11,837 | 1,872 | ||||||
Balance, end of year | $ | 35,812 | $ | 21,973 | ||||
Asset retirement obligation - current | $ | 8,026 | $ | 518 | ||||
Asset retirement obligation - long-term | 27,786 | 21,455 | ||||||
Balance, end of year | $ | 35,812 | $ | 21,973 | ||||
Taxes_Tables
Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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 or loss from continuing operations before income taxes for the following reasons: | |||||||||||
Year Ended December 31, | ||||||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | 2012 | |||||||||
Income (loss) from continuing operations before income taxes | ||||||||||||
United States | $ | (19,744 | ) | $ | (13,566 | ) | $ | (13,918 | ) | |||
Foreign | 2,610 | 322,850 | 210,267 | |||||||||
(17,134 | ) | 309,284 | 196,349 | |||||||||
35 | % | 35 | % | 35 | % | |||||||
Income tax (recovery) expense from continuing operations expected | (5,997 | ) | 108,249 | 68,722 | ||||||||
Foreign currency translation adjustments | (6,520 | ) | (7,185 | ) | 5,250 | |||||||
Impact of foreign taxes | 27,910 | (3,596 | ) | (2,992 | ) | |||||||
Other local taxes | 4,433 | 3,673 | 938 | |||||||||
Stock-based compensation | 2,232 | 2,724 | 3,753 | |||||||||
Increase in valuation allowance | 94,922 | 21,423 | 351 | |||||||||
Non-deductible third party royalty in Colombia | 9,116 | 11,073 | 11,938 | |||||||||
Other permanent differences (1) | 1,119 | (8,100 | ) | 8,307 | ||||||||
Total income tax expense from continuing operations | $ | 127,215 | $ | 128,261 | $ | 96,267 | ||||||
Current income tax expense from continuing operations | ||||||||||||
United States | $ | 1,260 | $ | 1,250 | $ | 1,233 | ||||||
Foreign | 91,605 | 155,876 | 68,220 | |||||||||
92,865 | 157,126 | 69,453 | ||||||||||
Deferred income tax expense (recovery) from continuing operations | ||||||||||||
Foreign | 34,350 | (28,865 | ) | 26,814 | ||||||||
Total income tax expense from continuing operations | $ | 127,215 | $ | 128,261 | $ | 96,267 | ||||||
Deferred tax assets and liabilities | ||||||||||||
As at December 31, | ||||||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | ||||||||||
Deferred Tax Assets | ||||||||||||
Tax benefit of operating loss carryforwards | $ | 51,248 | $ | 47,154 | ||||||||
Tax basis in excess of book basis | 108,120 | 59,168 | ||||||||||
Foreign tax credits and other accruals | 20,369 | 34,894 | ||||||||||
Tax benefit of capital loss carryforwards | 29,984 | 4,769 | ||||||||||
Deferred tax assets before valuation allowance | 209,721 | 145,985 | ||||||||||
Valuation allowance | (207,568 | ) | (142,322 | ) | ||||||||
$ | 2,153 | $ | 3,663 | |||||||||
Deferred tax assets - current | $ | 1,552 | $ | 2,256 | ||||||||
Deferred tax assets - long-term | 601 | 1,407 | ||||||||||
2,153 | 3,663 | |||||||||||
Deferred tax liabilities - current | (1,040 | ) | (1,193 | ) | ||||||||
Deferred tax liabilities - long-term | (175,324 | ) | (177,082 | ) | ||||||||
(176,364 | ) | (178,275 | ) | |||||||||
Net Deferred Tax Liabilities | $ | (174,211 | ) | $ | (174,612 | ) | ||||||
Summary of Other Tax Carryforwards | Changes in the Company's unrecognized tax benefit relating to loss or income from continuing operations are as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Thousands of U.S. Dollars) | ||||||||||||
Unrecognized tax benefit relating to loss or income from continuing operations, beginning of year | $ | 2,900 | $ | 5,900 | $ | 4,500 | ||||||
Increases for positions relating to prior year | 400 | — | 1,400 | |||||||||
Decreases for positions relating to prior year | — | (3,000 | ) | — | ||||||||
Unrecognized tax benefit relating to loss or income from continuing operations, end of year | $ | 3,300 | $ | 2,900 | $ | 5,900 | ||||||
Accounts_Payable_and_Accrued_L1
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Schedule of Accounts Payable and Accrued Liabilities | |||||||||
As at December 31, | |||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | |||||||
Trade | $ | 148,998 | $ | 97,947 | |||||
Royalties | 10,788 | 14,969 | |||||||
VAT and withholding tax | 8,573 | 24,882 | |||||||
Employee compensation | 10,900 | 16,525 | |||||||
Other | 8,572 | 7,644 | |||||||
$ | 187,831 | $ | 161,967 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||
Contractual Obligations Future Lease Payments | As at December 31, 2014, future minimum payments under non-cancelable agreements with remaining terms in excess of one year were as follows: | |||||||||||||||||||||||||||
Year ending December 31 | ||||||||||||||||||||||||||||
Total | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||||||
(Thousands of U.S. Dollars) | ||||||||||||||||||||||||||||
Oil transportation services | $ | 22,252 | $ | 3,640 | $ | 3,640 | $ | 3,640 | $ | 3,640 | $ | 3,640 | $ | 4,052 | ||||||||||||||
Drilling and G&G | 831 | 588 | 243 | — | — | — | — | |||||||||||||||||||||
Operating leases | 9,637 | 2,631 | 2,627 | 2,614 | 1,765 | — | — | |||||||||||||||||||||
Software and telecommunication | 620 | 260 | 260 | 100 | — | — | — | |||||||||||||||||||||
$ | 33,340 | $ | 7,119 | $ | 6,770 | $ | 6,354 | $ | 5,405 | $ | 3,640 | $ | 4,052 | |||||||||||||||
Financial_Instruments_Fair_Val1
Financial Instruments, Fair Value Measurements and Credit Risk (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Fair value of contingent consideration | The fair value of the trading securities, foreign currency derivative liability and contingent consideration at December 31, 2014 and December 31, 2013 were as follows: | |||||||||||
As at December 31, | ||||||||||||
(Thousands of U.S. Dollars) | 2014 | 2013 | ||||||||||
Trading securities | $ | 7,586 | $ | — | ||||||||
Foreign currency derivative liability | $ | 3,057 | $ | — | ||||||||
Contingent consideration liability (Note 4) | 1,061 | 1,061 | ||||||||||
$ | 4,118 | $ | 1,061 | |||||||||
Gains Associated with Foreign Currency Derivatives | The following table presents losses or gains on financial instruments recognized in the accompanying consolidated statements of operations: | |||||||||||
(Thousands of U.S. Dollars) | Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Trading securities loss | $ | 6,326 | $ | — | $ | — | ||||||
Foreign currency derivatives gain | (1,604 | ) | — | — | ||||||||
$ | 4,722 | $ | — | $ | — | |||||||
Open Foreign Currency Derivative Positions | At December 31, 2014, the Company had the following open foreign currency derivative positions: | |||||||||||
Forward contracts | ||||||||||||
Currency | Contract Type | Notional (Millions of Colombian pesos) | Weighted Average Fixed Rate Received (Colombian pesos - U.S. Dollars) | Expiration | ||||||||
Colombian pesos | Buy | 51,597.50 | 2,006 | February and April 2015 | ||||||||
Colombian pesos | Sell | 10,275.30 | 1,895 | Feb-15 | ||||||||
Significant_Accounting_Policie2
Significant Accounting Policies - Narrative (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2008 | Dec. 31, 2006 |
Business Acquisition [Line Items] | ||||
Allowance for doubtful accounts receivable | $0 | $0 | ||
Depreciation rate for other capital assets | 30.00% | |||
Goodwill | 102,581 | 102,581 | ||
Solana [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 87,600 | |||
Argosy [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $15,000 |
Discontinued_Operations_Revenu
Discontinued Operations - Revenue and Loss from Discontinued Operations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Discontinued Operations and Disposal Groups [Abstract] | |||
Revenue and other income | $31,985 | $74,514 | $80,011 |
(Loss) from operations of discontinued operations before income taxes | -6,252 | -47,448 | 1,015 |
Income tax expense | -1,458 | -7,287 | -1,438 |
Loss from operations of discontinued operations | -7,710 | -54,735 | -423 |
Loss on sale before income taxes | -18,235 | 0 | 0 |
Income tax expense | -1,045 | 0 | 0 |
Loss on sale | -19,280 | 0 | 0 |
Loss from discontinued operations, net of income taxes | ($26,990) | ($54,735) | ($423) |
Discontinued_Operations_Assets
Discontinued Operations - Assets and Liabilities Related to Discontinued Operations (Details) (USD $) | Dec. 31, 2013 |
Discontinued Operations and Disposal Groups [Abstract] | |
Current assets | $39,125,000 |
Property, plant, and equipment | 94,446,000 |
Other long-term assets | 1,839,000 |
Total assets | 135,410,000 |
Current liabilities | 37,612,000 |
Long-term liabilities | 9,755,000 |
Total liabilities | 47,367,000 |
Cash | $21,200,000 |
Discontinued_Operations_Narrat
Discontinued Operations - Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 25, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Value of shares received | $13,912,000 | $0 | $0 | |
Argentina Business Unit [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Aggregate consideration | 69,300,000 | |||
Cash received | 55,400,000 | |||
Argentina Business Unit [Member] | GTE ULC and PCESA [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash received | 44,800,000 | |||
Value of shares received | 13,912,000 | |||
Argentina Business Unit [Member] | Petroco [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash received | 10,600,000 | |||
Argentina [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment loss | $30,800,000 |
Business_Combinations_Purchase
Business Combinations - Purchase Price Allocation (Details) (Block-Brazil [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Oct. 08, 2012 |
Block-Brazil [Member] | |
Business Acquisition [Line Items] | |
Cash | $35,495 |
Fair value of contingent consideration payable | 1,061 |
Total Consideration | 36,556 |
Proved | 24,107 |
Unproved | 12,859 |
Asset retirement obligation | ($410) |
Business_Combinations_Narrativ
Business Combinations - Narrative (Details) (Block-Brazil [Member], USD $) | 0 Months Ended | |
Oct. 08, 2012 | Jan. 20, 2012 | |
well | ||
block | ||
Block-Brazil [Member] | ||
Business Acquisition [Line Items] | ||
Participating interest percentage oil and gas property, remaining percentage | 30.00% | 30.00% |
Number of blocks | 4 | |
Number of producing blocks | 1 | |
Number of producing wells | 3 | |
Cash paid for acquisition | $28,000,000 | |
Purchase price adjustment for share of interim costs before regulatory approval | 7,500,000 | |
Additional contingent consideration, maximum | 3,000,000 | |
Fair value of contingent consideration payable | $1,061,000 |
Segment_and_Geographic_Reporti2
Segment and Geographic Reporting (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure on Geographic Areas, Description of Revenue from External Customers | |||
Oil and natural gas sales | $559,398 | $646,955 | $503,467 |
Interest income | 2,856 | 2,174 | 1,709 |
DD&A expenses | 451,003 | 202,851 | 150,570 |
Income (loss) from continuing operations before income taxes | -17,134 | 309,284 | 196,349 |
Continuing Operations [Member] | |||
Disclosure on Geographic Areas, Description of Revenue from External Customers | |||
Oil and natural gas sales | 559,398 | 646,955 | 503,467 |
Interest income | 2,856 | 2,174 | 1,709 |
DD&A expenses | 451,003 | 202,851 | 150,570 |
DD&A - per unit of production | 66.71 | 28.89 | 30.65 |
Income (loss) from continuing operations before income taxes | -17,134 | 309,284 | 196,349 |
Segment capital expenditures | 416,232 | 295,315 | 272,523 |
Continuing Operations [Member] | Colombia [Member] | |||
Disclosure on Geographic Areas, Description of Revenue from External Customers | |||
Oil and natural gas sales | 532,196 | 624,410 | 493,615 |
Interest income | 569 | 623 | 667 |
DD&A expenses | 174,063 | 184,697 | 122,055 |
DD&A - per unit of production | 27.07 | 27.23 | 25.37 |
Income (loss) from continuing operations before income taxes | 279,924 | 336,179 | 244,474 |
Segment capital expenditures | 214,928 | 188,547 | 153,331 |
Continuing Operations [Member] | Peru [Member] | |||
Disclosure on Geographic Areas, Description of Revenue from External Customers | |||
Oil and natural gas sales | 0 | 0 | 0 |
Interest income | 1 | 27 | 49 |
DD&A expenses | 265,816 | 362 | 1,234 |
DD&A - per unit of production | 0 | 0 | 0 |
Income (loss) from continuing operations before income taxes | -274,207 | -7,067 | -5,493 |
Segment capital expenditures | 174,158 | 82,954 | 62,869 |
Continuing Operations [Member] | Brazil [Member] | |||
Disclosure on Geographic Areas, Description of Revenue from External Customers | |||
Oil and natural gas sales | 27,202 | 22,545 | 9,852 |
Interest income | 1,604 | 909 | 607 |
DD&A expenses | 9,932 | 16,761 | 26,300 |
DD&A - per unit of production | 30.09 | 70.12 | 259.88 |
Income (loss) from continuing operations before income taxes | 5,921 | -2,650 | -24,543 |
Segment capital expenditures | 24,278 | 23,039 | 55,239 |
Continuing Operations [Member] | All Other [Member] | |||
Disclosure on Geographic Areas, Description of Revenue from External Customers | |||
Oil and natural gas sales | 0 | 0 | 0 |
Interest income | 682 | 615 | 386 |
DD&A expenses | 1,192 | 1,031 | 981 |
DD&A - per unit of production | 0 | 0 | 0 |
Income (loss) from continuing operations before income taxes | -28,772 | -17,178 | -18,089 |
Segment capital expenditures | $2,868 | $775 | $1,084 |
Segment_and_Geographic_Reporti3
Segment and Geographic Reporting - Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | $1,128,944 | $1,260,172 |
Goodwill | 102,581 | 102,581 |
All other assets | 482,525 | 541,797 |
Total Assets | 1,714,050 | 1,904,550 |
Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 1,128,944 | 1,165,726 |
Goodwill | 102,581 | 102,581 |
All other assets | 482,525 | 500,833 |
Total Assets | 1,714,050 | 1,769,140 |
Continuing Operations [Member] | Colombia [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 888,822 | 850,359 |
Goodwill | 102,581 | 102,581 |
All other assets | 157,549 | 233,336 |
Total Assets | 1,148,952 | 1,186,276 |
Continuing Operations [Member] | Peru [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 87,028 | 178,531 |
Goodwill | 0 | 0 |
All other assets | 40,613 | 24,240 |
Total Assets | 127,641 | 202,771 |
Continuing Operations [Member] | Brazil [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 148,457 | 133,874 |
Goodwill | 0 | 0 |
All other assets | 14,724 | 24,477 |
Total Assets | 163,181 | 158,351 |
Continuing Operations [Member] | All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 4,637 | 2,962 |
Goodwill | 0 | 0 |
All other assets | 269,639 | 218,780 |
Total Assets | 274,276 | 221,742 |
Discontinued Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 0 | 94,446 |
Goodwill | 0 | 0 |
All other assets | 0 | 40,964 |
Total Assets | $0 | $135,410 |
Segment_and_Geographic_Reporti4
Segment and Geographic Reporting - Narrative (Details) (USD $) | 12 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Oct. 08, 2012 | Jan. 20, 2012 | Jun. 30, 2013 | |
Concentration Risk [Line Items] | |||||||
Proceeds from oil and gas properties | $0 | $55,524,000 | $0 | ||||
Brazil [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Proceeds from termination of farm-in agreement | 54,000,000 | ||||||
Block-Brazil [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Cash paid | 35,495,000 | ||||||
Fair value of contingent consideration payable | 1,061,000 | ||||||
Participating interest percentage oil and gas property, remaining percentage | 30.00% | 30.00% | |||||
Colombia [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Number of significant customers | 2 | ||||||
Number of other major customers | 1 | ||||||
Colombia [Member] | Ecopetrol [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Sales to Ecopetrol, as a percentage of total revenue (in hundredths) | 52.00% | 46.00% | 85.00% | ||||
Colombia [Member] | Other Customer Number Two [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Sales to Ecopetrol, as a percentage of total revenue (in hundredths) | 32.00% | 42.00% | 2.00% | ||||
Colombia [Member] | Mecaya Block [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Proceeds from oil and gas properties | $1,500,000 | ||||||
Working interest sold, percentage | 15.00% |
Accounts_Receivable_and_Invent2
Accounts Receivable and Inventory (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $83,227,000 | $49,703,000 |
Crude oil inventories | 15,200,000 | 11,700,000 |
Supplies | 2,100,000 | 2,000,000 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 80,058,000 | 46,113,000 |
Other Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $3,169,000 | $3,590,000 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $2,220,514 | $2,280,631 |
Accumulated depletion, depreciation and impairment | -1,091,570 | -1,020,459 |
Total Property, Plant and Equipment | 1,128,944 | 1,260,172 |
Proved | 801,075 | 794,069 |
Unproved oil and gas property full cost accounting | 316,856 | 456,001 |
Proved [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depletion, depreciation and impairment | -1,075,296 | -1,005,475 |
Total Property, Plant and Equipment | 801,075 | 794,069 |
Proved | 1,876,371 | 1,799,544 |
Unproved [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depletion, depreciation and impairment | 0 | 0 |
Total Property, Plant and Equipment | 316,856 | 456,001 |
Unproved oil and gas property full cost accounting | 316,856 | 456,001 |
Oil and natural gas properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 2,193,227 | 2,255,545 |
Accumulated depletion, depreciation and impairment | -1,075,296 | -1,005,475 |
Total Property, Plant and Equipment | 1,117,931 | 1,250,070 |
Furniture and fixtures and leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 11,177 | 8,919 |
Accumulated depletion, depreciation and impairment | -8,421 | -6,568 |
Total Property, Plant and Equipment | 2,756 | 2,351 |
Computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 14,323 | 14,786 |
Accumulated depletion, depreciation and impairment | -7,461 | -7,605 |
Total Property, Plant and Equipment | 6,862 | 7,181 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,787 | 1,381 |
Accumulated depletion, depreciation and impairment | -392 | -811 |
Total Property, Plant and Equipment | $1,395 | $570 |
Property_Plant_and_Equipment_C
Property, Plant and Equipment - Costs Incurred for Acquisition, Exploration and Development (Details) (USD $) | 12 Months Ended | 103 Months Ended | 139 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||||
Total oil and natural gas properties not subject to depletion | $73,581 | $49,025 | $48,134 | $146,116 | $316,856 |
Colombia [Member] | |||||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||||
Acquisition costs | 0 | 0 | 0 | 75,691 | 75,691 |
Exploration costs | 39,114 | 28,404 | 9,319 | 17,946 | 94,783 |
Peru [Member] | |||||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||||
Acquisition costs | 0 | 0 | 0 | 21,147 | 21,147 |
Exploration costs | 25,341 | 9,849 | 23,312 | 6,018 | 64,520 |
Brazil [Member] | |||||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||||
Acquisition costs | 0 | 0 | 12,859 | 22,666 | 35,525 |
Exploration costs | $9,126 | $10,772 | $2,644 | $2,648 | $25,190 |
Property_Plant_and_Equipment_N
Property, Plant and Equipment - Narrative (Details) (USD $) | 1 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||
Sep. 30, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 01, 2012 | Oct. 08, 2012 | Jan. 20, 2012 | Aug. 26, 2010 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 15, 2011 | Apr. 03, 2012 | Jun. 05, 2012 | |
farmout | block | |||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Depreciation and depletion | $187,900,000 | $194,200,000 | $137,100,000 | |||||||||||
Proceeds from sale of a blow-out preventer | 0 | 55,524,000 | 0 | |||||||||||
Number of farmout agreements | 2 | |||||||||||||
Impairment loss | 65,200,000 | |||||||||||||
Unproved assets by cost center | 316,900,000 | 456,000,000 | 456,000,000 | |||||||||||
Costs transferred to depletable base within 5 years | 68.00% | |||||||||||||
Minimum [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Transfer of costs to depletable base, period | 5 years | |||||||||||||
Maximum [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Transfer of costs to depletable base, period | 10 years | |||||||||||||
Colombia [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Unproved assets by cost center | 170,500,000 | 176,100,000 | 176,100,000 | |||||||||||
Brazil [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Proceeds from termination of farm-in agreement | 54,000,000 | |||||||||||||
Impairment loss | 2,000,000 | |||||||||||||
Impairment of oil and gas properties | 20,200,000 | |||||||||||||
Unproved assets by cost center | 60,700,000 | 84,200,000 | 84,200,000 | |||||||||||
Peru [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Impairment loss | 265,100,000 | |||||||||||||
Unproved assets by cost center | 85,700,000 | 177,500,000 | 177,500,000 | |||||||||||
Argentina [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Unproved assets by cost center | 18,200,000 | 18,200,000 | ||||||||||||
Block-Peru [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Participating interest percentage oil and gas property, remaining percentage | 40.00% | |||||||||||||
Purchase consideration for oil and gas regulatory approval | 5,400,000 | |||||||||||||
Block-Brazil [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Participating interest percentage oil and gas property, remaining percentage | 30.00% | 30.00% | ||||||||||||
Purchase consideration for oil and gas regulatory approval | 40,100,000 | |||||||||||||
Farm out interest assigned (in hundredths) | 70.00% | |||||||||||||
Number of blocks | 4 | |||||||||||||
Block-BM-CAL-7 [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Purchase consideration for oil and gas regulatory approval | 700,000 | |||||||||||||
Farm out interest assigned (in hundredths) | 10.00% | |||||||||||||
Block-BM-CAL-10 [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Purchase consideration for oil and gas regulatory approval | 23,800,000 | |||||||||||||
Farm out interest assigned (in hundredths) | 15.00% | |||||||||||||
Bretana Sur 95-3-4-1X Appraisal Well [Member] | Peru [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Remaining drilling costs | 15,000,000 | |||||||||||||
Colombia [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Drilling costs for previously drilled oil exploration well | 21,100,000 | |||||||||||||
Colombia [Member] | Mecaya Block [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Proceeds from sale of a blow-out preventer | 1,500,000 | |||||||||||||
Working interest sold, percentage | 15.00% | |||||||||||||
Brazil [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Number of blocks successfully bid | 3 | |||||||||||||
Payments for signature bonus | 14,400,000 | |||||||||||||
Brazil [Member] | Block-BM-CAL-7 [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||
Loss on contract termination | $1,300,000 |
Share_Capital_Narrative_Detail
Share Capital - Narrative (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-13 | Apr. 30, 2013 | Jun. 27, 2012 | Jun. 26, 2012 | |
vote | |||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||
Authorized share capital (in shares) | 595,000,002 | ||||||
Common stock, shares authorized | 570,000,000 | ||||||
Common shares, par value (in dollars per share) | $0.00 | $0.00 | |||||
Preferred stock, shares authorized | 25,000,000 | ||||||
Preferred stock, par value (in dollars per share) | $0.00 | ||||||
Special voting stock-authorized (in shares) | 2 | ||||||
Special voting stock-par value (in dollars per share) | $0.00 | ||||||
Common shares, issued | 276,072,351 | 272,327,810 | |||||
Stock issued during period upon exercise of stock options (in shares) | 3,029,853 | 1,306,317 | 482,841 | ||||
Votes per common stock | 1 | ||||||
Common voting shares per exchangeable share (in shares) | 1 | ||||||
Number of shares available for issuance under 2007 Equity Incentive Plan | 39,806,100 | 23,306,100 | |||||
Stock option exercises in period (in shares) | -3,029,853 | ||||||
Cash received from exercise of stock options | $11,100,000 | ||||||
Weighted average contractual term of of outstanding stock options | 5 years 1 month 6 days | ||||||
Weighted average contractual term of exercisable options | 5 years 3 months 18 days | ||||||
Weighted average grant date fair value for options vested (in dollars per share) | $3.63 | $3.94 | $3.90 | ||||
Stock Options [Abstract] | |||||||
Stock-based compensation costs expensed | 7,720,000 | 8,918,000 | 12,006,000 | ||||
Unvested stock options recognition period | 2 years 3 months 18 days | ||||||
Warrants [Abstract] | |||||||
Fair value of warrants | 12,400,000 | 12,400,000 | 10,200,000 | ||||
Intrinsic value of options outstanding | 3,600,000 | 32,900,000 | 17,800,000 | ||||
Closing share price ($/share) | $3.85 | $7.31 | $5.51 | ||||
Intrinsic value of options exercisable at period end | 3,600,000 | 27,400,000 | 17,600,000 | ||||
Intrinsic value of options exercised during period at period end | 10,300,000 | 3,300,000 | 1,400,000 | ||||
Intrinsic value of options outstanding, vested and expected to vest | 3,600,000 | ||||||
Weighted average remaining contractual term | 5 years 1 month 6 days | ||||||
Number of securities purchasable by warrants (in shares) | 3,149,115 | ||||||
Common shares issued-exercise of warrants (in shares) | 2,766,834 | ||||||
Common shares issued-exercise of warrants, cashless exercise (in shares) | 26,190 | ||||||
Common shares issued-exercise of warrants, shares withheld for cashless exchange (in shares) | 7,143 | ||||||
Warrants exercised, cashless exchange (in shares) | 66,666 | ||||||
Warrant expired unexercised (in shares) | 680,896 | ||||||
Stock Options [Member] | |||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||
Vesting period | 3 years | ||||||
Option term | 5 years | 10 years | |||||
Option term after leaving service of company | 3 months | 3 months | |||||
Weighted Average Grant Date Fair Value $/Option, Granted in Period | $2.47 | $2.62 | $3.33 | ||||
Stock Options [Abstract] | |||||||
Unrecognized compensation cost related to unvested stock options | 4,800,000 | 8,100,000 | |||||
Earnings Per Share [Abstract] | |||||||
Options excluded from the diluted income per share calculation | 15,621,890 | 4,217,082 | 9,748,874 | ||||
Stock Options [Member] | General and Administrative Expense [Member] | |||||||
Stock Options [Abstract] | |||||||
Stock-based compensation costs expensed | 6,100,000 | 7,500,000 | 10,200,000 | ||||
Stock Options [Member] | Operating Expense [Member] | |||||||
Stock Options [Abstract] | |||||||
Stock-based compensation costs expensed | 300,000 | 500,000 | 800,000 | ||||
Stock Options [Member] | Discontinued Operations [Member] | |||||||
Stock Options [Abstract] | |||||||
Stock-based compensation costs expensed | 1,300,000 | 900,000 | 1,000,000 | ||||
Restricted Stock Units (RSUs) [Member] | |||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||
Cash used to settle awards | $3,400,000 | $0 | $0 | ||||
Expired (in shares) | 0 | ||||||
Warrant [Member] | |||||||
Warrants [Abstract] | |||||||
Warrant outstanding (shares) | 6,298,230 | ||||||
Warrant exercise price (dollars per share) | 1.05 | ||||||
Warrants expiration date range start | 20-Jun-12 | ||||||
Warrants expiration date range end | 30-Jun-12 | ||||||
Warrants exercised (in shares) | 5,550,668 | ||||||
Gran Tierra Exchangeco Inc [Member] | |||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||
Exchangeable shares outstanding (in shares) | 5,595,118 | ||||||
Exchange shares issued during period | 9,500 | ||||||
Gran Tierra Goldstrike Inc [Member] | |||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||
Exchangeable shares outstanding (in shares) | 4,524,627 | ||||||
Exchange shares issued during period | 747,427 | ||||||
Solana [Member] | |||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||
Expired (in shares) | -42,239 | ||||||
Solana [Member] | Gran Tierra Exchangeco Inc [Member] | |||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||
Expired (in shares) | -5,768 |
Share_Capital_Black_Scholes_Op
Share Capital - Black Scholes Option Pricing Model Assumptions (Details) (Stock Options [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate for fair value assumption | 0.00% | 0.00% | 0.00% |
Expected volatility rate for fair value assumption, minimum | 0.39% | 42.00% | 59.00% |
Expected volatility rate for fair value assumption, maximum | 42.00% | 54.00% | 75.00% |
Weighted average volatility fair value assumption | 41.00% | 53.00% | 75.00% |
Risk free interest rate for fair value assumption, minimum | 0.78% | 0.30% | 0.30% |
Risk free interest rate for fair value assumption, maximum | 1.45% | 0.70% | 0.40% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term for fair value assumption | 4 years | 4 years | 4 years |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term for fair value assumption | 5 years | 5 years | 6 years |
Share_Capital_Stock_Options_Ou
Share Capital - Stock Options Outstanding (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Outstanding Options | ||
Balance, Beginning of period (in shares) | 15,668,458 | |
Granted (in shares) | 2,452,850 | |
Exercised (in shares) | -3,029,853 | |
Forfeited (in shares) | -336,468 | |
Expired (in shares) | -964,767 | |
Balance, End of period (in shares) | 13,790,220 | |
Exercisable, at end of period (in shares) | 9,799,527 | |
Vested, or expected to vest, at end of period through the life of the options (in shares) | 13,551,285 | |
Weighted Average Exercise Price $/Option | ||
Weighted Average Exercise Price $/Option, beginning balance (in dollars per share) | 5.41 | |
Weighted Average Exercise Price $/Option, Granted (in dollars per share) | 7 | |
Weighted Average Exercise Price $/Options Exercised (in dollars per share) | -3.68 | |
Weighted Average Exercise Price $/Options, Forfeited (in dollars per share) | -6.59 | |
Weighted Average Exercise Price $/Options, Expired (in dollars per share) | -7.07 | |
Weighted Average Exercise Price $/Option, ending balance (in dollars per share) | 5.93 | |
Weighted Average Exercise Price $/Option, Exercisable, at end of period | 5.68 | |
Weighted Average Exercise Price $/Option, Vested, or expected to vest, at end of period through the life of the options | 5.92 | |
Restricted Stock Units (RSUs) [Member] | ||
Number of Outstanding Share Units | ||
Balance, Beginning of period (in shares) | 1,236,963 | 922,045 |
Granted (in shares) | 925,625 | |
Exercised (in shares) | -509,401 | |
Forfeited (in shares) | -101,306 | |
Expired (in shares) | 0 | |
Balance, End of period (in shares) | 1,236,963 | 922,045 |
Share_Capital_Allocation_of_Sh
Share Capital - Allocation of Share Based Compensation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost | $9,535 | $11,354 | $13,116 |
Less: Stock-based compensation costs capitalized | -1,815 | -2,436 | -1,110 |
Stock-based compensation costs expensed | 7,720 | 8,918 | 12,006 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost | 6,976 | 8,418 | 13,116 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost | $2,559 | $2,936 | $0 |
Share_Capital_Weighted_Average
Share Capital - Weighted Average Shares (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted average number of common and exchangeable shares outstanding | 284,715,785 | 282,808,497 | 280,741,255 |
Shares issuable pursuant to warrants | 0 | 0 | 175,061 |
Shares issuable pursuant to stock options | 0 | 12,041,260 | 5,879,929 |
Shares assumed to be purchased from proceeds of stock options | 0 | -8,721,860 | -2,623,991 |
Weighted average number of diluted common and exchangeable shares outstanding | 284,715,785 | 286,127,897 | 284,172,254 |
Asset_Retirement_Obligation_De
Asset Retirement Obligation (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Balance, beginning of year | $21,973,000 | $18,292,000 | |
Settlements | -1,137,000 | -2,068,000 | |
Liability incurred | 11,956,000 | 2,623,000 | |
Liabilities associated with the Argentina business unit sold | -10,170,000 | 0 | |
Foreign exchange | -53,000 | -25,000 | |
Accretion | 1,406,000 | 1,279,000 | |
Revisions in estimated liability | 11,837,000 | 1,872,000 | |
Balance, end of year | 35,812,000 | 21,973,000 | 18,292,000 |
Asset retirement obligation - current | 8,026,000 | 518,000 | |
Asset retirement obligation - long-term | 27,786,000 | 21,455,000 | |
Cash settlement of asset retirement obligation | -796,000 | -2,068,000 | 0 |
Fair value of legally restricted assets | 2,000,000 | 1,900,000 | |
Peru [Member] | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Revisions in estimated liability | $7,600,000 |
Taxes_Income_Tax_Reconciliatio
Taxes - Income Tax Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income (loss) from continuing operations before income taxes | |||
United States | ($19,744) | ($13,566) | ($13,918) |
Foreign | 2,610 | 322,850 | 210,267 |
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -17,134 | 309,284 | 196,349 |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Effective income tax rate | 35.00% | 35.00% | 35.00% |
Income tax (recovery) expense from continuing operations expected | -5,997 | 108,249 | 68,722 |
Foreign currency translation adjustments | -6,520 | -7,185 | 5,250 |
Impact of foreign taxes | 27,910 | -3,596 | -2,992 |
Other local taxes | 4,433 | 3,673 | 938 |
Stock-based compensation | 2,232 | 2,724 | 3,753 |
Increase in valuation allowance | 94,922 | 21,423 | 351 |
Non-deductible third party royalty in Colombia | 9,116 | 11,073 | 11,938 |
Other permanent differences (1) | 1,119 | -8,100 | 8,307 |
Total income tax expense from continuing operations | 127,215 | 128,261 | 96,267 |
Current income tax expense from continuing operations | |||
United States | 1,260 | 1,250 | 1,233 |
Foreign | 91,605 | 155,876 | 68,220 |
Total Current income tax expense | 92,865 | 157,126 | 69,453 |
Deferred income tax expense (recovery) from continuing operations | |||
Foreign | $34,350 | ($28,865) | $26,814 |
Taxes_Permanent_Differences_Re
Taxes - Permanent Differences Reconciliation (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Tax benefit of operating loss carryforwards | $51,248 | $47,154 |
Tax basis in excess of book basis | 108,120 | 59,168 |
Foreign tax credits and other accruals | 20,369 | 34,894 |
Tax benefit of capital loss carryforwards | 29,984 | 4,769 |
Deferred tax assets before valuation allowance | 209,721 | 145,985 |
Valuation allowance | -207,568 | -142,322 |
Deferred tax assets, net | 2,153 | 3,663 |
Deferred tax assets - current | 1,552 | 2,256 |
Deferred tax assets - long-term | 601 | 1,407 |
Deferred tax liabilities - current | -1,040 | -1,193 |
Deferred tax liabilities - long-term | -175,324 | -177,082 |
Deferred tax liabilities, net | -176,364 | -178,275 |
Net Deferred Tax Liabilities | ($174,211) | ($174,612) |
Taxes_Unrecognized_Tax_Benefit
Taxes - Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit relating to loss or income from continuing operations, beginning of year | $2,900 | $5,900 | $4,500 |
Increases for positions relating to prior year | 400 | 0 | 1,400 |
Decreases for positions relating to prior year | 0 | -3,000 | 0 |
Unrecognized tax benefit relating to loss or income from continuing operations, end of year | $3,300 | $2,900 | $5,900 |
Taxes_Narrative_Details
Taxes - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||
Mar. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2011 | |
installment | ||||||
Valuation Allowance [Line Items] | ||||||
Effective income tax rate | 35.00% | 35.00% | 35.00% | |||
Income tax reconciliation, other adjustments | $7,400,000 | ($11,300,000) | ||||
Income tax reconciliation, other adjustments offset by change in valuation allowance | 5,000,000 | 14,500,000 | ||||
Equity tax rate (in hundredths) | 6.00% | |||||
Operating loss carryforwards | 167,000,000 | 215,400,000 | 167,000,000 | |||
Capital losses before valuation allowance | 232,200,000 | 32,600,000 | 232,200,000 | |||
Net operating loss carryforward from foreign subsidiaries | 356,100,000 | 213,800,000 | 356,100,000 | |||
Decrease in valuation allowance | -65,200,000 | |||||
Unrecognized tax benefits | 3,300,000 | 2,900,000 | 5,900,000 | 3,300,000 | 4,500,000 | |
Unrecognized income tax penalties and interest accrued | 2,000,000 | 1,600,000 | 2,000,000 | |||
Unrecognized tax benefit included in income tax expense | 400,000 | -2,100,000 | 2,000,000 | |||
Other gain | 2,000,000 | 0 | 9,336,000 | |||
Equity tax | 0 | 8,300,000 | ||||
Equity tax payable in number of semi-annual installments | 8 | |||||
Equity tax for foreign operations assessment term | 4 years | |||||
Colombia [Member] | ||||||
Valuation Allowance [Line Items] | ||||||
Foreign income tax rate | 33.00% | |||||
Colombia [Member] | ||||||
Valuation Allowance [Line Items] | ||||||
Foreign income tax rate | 34.00% | 33.00% | ||||
Foreign corporate statutory income tax rate (percent) | 25.00% | 33.00% | ||||
CREE tax rate | 9.00% | |||||
Increase in Deferred Tax Liability | $31,000,000 | |||||
Colombia [Member] | Tax Year 2015 [Member] | ||||||
Valuation Allowance [Line Items] | ||||||
Equity tax rate (in hundredths) | 5.00% | |||||
Consolidated income tax rate, CREE tax and surtax, combined (percent) | 39.00% | |||||
Colombia [Member] | Tax Year 2016 [Member] | ||||||
Valuation Allowance [Line Items] | ||||||
Equity tax rate (in hundredths) | 6.00% | |||||
Consolidated income tax rate, CREE tax and surtax, combined (percent) | 40.00% | |||||
Colombia [Member] | Tax Year 2017 [Member] | ||||||
Valuation Allowance [Line Items] | ||||||
Equity tax rate (in hundredths) | 8.00% | |||||
Consolidated income tax rate, CREE tax and surtax, combined (percent) | 42.00% | |||||
Colombia [Member] | Tax Year 2018 [Member] | ||||||
Valuation Allowance [Line Items] | ||||||
Equity tax rate (in hundredths) | 9.00% | |||||
Consolidated income tax rate, CREE tax and surtax, combined (percent) | 43.00% | |||||
Colombia [Member] | Tax Year 2019 and Thereafter [Member] | ||||||
Valuation Allowance [Line Items] | ||||||
Foreign income tax rate | 34.00% |
Accounts_Payable_and_Accrued_L2
Accounts Payable and Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Trade | $148,998 | $97,947 |
Royalties | 10,788 | 14,969 |
VAT and withholding tax | 8,573 | 24,882 |
Employee compensation | 10,900 | 16,525 |
Other | 8,572 | 7,644 |
Total | $187,831 | $161,967 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Narrative (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Mar. 31, 2013 |
bbl | |||||
Loss Contingencies [Line Items] | |||||
Rent expense | $3.20 | $3.10 | $2.70 | ||
Notes payable provided as security for letter of credit | 86.3 | 52.5 | 86.3 | ||
Pending Litigation Escopetrol [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Loss in Period, Barrels of Oil | 44,025 | ||||
Value of damages sought for loss contingency | 4.4 | 2.4 | |||
Pending Litigation Moqueta Discovery [Member] | |||||
Loss Contingencies [Line Items] | |||||
Value of damages sought for loss contingency | 64.1 | ||||
Threshold by which additional royalty due (barrels) | 5,000,000 | ||||
Total cumulative production of oil field (barrels) | 4,200,000 | ||||
Pending Litigation Moqueta Discovery, Transportation and Related Costs [Member] | |||||
Loss Contingencies [Line Items] | |||||
Value of damages sought for loss contingency | $40.60 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Contractual Obligations (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | $33,340 |
2015 | 7,119 |
2016 | 6,770 |
2017 | 6,354 |
2018 | 5,405 |
2019 | 3,640 |
Thereafter | 4,052 |
Oil transportation services [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 22,252 |
2015 | 3,640 |
2016 | 3,640 |
2017 | 3,640 |
2018 | 3,640 |
2019 | 3,640 |
Thereafter | 4,052 |
Drilling and G&G [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 831 |
2015 | 588 |
2016 | 243 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
Thereafter | 0 |
Operating leases [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 9,637 |
2015 | 2,631 |
2016 | 2,627 |
2017 | 2,614 |
2018 | 1,765 |
2019 | 0 |
Thereafter | 0 |
Software and telecommunication [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Total | 620 |
2015 | 260 |
2016 | 260 |
2017 | 100 |
2018 | 0 |
2019 | 0 |
Thereafter | $0 |
Financial_Instruments_Fair_Val2
Financial Instruments, Fair Value Measurements and Credit Risk - Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 08, 2012 | Jan. 20, 2012 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Foreign exchange losses, Colombian peso to U.S. dollar | $60 | ||||
Colombia [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Number of significant customers | 2 | ||||
Colombia [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Segment [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Concentration risk, percentage | 95.00% | 96.00% | 98.00% | ||
Brazil [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Number of significant customers | 1 | ||||
Block-Brazil [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Participating interest percentage oil and gas property, remaining percentage | 30.00% | 30.00% |
Financial_Instruments_Fair_Val3
Financial Instruments, Fair Value Measurements and Credit Risk - Contingent Consideration and Liability (Details) (Ecopetrol Dispute [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Ecopetrol Dispute [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | $7,586 | $0 |
Foreign currency derivative liability | 3,057 | 0 |
Contingent consideration liability (Note 4) | 1,061 | 1,061 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $4,118 | $1,061 |
Financial_Instruments_Fair_Val4
Financial Instruments, Fair Value Measurements and Credit Risk - Gains Recognized in the Statement of Operations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Disclosures [Abstract] | |||
Trading securities loss | $6,326 | $0 | $0 |
Foreign currency derivatives gain (loss) | -1,604 | 0 | 0 |
Gain (Loss) on Investments and Derivative Instruments, Net, Pretax | ($4,722) | $0 | $0 |
Financial_Instruments_Fair_Val5
Financial Instruments, Fair Value Measurements and Credit Risk - Open Foreign Currency Derivative Position (Details) (Foreign Exchange Forward [Member], Forward Contract Expiring February 2015 [Member], COP) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Long [Member] | |
Derivative [Line Items] | |
Notional Amount | 51,597.50 |
Weighted Average Fixed Rate Received | 2,006 |
Short [Member] | |
Derivative [Line Items] | |
Notional Amount | 10,275.30 |
Weighted Average Fixed Rate Received | 1,895 |
Credit_Facilities_Details
Credit Facilities (Details) (USD $) | 12 Months Ended | 0 Months Ended |
Dec. 31, 2014 | Oct. 31, 2013 | |
Line of Credit Facility [Line Items] | ||
Number of subsidiaries used as collateral for reserve based facility | 2 | |
Foreign Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Max dividends payment allowable | $2,000,000 | |
Wells Fargo Bank, N.A. [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | 150,000,000 | |
Maximum borrowing capacity | $300,000,000 | |
Stand-by fee on unutilized balance | 0.88% | |
Wells Fargo Bank, N.A. [Member] | Revolving Credit Facility [Member] | Colombia [Member] | Foreign Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Term of credit facility | 3 years | |
Wells Fargo Bank, N.A. [Member] | Revolving Credit Facility [Member] | Minimum [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Wells Fargo Bank, N.A. [Member] | Revolving Credit Facility [Member] | Maximum [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 3.25% |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Accounts payable, drilling program | $72,400,000 | $112,401,000 | |
Director - Peru drilling program related party [Member] | |||
Related Party Transaction [Line Items] | |||
Capitalization of drilling program | 11,900,000 | 1,700,000 | |
Accounts payable, drilling program | $2,000,000 | $1,100,000 |