Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document - Document and Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'EGY | ' |
Entity Registrant Name | 'VAALCO ENERGY INC /DE/ | ' |
Entity Central Index Key | '0000894627 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 56,900,141 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $100,465 | $130,800 |
Restricted cash | 2,180 | 1,257 |
Receivables: | ' | ' |
Trade | 486 | 7,961 |
Accounts with partners, net of allowance of $7.4 million and $6.0 million at September 30, 2013 and December 31, 2012, respectively | 4,799 | 689 |
Other | 10,527 | 4,463 |
Crude oil inventory | 3,503 | 683 |
Materials and supplies | 224 | 337 |
Prepayments and other | 4,689 | 2,935 |
Total current assets | 126,873 | 149,125 |
Property and equipment—successful efforts method: | ' | ' |
Wells, platforms and other production facilities | 204,903 | 188,208 |
Undeveloped acreage | 23,945 | 28,657 |
Work in progress | 66,737 | 38,137 |
Equipment and other | 6,512 | 7,574 |
Property, plant and equipment, gross, Total | 302,097 | 262,576 |
Accumulated depreciation, depletion and amortization | -167,528 | -155,968 |
Net property and equipment | 134,569 | 106,608 |
Other assets: | ' | ' |
Deferred tax asset | 1,349 | 1,349 |
Restricted cash | 10,830 | 10,874 |
Total Assets | 273,621 | 267,956 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 35,563 | 30,326 |
Accounts with partners | 4,885 | 14,737 |
Total current liabilities | 40,448 | 45,063 |
Asset retirement obligations | 11,298 | 10,368 |
Total Liabilities | 51,746 | 55,431 |
Commitments and Contingencies (Note 4) | ' | ' |
VAALCO Energy, Inc. shareholders’ equity: | ' | ' |
Common stock, $0.10 par value, 100,000,000 authorized shares, 63,308,938 and 63,135,772 shares issued with 7,022,808 and 5,257,638 shares in treasury at September 30, 2013 and December 31, 2012, respectively | 6,331 | 6,314 |
Additional paid-in capital | 52,133 | 48,816 |
Retained earnings | 198,066 | 181,370 |
Less treasury stock, at cost | -34,655 | -23,975 |
Total VAALCO Energy, Inc. shareholders’ equity | 221,875 | 212,525 |
Total Liabilities and Equity | $273,621 | $267,956 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for accounts with partners | $7.40 | $6 |
Common stock, par value | $0.10 | $0.10 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 63,308,938 | 63,135,772 |
Treasury stock, shares | 7,022,808 | 5,257,638 |
CONDENSED_STATEMENTS_OF_CONSOL
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Oil and gas sales | $37,740 | $37,630 | $110,995 | $141,734 |
Operating costs and expenses: | ' | ' | ' | ' |
Production expenses | 12,576 | 5,941 | 27,975 | 18,004 |
Exploration expense | 11,070 | 699 | 21,456 | 5,036 |
Depreciation, depletion and amortization | 3,954 | 4,861 | 11,011 | 16,715 |
General and administrative expenses | 1,893 | 2,546 | 7,995 | 9,067 |
Bad debt expenses | 143 | 369 | 1,284 | 959 |
Impairment of proved properties | ' | 7,620 | ' | 7,620 |
Total operating costs and expenses | 29,636 | 22,036 | 69,721 | 57,401 |
Operating income | 8,104 | 15,594 | 41,274 | 84,333 |
Other income (expense): | ' | ' | ' | ' |
Interest income | 16 | 36 | 57 | 109 |
Other, net | -72 | -27 | -168 | 556 |
Total other income (expense), net | -56 | 9 | -111 | 665 |
Income before income taxes | 8,048 | 15,603 | 41,163 | 84,998 |
Income tax expense | 5,662 | 14,191 | 24,467 | 60,740 |
Net income | 2,386 | 1,412 | 16,696 | 24,258 |
Less net income attributable to noncontrolling interest | ' | -1,306 | ' | -4,708 |
Net income attributable to VAALCO Energy, Inc. | $2,386 | $106 | $16,696 | $19,550 |
Basic net income per share attributable to VAALCO Energy, Inc. common shareholders | $0.04 | $0 | $0.29 | $0.34 |
Diluted net income per share attributable to VAALCO Energy, Inc. common shareholders | $0.04 | $0 | $0.29 | $0.33 |
Basic weighted shares outstanding | 56,600,866 | 57,845,800 | 57,464,763 | 57,613,624 |
Diluted weighted shares outstanding | 57,115,614 | 58,947,171 | 58,200,208 | 58,784,639 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Noncontrolling Interest |
In Thousands | ||||||
Beginning Balance at Dec. 31, 2011 | $233,067 | $6,238 | $66,122 | $180,739 | ($23,975) | $3,943 |
Proceeds from stock issuance | 3,369 | 72 | 3,297 | ' | ' | ' |
Stock based compensation | 2,055 | ' | 2,055 | ' | ' | ' |
Net income | 24,258 | ' | ' | 19,550 | ' | 4,708 |
Distribution to noncontrolling interest | -5,595 | ' | ' | ' | ' | -5,595 |
Ending Balance at Sep. 30, 2012 | 257,154 | 6,310 | 71,474 | 200,289 | -23,975 | 3,056 |
Beginning Balance at Dec. 31, 2012 | 212,525 | 6,314 | 48,816 | 181,370 | -23,975 | ' |
Proceeds from stock issuance | 734 | 17 | 717 | ' | ' | ' |
Stock based compensation | 2,600 | ' | 2,600 | ' | ' | ' |
Treasury stock purchase | -10,680 | ' | ' | ' | -10,680 | ' |
Net income | 16,696 | ' | ' | 16,696 | ' | ' |
Ending Balance at Sep. 30, 2013 | $221,875 | $6,331 | $52,133 | $198,066 | ($34,655) | ' |
CONDENSED_STATEMENTS_OF_CONSOL1
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $16,696 | $24,258 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation, depletion and amortization | 11,011 | 16,715 |
Unrealized foreign exchange loss (gain) | 22 | -358 |
Dry hole costs | 20,190 | 2,853 |
Stock based compensation | 2,600 | 2,055 |
Bad debt provision | 1,284 | 959 |
Impairment of proved properties | ' | 7,620 |
Change in operating assets and liabilities: | ' | ' |
Trade receivables | 7,475 | -1,660 |
Accounts with partners | -15,246 | -2,543 |
Other receivables | -5,967 | 980 |
Crude oil inventory | -1,793 | -1,105 |
Materials and supplies | 113 | -141 |
Prepayments and other | -1,756 | -2,847 |
Accounts payable, accrued liabilities and other liabilities | 2,176 | -1,983 |
Net cash provided by operating activities | 36,805 | 44,803 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Restricted cash, net | -879 | 55 |
Property and equipment expenditures | -56,138 | -43,507 |
Net cash used in investing activities | -57,017 | -43,452 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from the issuance of common stock | 557 | 3,369 |
Purchase of treasury shares | -10,680 | ' |
Distribution to noncontrolling interest | ' | -5,595 |
Net cash used in financing activities | -10,123 | -2,226 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | -30,335 | -875 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 130,800 | 137,139 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 100,465 | 136,264 |
Supplemental disclosure of cash flow information | ' | ' |
Income taxes paid | 28,157 | 59,486 |
Supplemental disclosure of non-cash transactions | ' | ' |
Property and equipment additions incurred during the period but not paid at period end | 13,254 | 9,775 |
Property and equipment reduction as the result of changes in asset retirement cost estimates | ' | 5,463 |
Receivable from employees for stock option exercise | $177 | ' |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidated Financial Statements and Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Unaudited Condensed Consolidated Financial Statements and Accounting Policies | ' |
1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND ACCOUNTING POLICIES | |
The condensed consolidated financial statements of VAALCO Energy, Inc. and subsidiaries (collectively, “VAALCO” or the “Company”), included herein are unaudited, but include all adjustments consisting of normal recurring accruals which the Company deems necessary for a fair presentation of its financial position, results of operations and cash flows for the interim period. Such results are not necessarily indicative of results to be expected for the full year. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2012, which also contains a summary of the significant accounting policies followed by the Company in the preparation of its consolidated financial statements. These policies were also followed in preparing the quarterly report included herein. The Company follows the successful efforts method of accounting for oil and gas exploration and development costs. | |
VAALCO is a Houston-based independent energy company, principally engaged in the acquisition, exploration, development and production of crude oil and natural gas. VAALCO owns producing properties and conducts exploration activities as an operator in Gabon, West Africa, conducts exploration activities as an operator in Angola, West Africa, and conducts exploration activities as a non-operator in Equatorial Guinea, West Africa. VAALCO is the operator of unconventional and conventional resource properties in the United States located in Montana and North Texas. The Company also owns minor interests in conventional production activities as a non-operator in the United States. | |
VAALCO’s international subsidiaries are VAALCO Gabon (Etame), Inc., VAALCO Production (Gabon), Inc., VAALCO Angola (Kwanza), Inc., VAALCO UK (North Sea), Ltd., VAALCO International, Inc., VAALCO Energy (EG), Inc. and VAALCO Energy Mauritius (EG) Limited. VAALCO Energy (USA), Inc. holds interests in properties located in the United States. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||||||||||
2. EARNINGS PER SHARE | ||||||||||||||||||||||||||
Basic earnings per share (“EPS”) is calculated using the average number of shares of common stock outstanding during each period. Diluted EPS assumes the exercise of all stock options having exercise prices less than the average market price of the common stock using the treasury stock method. | ||||||||||||||||||||||||||
Diluted shares consist of the following: | ||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Basic weighted average common | 56,600,866 | 57,845,800 | 57,464,763 | 57,613,624 | ||||||||||||||||||||||
stock issued and outstanding | ||||||||||||||||||||||||||
Dilutive options | 514,748 | 1,101,371 | 735,445 | 1,171,015 | ||||||||||||||||||||||
Total dilutive shares | 57,115,614 | 58,947,171 | 58,200,208 | 58,784,639 | ||||||||||||||||||||||
Options to purchase 3,204,865 and 2,134,300 shares were excluded in the three months and nine months ended September 30, 2013, respectively, because they would have been anti-dilutive. Options to purchase 1,018,900 and 1,018,900 shares were excluded in the three months and nine months ended September 30, 2012, respectively, because they would have been anti-dilutive. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||||||||||||
3. STOCK-BASED COMPENSATION | ||||||||||||||||||||||||||||||
Stock options are granted under the Company’s long-term incentive plan and have an exercise price that may not be less than the fair market value of the underlying shares on the date of grant. In general, stock options granted will become exercisable over a period determined by the Compensation Committee which in the past has been a five year life. A portion of the stock options granted in March 2013 and 2012 vested immediately with the remainder vesting over a two year period. In addition, stock options will become exercisable upon a change in control, unless provided otherwise by the Compensation Committee. At September 30, 2013, there were 2,128,046 shares subject to options authorized but not granted. | ||||||||||||||||||||||||||||||
For the three months and nine months ended September 30, 2013, the Company recognized non-cash compensation expense of $0.4 million and $2.6 million, respectively, related to stock options. For the three months and nine months ended September 30, 2012, the Company recognized non-cash compensation expense of $0.4 million and $2.1 million, respectively, related to stock options. These amounts were recorded as general and administrative expense. Because the Company does not pay significant United States federal income taxes, no amounts were recorded for tax benefits related to excess stock based compensation deductions. | ||||||||||||||||||||||||||||||
A summary of the stock option activity for the nine months ended September 30, 2013 is provided below: | ||||||||||||||||||||||||||||||
Number of Shares | Weighted Average | Weighted | Aggregate | |||||||||||||||||||||||||||
Underlying Options | Exercise Price Per | Average | Intrinsic Value | |||||||||||||||||||||||||||
(in thousands) | Share | Remaining | (in millions) | |||||||||||||||||||||||||||
Contractual Term | ||||||||||||||||||||||||||||||
Outstanding at beginning of period | 4,065 | $ | 6.12 | 2.65 | ||||||||||||||||||||||||||
Granted | 1,236 | 7.59 | 4.46 | |||||||||||||||||||||||||||
Exercised | (173 | ) | 4.24 | 0.03 | ||||||||||||||||||||||||||
Forfeited | (1 | ) | 7.75 | 4.43 | ||||||||||||||||||||||||||
Outstanding at end of period | 5,127 | $ | 6.53 | 2.58 | $ | 4.82 | ||||||||||||||||||||||||
Exercisable at end of period | 4,245 | $ | 6.21 | 2.27 | $ | 4.82 | ||||||||||||||||||||||||
The intrinsic value of a stock option is the amount by which the current market value of the underlying stock exceeds the exercise price of the option. | ||||||||||||||||||||||||||||||
As of September 30, 2013, unrecognized compensation costs totaled $1.4 million. The expense is expected to be recognized over a weighted average period of 1.2 years. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies | ' |
4. COMMITMENTS AND CONTINGENCIES | |
Offshore Gabon | |
The Company entered into a sixth exploration period extension during 2009 and was required to spend $5.3 million for its share of two exploration wells and to acquire and process 150 square kilometers of 3-D seismic on the Etame Marin block by July 2014. One of the two exploration commitment wells was drilled in 2010 on the Omangou prospect at a cost of $8.6 million ($2.6 million net to the Company). The seismic obligation was met with the acquisition of 223 square kilometers of 3-D seismic in 2012. The remaining exploration well commitment was met with the drilling of the Ovoka 1 well in the third quarter of 2013 at a cost of $19.8 million ($6.0 million net to the Company). The well located approximately five miles northeast of the Ebouri field and six miles north of the Etame field was found to be water bearing and was abandoned as an unsuccessful effort. | |
As part of securing the second ten-year production license with the government of Gabon, the Company agreed in principle to a cash funding arrangement for the eventual abandonment of the offshore wells, platforms and facilities. The agreement is not yet finalized, but calls for annual funding for the next seven years at 12.14% of the total abandonment estimate per year and 5.0% per year for the last three years of the production license. The amounts paid will be reimbursed through the cost account and are non-refundable to the Company. The funding will begin after the agreement is finalized. The abandonment estimate for this purpose is approximately $10.1 million net to the Company on an undiscounted basis. The obligation for abandonment of the Gabon offshore facilities is included in the asset retirement obligation shown on the Company’s balance sheet. | |
Angola | |
In November 2006, the Company signed a production sharing contract for Block 5 offshore Angola. The four year primary term with an optional three year extension awards the Company exploration rights to 1.4 million acres offshore central Angola. The Company’s working interest is 40%. Additionally, the Company is required to carry the Angolan national oil company, Sonangol P&P, for 10% of the work program. During the first four years of the contract, the Company was required to acquire and process 1,000 square kilometers of 3-D seismic data, drill two exploration wells and expend a minimum of $29.5 million ($14.8 million net to the Company). The Company fulfilled its seismic obligation when it acquired 1,175 square kilometers of 3-D seismic data at a cost of $7.5 million ($3.75 million net to the Company) in January 2007 and 524 square kilometers of 3-D seismic data during the fourth quarter of 2008 at a cost of $6.0 million ($3.0 million net to the Company). Each of the two exploration commitment wells is subject to a $5.0 million penalty ($10.0 million in aggregate for both wells) if not drilled during the contract term. The $10.0 million is currently recorded as restricted cash and is held at a financial institution located in the United States. Additional time extensions have been granted by the Angolan government to drill the two exploration commitment wells, the latest extension providing until November 30, 2014. | |
The government-assigned working interest partner was delinquent paying their share of the costs several times in 2009 and consequently was placed in a default position. By a governmental decree, dated December 1, 2010, the former partner was removed from the production sharing contract. Following the decree, the Company and the government of Angola have been working to obtain a replacement partner. | |
In the second quarter of 2012, the Company identified a potential partner to acquire the available 40% working interest and submitted the name of the interested party to the Angolan government for approval. In July 2013, the Angolan government informed the Company that it should first proceed to acquire the available working interest per the provisions of the Joint Operating Agreement and then enter into a farm-out agreement with the potential partner. After requesting the assignment of the available working interest, the Company received correspondence from the Angolan government in November 2013 whereby they notified the Company of their plan to effect the working interest assignment directly to a third party. The Company cannot provide a time estimate for completing the working interest assignment, or whether the assignment will occur at all, as it involves actions by the Angolan government. After the assignment of the 40% is completed, the Company intends to commence drilling two exploration wells as soon as practical. | |
Due to the continuing circumstances regarding the available 40% working interest, the Company has recorded a full allowance totaling $7.4 million as of September 30, 2013, against the accounts receivable from partners for the amounts owed to the Company above its 40% working interest plus the 10% carried interest. The allowance recorded in the three and nine months ended September 30, 2013 totaled $0.1 million and $1.3 million, respectively. The farm-out agreement provides for the Company for being reimbursed for the gross receivable amount. The timing of this event cannot be reasonably predicted at the present time. |
Capitalization_of_Exploratory_
Capitalization of Exploratory Well Costs | 9 Months Ended |
Sep. 30, 2013 | |
Capitalization of Exploratory Well Costs | ' |
5. CAPITALIZATION OF EXPLORATORY WELL COSTS | |
ASC Topic 932—Extractive Industries provides that an exploratory well shall be capitalized as part of the entity’s uncompleted wells pending the determination of whether the well has found proved reserves. Further, an exploration well that discovers oil and gas reserves, but those reserves cannot be classified as proved when drilling is completed, shall be capitalized if the well has found a sufficient quantity of reserves to justify its completion as a producing well and the entity is making sufficient progress assessing the reserves and the economic and operating viability of the project. If either condition is not met, the exploration well would be assumed to be impaired and its costs would be charged to expense. | |
In the second and third quarters of 2010, the Company drilled the Southeast Etame No. 1 well with two sidetracks in the Etame Marin block offshore Gabon. The well discovered a five meter column of oil in the Gamba sand reservoir. Additional evaluation of the well and sidetrack information was conducted to determine options for developing the discovery. In the second quarter of 2012, the Company and its partners agreed to proceed with the development plan featuring a fixed leg platform for developing the Southeast Etame discovery area and the North Tchibala field, where a discovery was made on the block prior to VAALCO’s block participation. The final investment decision was approved in the fourth quarter of 2012 for the construction of the platform. Construction began in the first quarter of 2013 and the platform is expected to be transported and installed in 2014. The Company has capitalized $7.7 million for this well in accordance with the criteria contained in ASC Topic 932. | |
In the third and fourth quarters of 2012, the Company drilled the N’Gongui 2 well with three sidetracks in the Mutamba Iroru block onshore Gabon. Application of the discovery was made timely to the government of Gabon and the issuance of the development permit is pending finalization of financial terms. The Company has capitalized $8.8 million for this well in accordance with the criteria contained in ASC Topic 932. |
Repurchase_of_Common_Stock
Repurchase of Common Stock | 9 Months Ended |
Sep. 30, 2013 | |
Repurchase of Common Stock | ' |
6. REPURCHASE OF COMMON STOCK | |
On June 6, 2013, the Company announced that its Board of Directors has authorized the repurchase of up to $25 million of the Company’s common stock over the next 12 months. Under the share buyback program, shares of common stock are to be purchased on the open market or through privately negotiated transactions from time-to-time. The share buyback program does not obligate the Company to acquire any specific number of shares in any period, and may be modified, suspended, extended or discontinued at any time without prior notice. During the quarter ended September 30, 2013, the Company repurchased 1,531,770 shares at an average price of $6.10 per share totaling $9.3 million. | |
For the nine months ended September 30, 2013, the total number of shares repurchased by the Company under this program was 1,765,170 shares. The average price paid for all shares was $6.05 per share totaling $10.7 million. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||||||||||||||||||||||||||
7. SEGMENT INFORMATION | ||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s main operations are based in Gabon, Angola, Equatorial Guinea, and in the United States. Minor activities for the Company’s United Kingdom subsidiary are included in the “Corporate and Other” column in the table. Management reviews and evaluates the operation of each geographic segment separately. Segments include exploration for and production of hydrocarbons where commercial reserves have been found and developed. Revenues are recognized at the geographical location of hydrocarbon production. The Company evaluates each segment based on operating income (loss). | ||||||||||||||||||||||||||||||||||||||||||||||||
Segment activity for the three months and nine months ended September 30, 2013 and 2012 are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||
($ thousands) | Gabon | Angola | EG | USA | Corporate | Total | ||||||||||||||||||||||||||||||||||||||||||
and Other | ||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 37,253 | $ | - | $ | - | $ | 487 | $ | - | $ | 37,740 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | 14,156 | (538 | ) | (149 | ) | (4,754 | ) | (611 | ) | 8,104 | ||||||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 36,950 | $ | - | $ | - | $ | 680 | $ | - | $ | 37,630 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | 27,248 | (781 | ) | - | (8,994 | ) | (1,879 | ) | 15,594 | |||||||||||||||||||||||||||||||||||||||
($ thousands) | Gabon | Angola | EG | USA | Corporate | Total | ||||||||||||||||||||||||||||||||||||||||||
and Other | ||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 109,482 | $ | - | $ | - | $ | 1,513 | $ | - | $ | 110,995 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | 59,871 | (2,120 | ) | (604 | ) | (11,782 | ) | (4,091 | ) | 41,274 | ||||||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 139,563 | $ | - | $ | - | $ | 2,171 | - | $ | 141,734 | |||||||||||||||||||||||||||||||||||||
Operating income (loss) | 106,852 | (1,980 | ) | - | (13,599 | ) | (6,940 | ) | 84,333 | |||||||||||||||||||||||||||||||||||||||
Total Assets | Gabon | Angola | EG | USA | Corporate | Total | ||||||||||||||||||||||||||||||||||||||||||
($ thousands) | and Other | |||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2013 | $ | 220,098 | $ | 12,574 | $ | 10,129 | $ | 9,693 | $ | 21,127 | $ | 273,621 | ||||||||||||||||||||||||||||||||||||
As of December 31, 2012 | 190,652 | 11,405 | 10,000 | 17,314 | 38,585 | 267,956 | ||||||||||||||||||||||||||||||||||||||||||
Capitalization_of_Exploratory_1
Capitalization of Exploratory Well Costs (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Extractive Industries | ' |
ASC Topic 932—Extractive Industries provides that an exploratory well shall be capitalized as part of the entity’s uncompleted wells pending the determination of whether the well has found proved reserves. Further, an exploration well that discovers oil and gas reserves, but those reserves cannot be classified as proved when drilling is completed, shall be capitalized if the well has found a sufficient quantity of reserves to justify its completion as a producing well and the entity is making sufficient progress assessing the reserves and the economic and operating viability of the project. If either condition is not met, the exploration well would be assumed to be impaired and its costs would be charged to expense. | |
In the second and third quarters of 2010, the Company drilled the Southeast Etame No. 1 well with two sidetracks in the Etame Marin block offshore Gabon. The well discovered a five meter column of oil in the Gamba sand reservoir. Additional evaluation of the well and sidetrack information was conducted to determine options for developing the discovery. In the second quarter of 2012, the Company and its partners agreed to proceed with the development plan featuring a fixed leg platform for developing the Southeast Etame discovery area and the North Tchibala field, where a discovery was made on the block prior to VAALCO’s block participation. The final investment decision was approved in the fourth quarter of 2012 for the construction of the platform. Construction began in the first quarter of 2013 and the platform is expected to be transported and installed in 2014. The Company has capitalized $7.7 million for this well in accordance with the criteria contained in ASC Topic 932. | |
In the third and fourth quarters of 2012, the Company drilled the N’Gongui 2 well with three sidetracks in the Mutamba Iroru block onshore Gabon. Application of the discovery was made timely to the government of Gabon and the issuance of the development permit is pending finalization of financial terms. The Company has capitalized $8.8 million for this well in accordance with the criteria contained in ASC Topic 932. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Schedule of Diluted Shares | ' | |||||||||||||||||||||||||
Diluted shares consist of the following: | ||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Basic weighted average common | 56,600,866 | 57,845,800 | 57,464,763 | 57,613,624 | ||||||||||||||||||||||
stock issued and outstanding | ||||||||||||||||||||||||||
Dilutive options | 514,748 | 1,101,371 | 735,445 | 1,171,015 | ||||||||||||||||||||||
Total dilutive shares | 57,115,614 | 58,947,171 | 58,200,208 | 58,784,639 | ||||||||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||
Stock Option Activity | ' | |||||||||||||||||||||||||||||
A summary of the stock option activity for the nine months ended September 30, 2013 is provided below: | ||||||||||||||||||||||||||||||
Number of Shares | Weighted Average | Weighted | Aggregate | |||||||||||||||||||||||||||
Underlying Options | Exercise Price Per | Average | Intrinsic Value | |||||||||||||||||||||||||||
(in thousands) | Share | Remaining | (in millions) | |||||||||||||||||||||||||||
Contractual Term | ||||||||||||||||||||||||||||||
Outstanding at beginning of period | 4,065 | $ | 6.12 | 2.65 | ||||||||||||||||||||||||||
Granted | 1,236 | 7.59 | 4.46 | |||||||||||||||||||||||||||
Exercised | (173 | ) | 4.24 | 0.03 | ||||||||||||||||||||||||||
Forfeited | (1 | ) | 7.75 | 4.43 | ||||||||||||||||||||||||||
Outstanding at end of period | 5,127 | $ | 6.53 | 2.58 | $ | 4.82 | ||||||||||||||||||||||||
Exercisable at end of period | 4,245 | $ | 6.21 | 2.27 | $ | 4.82 | ||||||||||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Segment Activity | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Segment activity for the three months and nine months ended September 30, 2013 and 2012 are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||
($ thousands) | Gabon | Angola | EG | USA | Corporate | Total | ||||||||||||||||||||||||||||||||||||||||||
and Other | ||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 37,253 | $ | - | $ | - | $ | 487 | $ | - | $ | 37,740 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | 14,156 | (538 | ) | (149 | ) | (4,754 | ) | (611 | ) | 8,104 | ||||||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 36,950 | $ | - | $ | - | $ | 680 | $ | - | $ | 37,630 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | 27,248 | (781 | ) | - | (8,994 | ) | (1,879 | ) | 15,594 | |||||||||||||||||||||||||||||||||||||||
($ thousands) | Gabon | Angola | EG | USA | Corporate | Total | ||||||||||||||||||||||||||||||||||||||||||
and Other | ||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 109,482 | $ | - | $ | - | $ | 1,513 | $ | - | $ | 110,995 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | 59,871 | (2,120 | ) | (604 | ) | (11,782 | ) | (4,091 | ) | 41,274 | ||||||||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 139,563 | $ | - | $ | - | $ | 2,171 | - | $ | 141,734 | |||||||||||||||||||||||||||||||||||||
Operating income (loss) | 106,852 | (1,980 | ) | - | (13,599 | ) | (6,940 | ) | 84,333 | |||||||||||||||||||||||||||||||||||||||
Total Assets | Gabon | Angola | EG | USA | Corporate | Total | ||||||||||||||||||||||||||||||||||||||||||
($ thousands) | and Other | |||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2013 | $ | 220,098 | $ | 12,574 | $ | 10,129 | $ | 9,693 | $ | 21,127 | $ | 273,621 | ||||||||||||||||||||||||||||||||||||
As of December 31, 2012 | 190,652 | 11,405 | 10,000 | 17,314 | 38,585 | 267,956 | ||||||||||||||||||||||||||||||||||||||||||
Earnings_Per_Share_Schedule_of
Earnings Per Share - Schedule of Diluted shares (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Weighted Average Number of Shares Outstanding [Abstract] | ' | ' | ' | ' |
Basic weighted average common stock issued and outstanding | 56,600,866 | 57,845,800 | 57,464,763 | 57,613,624 |
Dilutive options | 514,748 | 1,101,371 | 735,445 | 1,171,015 |
Total dilutive shares | 57,115,614 | 58,947,171 | 58,200,208 | 58,784,639 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Option to purchase shares, anti-dilutive | 3,204,865 | 1,018,900 | 2,134,300 | 1,018,900 |
StockBased_Compensation_Stock_
Stock-Based Compensation - Stock Option Activity (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Number of Shares Underlying Options, Outstanding at beginning of period | 4,065 | ' |
Number of Shares Underlying Options, Granted | 1,236 | ' |
Number of Shares Underlying Options, Exercised | -173 | ' |
Number of Shares Underlying Options, Forfeited | -1 | ' |
Number of Shares Underlying Options, Outstanding at end of period | 5,127 | 4,065 |
Number of Shares Underlying Options, Exercisable at end of period | 4,245 | ' |
Weighted Average Exercise Price Per Share, Outstanding at beginning of period | $6.12 | ' |
Weighted Average Exercise Price Per Share, Granted | $7.59 | ' |
Weighted Average Exercise Price Per Share, Exercised | $4.24 | ' |
Weighted Average Exercise Price Per Share, Forfeited | $7.75 | ' |
Weighted Average Exercise Price Per Share, Outstanding at end of period | $6.53 | $6.12 |
Weighted Average Exercise Price Per Share, Exercisable at end of period | $6.21 | ' |
Weighted Average Remaining Contractual Term, Outstanding balance | '2 years 6 months 29 days | '2 years 7 months 24 days |
Weighted Average Remaining Contractual Term, Granted | '4 years 5 months 16 days | ' |
Weighted Average Remaining Contractual Term, Exercised | '11 days | ' |
Weighted Average Remaining Contractual Term, Forfeited | '4 years 5 months 5 days | ' |
Weighted Average Remaining Contractual Term, Exercisable at end of period | '2 years 3 months 7 days | ' |
Aggregate Intrinsic Value, Outstanding at end of period | $4.82 | ' |
Aggregate Intrinsic Value, Exercisable at end of period | $4.82 | ' |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Stock options granted, exercisable life | ' | ' | '5 years | ' |
Stock options vesting period | ' | ' | '2 years | ' |
Stock options, authorized | 2,128,046 | ' | 2,128,046 | ' |
Non-cash compensation expense | ' | ' | $2,600,000 | $2,055,000 |
Tax benefits related to stock based compensation | ' | ' | 0 | ' |
Unrecognized compensation costs | 1,400,000 | ' | 1,400,000 | ' |
Compensation costs expected to be recognized | ' | ' | '1 year 2 months 12 days | ' |
Employee Stock Option | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Non-cash compensation expense | $400,000 | $400,000 | $2,600,000 | $2,100,000 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Nov. 30, 2006 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2012 | Jan. 31, 2007 | Dec. 31, 2008 | Nov. 01, 2010 |
In Millions, unless otherwise specified | Offshore Gabon | Offshore Gabon | Offshore Gabon | Offshore Gabon | Angola | Angola | Angola | Angola | Angola | Angola | Angola | ||
Well | Omangou Prospect | Ovoka Well | Seismic Obligation | Well | Well | Seismic Obligation | Seismic Obligation | Seismic Obligation | |||||
Well | Well | Sqkms | acre | Sqkms | Sqkms | Sqkms | |||||||
Long Term Purchase Commitment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost for acquire property | ' | ' | $5.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Length of acquired property | ' | ' | ' | ' | ' | 150 | ' | ' | ' | ' | ' | ' | ' |
Number of exploration wells | ' | ' | 2 | 1 | 1 | ' | 2 | ' | ' | ' | ' | ' | ' |
Cost related to drilling | ' | ' | ' | 8.6 | 19.8 | ' | ' | ' | ' | ' | ' | ' | ' |
Cost related to share of drilling | ' | ' | ' | 2.6 | 6 | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition related to obligation | ' | ' | ' | ' | ' | 223 | ' | ' | ' | ' | ' | ' | ' |
Number of exploration wells drilling required to pay remaining obligation | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Annual funding related to production license, term | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of annual funding over seven years | ' | ' | 12.14% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of annual funding over last three years | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Abandonment cost related to annual funding | ' | ' | 10.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area under property exploration rights | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | ' | ' | ' | ' |
Joint operation agreement related to third party in working interest percentage | ' | ' | ' | ' | ' | ' | ' | 40.00% | 40.00% | ' | ' | ' | ' |
Additional joint operation agreement related to third party in working interest percentage | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' |
Production license agreement term | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' |
Production license agreement term extended by government | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' |
Length of acquired data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,175 | 524 | 1,000 |
Drilling cost to company | ' | ' | ' | ' | ' | ' | 14.8 | ' | ' | ' | ' | ' | ' |
Seismic obligation cost to company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.75 | 3 | ' |
Cost related to seismic obligation, gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.5 | 6 | ' |
Cost related to drilling | ' | ' | ' | ' | ' | ' | 29.5 | ' | ' | ' | ' | ' | ' |
Well penalty, minimum | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Well penalty, maximum | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recorded restricted cash | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of working interest for amounts owned | ' | ' | ' | ' | ' | ' | ' | 40.00% | 40.00% | 40.00% | ' | ' | ' |
Percentage of carried interest | ' | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% | ' | ' | ' | ' |
Allowance for accounts with partners | 7.4 | 6 | ' | ' | ' | ' | ' | 7.4 | 7.4 | ' | ' | ' | ' |
Allowance recorded for accounts receivable with remainder | ' | ' | ' | ' | ' | ' | ' | $0.10 | $1.30 | ' | ' | ' | ' |
Number of exploration wells intended for drilling after working interest assignment completed | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' |
Capitalization_of_Exploratory_2
Capitalization of Exploratory Well Costs - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
m | |
Track | |
Etame Marin | ' |
Capitalized Costs Relating To Oil And Gas Producing Activities By Geographic Area [Line Items] | ' |
Number of side tracks | 2 |
Area of sand of oil | 5 |
North Tchibala | ' |
Capitalized Costs Relating To Oil And Gas Producing Activities By Geographic Area [Line Items] | ' |
Capitalization on development plan | 7.7 |
Mutamba Iroru | ' |
Capitalized Costs Relating To Oil And Gas Producing Activities By Geographic Area [Line Items] | ' |
Number of side tracks | 3 |
Capitalization on development plan | 8.8 |
Accounting Standards Update 2010-03 | ' |
Capitalized Costs Relating To Oil And Gas Producing Activities By Geographic Area [Line Items] | ' |
Accounting Standard Code for Extractive Industries followed for capitalization purposes - ASC Topic 932 | 'ASC Topic 932—Extractive Industries provides that an exploratory well shall be capitalized as part of the entity’s uncompleted wells pending the determination of whether the well has found proved reserves. Further, an exploration well that discovers oil and gas reserves, but those reserves cannot be classified as proved when drilling is completed, shall be capitalized if the well has found a sufficient quantity of reserves to justify its completion as a producing well and the entity is making sufficient progress assessing the reserves and the economic and operating viability of the project. If either condition is not met, the exploration well would be assumed to be impaired and its costs would be charged to expense. |
Repurchase_of_Common_Stock_Add
Repurchase of Common Stock - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Equity Class Of Treasury Stock [Line Items] | ' | ' | ' |
Common stock authorized to be repurchased over the next 12 months | $25,000,000 | ' | ' |
Shares repurchased | ' | 1,531,770 | 1,765,170 |
Average price per share | ' | $6.10 | $6.05 |
Common stock repurchased, value | ' | $9,300,000 | $10,680,000 |
Segment_Information_Segment_Ac
Segment Information - Segment Activity (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues | $37,740 | $37,630 | $110,995 | $141,734 | ' |
Operating income (loss) | 8,104 | 15,594 | 41,274 | 84,333 | ' |
Total assets | 273,621 | ' | 273,621 | ' | 267,956 |
Operating Segments | Corporate and Other | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Operating income (loss) | -611 | -1,879 | -4,091 | -6,940 | ' |
Total assets | 21,127 | ' | 21,127 | ' | 38,585 |
Operating Segments | Gabon | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues | 37,253 | 36,950 | 109,482 | 139,563 | ' |
Operating income (loss) | 14,156 | 27,248 | 59,871 | 106,852 | ' |
Total assets | 220,098 | ' | 220,098 | ' | 190,652 |
Operating Segments | Angola | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Operating income (loss) | -538 | -781 | -2,120 | -1,980 | ' |
Total assets | 12,574 | ' | 12,574 | ' | 11,405 |
Operating Segments | Equatorial Guinea | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Operating income (loss) | -149 | ' | -604 | ' | ' |
Total assets | 10,129 | ' | 10,129 | ' | 10,000 |
Operating Segments | USA | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues | 487 | 680 | 1,513 | 2,171 | ' |
Operating income (loss) | -4,754 | -8,994 | -11,782 | -13,599 | ' |
Total assets | $9,693 | ' | $9,693 | ' | $17,314 |