VAALCO Energy, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Supplemental Information on Oil and Gas Producing Activities (Table)

Supplemental Information on Oil and Gas Producing Activities (Table)

12 Months Ended

Dec. 31, 2012

Supplemental Information on Oil and Gas Producing Activities (Unaudited) [Abstract]

Costs Incurred in Oil and Gas Property - Acquisition, Exploration and Development Activities


(In thousands)	United States
	2012		2011		2010
Costs incurred during the year:
Exploration—capitalized	$	2,602		—	$	—
Exploration—expensed		38,159		2,083		392
Acquisition		1,630		9,495		2,240
Development		9,689		14,936		—

Total	$	52,080		26,514	$	2,632


(In thousands)	International
	2012		2011		2010
Costs incurred during the year:
Exploration—capitalized	$	5,916	$	69	$	8,020
Exploration—expensed		2,878		3,625		6,421
Acquisition		10,000		455		1,200
Development		4,022		8,011		29,927

Total	$	22,816	$	12,160	$	45,568

Capitalized Costs Relating to Oil and Gas Producing Activities


	December 31,
	2012			2011			2010
Capitalized costs— Properties not being amortized	$	66,794		$	46,047		$	25,504
Properties being amortized⁽¹⁾		195,329			182,820			170,457

Total capitalized costs	$	262,123		$	228,867		$	195,961
Less accumulated depreciation, depletion, and amortization		(155,681	)		(129,166	)		(99,277	)

Net capitalized costs	$	106,442		$	99,701		$	96,684

(1)	Includes $4.7 million, $10.4 million, and $10.3 million asset retirement cost in 2012, 2011, and 2010, respectively.

Results of Operations for Oil and Gas Producing Activities


	United States									International
	2012			2011			2010			2012			2011			2010
										Gabon			Gabon			Gabon
Crude oil and gas sales	$	2,798		$	1,655		$	126		$	192,489		$	208,781		$	134,346
Production, G&A and other expense		(47,866	)		(7,413	)		(495	)		(27,425	)		(27,471	)		(28,614	)
Depreciation, depletion and amortization		(3,872	)		(1,922	)		(11	)		(15,954	)		(23,604	)		(19,946	)
Income tax		—			—			(7	)		(81,813	)		(93,468	)		(35,260	)

Results from oil and gas producing activities	$	(48,940	)	$	(7,680	)	$	(387	)	$	67,297		$	64,238		$	50,526

Net proved reserves


	Oil (MBbls)			Gas (MMCF)
PROVED RESERVES:
BALANCE AT JANUARY 1, 2010		7,363			23
Production		(1,715	)		(38	)
Revisions of previous estimates		1,274			38
Extensions and discoveries		—			—

BALANCE AT DECEMBER 31, 2010		6,922			23
Production		(1,868	)		(255	)
Revisions of previous estimates		959			31
Extensions and discoveries		35			2,126

BALANCE AT DECEMBER 31, 2011		6,048			1,925
Production		(1,741	)		(532	)
Revisions of previous estimates		2,200			151
Extensions and discoveries		981			—

BALANCE AT DECEMBER 31, 2012		7,488			1,544


	Oil (MBbls)			Gas (MMCF)
PROVED DEVELOPED RESERVES
Balance at January 1, 2010		4,795			23
Balance at December 31, 2010		5,029			23
Balance at December 31, 2011		3,854			856
Balance at December 31, 2012		3,750			1,544

Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil Reserves


(In thousands)	United States									International									Total
	December 31,									December 31,									December 31,
	2012			2011			2010			2012			2011			2010			2012			2011			2010
Future cash inflows	$	8,260		$	13,274		$	407		$	776,646		$	623,546		$	517,051		$	784,906		$	636,820		$	517,458
Future production costs		(3,194	)		(1,661	)		(203	)		(203,490	)		(154,020	)		(140,470	)		(206,684	)		(155,681	)		(140,673	)
Future development costs		—			(4,180	)		—			(186,982	)		(85,528	)		(71,190	)		(186,982	)		(89,708	)		(71,190	)
Future income tax expense		(807	)		(1,347	)		(34	)		(181,194	)		(181,886	)		(159,811	)		(182,001	)		(183,233	)		(159,845	)

Future net cash flows	$	4,259		$	6,086		$	170		$	204,980		$	202,112		$	145,580		$	209,239		$	208,198		$	145,750
Discount to present value at 10% annual rate		(1,028	)		(3,150	)		(41	)		(55,309	)		(38,861	)		(20,885	)		(56,337	)		(42,011	)		(20,926	)

Standardized measure of discounted future net cash flows	$	3,231		$	2,936		$	129		$	149,671		$	163,251		$	124,695		$	152,902		$	166,187		$	124,824

Changes in Standardized Measure of Discounted Future Net Cash Flows


(In thousands)	December 31,
	2012			2011			2010
BALANCE AT BEGINNING OF PERIOD	$	166,187		$	124,824		$	102,518
Sales of oil and gas, net of production costs		(168,563	)		(183,705	)		(112,360	)
Net changes in prices and production costs		(11,223	)		194,633			139,810
Revisions of previous quantity estimates		155,111			75,713			71,600
Additions		69,092			7,742			—
Changes in estimated future development costs		(67,834	)		(5,831	)		(5,337	)
Development costs incurred during the period		34,944			31,913			37,531
Accretion of discount		16,619			12,482			10,252
Net change of income taxes		7,445			4,455			(31,482	)
Change in production rates (timing) and other		(48,876	)		(96,039	)		(87,708	)

BALANCE AT END OF PERIOD	$	152,902		$	166,187		$	124,824

- Definition

Tabular disclosure of aggregate capitalized costs relating to an enterprise's oil and gas producing activities and the aggregate related accumulated depreciation, depletion, amortization, and valuation allowances.

+ References + Details

- Definition

Tabular disclosure of the aggregate of costs (whether the costs are capitalized or charged to expense at the time they are incurred ) incurred for the year in oil and gas property acquisition, exploration and development activities.

+ References + Details

- Definition

Tabular disclosure of the results of operations for oil and gas producing activities for the year.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

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-Name Statement of Financial Accounting Standard (FAS)

-Number 19

-Paragraph 59S, 59T, 59U, 59V, 59W, 59X

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

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-URI http://asc.fasb.org/extlink&oid=21918352&loc=d3e511914-122862

+ Details

- Definition

Tabular disclosure of the net quantities of an enterprise's interests in proved developed and undeveloped reserves of (a) crude oil (including condensate and natural gas liquids), (b) natural gas (including coal bed methane), (c) synthetic oil, (d) synthetic gas, and (e) other nonrenewable natural resources that are intended to be upgraded during the period as of the beginning of the period, changes in quantities during the period, and as of the end of the period.

+ References + Details

- Definition

Tabular disclosure of the future net cash flows relating to proved oil and gas reserves and oil and gas subject to purchase under long-term agreements in which the enterprise participates in the operation of the properties on which the oil and gas is located or otherwise serves as the producer. This information is presented in aggregate and for each geographic area for which reserve quantities are disclosed.

+ References + Details