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

Annual report pursuant to Section 13 and 15(d)

Stock Based Compensation (Tables)

Stock Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

A summary of the stock option activity for the year ended December 31, 2013 is provided below:

	Number of Shares Underlying Options (in thousands)			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value (in millions)
Outstanding at beginning of period		4,065		$	6.12		2.65
Granted		1,836		$	7.55		4.08
Exercised		(877	)	$	4.25		0
Forfeited		(97	)	$	7.51		3.57
Outstanding at end of period		4,927		$	6.95		2.85	$	2.81
Vested - end of period		3,459		$	6.58		2.44	$	2.66
Vested and expected to vest - end of period		4,854		$	6.95		2.85	$	2.81

A Summary of the Values of Options Granted and Exercised

A summary of the values of options granted and exercised for each of the years ended December 31, 2013, 2012 and 2011 is provided below:

	2013		2012		2011
Options granted - (thousands)		1,836		1,024		1,169
Weighted average grant date fair value - ($/share)	$	2.45	$	3.49	$	2.09
Weighted average exercise price - ($/share)	$	4.25	$	4.62	$	4.12
Options exercised (thousands)		877		759		302
Total intrinsic value of options exercised - ($thousands)	$	1,201	$	3,267	$	859

The Valuation of the Options Granted

The valuation of the options granted is based upon a Black Scholes model. The table below summarizes the assumptions used to value the options issued in 2013 and 2012.

Year	Options Issued (in thousands)	Weighted Avg. Volatility	Expected Term	Risk Free Interest Rate	Expected Dividend Yield
2013	1,836	51%	2.5 years	0.3%	0%
2012	1,024	65%	2.5 years	0.5%	0%
2011	1,169	47%	2.5 years	0.8%	0%