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, 2014

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

A summary of the stock option activity for the year ended December 31, 2014 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		4,927		$	6.95		2.85	2.81
Granted		1,118		$	7.05		4.18
Exercised		(1,128	)	$	5.04		0.69
Forfeited		(152	)	$	7.47		3.54
Outstanding at end of period		4,765		$	7.41		2.62	$	1.61
Vested - end of period		3,318		$	7.45		2.22	$	1.18
Vested and expected to vest - end of period		4,728		$	7.41		2.62	$	1.60

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, 2014, 2013 and 2012 is provided below:

	2014		2013		2012
Options granted - (thousands)		1,118		1,836		1,024
Weighted average grant date fair value - ($/share)	$	2.43	$	2.45	$	3.49
Weighted average exercise price - ($/share)	$	5.04	$	4.25	$	4.62
Options exercised (thousands)		1,128		877		759
Total intrinsic value of options exercised - ($thousands)	$	4,120	$	1,201	$	3,267

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 2014 and 2013.

Year	Options Issued (in thousands)	Average Volatility	Expected Term	Risk Free Interest Rate	Expected Dividend Yield
2014	1,118	58%	2.5 years	0.5%	0%
2013	1,836	51%	2.5 years	0.3%	0%
2012	1,024	65%	2.5 years	0.5%	0%

Restricted Stock

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Summary of Non Vested Awards

Shares of restricted stock are granted under the Company’s long-term incentive plan using the fair market value of the underlying shares on the date of grant. In general, restricted stock granted to employees will vest over a period determined by the Compensation Committee. Determined by the Compensation Committee, some restricted stocks granted are vested immediately while some are vested over a three year period with the initial one-third vesting at the first grant date anniversary.

	Restricted Stock			Weighted Average Grant Price
Non-Vested Shares Outstanding December 31, 2013		100,000		$	5.89
Awards granted		99,468		$	6.98
Awards vested		(51,600	)	$	6.56
Awards forfeited		-			-
Non-Vested Shares Outstanding December 31, 2014		147,868		$	6.39