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

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012


(in thousands)	Year Ended December 31,
	2012		2011		2010
U.S. Federal:
Current	$	—	$	—	$	—
Deferred		—		—		—
Foreign:
Current		81,813		93,468		35,260
Deferred		—		—		—

Total	$	81,813	$	93,468	$	35,260

Summary of differences between the financial statement and tax bases of assets and liabilities


	2012			2011
Deferred Tax Assets:
Basis difference in fixed assets	$	30,619		$	23,821
Foreign tax credit carry forward		23,836			9,447
Alternative minimum tax credit carryover		1,349			1,349
Foreign net operating losses		38,782			35,766
Asset retirement obligations		3,629			5,322
Other		2,731			1,566

	$	100,946		$	77,271
Valuation allowance		(99,597	)		(75,922	)

Total deferred tax asset	$	1,349		$	1,349

Pretax income


(in thousands)	Year Ended December 31,
	2012			2011			2010
United States	($	56,979	)	($	16,282	)	($	4,129	)
Foreign		144,131			150,312			81,776

	$	87,152		$	134,030		$	77,647

Statutory rate reconciliation


(In Thousands)	Year Ended December 31,
	2012			2011			2010
Tax Provision Computed at Statutory Rate		30,503		$	46,911		$	27,176
Foreign taxes not offset in U.S. by foreign tax credits		25,266			28,414			8,377
Permanent Differences		2,370			—			—
Rate Differential Items		—			(2,889	)		—
Increase/(Decrease) in Valuation Allowance		23,675			22,038			(293	)
Other		(0	)		(1,006	)		—

Total Tax Expense	$	81,813		$	93,468		$	35,260

Income Tax years subject to examination by major tax jurisdictions


United States			2006-2012
Gabon			2007-2012

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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- Definition

Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded.

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