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Kurdistan
In the first quarter of fiscal 2013, the Company recognized an asset impairment of $39 million when it reassessed the recoverable amount of the Qara Dagh Block exploration and evaluation asset.
Corporate
---------------------------------------------------------------------------- Three months ended Nine months ended Dec 31, Dec 31,(thousands of U.S. dollars) 2012 2011 2012 2011----------------------------------------------------------------------------Share-based compensation 1,109 5,158 8,011 31,778Finance expense 9,636 8,135 26,812 23,876Foreign exchange loss (gain) 1,602 4,787 2,570 12,030Loss on short-term investments 282 (2,384) 558 6,184Deferred tax (recovery) (7,476) - (7,476) -----------------------------------------------------------------------------
Share-based compensation
The fair value per stock option granted decreased in the periods due to decreased stock price in the period. Share-based compensation expense also decreased during the period due to the reversal of share-based compensation expense resulting from the forfeiture of stock options.
Finance expense
---------------------------------------------------------------------------- Three months ended Nine months ended Dec 31, Dec 31,(thousands of U.S. dollars) 2012 2011 2012 2011----------------------------------------------------------------------------Interest expense 5,323 5,330 17,593 16,203Accretion expense 2,531 2,077 6,691 5,818Other 1,782 728 2,528 1,855----------------------------------------------------------------------------Finance expense 9,636 8,135 26,812 23,876----------------------------------------------------------------------------
Interest expense includes interest on the Company's finance lease obligation, interest on borrowings on the Company's credit facility since March 2012, interest on the 5% Cdn$310 million of convertible debentures repaid in December 2012, and interest on the 7% Cdn$115 million of convertible notes issued in December 2012. Accretion expense is on convertible notes, convertible debentures and decommissioning obligations. The recorded liability for the convertible notes and formerly for the convertible debenture increases as time progresses to the maturity date resulting in a higher accretion expense than in the prior period. Other finance expenses include costs related to pursuing financing options.
Foreign Exchange
---------------------------------------------------------------------------- Three months ended Nine months ended Dec 31, Dec 31,(thousands of U.S. dollars) 2012 2011 2012 2011----------------------------------------------------------------------------Realized foreign exchange loss 1,515 1,035 3,997 4,403Unrealized foreign exchange loss (gain) 87 3,752 (1,427) 7,627----------------------------------------------------------------------------Total foreign exchange loss 1,602 4,787 2,570 12,030----------------------------------------------------------------------------
