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A continuity of the net deferred income tax (asset) liability is detailed in the following tables:
Balance Recognized Balance December in profit Recognized December(in thousands of dollars) 31, 2010 or loss in equity 31, 2011Property, plant and equipment $ (275) $ 1,670 $ - $ 1,395Decommissioning obligations (12,888) (2,824) - (15,712)Derivative contracts (508) 854 - 346Convertible debentures (note 9) 1,650 (361) 1,531 2,820Share issue costs (2,229) 320 - (1,909)Non-capital losses (18,004) (11,839) - (29,843)Current income deferred 2,597 4,917 - 7,514 ----------------------------------------------- $ (29,657) $ (7,263) $ 1,531 $ (35,389)---------------------------------------------------------------------------- Balance Recognized Balance December in profit Recognized December(in thousands of dollars) 31, 2011 or loss in equity 31, 2012Property, plant and equipment $ 1,395 $ 2,178 $ - $ 3,573Decommissioning obligations (15,712) 4,095 - (11,617)Derivative contracts 346 (620) - (274)Convertible debentures (note 9) 2,820 (508) - 2,312Share issue costs (note 12) (1,909) 756 - (1,153)Non-capital losses (29,843) (8,641) - (38,484)Current income deferred 7,514 (7,505) - 9 ----------------------------------------------- $ (35,389) $ (10,245) $ - $ (45,634)----------------------------------------------------------------------------
12. SHARE CAPITAL
Authorized share capital. The Company is authorized to issue an unlimited number of common and preferred shares. The preferred shares may be issued in one or more series.
Issued share capital.
Number of Common Shares AmountBalance at December 31, 2010 172,485,301 $ 426,925Elimination of deficit, January 1, 2011 - (255,543)Stock options exercised 64,400 51Transferred from contributed surplus on stock option exercise - 27 ------------------------------Balance at December 31, 2011 and 2012 172,549,701 $ 171,460----------------------------------------------------------------------------
Elimination of deficit. On May 16, 2011, the Company's shareholders approved the elimination of the Company's consolidated deficit as at January 1, 2011, without reduction to the Company's stated capital or paid up capital.
Stock options. The Company has an employee stock option plan under which employees, directors and consultants are eligible to purchase common shares of the Company. Options are granted using an exercise price of stock options equal to the weighted average trading price of the Company's common shares for the five trading days prior to the date of the grant. Options have terms of either five or ten years and vest equally over a three year period starting on the first anniversary date of the grant. Changes in the number of options outstanding during the years ended December 31, 2012 and 2011 are as follows:
December 31, 2012 December 31, 2011 Weighted Weighted average average Number of exercise Number of exercise options price options priceOpening balance 14,014,182 $ 1.69 12,006,232 $ 2.32Granted during the year 5,745,500 0.31 4,484,800 0.74Exercised during the year - - (64,400) 0.79Expired during the year (4,273,582) 3.22 (1,564,150) 4.27Forfeited during the year (1,099,300) 0.80 (848,300) 1.01 -------------------------------------------------Ending balance 14,386,800 $ 0.75 14,014,182 $ 1.69----------------------------------------------------------------------------Exercisable, end of year 5,629,583 $ 1.15 6,764,582 $ 2.60----------------------------------------------------------------------------The range of exercise prices of the outstanding options is as follows:Range of exercise prices Weighted Weighted average average Number of exercise remaining options price life (years)$0.31 to $0.46 5,820,500 $ 0.31 4.9$0.47 to $0.70 2,787,300 0.70 3.5$0.71 to $1.06 4,506,450 0.92 2.1$1.07 to $1.60 540,100 1.19 3.0$2.42 to $3.63 547,950 2.68 0.7$3.64 to $4.75 184,500 4.12 0.8 ---------------------------------------------Total at December 31, 2012 14,386,800 $ 0.75 3.5----------------------------------------------------------------------------
