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The weighted average common share price at the date of exercise for stock options exercised in 2011 was $1.20. There were no options exercised in 2012.
The fair value of the options was estimated using the Black-Scholes model with the following weighted average inputs:
December December 31, 2012 31, 2011Fair value at grant date $ 0.17 $ 0.38Common share price $ 0.31 $ 0.74Exercise price $ 0.31 $ 0.74Volatility 65% 59%Option life 5 years 5 yearsDividends 0% 0%Risk-free interest rate 1.3% 1.7%Forfeiture rate 15% 15%----------------------------------------------------------------------------
This estimated forfeiture rate is adjusted to the actual forfeiture rate when each tranche vests. Share-based compensation of $0.8 million (December 31, 2011 - $1.0 million) was expensed during the year ended December 31, 2012. In addition, share-based compensation of $0.3 million (December 31, 2011 - $0.5 million) was capitalized during the year ended December 31, 2012.
13. LOSS PER SHARE
Basic and diluted loss per share were calculated as follows:
December December 31, 2012 31, 2011Loss for the year $ (31,493) $ (22,444)----------------------------------------------------------------------------Weighted average number of common shares (basic)(in thousands of shares) Common shares outstanding, beginning of year 172,550 172,485 Effect of stock options exercised - 53 --------------------------Weighted average number of common shares (basic) 172,550 172,538----------------------------------------------------------------------------Basic and diluted loss per share $ (0.18) $ (0.13)----------------------------------------------------------------------------
The average market value of the Company's common shares for purposes of calculating the dilutive effect of stock options was based on quoted market prices for the period that the options were outstanding. For the year ended December 31, 2012, 14,386,800 options (December 31, 2011 - 14,014,182 options) and 59,316,889 common shares reserved for convertible debentures (December 31, 2011 - 59,316,889) were excluded from calculating dilutive earnings as they were anti-dilutive.
14. SUPPLEMENTAL REVENUE AND EXPENSE RECOVERY INFORMATION
Revenues for all product sales and services and expense recoveries are as follows:
December December 31, 2012 31, 2011Revenue from oil and gas sales, net of royalties $ 69,815 $ 104,486----------------------------------------------------------------------------Other income (expense): Realized gain (loss) on derivative contracts $ 5,429 $ (624) Unrealized gain (loss) on derivative contracts (2,481) 3,302 Gain (loss) on sale of property, plant and equipment (721) 4,710 -------------------------- $ 2,227 $ 7,388----------------------------------------------------------------------------Expenses recovered from third parties: Operating expense recoveries for use of transportation and processing assets $ 3,551 $ 2,864 General and administrative overhead expense recoveries 450 568 -------------------------- $ 4,001 $ 3,432----------------------------------------------------------------------------
