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Royalties and taxes as a percentage of revenue were 65% in Q1-2013, consistent with the 66% ratio reported in Q1-2012.
Yemen Three months ended March 31---------------------------------------------------------------------------- 2013 2012----------------------------------------------------------------------------(000s, except per Bbl amounts) $ $/Bbl $ $/Bbl--------------------------------------------------------------------------------------------------------------------------------------------------------Oil sales 2,426 111.39 3,236 119.73Royalties 905 41.55 1,481 54.80Current taxes 284 13.04 482 17.83Production and operating expenses 1,801 82.69 2,018 74.67----------------------------------------------------------------------------Netback (564) (25.89) (745) (27.57)--------------------------------------------------------------------------------------------------------------------------------------------------------
In Yemen, the Company experienced a negative netback per Bbl of $25.89 in the three months ended March 31, 2013. Operating expenses on a per Bbl basis remained elevated in Q1-2013 as a result of production being shut-in on Block S-1 for the entire quarter. While production volumes were down, the Company continued to incur the majority of the operating costs on Block S-1 which significantly increased operating expenses per Bbl. The Block S-1 operating costs will be recovered from cost oil when production resumes.
Royalties and taxes as a percentage of revenue decreased to 49% from 61% in the three months ended March 31, 2013, compared with 2012.
GENERAL AND ADMINISTRATIVE EXPENSES ("G&A")
Three months ended March 31---------------------------------------------------------------------------- 2013 2012----------------------------------------------------------------------------(000s, except Bbl amounts) $ $/Bbl $ $/Bbl--------------------------------------------------------------------------------------------------------------------------------------------------------G&A (gross) 6,907 4.29 6,271 4.12Stock-based compensation 1,278 0.79 1,140 0.75Capitalized G&A and overhead recoveries (1,085) (0.67) (723) (0.47)----------------------------------------------------------------------------G&A (net) 7,100 4.41 6,688 4.40--------------------------------------------------------------------------------------------------------------------------------------------------------
G&A expenses (net) increased 6% (no change on a per Bbl basis) in Q1-2013 compared with Q1-2012. The increase is principally due to increased costs associated with the acquisitions that were completed in Q2-2012 and Q3-2012.
FINANCE COSTS
Finance costs for the three-month period ended March 31, 2013 decreased to $2.2 million compared with $6.2 million in the same period in 2012. The Company incurred convertible debenture issue costs of $4.4 million during the three months ended March 31, 2012, which caused a significant increase in finance costs during that period. The decrease in finance costs from Q1-2012 to Q1-2013 relates principally to the absence of the convertible debenture issue costs in the current period.
---------------------------------------------------------------------------- Three months ended March 31----------------------------------------------------------------------------(000s) 2013 2012--------------------------------------------------------------------------------------------------------------------------------------------------------Interest expense $ 1,940 $ 1,517Issue costs for convertible debentures - 4,389Amortization of deferred financing costs 262 300----------------------------------------------------------------------------Finance costs $ 2,202 $ 6,206--------------------------------------------------------------------------------------------------------------------------------------------------------
