Share Based Compensation

6 Months Ended

Jun. 30, 2014

Stock Based Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

4. SHARE BASED COMPENSATION:
Valuation and Expense Information
			Three Months				Six Months
			Ended June 30,				Ended June 30,
			2014		2013		2014		2013
	Total cost of share-based payment plans	$	(1,041)	$	4,355	$	1,739	$	8,858
	Amounts capitalized in oil and gas properties
	and equipment	$	435	$	1,302	$	710	$	2,796
	Amounts charged against income, before
	income tax benefit (provision)	$	(1,476)	$	3,053	$	1,029	$	6,062
	Amount of related income tax (expense) benefit
	recognized in income before valuation allowance	$	(617)	$	1,257	$	430	$	2,496

Changes in Stock Options and Stock Options Outstanding

The following table summarizes the changes in stock options for the six months ended June 30,2014 and the year ended December 31,2013:

		Weighted
	Number of	Average
	Options	Exercise Price
	(000's)	(US$)
Balance, December 31, 2012	1,357	$	16.97	to	$	98.87
Forfeited	(110)	$	25.68	to	$	75.18
Exercised	(1)	$	16.97	to	$	16.97
Balance, December 31, 2013	1,246	$	16.97	to	$	98.87
Forfeited	(1)	$	63.05	to	$	63.05
Exercised	(39)	$	16.97	to	$	16.97
Balance, June 30, 2014	1,206	$	25.68	to	$	98.87

Performance Share Plans:

Long Term Incentive Plans.  The Company offers a Long Term Incentive Plan (“LTIP”) in order to further align the interests of key employees with shareholders and to give key employees the opportunity to share in the long-term performance of the Company when specific corporate financial and operational goals are achieved. Each LTIP covers a performance period of three years. In 2012, 2013 and 2014, the Compensation Committee (the “Committee”) approved an award consisting of performance-based restricted stock units to be awarded to each participant.

For each LTIP award, the Committee establishes performance measures at the beginning of each three-year performance period. Under each LTIP, the Committee also establishes a percentage of base salary for each participant which is multiplied by the participant’s base salary at the beginning of the performance period and individual performance level to derive a Long Term Incentive Value as a “target” value. This “target” value corresponds to the number of shares of the Company’s common stock the participant is eligible to receive if the participant is employed by the Company through the date the award vests and if the target level for all performance measures is met. In addition, each participant is assigned threshold and maximum award levels in the event the Company’s actual performance is below or above the target levels. For the LTIP awards in 2012, the Committee established the following performance measures: return on equity, reserve replacement ratio, and production growth.  For the LTIP awards in 2013 and 2014, the Committee established the following performance measures:  return on capital employed, debt level, reserve replacement ratio, and total shareholder return (officers only).

For the six months ended June 30,2014, the Company recognized $2.5 million in pre-tax compensation expense related to the 2012, 2013 and 2014 LTIP awards of restricted stock units as compared to $4.6 million during the six months ended June 30,2013 related to the 2011, 2012 and 2013 LTIP awards of restricted stock units. The amounts recognized during the six months ended June 30,2014 assume that maximum performance objectives are attained under each of the LTIP plans. If the Company ultimately attains these performance objectives, the associated total compensation, estimated at June 30,2014, for each of the three year performance periods is expected to be approximately $10.2 million, $12.4 million, and $13.2million related to the 2012, 2013 and 2014 LTIP awards of restricted stock units, respectively. The 2011 LTIP award of restricted stock units was paid in shares of the Company’s stock to employees during the first quarter of 2014 and totaled $8.4 million (106,437 net shares).