For the nine months ended September 30, 2013, oil revenue after royalty payments decreased by $59.1 million to $38.6 million from $97.7 million for the same period in 2012.  The decrease is due to a decrease in the amount of oil sold of 554 MBbls, and a decrease of $4.25, or 4%, in the average per barrel sales price received from $103.67 to $99.42 per barrel.  Total sales for the nine months ended September 30, 2013 were 388 MBbls compared to 942 MBbls for the same period in 2012.  

The decrease in amounts of oil sold in the year-over-year comparisons is mainly due to the December 2012 sale of a 49% participating interest in Block Z-1 to Pacific Rubiales Energy Corp. 

Expenses

Lease Operating Expense (LOE)

For the three months ended September 30, 2013, lease operating expenses decreased by $9.0 million to $5.3 million ($43.24 per Bbl) from $14.3 million ($50.29 per Bbl) compared with the same period last year. The decrease in quarterly LOE year-over-year is driven by a $7.0 million reduction related to the sale of a 49% participating interest in Block Z-1 in December 2012.  Workover expenses were also lower by $1.0 million due to lower workover expenses during the three months ended September 30, 2013.  Repairs and maintenance expense decreased by $0.6 million related to vessel support services.  There were also lower costs of $0.5 million associated with the change in oil inventory in the three months ended September 30, 2013 compared to the change in oil inventory in the three months ended September 30, 2012. 

For the nine months ended September 30, 2013, lease operating expenses decreased by $18.3 million to $20.1 million ($51.79 per Bbl) from $38.4 million ($40.76 per Bbl) compared with the same period last year.  The decrease is driven by a reduction in lease operating expenses of $18.8 million related to the sale of a 49% participating interest in Block Z-1 in December 2012. 

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