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Debt | 12 Months Ended
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Dec. 31, 2017
Debt [Abstract] |
Debt | 8. DEBT In January 2014, we executed a loan agreement with the International Finance Corporation (“IFC credit facility”) for a $65.0 million revolving credit facility, which wa s secured by the assets of our Gabon subsidiary. O n June 29, 2016, we executed a supplemental a greement with the IFC which, among other things, amended and restated our existing loan agreement to convert the $20.0 million revolving portion of the credit facility, to a term loan with $15.0 million outstanding (“Amended Term Loan Agreement”). The Amended Loan A greement is secured by the assets of our Gabon subsidiary, VAALCO Gabon S.A., and is guaranteed by VAALCO as the parent company. The A mended Term L oan A greement provides for quarterly principal and interest payments on the amounts currently outstanding through June 30, 2019, with interest accruing at a rate of LIBOR plus 5.75%. The Amended Term Loan Agreement also provided for an additional $5.0 million, which could be requested in a single draw, subject to the IFC’s approval, through March 15, 2017. On March 14, 2017, we borrowed $4.2 million under this provision of the Amended Term Loan Agreement. The additional borrowings will be repaid in five quarterly principal installments commencing June 30, 2017, together with interest which will accrue at LIBOR plus 5.75%. T he estimated fair value of the borrowings under the Amended Term Loan Agreement is $9.2 million when measured using a discounted cash flow model over the life of the current borrowings at forecasted interest rates. The inputs to this model are Level 3 in the fair value hierarchy. Covenants Under the Amended Term Loan Agreement, the ratio of quarter-end net debt to EBITDAX (as defined in the Amended Term Loan Agreement) must be no more than 3.0 to 1.0. Additionally, our debt service coverage ratio must be greater than 1.2 to 1.0 at each semi-annual review period. Certain of VAALCO’s subsidiaries are contractually prohibited from making payments, loans or transferring assets to VAALCO or other affiliated entities. Specifically, under the Amended Term Loan Agreement, VAALCO Gabon S.A. could be restricted from transferring assets or making dividends, if the positive and negative covenants are not in compliance with the Amended Term Loan Agreement. We were in compliance with all financial covenants as of December 31, 2017. Interest Until June 29, 2016, u nder the terms of the original IFC credit facility, we paid commitment fees on t he undrawn portion of the total commitment. Commitment fees had been equal to 1.5% of the unused balance of the senior tranche of $50.0 million and 2.3% of the unused balance of the subordinated tranche of $15.0 million when a commitment was available for utilization. With the execution of the Amended Term Loan Agreement with the IFC in June 2016, beginning on June 29, 2016, and continuing through March 14, 2017, commitment fees wer e equal to 2.3% of the undrawn term l oan amount of $5.0 million. There are no further commitment fees owing after March 14, 2017. The table below shows the components of the “Interest expense” line item of our consolidated statement s of operations and the average effective interest rate, excluding commitment fees, on our borrowings:
﻿ |  |  |  |  |  |  |  |
﻿ | Year Ended December 31,
﻿ | 2017 |  | 2016 |  | 2015
﻿ | (in thousands)
﻿Interest incurred, including commitment fees | $ | 997 |  | $ | 1,353 |  | $ | 1,496
﻿Deferred finance cost amortization |  | 369 |  |  | 319 |  |  | 304
﻿Deferred finance cost write-off due to loan modification |  | — |  |  | 869 |  |  | —
﻿Capitalized interest |  | — |  |  | — |  |  | (771)
﻿Other interest not related to debt (a) |  | 48 |  |  | 72 |  |  | 296
﻿Interest expense, net | $ | 1,414 |  | $ | 2,613 |  | $ | 1,325
﻿ |  |  |  |  |  |  |  |
﻿Average effective interest rate, excluding commitment fees |  | 6.72% |  |  | 5.52% |  |  | 4.09%
﻿ (a) The “Other interest not related to debt” line item i ncludes interest income.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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