We recorded an income tax benefit of million and million for the and  months ended respectively.  During the months ended we released a portion of the valuation allowance on our net deferred tax assets based on the Company’s quarterly assessment of the realizability of net deferred tax assets, resulting in an income tax benefit of million.  During the months ended we reversed a liability related to an uncertain tax position that was effectively settled with the Internal Revenue Service ("IRS"), resulting in an income tax benefit of  million.  Our effective tax rate was meaningful for the periods presented due to these changes.

 

Net deferred tax assets relate to net operating loss carryforwards, interest expense carryforwards and other temporary differences expected to produce tax deductions in future periods.  The realization of these assets depends on recognition of sufficient future taxable income in specific federal and state tax jurisdictions in which those temporary differences are deductible.  In assessing the need for a valuation allowance on our deferred tax assets, we consider whether it is more likely than that some portion or all of our deferred tax assets will be realized.  At our valuation allowance was million, which offset substantially all net deferred tax assets as of such date. 

 

Throughout the Company has been in a cumulative year pre-tax income position and has been assessing the realizeability of our deferred tax assets.  During the quarter ended the Company’s assessment included consideration of the Company’s operating history and our forecasted taxable income using all available information.  Based on the assessment, we determined that the Company’s ability to maintain long-term profitability despite near-term changes in commodity prices and capital and operating costs demonstrated that a portion of the Company’s net deferred tax assets would more likely than be realized.  We released million of the valuation allowance, resulting in an income tax benefit in the quarter ended As of the Company’s valuation allowance was million.

 

As of and we had current income taxes receivable of million and million, respectively, related primarily to net operating loss carryback claims for the years and that were carried back to prior years.  These carryback claims were made pursuant to IRC Section (f) (related to rules regarding “specified liability losses”), which permits certain platform dismantlement, well abandonment and site clearance costs to be carried back years.  During the and months ended we received million in income tax refunds.  During the same periods, we recorded interest income of  million and million related to these income tax claims, respectively.  During we received  million in additional income tax refunds in addition to the million in interest income and we expect to receive the remaining balance of claims of approximately million in the half of  

 

During the and  months ended we did receive any income tax claims or make any income tax payments of significance.

 

The tax years through remain open to examination by the tax jurisdictions to which we are subject.