Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.20.1
Segment Information
3 Months Ended
Mar. 31, 2020
Segment Information [Abstract]  
Segment Information 4. SEGMENT INFORMATION

The Company’s operations are based in Gabon and the Company has an undeveloped block in Equatorial Guinea. Each of the Company’s two reportable operating segments is organized and managed based upon geographic location. The Company’s Chief Executive Officer, who is the chief operating decision maker, and management review and evaluate the operation of each geographic segment separately primarily based on operating income (loss). The operations of all segments include exploration for and production of hydrocarbons where commercial reserves have been found and developed. Revenues are based on the location of hydrocarbon

production. Corporate and other is primarily corporate and operations support costs that are not allocated to the reportable operating segments.

Segment activity of continuing operations for the three months ended March 31, 2020 and 2019 as well as long-lived assets and segment assets at March 31, 2020 and December 31, 2019 are as follows:

Three Months Ended March 31, 2020

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Revenues-crude oil and natural gas sales

$

18,389

$

$

$

18,389

Depreciation, depletion and amortization

3,072

31

3,103

Impairment of proved crude oil and natural gas properties

30,625

30,625

Bad debt recovery and other

810

810

Operating income (loss)

(26,283)

(125)

(275)

(26,683)

Derivative instruments gain (loss), net

7,339

7,339

Income tax expense

22,039

11,439

33,478

Additions to crude oil and natural gas properties and equipment – accrual

9,421

9,421

Three Months Ended March 31, 2019

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Revenues-crude oil and natural gas sales

$

19,765

$

$

$

19,765

Depreciation, depletion and amortization

1,479

74

1,553

Impairment of proved crude oil and natural gas properties

Bad debt recovery and other

(29)

(29)

Operating income (loss)

9,530

(186)

(3,798)

5,546

Derivative instruments gain (loss), net

(1,912)

(1,912)

Income tax expense

2,491

10

252

2,753

Additions to crude oil and natural gas properties and equipment – accrual

681

(187)

191

685

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Long-lived assets from continuing operations:

As of March 31, 2020

$

33,202

$

10,000

$

298

$

43,500

As of December 31, 2019

$

57,930

$

10,000

$

328

$

68,258

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Total assets from continuing operations:

As of March 31, 2020

$

117,173

$

10,112

$

41,407

$

168,692

As of December 31, 2019

$

151,686

$

10,087

$

49,764

$

211,537

Information about the Company’s most significant customers

The Company sells crude oil production from Gabon under term contracts with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. From August 2015 through January 2019, the Company sold its crude oil to Glencore Energy UK Ltd. (“Glencore”) and Mercuria Energy Trading SA (“Mercuria”) that covered sales from February 2019 through January 2020. Sales of crude oil to Glencore and Mercuria were approximately 100% of total revenues for the period during the terms of their contracts. The Company signed a new contract with ExxonMobil Corporation (“Exxon”) that covers sales from February 2020 through January 2021 with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. During the three months ended March 31, 2020, revenues from sales of crude oil to Mercuria and Exxon were approximately 52% and 48%, respectively, of total revenues from customers.