Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.10.0.1
Segment Information
12 Months Ended
Dec. 31, 2018
Segment Information [Abstract]  
Segment Information

5. SEGMENT INFORMATION

Our operations are based in Gabon and Equatorial Guinea. Each of our two reportable operating segments is organized and managed based upon geographic location. Our 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 which are not allocated to the reportable operating segments. 

Segment activity of continuing operations for the years ended December 31, 2018,  2017 and 2016 and long-lived assets and segment assets at December 31, 2018 and 2017 are as follows:





 

 

 

 

 

 

 

 

 

 

 

 



 

Year Ended December 31, 2018

(in thousands)

 

Gabon

 

Equatorial Guinea

 

Corporate and Other

 

Total

Revenues-oil and natural gas sales

 

$

104,938 

 

$

 —

 

$

 

$

104,943 

Depreciation, depletion and amortization

 

 

5,176 

 

 

 —

 

 

420 

 

 

5,596 

Bad debt expense and other

 

 

(77)

 

 

 —

 

 

 —

 

 

(77)

Operating income (loss)

 

 

61,930 

 

 

(470)

 

 

(10,173)

 

 

51,287 

Other, net

 

 

92 

 

 

(4)

 

 

4,244 

 

 

4,332 

Interest expense, net

 

 

(396)

 

 

 —

 

 

251 

 

 

(145)

Income tax benefit

 

 

(26,670)

 

 

 —

 

 

(16,584)

 

 

(43,254)

Additions to oil and natural gas properties and equipment - accrual

 

 

38,430 

 

 

187 

 

 

17 

 

 

38,634 



 



 

 

 

 

 

 

 

 

 

 

 

 



 

Year Ended December 31, 2017

(in thousands)

 

Gabon

 

Equatorial Guinea

 

Corporate and Other

 

Total

Revenues-oil and natural gas sales

 

$

76,978 

 

$

 —

 

$

47 

 

$

77,025 

Depreciation, depletion and amortization

 

 

6,196 

 

 

 —

 

 

261 

 

 

6,457 

Bad debt expense and other

 

 

452 

 

 

 —

 

 

 —

 

 

452 

Operating income (loss)

 

 

28,488 

 

 

(122)

 

 

(8,415)

 

 

19,951 

Other, net

 

 

3,142 

 

 

15 

 

 

(1,044)

 

 

2,113 

Interest expense, net

 

 

(1,414)

 

 

 —

 

 

 —

 

 

(1,414)

Income tax expense (benefit)

 

 

11,638 

 

 

 —

 

 

(1,260)

 

 

10,378 

Additions to oil and natural gas properties and equipment - accrual

 

 

1,576 

 

 

 —

 

 

126 

 

 

1,702 







 

 

 

 

 

 

 

 

 

 

 

 



 

Year Ended December 31, 2016

(in thousands)

 

Gabon

 

Equatorial Guinea

 

Corporate and Other

 

Total

Revenues-oil and natural gas sales

 

$

59,460 

 

$

 —

 

$

324 

 

$

59,784 

Depreciation, depletion and amortization

 

 

6,531 

 

 

 —

 

 

395 

 

 

6,926 

Impairment of proved properties

 

 

 —

 

 

 —

 

 

88 

 

 

88 

Bad debt expense and other

 

 

1,222 

 

 

 —

 

 

 —

 

 

1,222 

Operating income (loss)

 

 

3,901 

 

 

(384)

 

 

(7,908)

 

 

(4,391)

Other, net

 

 

(22)

 

 

(8)

 

 

(1,985)

 

 

(2,015)

Interest expense, net

 

 

(2,614)

 

 

 —

 

 

 

 

(2,613)

Income tax expense

 

 

9,248 

 

 

 —

 

 

 —

 

 

9,248 

Additions to oil and natural gas properties and equipment - accrual

 

 

(4,242)

 

 

 —

 

 

181 

 

 

(4,061)







 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

Gabon

 

Equatorial Guinea

 

Corporate and Other

 

Total

Long-lived assets from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2018

 

$

42,195 

 

$

10,187 

 

$

342 

 

$

52,724 

As of December 31, 2017

 

 

12,638 

 

 

10,000 

 

 

583 

 

 

23,221 







 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

Gabon

 

Equatorial Guinea

 

Corporate and Other

 

Total

Total assets from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2018

 

$

103,401 

 

$

10,320 

 

$

49,301 

 

$

163,022 

As of December 31, 2017

 

 

63,121 

 

 

10,095 

 

 

3,581 

 

 

76,797 

Information about our most significant customers

For the years ended December 31, 2018, 2017 and 2016, we sold our crude oil production from Gabon under a term contract with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. The contracted purchaser was Glencore Energy UK Ltd. (“Glencore”) for these periods and through January 2019. Sales of oil to Glencore were approximately 100% of revenues sold to customers for 2018, 2017 and 2016. We have signed a new contract with Mercuria Energy Trading SA which covers sales from February 2019 through January 2020.