Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 06, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | TAT | ||
Entity Registrant Name | TRANSATLANTIC PETROLEUM LTD. | ||
Entity Central Index Key | 1092289 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 40,777,149 | ||
Entity Public Float | $257.10 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $35,132 | $12,881 |
Accounts receivable, net | ||
Oil and natural gas sales | 29,673 | 30,619 |
Joint interest and other | 19,918 | 15,348 |
Related party | 602 | 1,004 |
Prepaid and other current assets | 8,930 | 5,072 |
Deferred income taxes | 329 | 2,239 |
Derivative asset | 12,518 | |
Restricted cash | 1,917 | |
Assets held for sale | 28 | 536 |
Total current assets | 109,047 | 67,699 |
Oil and natural gas properties (successful efforts methods) | ||
Proved | 424,031 | 260,857 |
Unproved | 65,438 | 54,392 |
Equipment and other property | 42,343 | 39,916 |
Property and equipment, gross | 531,812 | 355,165 |
Less accumulated depreciation, depletion and amortization | -141,977 | -104,193 |
Property and equipment, net | 389,835 | 250,972 |
Other long-term assets: | ||
Other assets | 8,836 | 7,977 |
Note receivable - related party | 11,500 | 11,500 |
Derivative asset | 19,069 | |
Deferred income taxes | 1,181 | 903 |
Goodwill | 6,935 | 7,535 |
Total other assets | 47,521 | 27,915 |
Total assets | 546,403 | 346,586 |
Current liabilities: | ||
Accounts payable | 39,407 | 16,712 |
Accounts payable - related party | 18,488 | 23,090 |
Accrued liabilities | 31,238 | 20,658 |
Deferred income taxes | 2,138 | |
Derivative liabilities | 3,737 | |
Asset retirement obligations | 323 | 610 |
Loans payable | 45,806 | 43,284 |
Loan payable - related party | 6,800 | |
Liabilities held for sale | 6,928 | 7,559 |
Total current liabilities | 151,128 | 115,650 |
Long-term liabilities: | ||
Asset retirement obligations | 11,053 | 10,286 |
Accrued liabilities | 12,336 | 6,487 |
Deferred income taxes | 54,430 | 16,134 |
Loans payable | 85,192 | 26,482 |
Loan payable - related party | 20,800 | |
Derivative liabilities | 4,230 | |
Total long-term liabilities | 183,811 | 63,619 |
Total liabilities | 334,939 | 179,269 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common shares, $0.10 par value, 100,000,000 shares authorized; 40,708,120 shares and 37,340,206 shares issued and outstanding as of December 31, 2014 and December 31, 2013, respectively | 4,071 | 3,734 |
Additional paid-in-capital | 571,150 | 542,091 |
Accumulated other comprehensive loss | -79,310 | -64,985 |
Accumulated deficit | -284,447 | -313,523 |
Total shareholders' equity | 211,464 | 167,317 |
Total liabilities and shareholders' equity | $546,403 | $346,586 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ||
Common shares, par value | $0.10 | $0.10 |
Common shares, authorized | 100,000,000 | 100,000,000 |
Common shares, issued | 40,708,120 | 37,340,206 |
Common shares, outstanding | 40,708,120 | 37,340,206 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Oil and natural gas sales | $138,174 | $127,270 | $134,113 |
Sales of purchased natural gas | 2,127 | 2,581 | 7,882 |
Other | 427 | 976 | 1,913 |
Total revenues | 140,728 | 130,827 | 143,908 |
Costs and expenses: | |||
Production | 19,999 | 18,602 | 17,804 |
Transportation costs | 284 | ||
Exploration, abandonment and impairment | 19,864 | 27,333 | 39,993 |
Cost of purchased natural gas | 2,055 | 2,247 | 7,694 |
Seismic and other exploration | 4,285 | 14,009 | 5,040 |
Revaluation of contingent consideration | -2,500 | -5,000 | |
General and administrative | 31,625 | 29,020 | 33,947 |
Depreciation, depletion and amortization | 48,927 | 41,322 | 28,215 |
Accretion of asset retirement obligations | 413 | 508 | 710 |
Total costs and expenses | 124,952 | 128,041 | 133,403 |
Operating income | 15,776 | 2,786 | 10,505 |
Other income (expense): | |||
Interest and other expense | -6,213 | -3,929 | -8,340 |
Interest and other income | 1,124 | 1,340 | 2,418 |
Gain (loss) on commodity derivative contracts | 37,454 | -2,698 | -5,548 |
Foreign exchange (loss) gain | -5,998 | -9,663 | 1,083 |
Total other income (expense) | 26,367 | -14,950 | -10,387 |
Income (loss) from continuing operations before income taxes | 42,143 | -12,164 | 118 |
Current income tax expense | -1,784 | -128 | -4,674 |
Deferred income tax expense | -11,263 | -979 | -1,817 |
Net income (loss) from continuing operations | 29,096 | -13,271 | -6,373 |
Loss from discontinued operations before income taxes | -20 | -442 | -5,083 |
Gain on disposal of discontinued operations | 35,999 | ||
Income tax provision | -8,297 | ||
Net (loss) income from discontinued operations | -20 | -442 | 22,619 |
Net income (loss) | 29,076 | -13,713 | 16,246 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | -14,325 | -36,973 | 22,224 |
Comprehensive income (loss) | $14,751 | ($50,686) | $38,470 |
Basic net income (loss) per common share | |||
Continuing operations | $0.77 | ($0.36) | ($0.17) |
Discontinued operations | ($0.01) | $0.62 | |
Weighted average common shares outstanding | 37,829 | 37,069 | 36,742 |
Diluted net income (loss) per common share | |||
Continuing operations | $0.77 | ($0.36) | ($0.17) |
Discontinued operations | ($0.01) | $0.62 | |
Weighted average common and common equivalent shares outstanding | 38,031 | 37,069 | 36,742 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Common shares [Member] | Warrant [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data | ||||||
Beginning balance at Dec. 31, 2011 | $171,273 | $3,658 | $533,907 | ($50,236) | ($316,056) | |
Beginning balance, shares at Dec. 31, 2011 | 36,579,000 | |||||
Exercise of share options | 664 | 8 | 656 | |||
Exercise of share options (in shares) | 81,000 | 81,000 | ||||
Issuance of restricted stock units | 21 | -21 | ||||
Issuance of restricted stock units, shares | 215,000 | |||||
Tax withholding on restricted stock units | -147 | -147 | ||||
Share-based compensation | 3,567 | 3,567 | ||||
Foreign currency translation adjustment | 22,224 | 22,224 | ||||
Net income (loss) | 16,246 | 16,246 | ||||
Ending balance at Dec. 31, 2012 | 213,827 | 3,687 | 537,962 | -28,012 | -299,810 | |
Ending balance, shares at Dec. 31, 2012 | 36,875,000 | |||||
Issuance of common shares | 2,500 | 35 | 2,465 | |||
Issuance of common shares (in shares) | 351,000 | |||||
Issuance of restricted stock units | 12 | -12 | ||||
Issuance of restricted stock units, shares | 114,000 | |||||
Tax withholding on restricted stock units | -40 | -40 | ||||
Share-based compensation | 1,716 | 1,716 | ||||
Foreign currency translation adjustment | -36,973 | -36,973 | ||||
Net income (loss) | -13,713 | -13,713 | ||||
Ending balance at Dec. 31, 2013 | 167,317 | 3,734 | 542,091 | -64,985 | -313,523 | |
Ending balance, shares at Dec. 31, 2013 | 37,340,206 | 37,340,000 | ||||
Issuance of common shares | 23,850 | 322 | 23,528 | |||
Issuance of common shares (in shares) | 3,219,000 | |||||
Contingent payment event | 4,188 | 4,188 | ||||
Issuance of warrants | 233 | |||||
Issuance of restricted stock units | 15 | -15 | ||||
Issuance of restricted stock units, shares | 149,000 | |||||
Tax withholding on restricted stock units | -76 | -76 | ||||
Share-based compensation | 1,434 | 1,434 | ||||
Foreign currency translation adjustment | -14,325 | -14,325 | ||||
Net income (loss) | 29,076 | 29,076 | ||||
Ending balance at Dec. 31, 2014 | $211,464 | $4,071 | $233 | $571,150 | ($79,310) | ($284,447) |
Ending balance, shares at Dec. 31, 2014 | 40,708,120 | 40,708,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net income (loss) | $29,076 | ($13,713) | $16,246 |
Adjustment for net loss (income) from discontinued operations | 20 | 442 | -22,619 |
Net income (loss) from continuing operations | 29,096 | -13,271 | -6,373 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Share-based compensation | 1,434 | 1,716 | 2,559 |
Foreign currency loss | 6,785 | 8,620 | 3,843 |
(Gain) loss on commodity derivative contracts | -37,454 | 2,698 | 5,548 |
Cash settlement on commodity derivative contracts | -2,100 | -3,521 | -3,829 |
Amortization on loan financing costs | 1,025 | 510 | 1,991 |
Bad debt expense | 1,487 | ||
Deferred income tax expense | 11,263 | 979 | 1,817 |
Inventory write down | 1,390 | ||
Exploration, abandonment and impairment | 19,864 | 27,333 | 39,993 |
Depreciation, depletion and amortization | 48,927 | 41,322 | 28,215 |
Accretion of asset retirement obligations | 413 | 508 | 710 |
Revaluation of contingent consideration | -2,500 | -5,000 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | -3,690 | -2,353 | -6,872 |
Prepaid expenses and other assets | -1,718 | -34 | -1,149 |
Accounts payable and accrued liabilities | 5,282 | 9,269 | 1,503 |
Net cash provided by operating activities of continuing operations | 78,114 | 68,776 | 69,346 |
Net cash used in operating activities of discontinued operations | -62 | -1,426 | -25,769 |
Net cash provided by operating activities | 78,052 | 67,350 | 43,577 |
Investing activities: | |||
Acquisitions, net of cash | 66 | ||
Additions to oil and natural gas properties | -109,027 | -94,266 | -70,189 |
Additions to equipment and other properties | -6,318 | -10,653 | -668 |
Restricted cash | -1,917 | -190 | 949 |
Net cash used in investing activities of continuing operations | -117,196 | -105,109 | -69,908 |
Net cash provided by investing activities of discontinued operations | 500 | 1,016 | 156,149 |
Net cash (used in) provided by investing activities | -116,696 | -104,093 | 86,241 |
Financing activities: | |||
Exercise of stock options | 664 | ||
Tax withholding on restricted share units | -76 | -40 | -147 |
Loan proceeds | 73,237 | 66,785 | 25,967 |
Loan proceeds - related party | 20,800 | 11,000 | |
Loan repayment | -29,770 | -29,785 | -78,931 |
Loan repayment - related party | -84,000 | ||
Loan financing costs | -2,630 | -250 | |
Net cash provided by (used in) financing activities from continuing operations | 61,561 | 36,960 | -125,697 |
Net cash used in financing activities from discontinued operations | -5,049 | ||
Net cash provided by (used in) financing activities | 61,561 | 36,960 | -130,746 |
Effect of exchange rate on cash flows and cash equivalents | -666 | -2,104 | 580 |
Net increase (decrease) in cash and cash equivalents | 22,251 | -1,887 | -348 |
Cash and cash equivalents, beginning of year | 12,881 | 14,768 | 15,116 |
Cash and cash equivalents, end of year | 35,132 | 12,881 | 14,768 |
Supplemental disclosures: | |||
Cash paid for interest | 3,490 | 3,091 | 6,946 |
Cash paid for taxes | 2,387 | 5,596 | |
Supplemental non-cash financing activities: | |||
Issuance of common shares for acquisition | 23,850 | ||
Contingent payment event | 4,188 | ||
Note receivable - related party from sale of oilfield services business | 11,500 | ||
Issuance of common shares - amendment to purchase agreement | $2,500 |
General
General | 12 Months Ended |
Dec. 31, 2014 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
General | 1. General |
Nature of operations | |
TransAtlantic Petroleum Ltd. (together with its subsidiaries, “we,” “us,” “our,” the “Company” or “TransAtlantic”) is an international oil and natural gas company engaged in acquisition, exploration, development and production. We have focused our operations in countries that have established yet underexplored petroleum systems, are net importers of petroleum, have an existing petroleum transportation infrastructure and provide favorable commodity pricing, royalty rates and tax rates to exploration and production companies. As of December 31, 2014, we held interests in developed and undeveloped oil and natural gas properties in Turkey, Albania and Bulgaria. As of March 1, 2015, approximately 36% of our outstanding common shares were beneficially owned by N. Malone Mitchell 3rd, our chief executive officer and chairman of our board of directors. | |
Basis of presentation | |
Our consolidated financial statements are expressed in U.S. Dollars and have been prepared by management in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). All amounts in these notes to the consolidated financial statements are in U.S. Dollars unless otherwise indicated. In preparing financial statements, management makes informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management reviews estimates, including those related to fair value measurements associated with acquisitions and financial derivatives, the recoverability and impairment of long-lived assets and goodwill, contingencies and income taxes. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates. | |
Oil Price Decline | |
As a result of the recent decline in prices for Brent crude, we have reduced our planned capital expenditures and deferred a significant amount of our planned exploration and development until prices for Brent crude improve. In order to mitigate the impact of reduced prices on our 2015 cash flows and liquidity, we have implemented cost reduction measures and will continue to implement cost-cutting initiatives to reduce our operating costs and general and administrative expenses. These initiatives include the negotiation of exploration and development and operating cost reductions with several key vendors and plans to continue to pursue further reductions. We believe this strategy will allow us to preserve our liquidity in order to execute our 2015 development program and continue to meet our contractual obligations. | |
We believe that our cash flows from operations and existing cash on hand are sufficient to conduct our planned operations through 2015 and meet our contractual requirements, including license obligations. Additionally, at current Brent crude prices, our current hedge positions provide additional liquidity on a monthly recurring basis. | |
Notwithstanding these measures, there remain risks and uncertainties that could negatively impact our results of operations and financial condition. For example, reductions in our borrowing capacity as a result of a redetermination to our borrowing base could have an impact on our capital resources and liquidity. The borrowing base redetermination process considers assumptions related to future commodity prices; therefore, our borrowing capacity could be negatively impacted by further declines in oil and natural gas prices. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Significant accounting policies | 2. Significant accounting policies | |
Basis of preparation | ||
Our reporting standard for the presentation of our consolidated financial statements is U.S. GAAP. The consolidated financial statements include the accounts of the Company and all majority owned, controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. During the year ended December 31, 2014, we reclassified certain balance sheet amounts previously reported on our consolidated balance sheet at December 31, 2013 to conform to current year presentation. | ||
Reverse stock split | ||
On March 4, 2014, the Company’s shareholders approved a 1-for-10 reverse stock split, which became effective March 6, 2014. Pursuant to the reverse stock split, all shareholders of record received one common share for each ten common shares owned (subject to minor adjustments as a result of fractional shares). The reverse stock split reduced the issued and outstanding common shares from 374,026,984 to 37,402,698. U.S. GAAP requires that the reverse stock split be applied retrospectively to all periods presented. As a result, all common share transactions described herein have been adjusted to reflect the 1-for-10 reverse stock split. | ||
Cash and cash equivalents | ||
Cash and cash equivalents include term deposits and investments with original maturities of three months or less at the date of acquisition. We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. We determine the appropriate classification of our investments in cash and cash equivalents and marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. | ||
Commodity derivative instruments | ||
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging (“ASC 815”), requires derivative instruments to be recognized as either assets or liabilities in the balance sheet at fair value. We do not designate our derivative financial instruments as hedging instruments and, as a result, we recognize the change in a derivative contract’s fair value currently in earnings as a component of other income (expense). | ||
Fair value measurements | ||
We follow ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). This standard defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements, but applies to assets and liabilities that are required to be recorded at fair value under other accounting standards. | ||
ASC 820 characterizes inputs used in determining fair value according to a hierarchy that prioritizes those inputs based upon the degree to which they are observable. The three levels of the fair value measurement hierarchy are as follows: | ||
Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |
Level 2: | Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. | |
Level 3: | Measured based on prices or valuation models that required inputs that are both significant to the fair value measurement and less observable for objective sources (i.e., supported by little or no market activity). | |
As required by ASC 820, financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values takes into account the market for our financial assets and liabilities, the associated credit risk and other factors as required by ASC 820. We consider active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | ||
Foreign currency remeasurement and translation | ||
The functional currency of our subsidiaries in Turkey, Bulgaria, Romania, Morocco, and Albania is the New Turkish Lira (“TRY”), the Bulgarian Lev, the Romanian New Leu, the Moroccan Dirham, and the U.S. Dollar (“USD”) respectively. We follow ASC 830, Foreign Currency Matters (“ASC 830”). ASC 830 requires the assets, liabilities, and results of operations of a foreign operation to be measured using the functional currency of that foreign operation. Exchange gains or losses from remeasuring transactions and monetary accounts in a currency other than the functional currency are included in earnings. | ||
For certain subsidiaries, translation adjustments result from the process of translating the functional currency of subsidiary financial statements into the U.S. Dollar reporting currency. These translation adjustments are reported separately and accumulated in the consolidated balance sheets as a component of accumulated other comprehensive loss. | ||
Oil and natural gas properties | ||
In accordance with the successful efforts method of accounting for oil and natural gas properties, costs of productive wells, developmental dry holes and productive leases are capitalized into appropriate groups of properties based on geographical and geological similarities. Acquisition costs of proved properties are amortized using the unit-of-production method based on total proved reserves, and exploration well costs and additional development costs are amortized using the unit-of-production method based on proved developed reserves. Proceeds from the sale of properties are credited to property costs, and a gain or loss is recognized when a significant portion of an amortization base is sold or abandoned. | ||
Exploration costs, such as exploratory geological and geophysical costs, delay rentals and exploration overhead, are charged to expense as incurred. Exploratory drilling costs, including the cost of stratigraphic test wells, are initially capitalized but charged to exploration expense if and when the well is determined to be non-productive. The determination of an exploratory well’s ability to produce must be made within one year from the completion of drilling activities. The acquisition costs of unproved acreage are initially capitalized and are carried at cost, net of accumulated impairment provisions, until such leases are transferred to proved properties or charged to exploration expense as impairments of unproved properties. | ||
Equipment and other property | ||
Equipment and other property are stated at cost, and inventory is stated at weighted average cost which does not exceed replacement cost. Depreciation is calculated using the straight-line method over the estimated useful lives (ranging from 3 to 7 years) of the respective assets. The costs of normal maintenance and repairs are charged to expense as incurred. Material expenditures that increase the life of an asset are capitalized and depreciated over the estimated remaining useful life of the asset. The cost of equipment sold, or otherwise disposed of, and the related accumulated depreciation, are removed from the accounts and any gain or loss is reflected in current earnings. | ||
Impairment of long-lived assets | ||
We follow the provisions of ASC 360, Property, Plant, and Equipment (“ASC 360”). ASC 360 requires that our long-lived assets be assessed for potential impairment of their carrying values whenever events or changes in circumstances indicate such impairment may have occurred. Proved oil and natural gas properties are evaluated by field for potential impairment. An impairment on proved properties is recognized when the estimated undiscounted future net cash flows of a field are less than its carrying value. If an impairment occurs, the carrying value of the impaired field is reduced to its estimated fair value, which is generally estimated using a discounted cash flow approach. | ||
Unproved oil and natural gas properties do not have producing properties and are valued on acquisition by management, with the assistance of an independent expert when necessary. As reserves are proved through the successful completion of exploratory wells, the cost is transferred to proved properties. The cost of the remaining unproved basis is periodically evaluated by management to assess whether the value of a property has diminished. To do this assessment, management considers (i) estimated potential reserves and future net revenues from an independent expert, (ii) the Company’s history in exploring the area, (iii) the Company’s future drilling plans per its capital drilling program prepared by the Company’s reservoir engineers and operations management and (iv) other factors associated with the area. Impairment is taken on the unproved property value if it is determined that the costs are not likely to be recoverable. The valuation is subjective and requires management to make estimates and assumptions which, with the passage of time, may prove to be materially different from actual results. | ||
Goodwill | ||
In accordance with ASC 350, Intangibles-Goodwill and Other (“ASC 350”), goodwill is not amortized, but is tested for impairment on an annual basis at December 31, or more frequently as impairment indicators arise. ASC 350 permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. We assessed the qualitative factors at December 31, 2014 and, based upon the results of the qualitative assessment, we determined that it was not necessary to perform the two-step goodwill impairment test and that our goodwill was not impaired. All of our goodwill is attributable to our Turkey operating segment. | ||
Joint interest activities | ||
Certain of our exploration, development and production activities are conducted jointly with other entities and, accordingly, the consolidated financial statements reflect only our proportionate interest in such activities. | ||
Asset retirement obligations | ||
We recognize a liability for the fair value of all legal obligations associated with the retirement of tangible, long-lived assets and capitalize an equal amount as a cost of the asset. The cost associated with the abandonment obligation is included in the computation of depreciation, depletion and amortization. The liability accretes until we settle the obligation. We use a credit-adjusted risk-free interest rate in our calculation of asset retirement obligations. | ||
Revenue recognition | ||
Revenue from the sale of crude oil and natural gas is recognized upon delivery to the purchaser when title passes. During the years ended December 31, 2014, 2013 and 2012, we sold $102.8 million, $87.2 million and $91.8 million, respectively, of oil to Türkiye Petrol Rafinerileri A.Ş. (“TUPRAS”), a privately owned oil refinery in Turkey, which represented approximately 73.0%, 66.7% and 63.8% of our total revenues, respectively. | ||
Share-based compensation | ||
We follow ASC 718, Compensation—Stock Compensation (“ASC 718”), which requires the measurement and recognition of compensation expense for all share-based payment awards, including restricted stock units, based on estimated grant date fair values. Restricted stock units are valued using the market price of our common shares on the date of grant. We record compensation expense, net of estimated forfeitures, over the requisite service period. | ||
Income taxes | ||
We follow the asset and liability method prescribed by ASC 740, Income Taxes (“ASC 740”). Under this method of accounting for income taxes, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a change in enacted tax rates is recognized in earnings in the period that includes the enactment date. | ||
In connection with our acquisition Amity Oil International Pty Ltd (“Amity”) and Petrogas Petrol Gaz ve Petrokimya Ürünleri Inşaat Sanayi ve Ticaret A.Ş. (“Petrogas”) in August 2010, at December 31, 2012, we recognized a liability due to an uncertain tax position related to the transfer of Petrogas shares to Amity prior to the acquisition (see Note 11). We do not believe there will be any material changes in our unrecognized tax positions over the next twelve months. Our policy is that we recognize interest and penalties accrued on any unrecognized tax positions as a component of income tax expense. | ||
We are a Bermuda exempted company, and under current Bermuda law, we are not subject to tax on profits, income or dividends, nor is there any capital gains tax applicable to us in Bermuda. | ||
Comprehensive income | ||
ASC 220, Comprehensive Income, establishes standards for reporting and displaying comprehensive income and its components (revenue, expenses, gains and losses) in a full set of general-purpose financial statements. | ||
Business combinations | ||
We follow ASC 805, Business Combinations (“ASC 805”), and ASC 810-10-65, Consolidation (“ASC 810-10-65”). ASC 805 requires most identifiable assets, liabilities, non-controlling interests, and goodwill acquired in a business combination to be recorded at “fair value.” The statement applies to all business combinations, including combinations among mutual entities and combinations by contract alone. Under ASC 805, all business combinations are accounted for by applying the acquisition method. See Note 4. | ||
Per share information | ||
Basic per share amounts are calculated using the weighted average common shares outstanding during the year, excluding unvested restricted stock units. We use the treasury stock method to determine the dilutive effect of stock options and other dilutive instruments. Under the treasury stock method, only “in the money” dilutive instruments impact the diluted calculations in computing diluted earnings per share. Diluted calculations reflect the weighted average incremental common shares that would be issued upon exercise of dilutive options assuming the proceeds would be used to repurchase shares at average market prices for the period. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Changes And Error Corrections [Abstract] | |
New accounting pronouncements | 3. New accounting pronouncements |
In April 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08, Reporting Discontinued Operations and Disclosures of Components of an Entity (“ASU 2014-08”). ASU 2014-08 revises the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results, removing the lack of continuing involvement criteria and requiring discontinued operations reporting for the disposal of an equity method investment that meets the definition of discontinued operations. The update also requires expanded disclosures for discontinued operations, including disclosure of pretax profit or loss of an individually significant component of an entity that does not qualify for discontinued operations reporting. The update is effective prospectively to all periods beginning after December 15, 2014. Currently, we do not expect the adoption of ASU 2014-08 to have a material impact on our consolidated financial statements or results of operations. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The update is effective for periods beginning after December 15, 2016. We are currently assessing the potential impact of ASU 2014-09 on our consolidated financial statements and results of operations. | |
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15"), an amendment to FASB Accounting Standards Codification ("ASC") Topic 205, Presentation of Financial Statements. This update provides guidance on management's responsibility in evaluating whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. We do not expect the adoption of ASU 2014-15 to have a material impact on our consolidated financial statements or results of operations. If events occur in future periods that affect our ability to continue as a going concern, we will provide the disclosures required by ASU 2014-15. | |
We have reviewed other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our consolidated results of operations, financial position and cash flows. Based on that review, we believe that none of these pronouncements will have a significant effect on current or future earnings or operations. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Business Combinations [Abstract] | ||||||||
Acquisitions | ||||||||
4. Acquisitions | ||||||||
Stream | ||||||||
On November 18, 2014, we acquired Stream Oil & Gas Ltd. (“Stream”) in exchange for (i) 3.2 million of our common shares of the Company issued at closing, and (ii) an additional 0.6 million of our common shares issuable if certain conditions are met (at a deemed price of $7.41 per common share). We engaged independent valuation experts to assist in the determination of the fair value of the assets and liabilities acquired in the acquisition. We are still assessing the assets acquired and liabilities assumed, thus the final determination of the value of assets acquired and liabilities assumed may result in adjustments to the values presented below. The following tables summarize the consideration paid in the acquisition and the preliminary amounts of assets acquired and liabilities assumed that have been recognized at the acquisition date: | ||||||||
(in thousands) | ||||||||
Consideration: | ||||||||
Issuance of 3,218,641 common shares | $ | 23,850 | ||||||
Contingent payment event | 4,188 | |||||||
Fair value of total consideration | $ | 28,038 | ||||||
Acquisition-Related Costs: | ||||||||
Included in general and administrative expenses on our consolidated statements of comprehensive income (loss) for the year ended December 31, 2014 | $ | 1,129 | ||||||
Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed at Acquisition: | ||||||||
Assets: | ||||||||
Cash | $ | 66 | ||||||
Accounts receivable | 6,672 | |||||||
Other current assets | 347 | |||||||
Total current assets | 7,085 | |||||||
Oil and natural gas properties: | ||||||||
Proved properties | 99,927 | |||||||
Unproved properties | 16,140 | |||||||
Equipment and other property | 964 | |||||||
Total oil and natural gas properties and other equipment | 117,031 | |||||||
Total assets | 124,116 | |||||||
Liabilities: | ||||||||
Accounts payable | 20,673 | |||||||
Accounts payable - related party | 2,820 | |||||||
Other current liabilities | 10,000 | |||||||
Viking International note - related party | 6,800 | |||||||
Loans payable - current | 11,732 | |||||||
Other non-current liabilities | 5,036 | |||||||
Loans payable - non-current | 6,123 | |||||||
Asset retirement obligations | 827 | |||||||
Deferred income taxes | 32,067 | |||||||
Total liabilities | 96,078 | |||||||
Total identifiable net assets | $ | 28,038 | ||||||
The results of operations of Stream are included in our consolidated statement of comprehensive income (loss) beginning November 18, 2014. The revenues and expenses of Stream included in our consolidated statement of comprehensive income (loss) for the year ended December 31, 2014 were: | ||||||||
Revenue | Loss | |||||||
(in thousands) | ||||||||
Actual from November 18, 2014 through December 31, 2014 | $ | 1,898 | $ | (118 | ) | |||
Pro forma results of operations | ||||||||
The following table presents the unaudited pro forma results of operations for the year ended December 31, 2014 and 2013 as though the acquisition of Stream had occurred at January 1, 2013 (in thousands, except per share amounts): | ||||||||
2014 | 2013 | |||||||
Total revenues | $ | 160,021 | $ | 153,794 | ||||
Income (loss) from continuing operations before income taxes | 45,166 | (15,118 | ) | |||||
Income (loss) from continuing operations | 32,467 | (19,435 | ) | |||||
Loss from discontinued operations | (20 | ) | (442 | ) | ||||
Net income (loss) | 32,447 | (19,877 | ) | |||||
Net loss per common share from continuing operations | ||||||||
Basic and diluted | $ | 0.8 | $ | (0.48 | ) | |||
Net loss per common share from discontinued operations | ||||||||
Basic and diluted | $ | - | $ | (0.01 | ) | |||
Goodwill
Goodwill | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||
Goodwill | 5. Goodwill | |||||||
Goodwill represents the excess of the purchase price of a business over the estimated fair value of the assets acquired and liabilities assumed. We have goodwill on acquisitions where we anticipated access to potential exploration and producing opportunities. All of our goodwill is attributable to our Turkey operating segment. Goodwill was as follows at December 31, 2014 and 2013: | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Goodwill at January 1, | $ | 7,535 | $ | 9,021 | ||||
Foreign exchange effect | (600 | ) | (1,486 | ) | ||||
Goodwill at December 31 | $ | 6,935 | $ | 7,535 | ||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property Plant And Equipment [Abstract] | ||||||||
Property and equipment | 6. Property and equipment | |||||||
Oil and natural gas properties | ||||||||
The following table sets forth the capitalized costs under the successful efforts method for oil and natural gas properties: | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Oil and natural gas properties, proved: | ||||||||
Turkey | $ | 323,442 | $ | 260,232 | ||||
Albania | 100,037 | – | ||||||
Bulgaria | 552 | 625 | ||||||
Total oil and natural gas properties, proved | 424,031 | 260,857 | ||||||
Oil and natural gas properties, unproved: | ||||||||
Turkey | 43,090 | 51,273 | ||||||
Albania | 18,301 | – | ||||||
Bulgaria | 4,047 | 3,119 | ||||||
Total oil and natural gas properties, unproved | 65,438 | 54,392 | ||||||
Gross oil and natural gas properties | 489,469 | 315,249 | ||||||
Accumulated depletion | (133,304 | ) | (96,958 | ) | ||||
Net oil and natural gas properties | $ | 356,165 | $ | 218,291 | ||||
At December 31, 2014 and 2013, we excluded $0.9million and $1.5 million of costs, respectively, from the depletion calculation for development wells in progress and for costs on fields currently not in production. | ||||||||
At December 31, 2014, the capitalized costs of our oil and natural gas properties included $129.0 million relating to acquisition costs of proved properties, which are being amortized by the unit-of-production method using total proved reserves, and $160.8 million relating to well costs, and additional development costs, which are being amortized by the unit-of-production method using proved developed reserves. | ||||||||
At December 31, 2013, the capitalized costs of our oil and natural gas properties included $35.5 million relating to acquisition costs of proved properties, which are being amortized by the unit-of-production method using total proved reserves, and $126.9 million relating to well costs, and additional development costs, which are being amortized by the unit-of-production method using proved developed reserves. | ||||||||
Dry hole costs | ||||||||
During the years ended December 31, 2014, 2013 and 2012, we recorded $0.5 million, $16.0 million, and $24.7 million of exploratory dry hole costs, respectively. Of the $0.5 million of dry hole costs incurred during the year ended December 31, 2014, approximately $0.3 million was related to cash spent during 2014. | ||||||||
Impairment and abandonment | ||||||||
Unproved oil and natural gas properties that are individually significant are periodically assessed for impairment, and a loss is recognized at the time of impairment. Capitalized costs related to proved oil and natural gas properties, including wells and related equipment and facilities, are evaluated for impairment based on our analysis of undiscounted future net cash flows. If undiscounted future net cash flows are insufficient to recover the net capitalized costs related to proved properties, then we recognize an impairment charge in income equal to the difference between the carrying value and the estimated fair value of the properties. We categorize the measurement of fair value of these assets as Level 3 inputs. Estimated fair values are determined using discounted cash flow models. The discounted cash flow models include management’s estimates of future oil and natural gas production, operating and development costs, and discount rates. | ||||||||
During the year ended December 31, 2014, we recorded $19.4 million in impairment and abandonment charges on our proved and unproved properties. Of the $19.4 million, approximately $13.8 million relates to unproved exploratory well impairment on the following wells: $3.5 million related to impairment on the Catak-1 well, $2.8 million related to the Kazanci-5 well, and $7.5 million related to the Bahar-2 side track well. | ||||||||
During the year ended December 31, 2013, we recorded $11.3 million in impairment and abandonment charges on our proved and unproved properties, primarily related to our Senova and Malkara licenses. | ||||||||
During the year ended December 31, 2012, we recorded $6.7 million in impairment charges on our proved properties, of which $2.7 million was due to downward revisions in natural gas reserves in our Alpullu field. We recorded a $8.4 million impairment on our unproved oil and natural gas properties during the year ended December 31, 2012. Of this amount, $5.2 million was attributable to exploration license acquisition costs for the Banarli license. | ||||||||
Capitalized cost greater than one year | ||||||||
As of December 31, 2014, we had $1.6 million of exploratory well costs capitalized for the Hayrabolu-10 well in Turkey, which we spud in February 2013. The Hayrabolu-10 well continues to be evaluated for completion pending more analysis and comparable well results. Additionally, we have $4.0 million of exploratory well costs for the Deventci-R2 well in Bulgaria, which we spud in October 2013, and we are currently still evaluating the results of an acid stimulation. | ||||||||
Equipment and other property | ||||||||
The historical cost of equipment and other property, presented on a gross basis with accumulated depreciation, is summarized as follows: | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Other equipment | $ | 3,035 | $ | 2,678 | ||||
Inventory | 24,309 | 24,318 | ||||||
Gas gathering system and facilities | 4,128 | 4,485 | ||||||
Vehicles | 536 | 321 | ||||||
Leasehold improvements, office equipment and software | 10,335 | 8,114 | ||||||
Gross equipment and other property | 42,343 | 39,916 | ||||||
Accumulated depreciation | (8,673 | ) | (7,235 | ) | ||||
Net equipment and other property | $ | 33,670 | $ | 32,681 | ||||
We classify our materials and supply inventory, including steel tubing and casing, as a long-term asset because such materials will ultimately be classified as a long-term asset when the material is used in the drilling of a well. | ||||||||
At December 31, 2014, we excluded $24.3 million of inventory and $3.0 million of software from depreciation, as the inventory and software had not been placed into service. At December 31, 2013, we excluded $24.3 million of inventory and $0.7 million of software from depreciation as the inventory had not been placed into service. |
Commodity_Derivative_Instrumen
Commodity Derivative Instruments | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||
Commodity derivative instruments | 7. Commodity derivative instruments | ||||||||||||||||||||||
We use collar derivative contracts to economically hedge against the variability in cash flows associated with the forecasted sale of a portion of our future oil production. We have not designated the derivative contracts as hedges for accounting purposes, and accordingly, we record the derivative contracts at fair value and recognize changes in fair value in earnings as they occur. | |||||||||||||||||||||||
To the extent that a legal right of offset exists, we net the value of our derivative contracts with the same counterparty in our consolidated balance sheets. All of our oil derivative contracts are settled based upon Brent crude oil pricing. We recognize gains and losses related to these contracts on a fair value basis in our consolidated statements of comprehensive income (loss) under the caption “Gain (loss) on commodity derivative contracts.” Settlements of derivative contracts are included in operating activities on our consolidated statements of cash flows under the caption “Cash settlement on commodity derivative contracts.” We are required under our senior credit facility (the “Senior Credit Facility”) with BNP Paribas (Suisse) SA (“BNP Paribas”) and the International Finance Corporation (“IFC”), to hedge between 30% and 75% of our anticipated production volumes in Turkey. | |||||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, we recorded a net gain on commodity derivative contracts of $37.5 million, a net loss of $2.7 million and $5.5 million, respectively. | |||||||||||||||||||||||
At December 31, 2014, we had outstanding commodity derivative contracts with respect to our future crude oil production as set forth in the tables below: | |||||||||||||||||||||||
Fair Value of Derivative Instruments as of December 31, 2014 | |||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Quantity | Minimum | Maximum Price | Estimated Fair | ||||||||||||||||||||
Type | Period | (Bbl/day) | Price (per Bbl) | (per Bbl) | Value of Asset | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Collar | January 1, 2015—December 31, 2015 | 1,410 | $ | 85 | $ | 97.25 | $ | 12,518 | |||||||||||||||
Collars | Additional Call | ||||||||||||||||||||||
Weighted | Weighted | Weighted | |||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||
Minimum | Maximum | Maximum | Estimated Fair | ||||||||||||||||||||
Quantity | Price | Price | Price | Value of | |||||||||||||||||||
Type | Period | (Bbl/day) | (per Bbl) | (per Bbl) | (per Bbl) | Asset | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Three-way collar contract | January 1, 2016—December 31, 2016 | 1,066 | $ | 85 | $ | 97.25 | $ | 114.25 | $ | 7,609 | |||||||||||||
Three-way collar contract | January 1, 2017—December 31, 2017 | 888 | $ | 85 | $ | 97.25 | $ | 114.25 | 5,748 | ||||||||||||||
Three-way collar contract | January 1, 2018—December 31, 2018 | 726 | $ | 85 | $ | 97.25 | $ | 114.25 | 4,659 | ||||||||||||||
Three-way collar contract | January 1, 2019—March 31, 2019 | 663 | $ | 85 | $ | 97.25 | $ | 114.25 | 1,053 | ||||||||||||||
$ | 19,069 | ||||||||||||||||||||||
At December 31, 2013, we had outstanding commodity derivative contracts with respect to our future crude oil production as set forth in the tables below: | |||||||||||||||||||||||
Fair Value of Derivative Instruments as of December 31, 2013 | |||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Quantity | Minimum | Maximum Price | Estimated Fair | ||||||||||||||||||||
Type | Period | (Bbl/day) | Price (per Bbl) | (per Bbl) | Value of Liability | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Collar | January 1, 2014—December 31, 2014 | 622 | $ | 80.83 | $ | 118.07 | $ | (387 | ) | ||||||||||||||
$ | (387 | ) | |||||||||||||||||||||
Collars | Additional Call | ||||||||||||||||||||||
Weighted | Weighted | Weighted | |||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||
Minimum | Maximum | Maximum | Estimated Fair | ||||||||||||||||||||
Quantity | Price | Price | Price | Value of | |||||||||||||||||||
Type | Period | (Bbl/day) | (per Bbl) | (per Bbl) | (per Bbl) | Liability | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Three-way collar contract | January 1, 2014—December 31, 2014 | 726 | $ | 85 | $ | 97.13 | $ | 162.13 | $ | (3,350 | ) | ||||||||||||
Three-way collar contract | January 1, 2015—December 31, 2015 | 1,016 | $ | 85 | $ | 91.88 | $ | 151.88 | (4,230 | ) | |||||||||||||
$ | (7,580 | ) | |||||||||||||||||||||
Balance sheet presentation | |||||||||||||||||||||||
The following table summarizes both: (i) the gross fair value of our commodity derivative instruments by the appropriate balance sheet classification even when the commodity derivative instruments are subject to netting arrangements and qualify for net presentation in our consolidated balance sheets at December 31, 2014 and December 31, 2013, and (ii) the net recorded fair value as reflected on our consolidated balance sheets at December 31, 2014 and December 31, 2013. | |||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||
Gross | |||||||||||||||||||||||
Amount | Net Amount of | ||||||||||||||||||||||
Gross | Offset in the | Assets | |||||||||||||||||||||
Amount of | Consolidated | Presented in the | |||||||||||||||||||||
Recognized | Balance | Consolidated | |||||||||||||||||||||
Underlying Commodity | Location on Balance Sheet | Assets | Sheet | Balance Sheet | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Crude oil | Current Assets | $ | 12,518 | $ | – | $ | 12,518 | ||||||||||||||||
Crude oil | Long-term Assets | 19,069 | – | 19,069 | |||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||
Gross | |||||||||||||||||||||||
Amount | Net Amount of | ||||||||||||||||||||||
Gross | Offset in the | Liabilities | |||||||||||||||||||||
Amount of | Consolidated | Presented in the | |||||||||||||||||||||
Recognized | Balance | Consolidated | |||||||||||||||||||||
Underlying Commodity | Location on Balance Sheet | Liabilities | Sheet | Balance Sheet | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Crude oil | Current liabilities | $ | 3,737 | $ | – | $ | 3,737 | ||||||||||||||||
Crude oil | Long-term liabilities | 4,230 | – | 4,230 | |||||||||||||||||||
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Asset retirement obligations | 8. Asset Retirement obligations | |||||||
As part of our development of oil and natural gas properties, we incur asset retirement obligations (“ARO”). Our ARO results from our responsibility to abandon and reclaim our net share of all working interest properties and facilities. At December 31, 2014, the net present value of our total ARO was estimated to be $11.4 million, with the undiscounted value being $29.8 million. Total ARO at December 31, 2014 shown in the table below consists of amounts for future plugging and abandonment liabilities on our wellbores and facilities based on third-party estimates of such costs, adjusted for inflation at a rate of approximately 6.6% per annum for Turkey, 1.4% for Bulgaria, and 1.6% for Albania. These values are discounted to present value using our credit-adjusted risk-free rate for Turkey of 5.3%, Albania of 7.0% and Bulgaria of 5.3% per annum for the years ended December 31, 2014 and 2013. The following table summarizes the changes in our ARO for the years ended December 31, 2014 and 2013: | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Asset retirement obligations at beginning of period | $ | 10,896 | $ | 11,958 | ||||
Change in estimates | – | (7 | ) | |||||
Liabilities settled | (373 | ) | (296 | ) | ||||
Foreign exchange change effect | (900 | ) | (2,258 | ) | ||||
Additions | 513 | 991 | ||||||
Accretion expense | 413 | 508 | ||||||
Acquisitions | 827 | – | ||||||
Asset retirement obligations at end of period | 11,376 | 10,896 | ||||||
Less: current portion | 323 | 610 | ||||||
Long-term portion | $ | 11,053 | $ | 10,286 | ||||
Our ARO is measured using primarily Level 3 inputs. The significant unobservable inputs to this fair value measurement include estimates of plugging costs, remediation costs, inflation rate and well life. The inputs are calculated based on historical data as well as current estimated costs. | ||||||||
Loan_Payable
Loan Payable | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Loan payable | 9. Loans payable | |||||||
As of the dates indicated, our third-party debt consisted of the following: | ||||||||
2014 | 2013 | |||||||
Fixed and floating rate loans | (in thousands) | |||||||
Senior Credit Facility | $ | 68,298 | $ | – | ||||
Amended and Restated Credit Facility | – | 49,766 | ||||||
Convertible notes | 26,600 | – | ||||||
Convertible notes - related party | 20,800 | – | ||||||
TBNG credit facility | 20,025 | 20,000 | ||||||
Term Loan Facility | 10,452 | – | ||||||
Viking International note - related party | 6,800 | – | ||||||
Prepayment Agreement | 3,043 | – | ||||||
Shareholder loan | 2,580 | – | ||||||
Loans payable | 158,598 | 69,766 | ||||||
Less: current portion | 52,606 | 43,284 | ||||||
Long-term portion | $ | 105,992 | $ | 26,482 | ||||
Amended and Restated Credit Facility | ||||||||
On May 18, 2011, DMLP, Ltd. (“DMLP”), TransAtlantic Exploration Mediterranean International Pty Ltd (“TEMI”), Talon Exploration, Ltd. (“Talon Exploration”), TransAtlantic Turkey, Ltd. (“TransAtlantic Turkey”) and Petrogas (collectively, and together with Amity, the “Borrowers”) entered into an amended and restated credit facility (the “Amended and Restated Credit Facility”) with Standard Bank Plc and BNP Paribas. Each of the Borrowers is our wholly owned subsidiary. In July 2011, Amity executed a joinder agreement and became a borrower under the Amended and Restated Credit Facility. The Amended and Restated Credit Facility was guaranteed by us and each of TransAtlantic Petroleum (USA) Corp. and TransAtlantic Worldwide, Ltd. (“TransAtlantic Worldwide”). On May 6, 2014, we entered into the new Senior Credit Facility, and on May 15, 2014, we repaid the Amended and Restated Credit Facility in full and it was terminated. | ||||||||
Senior Credit Facility | ||||||||
On May 6, 2014, the Borrowers entered into the Senior Credit Facility with BNP Paribas and IFC. Each of the Borrowers is our wholly owned subsidiary. The Senior Credit Facility is guaranteed by us and each of TransAtlantic Petroleum (USA) Corp. and TransAtlantic Worldwide (each, a “Guarantor”). | ||||||||
The amount drawn under the Senior Credit Facility may not exceed the lesser of (i) $150.0 million, (ii) the borrowing base amount at such time, (iii) the aggregate commitments of all lenders at such time, and (iv) any amount borrowed from an individual lender to the extent it exceeds the aggregate amount of such lender’s individual commitment. The lenders have an initial aggregate commitment of $80.0 million, with individual commitments of $40.0 million each. The Company has the ability to increase the commitments up to an aggregate of $150.0 million by March 31, 2016. On the first day of each fiscal quarter commencing April 1, 2016, the lenders’ commitments are subject to reduction in an amount equal to 7.69% of the aggregate commitments in effect on April 1, 2016. | ||||||||
The borrowing base amount is re-determined semi-annually on April 1st and October 1st of each year, beginning April 1, 2015. The borrowing base was $71.5 million as of December 31, 2014. The borrowing base amount equals, for any calculation date, the lowest of: | ||||||||
· | the debt value which results in the field life coverage ratio for such calculation date being 1.50 to 1.00; and | |||||||
· | the debt value which results in the loan life coverage ratio for such calculation date being 1.30 to 1.00. | |||||||
The Senior Credit Facility matures on the earlier of (i) March 31, 2019, or (ii) the last date of the borrowing base calculation period that immediately precedes the date that the semi-annual banking case of BNP Paribas and the Borrowers determines that the aggregate amount of hydrocarbons to be produced from the borrowing base assets in Turkey are less than 25% of the amount of hydrocarbons to be produced from the borrowing base assets shown in the initial banking case prepared by BNP Paribas and the Borrowers. The Senior Credit Facility bears various letter of credit sub-limits, including among other things, sub-limits of up to (i) $10.0 million, (ii) the aggregate available unused and uncancelled portion of the lenders’ commitments or (iii) any amount borrowed from an individual lender to the extent it exceeds the aggregate amount of such lender’s individual commitment. | ||||||||
Loans under the Senior Credit Facility accrue interest at a rate of three-month LIBOR plus 5.00% per annum (5.26% at December 31, 2014). The Borrowers are also required to pay (i) a commitment fee payable quarterly in arrears at a per annum rate equal to (a) 2.00% per annum of the unused and uncancelled portion of the aggregate commitments that is less than or equal to the maximum available amount under the Senior Credit Facility, and (b) 1.00% per annum of the unused and uncancelled portion of the aggregate commitments that exceed the maximum available amount under the Senior Credit Facility and is not available to be borrowed, (ii) on the date of issuance of any letter of credit, a fronting fee in an amount equal to 0.25% of the original maximum amount to be drawn under such letter of credit and (iii) a per annum letter of credit fee for each letter of credit issued equal to the face amount of such letter of credit multiplied by (a) 1.0% for any letter of credit that is cash collateralized or backed by a standby letter of credit issued by a financial institution acceptable to BNP Paribas or (b) 5.00% for all other letters of credit. | ||||||||
The Senior Credit Facility is secured by a pledge of (i) the local collection accounts and offshore collection accounts of each of the Borrowers, (ii) the receivables payable to each of the Borrowers, (iii) the shares of each Borrower and (iv) substantially all of the present and future assets of the Borrowers. | ||||||||
The Borrowers are required to comply with certain financial and non-financial covenants under the Senior Credit Facility, including maintaining the following financial ratios during the four most recently completed fiscal quarters occurring on or after March 31, 2014: | ||||||||
· | ratio of combined current assets to combined current liabilities of not less than 1.10 to 1.00; | |||||||
· | ratio of EBITDAX (less non-discretionary capital expenditures) to aggregate amounts payable under the Senior Credit Facility of not less than 1.50 to 1.00; | |||||||
· | ratio of EBITDAX (less non-discretionary capital expenditures) to interest expense of not less than 4.00 to 1.00; and | |||||||
· | ratio of total debt to EBITDAX of less than 2.50 to 1.00. | |||||||
The Senior Credit Facility defines EBITDAX as net income (excluding extraordinary items) plus, to the extent deducted in calculating such net income, (i) interest expense (excluding interest paid-in-kind, or non-cash interest expense and interest incurred on certain subordinated intercompany debt or interest on equity recapitalized into subordinated debt), (ii) income tax expense, (iii) depreciation, depletion and amortization expense, (iv) amortization of intangibles and organization costs, (v) any extraordinary, unusual or non-recurring non-cash expenses or losses, (vi) any other non-cash charges (including dry hole expenses and seismic expenses, to the extent such expenses would be capitalized under the “full cost” accounting method), (vii) expenses incurred in connection with oil and gas exploration activities entered into in the ordinary course of business (including related drilling, completion, geological and geophysical costs), and (viii) transaction costs, expenses and fees incurred in connection with the negotiation, execution and delivery of the Senior Credit Facility and the related loan documents, minus, to the extent included in calculating net income, (a) any extraordinary, unusual or non-recurring income or gains (including, gains on the sales of assets outside of the ordinary course of business) and (b) any other non-cash income or gains. | ||||||||
Pursuant to the terms of the Senior Credit Facility, until amounts under the Senior Credit Facility are repaid, each of the Borrowers shall not, and shall cause each of its subsidiaries not to, in each case subject to certain exceptions (i) incur indebtedness or create any liens, (ii) enter into any agreements that prohibit the ability of any Borrower or its subsidiaries to create any liens, (iii) enter into any merger, consolidation or amalgamation, liquidate or dissolve, (iv) dispose of any property or business, (v) pay any dividends, distributions or similar payments to shareholders, (vi) make certain types of investments, (vii) enter into any transactions with an affiliate, (viii) enter into a sale and leaseback arrangement, (ix) engage in any business or business activity, own any assets or assume any liabilities or obligations except as necessary in connection with, or reasonably related to, its business as an oil and natural gas exploration and production company or operate or carry on business in any jurisdiction outside of Turkey or its jurisdiction of formation, (x) change its organizational documents, (xi) permit its fiscal year to end on a day other than December 31st or change its method of determining fiscal quarters, or alter the accounting principles it uses, (xii) modify certain hydrocarbon licenses and agreements or material contracts, (xiii) enter into any hedge agreement for speculative purposes, (xiv) open or maintain new deposit, securities or commodity accounts, (xv) use the proceeds from any loan in the territories of any country that is not a member of the World Bank, (xvi) incur any expenditure that is not covered by the projections in the most recent corporate cashflow projection, (xvii) modify its social and environmental action plans as determined in conjunction with IFC, (xviii) enter into any transaction or engage in any activity prohibited by the United Nations Security Council, or (xix) engage in any corrupt, fraudulent, coercive, collusive or obstructive practice. | ||||||||
An event of default under the Senior Credit Facility includes, among other events, failure to pay principal or interest when due, breach of certain covenants and obligations, cross default to other indebtedness, bankruptcy or insolvency, failure to meet the required financial covenant ratios and the occurrence of a material adverse effect. In addition, the occurrence of a change of control is an event of default. A change of control is defined as the occurrence of any of the following: (i) our failure to own, of record and beneficially, all of the equity of the Borrowers or any Guarantor or to exercise, directly or indirectly, day-to-day management and operational control of any Borrower or Guarantor; (ii) the failure by the Borrowers to own or hold, directly or indirectly, all of the interests granted to Borrowers pursuant to certain hydrocarbon licenses designated in the Senior Credit Facility; or (iii) (a) Mr. Mitchell ceases for any reason to be the executive chairman of our board of directors at any time, (b) Mr. Mitchell and certain of his affiliates cease to own of record and beneficially at least 35% of our common shares; or (c) any person or group, excluding Mr. Mitchell and certain of his affiliates, shall become, or obtain rights to become, the beneficial owner, directly or indirectly, of more than 35% of our outstanding common shares entitled to vote for members of our board of directors on a fully-diluted basis; provided, that, if Mr. Mitchell ceases to be executive chairman of our board of directors by reason of his death or disability, such event shall not constitute an event of default unless we have not appointed a successor reasonably acceptable to the lenders within 60 days of the occurrence of such event. | ||||||||
Pursuant to the Senior Credit Facility, at least one of the Borrowers is required to maintain commodity derivative contracts with BNP Paribas that hedge between 30% and 75% of our anticipated oil production volumes in our oil fields in Turkey. TEMI has entered into three-way collar contracts with BNP Paribas, which hedge the price of oil through March 2019. As of December 31, 2014, we had outstanding borrowings of $68.3 million and $3.2 million of remaining availability under the Senior Credit Facility. | ||||||||
At December 31, 2014, we were not in compliance with Section 8.16(a) of our Senior Credit Facility, which requires the Borrowers to maintain a current ratio of not less than 1.10:1.0. The lenders have granted the Borrowers a waiver on the current ratio requirement through March 31, 2015. | ||||||||
Convertible notes | ||||||||
As of December 31, 2014, we sold $47.4 million of convertible notes in a non-brokered private placement (the “Notes”). The Notes bore interest at a rate of 13.0% per annum and would have matured on July 1, 2017. The Notes were convertible, at the election of a holder, any time after July 1, 2015, into our common shares (the “Common Shares”) at a conversion price of $6.80 per share. Subsequent to December 31, 2014, we sold an additional $7.6 million of Notes. On February 20, 2015, we exchanged the Notes for substantially identical notes issued pursuant to an indenture (the “Exchange Notes”). See Note 16 – Subsequent Events. | ||||||||
TBNG credit facility | ||||||||
Thrace Basin Natural Gas (Turkiye) Corporation (“TBNG”) has a fully drawn credit facility with a Turkish bank. The facility bears interest at a rate of 6.6% per annum and is due in monthly principal installments of $2.3 million each, ending September 30, 2015. The facility may be prepaid without penalty. The facility is secured by a lien on a hotel owned by Gundem Turizm Yatirim ve Isletme A.S. (“Gundem”), which is 97.5% beneficially owned by Mr. Mitchell and his children. At December 31, 2014, TBNG had a balance of $20.0 million under the credit facility and no availability. | ||||||||
Term Loan Facility | ||||||||
On September 17, 2014, Stream Oil & Gas Ltd., a Cayman Islands corporation (“Stream Sub”) and Raiffeisen Bank Sh.A (“Raiffeisen”) entered into the term loan facility (the “Term Loan Facility”), which amended and restated a facility agreement, dated December 15, 2011, as amended (the “Facility Agreement”). The loan matures on December 31, 2016 and bears interest at the rate of LIBOR plus 5.5%, with a minimum interest rate of 7.0%. Stream Sub is required to pay 1/16th of the total commitment each quarter on the last business day of each of March, June, September and December each year. The loan is guaranteed by Stream Sub’s parent company, Stream. Stream Sub may prepay the loan at its option in whole or in part, subject to a 3.0% penalty plus breakage costs. The Term Loan Facility is secured by substantially all of the assets of Stream Sub. | ||||||||
Under the Term Loan Facility, Stream Sub may not declare or pay any dividends on any of Stream Sub’s common shares without the consent of the lender, except, provided that no default has occurred and is continuing under the Term Loan Facility, Stream Sub may make payments to Stream from excess cash flow to cover the administrative overhead of Stream, including the salary and related employment costs of any employee, officer or director of Stream, up to a total limit in any three-month period of $500,000. | ||||||||
Pursuant to the terms of the Term Loan Facility, until amounts under the Term Loan Facility are repaid, Stream Sub may not, in each case subject to certain exceptions (i) incur indebtedness or create any liens, (ii) enter into any agreements that prohibit the ability of Stream Sub to create any liens, (iii) enter into any amalgamation, demerger, merger, or corporate reconstruction or any joint venture or partnership agreement, (iv) incorporate any company as a subsidiary, (v) dispose of any asset, (vi) declare or pay any dividends to shareholders, (vii) enter into a sale and leaseback arrangement, (viii) make any substantial change to the general nature or scope of its business from that carried on at the date of the Term Loan Facility, (ix) use, deposit, handle, store produce, release or dispose of dangerous materials, (x) make any loans or grant any credit, and (xi) cancel, terminate amend or waive any default under any export contract or allow any buyer to do the same. | ||||||||
In addition, the Term Loan Facility contains financial covenants that require Stream Sub to maintain as of the end of each fiscal year: (i) earnings before interest, taxes, depreciation and amortization (“EBITDA”) of not less than $10.0 million; (ii) an outstanding loan principal of no more than twice its EBITDA; and (iii) EBITDA of at least ten times greater than its accrued interest, commission, fees, discounts, prepayment fees, premiums, charges and other finance payments. | ||||||||
An event of default under the Term Loan Facility, includes, among other events, failure to pay principal or interest when due, breach of certain covenants and obligations, cross default to other indebtedness, bankruptcy or insolvency, failure to meet the required financial covenant ratios and the occurrence of a material adverse effect. In addition, upon the occurrence of a change of control of Stream Sub, Stream Sub is required to notify Raiffeisen, and Raiffeisen would have the option to cancel loan commitments and accelerate all outstanding loans and other amounts payable. A change of control is defined under the Term Loan Facility as Stream ceasing to hold more than 75% of the shares in the issued share capital of Stream Sub carrying the right to vote. Our acquisition of Stream did not constitute a change of control under the Term Loan Facility. | ||||||||
Stream must, upon the request of Raiffeisen when Stream Sub’s predicted expenditures exceed its predicted revenues for any period, inject cash into Stream by means of equity loan or other method acceptable to Raiffeisen to the extent necessary to remedy the cashflow shortfall or repay the total amount outstanding under the Term Loan Facility. | ||||||||
On September 17, 2014, Stream Sub, Stream and Raiffeisen entered into an amendment and restatement agreement pursuant to which Raiffeisen granted a deferral of the June 2014 principal payment due under the Facility Agreement until December 2016. In addition, Raiffeisen waived its rights under the Facility Agreement with respect to events of default resulting from (i) Stream Sub’s non-payment of the June 2014 principal payment; and (ii) Stream Sub’s breach of the financial covenants for the fiscal year ended November 30, 2013. Pursuant to the amendment and restatement agreement, (i) Stream Sub paid all fees, costs and expenses due and (ii) Stream Sub and Albpetrol Sh. A (“Albpetrol”) entered into an agreement to postpone certain capital expenditures that were required under Stream’s work program on its properties. | ||||||||
As of December 31, 2014, we had $10.5 million outstanding under the Term Loan Facility and no availability. | ||||||||
At December 31, 2014, we were not in compliance with certain conditions subsequent set forth in Section 4 of the Term Loan Facility, including the delivery to Raiffeisen of a copy of an agreement between Albpetrol and ourselves concerning postponement of capital expenditures. Raiffeisen has granted us a waiver on this requirement until May 5, 2015. | ||||||||
Prepayment Agreement | ||||||||
In April 2013, Stream and Stream Sub entered into the prepayment agreement (the “Prepayment Agreement”) with Trafigura PTE Ltd (“Trafigura”). In October 2013, Stream received a $7.0 million prepayment under the Prepayment Agreement. No further prepayment requests can be made under the Prepayment Agreement. The prepayment is to be repaid by Stream’s delivery of oil to Trafigura in accordance with an oil sales contract between Stream and Trafigura and bears interest at a rate equal to LIBOR plus 6% (6.17% at December 31, 2014). Stream must repay the prepayment at the times and in the quantities as set out in the oil sales contract, and all amounts must be repaid on or before August 31, 2015. | ||||||||
Each of Stream and Stream Sub is required to comply with certain financial and non-financial covenants under the Prepayment Agreement, including financial covenants that Stream must maintain, unless Trafigura agrees otherwise: | ||||||||
(i) EBITDA of not less than $10.0 million; | ||||||||
(ii) outstanding indebtedness of not more than twice its EBITDA; and | ||||||||
(iii) EBITDA of at least ten times greater than its accrued interest, commission, fees, discounts, prepayment fees, premiums, charges and other finance payments. | ||||||||
In addition, Stream must ensure that its coverage ratio is not less than 150% at all times. The coverage ratio is the ratio of the estimated aggregate valuation of the volume of crude oil to be delivered under the oil sales contract between Stream and Trafigura to the outstanding amount of the prepayment plus any applicable funding costs and fees. | ||||||||
Pursuant to the terms of the Prepayment Agreement, until amounts under the Prepayment Agreement are repaid, Stream Sub may not, in each case subject to certain exceptions, (i) create any liens over the Prepayment Agreement, or if such lien would have a material adverse effect, over any other assets or undertakings, (ii) enter into any amalgamation, demerger, merger, or corporate reconstruction, (iii) pay, repay or prepay any principal, interest or other amount on or in respect of or redeem, purchase or cancel any indebtedness owed actually or contingently to any shareholder of Stream Sub or an affiliate of any shareholder of Stream Sub, or (iv) reduce, return, purchase, repay, cancel or redeem any of its share capital. | ||||||||
Trafigura has termination and acceleration rights under the Prepayment Agreement upon the occurrence of certain events, including, among other events, failure to pay principal or interest when due, breach of certain covenants and obligations, cross default to other indebtedness, bankruptcy or insolvency, failure to meet the required financial covenant ratios and the occurrence of a material adverse effect. In addition, the occurrence of a change of control triggers termination and acceleration rights. A change of control is defined under the Prepayment Agreement as any person or group of persons acting in concert gaining ownership or control of Stream Sub. Control is defined as the power to direct or cause the direction of the management or policies of another person. Trafigura waived the change of control provision under the Prepayment Agreement in connection with our acquisition of Stream. | ||||||||
At December 31, 2014, Stream had $3.0 million outstanding under the Prepayment Agreement and no availability. | ||||||||
Viking International note | ||||||||
On September 16, 2014, Stream issued to Viking International Limited (“Viking International”) a note in the principal amount of $6.8 million. The note was amended monthly to evidence additional advances. At December 31, 2014, we had $6.8 million outstanding under the Viking International note. At March 12, 2015, we had repaid the note. | ||||||||
Shareholder loan | ||||||||
In March 2014, Stream borrowed CAD $3.0 million from a shareholder of Stream. The loan bore interest at a fixed rate of 10.0% per annum, calculated and compounded monthly. At December 31, 2014, Stream had $2.6 million outstanding under the shareholder loan. On January 6, 2015, we repaid the shareholder loan in full with the net proceeds from our private placement of Notes. | ||||||||
Unsecured lines of credit | ||||||||
Our wholly owned subsidiaries operating in Turkey are party to unsecured, non-interest bearing lines of credit with a Turkish bank. At December 31, 2014, we had no outstanding borrowings under these lines of credit. | ||||||||
Loan financing costs | ||||||||
We capitalize certain costs in connection with obtaining our borrowings, such as lender’s fees and related attorney’s fees. These costs are amortized on a straight line basis, which approximates the effective interest method over the term of the loan as a component of interest expense. Loan financing costs, which are included in other assets, totaled approximately $2.7 million and $1.2 million as of December 31, 2014 and 2013, respectively. Amortization of loan financing costs totaled approximately $1.0 million, $0.5 million and $2.0 million during 2014, 2013 and 2012, respectively. | ||||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||
Shareholders' equity | 10. Shareholders’ equity | |||||||||||||||||||||||
November 2014 share issuance | ||||||||||||||||||||||||
In November 2014, we issued 3,218,641 common shares at a deemed price of $7.41 per common share for the acquisition of Stream (see Note 4). | ||||||||||||||||||||||||
July 2013 share issuance | ||||||||||||||||||||||||
In July 2013, we issued 351,074 common shares at a deemed price of $7.12 per common share to Direct Petroleum Inc. (“Direct”) (see Note 15). | ||||||||||||||||||||||||
Restricted stock units | ||||||||||||||||||||||||
Under our 2009 Long-Term Incentive Plan (the “Incentive Plan”), we award restricted stock units (“RSUs”) and other share-based compensation to certain of our directors, officers, employees and consultants. Each RSU is equal in value to one of our common shares on the grant date. Upon vesting, an award recipient is entitled to a number of common shares equal to the number of vested RSUs. The RSU awards can only be settled in common shares. As a result, RSUs are classified as equity. At the grant date, we make an estimate of the forfeitures expected to occur during the vesting period and record compensation cost, net of the estimated forfeitures, over the requisite service period. The current forfeiture rate is estimated to be 12.5%. | ||||||||||||||||||||||||
Under the Incentive Plan, RSUs vest over specified periods of time ranging from immediately to four years. RSUs are deemed full value awards and their value is equal to the market price of our common shares on the grant date. ASC 718 requires that the Incentive Plan be approved in order to establish a grant date. Under ASC 718, the approval date for the Incentive Plan was February 9, 2009, the date our board of directors approved the Incentive Plan. | ||||||||||||||||||||||||
Share-based compensation of approximately $1.4 million and $1.7 million with respect to awards of RSUs was recorded for the years ended December 31, 2014 and 2013, respectively. As of December 31, 2014, we had approximately $0.7 million of unrecognized compensation expense related to unvested RSUs, which is expected to be recognized over a weighted average period of 1.3 years. The following table sets forth RSU activity for the year ended December 31, 2014: | ||||||||||||||||||||||||
Number of RSUs | Weighted Average Grant Date Fair Value Per RSU | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unvested RSUs outstanding at December 31, 2013 | 296 | $ | 8.91 | |||||||||||||||||||||
Granted | 179 | 8.57 | ||||||||||||||||||||||
Forfeited | (103 | ) | 8.17 | |||||||||||||||||||||
Vested | (149 | ) | 10.06 | |||||||||||||||||||||
Unvested RSUs outstanding at December 31, 2014 | 223 | $ | 8.21 | |||||||||||||||||||||
Stock option plan | ||||||||||||||||||||||||
Our Amended and Restated Stock Option Plan (2006) (the “Option Plan”) terminated on June 16, 2009. All outstanding awards issued under the Option Plan remained in full force and effect. As of December 31, 2014 and 2013, there were no options outstanding under the Option Plan. All options previously outstanding under the Option Plan had a five-year term. | ||||||||||||||||||||||||
The fair value of stock options was determined using the Black-Scholes Model and was recognized over the service period of the stock option. All stock options are fully vested; therefore, no share-based compensation expense for stock option awards was recorded for the years ended December 31, 2014, 2013 and 2012. We did not grant any stock options during the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||
Details of stock option activity for the years ended December 31, 2014, 2013 and 2012 are presented below. | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Number of Options | Weighted Average Exercise Price Per share | Number of Options | Weighted Average Exercise Price Per share | Number of Options | Weighted Average Exercise Price Per share | |||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||
Outstanding at beginning of year | – | $ | – | 16 | $ | 12.3 | 114 | $ | 9.07 | |||||||||||||||
Granted | – | – | – | – | – | – | ||||||||||||||||||
Expired | – | – | (16 | ) | 12.3 | (17 | ) | 10 | ||||||||||||||||
Exercised | – | – | – | – | (81 | ) | 8.24 | |||||||||||||||||
Outstanding at end of year | – | $ | – | – | $ | – | 16 | $ | 12.3 | |||||||||||||||
Exercisable at end of year | – | $ | – | – | $ | – | 16 | $ | 12.3 | |||||||||||||||
Earnings per share | ||||||||||||||||||||||||
We account for earnings per share in accordance with ASC Subtopic 260-10, Earnings Per Share (“ASC 260-10”). ASC 260-10 requires companies to present two calculations of earnings per share: basic and diluted. Basic earnings per common share for the years ended December 31, 2014, 2013 and 2012 equals net income divided by the weighted average shares outstanding during the periods. Weighted average shares outstanding are equal to the weighted average of all shares outstanding for the period, excluding RSUs. Diluted earnings per common share for the years ended December 31, 2014, 2013 and 2012 are computed in the same manner as basic earnings per common share after assuming the issuance of common shares for all potentially dilutive common share equivalents, which includes stock options, RSUs and warrants, whether exercisable or not. The computation of diluted earnings per common share excluded 758,586 and 959,438 antidilutive common share equivalents from the years ended December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
The following table presents the basic and diluted earnings per common share computations: | ||||||||||||||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Net income (loss) from continuing operations | $ | 29,096 | $ | (13,271 | ) | $ | (6,373 | ) | ||||||||||||||||
Net (loss) income from discontinued operations | $ | (20 | ) | $ | (442 | ) | $ | 22,619 | ||||||||||||||||
Basic net income (loss) per common share: | ||||||||||||||||||||||||
Shares: | ||||||||||||||||||||||||
Weighted average common shares outstanding | 37,829 | 37,069 | 36,742 | |||||||||||||||||||||
Basic net income (loss) per common share: | ||||||||||||||||||||||||
Continuing operations | $ | 0.77 | $ | (0.36 | ) | $ | (0.17 | ) | ||||||||||||||||
Discontinued operations | $ | – | $ | (0.01 | ) | $ | 0.62 | |||||||||||||||||
Diluted net income (loss) per common share: | ||||||||||||||||||||||||
Shares: | ||||||||||||||||||||||||
Weighted average shares outstanding | 37,829 | 37,069 | 36,742 | |||||||||||||||||||||
Dilutive effect of: | ||||||||||||||||||||||||
Restricted share units | 152 | – | – | |||||||||||||||||||||
Convertible notes | 50 | – | – | |||||||||||||||||||||
Weighted average common and common equivalent shares outstanding | 38,031 | 37,069 | 36,742 | |||||||||||||||||||||
Diluted net income (loss) per common share: | ||||||||||||||||||||||||
Continuing operations | $ | 0.77 | $ | (0.36 | ) | $ | (0.17 | ) | ||||||||||||||||
Discontinued operations | $ | – | $ | (0.01 | ) | $ | 0.62 | |||||||||||||||||
Additionally, we had a contingent liability at December 31, 2014 of approximately $4.2 million that is payable in our common shares (see Note 4). At the December 31, 2014 closing price of our common shares, this liability represented 0.6 million common shares that could be potentially dilutive to future earnings per share calculations. | ||||||||||||||||||||||||
Warrants | ||||||||||||||||||||||||
On December 31, 2014, we issued 233,334 warrants for the pledge of Gundem’s Turkish resort (see Note 9). The common share purchase warrants have an exercise price of $5.99 per share and expire on June 30, 2016. | ||||||||||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income taxes | 11. Income taxes | |||||||||||
The income tax provision differs from the amount that would be obtained by applying the Bermuda statutory income tax rate of 0% for 2014, 2013 and 2012 to income (loss) for the year as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands except rates) | ||||||||||||
Statutory rate | 0 | % | 0 | % | 0 | % | ||||||
Income (loss) from continuing operations before income taxes | $ | 42,143 | $ | (12,164 | ) | $ | 118 | |||||
Increase (decrease) resulting from: | . | |||||||||||
Foreign tax rate differentials | 8,897 | (1,443 | ) | 8,607 | ||||||||
Change in valuation allowance | 228 | 982 | (2,026 | ) | ||||||||
Expiration of non-capital tax loss carryovers | 1,841 | 1,367 | 1,601 | |||||||||
Other | 2,081 | 201 | (1,691 | ) | ||||||||
Total | $ | 13,047 | $ | 1,107 | $ | 6,491 | ||||||
The components of the net deferred income tax liability at December 31, 2014 and 2013 were as follows: | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Deferred tax assets | ||||||||||||
Unrealized derivative losses | $ | – | $ | 1,594 | ||||||||
Timing of accruals | 692 | 1,043 | ||||||||||
Property and equipment | 9,761 | – | ||||||||||
Non-capital loss carryovers | 28,155 | 25,868 | ||||||||||
Valuation allowance | (37,153 | ) | (28,404 | ) | ||||||||
Total deferred tax assets | 1,455 | 101 | ||||||||||
Deferred tax liabilities | ||||||||||||
Unrealized derivative gain | (6,317 | ) | – | |||||||||
Property and equipment | (50,196 | ) | (13,093 | ) | ||||||||
Total deferred tax liabilities | (56,513 | ) | (13,093 | ) | ||||||||
Net deferred tax liabilities | $ | (55,058 | ) | $ | (12,992 | ) | ||||||
Components of net deferred tax liabilities | ||||||||||||
Current assets | $ | 329 | $ | 2,239 | ||||||||
Non-current assets | 1,181 | 903 | ||||||||||
Current liabilities | (2,138 | ) | – | |||||||||
Non-current liabilities | (54,430 | ) | (16,134 | ) | ||||||||
Net deferred tax liabilities | $ | (55,058 | ) | $ | (12,992 | ) | ||||||
We have accumulated losses or resource-related deductions available for income tax purposes in Turkey, Romania, Bulgaria and the United States. As of December 31, 2014, we had non-capital tax losses in Turkey of approximately 151.5 million TRY (approximately $65.3 million), which will begin expiring in 2018; non-capital tax losses in Romania of approximately 7.8 million Romanian New Leu (approximately $2.1 million), which will begin expiring in 2015; non-capital losses in Bulgaria of approximately 8.3 million Bulgarian Lev (approximately $5.1 million), which will begin expiring in 2015; and non-capital tax losses in the United States of approximately $40.7 million, which will begin expiring in 2018. | ||||||||||||
Effective October 1, 2009, we continued to the jurisdiction of Bermuda. We have determined that no taxes were payable upon the continuance. However, our tax filing positions are still subject to review by taxation authorities who may successfully challenge our interpretation of the applicable tax legislation and regulations, with the result that additional taxes could be payable by us. | ||||||||||||
We file income tax returns in the United States, Turkey, Romania, Bulgaria, Morocco and Cyprus, with Turkey being the only jurisdiction with significant amounts of taxes due. Income tax returns filed in Turkey for years before 2009 are no longer subject to examination. The Turkish Ministry of Finance is currently conducting tax audits on two of our Turkish subsidiaries, Amity and TBNG, for the years ended December 31, 2010 and 2012, respectively. The Turkish Ministry of Finance recently began audits of our Turkish subsidiaries, TEMI and DMLP, for the year ended December 31, 2010. | ||||||||||||
In connection with our acquisition of Amity and Petrogas in August 2010, at December 31, 2012, we recognized a liability due to an uncertain tax position related to the transfer of Petrogas shares to Amity prior to the acquisition. Pursuant to the Amity share purchase agreement, we are indemnified from any tax liability arising in Turkey or Australia as a result of the transfer of the Petrogas shares for a period of up to six years from the sale date at an amount up to 50% of the purchase price of $96.3 million and, therefore, have recorded a corresponding receivable in other long-term assets. | ||||||||||||
As of December 31, 2014 the liability and receivable consisted of taxes of $3.0 million, penalties of $0.6 million and interest of $2.2 million. During the years ended December 31, 2014 and 2013, the Company recorded interest of $0.5 million and $0.5 million, respectively. | ||||||||||||
As of December 31, 2014, there were no material uncertain tax positions for which the total amounts of unrecognized tax benefits will significantly increase or decrease within the next 12 months. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Segment information | 12. Segment information | ||||||||||||||||||||
In accordance with ASC 280, Segment Reporting (“ASC 280”), we have three reportable geographic segments: Turkey, Bulgaria and Albania. Summarized financial information from continuing operations concerning our geographic segments is shown in the following tables: | |||||||||||||||||||||
Corporate | Turkey | Bulgaria | Albania | Total | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
For the year ended December 31, 2014 | |||||||||||||||||||||
Total revenues | $ | – | $ | 138,807 | $ | 23 | $ | 1,898 | $ | 140,728 | |||||||||||
Production | – | 18,059 | 134 | 1,806 | 19,999 | ||||||||||||||||
Transportation costs | – | – | – | 284 | 284 | ||||||||||||||||
Exploration, abandonment, and impairment | – | 19,820 | 44 | – | 19,864 | ||||||||||||||||
Cost of purchased gas | – | 2,055 | – | – | 2,055 | ||||||||||||||||
Seismic and other exploration | 178 | 4,106 | 1 | – | 4,285 | ||||||||||||||||
Revaluation of contingent consideration | – | – | (2,500 | ) | – | (2,500 | ) | ||||||||||||||
General and administrative | 14,418 | 14,984 | 1,669 | 554 | 31,625 | ||||||||||||||||
Depreciation, depletion and amortization | 124 | 48,452 | 18 | 333 | 48,927 | ||||||||||||||||
Accretion of asset retirement obligations | – | 387 | 19 | 7 | 413 | ||||||||||||||||
Total costs and expenses | 14,720 | 107,863 | (615 | ) | 2,984 | 124,952 | |||||||||||||||
Operating (loss) income | (14,720 | ) | 30,944 | 638 | (1,086 | ) | 15,776 | ||||||||||||||
Interest and other expense | (36 | ) | (6,007 | ) | (1 | ) | (169 | ) | (6,213 | ) | |||||||||||
Interest income | 350 | 770 | 4 | – | 1,124 | ||||||||||||||||
Gain on commodity derivative contracts | – | 37,454 | – | – | 37,454 | ||||||||||||||||
Foreign exchange (loss) gain | (4 | ) | (6,497 | ) | (22 | ) | 525 | (5,998 | ) | ||||||||||||
(Loss) income from continuing operations before income taxes | (14,410 | ) | 56,664 | 619 | (730 | ) | 42,143 | ||||||||||||||
Income tax provision | – | (13,659 | ) | – | 612 | (13,047 | ) | ||||||||||||||
Net (loss) income from continuing operations | $ | (14,410 | ) | $ | 43,005 | $ | 619 | $ | (118 | ) | $ | 29,096 | |||||||||
Total assets at December 31, 2014 | $ | 51,919 | $ | 363,162 | $ | 4,675 | $ | 126,619 | $ | 546,375 | -1 | ||||||||||
Goodwill at December 31, 2014 | $ | – | $ | 6,935 | $ | – | $ | – | $ | 6,935 | |||||||||||
Capital expenditures for the year ended December 31, 2014 | $ | 545 | $ | 109,563 | $ | 1,393 | $ | 2,271 | $ | 113,772 | |||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||
Total revenues | $ | – | $ | 130,701 | $ | 126 | $ | – | $ | 130,827 | |||||||||||
Production | 5 | 18,384 | 213 | – | 18,602 | ||||||||||||||||
Exploration, abandonment, and impairment | – | 27,116 | 217 | – | 27,333 | ||||||||||||||||
Cost of purchased gas | – | 2,247 | – | – | 2,247 | ||||||||||||||||
Seismic and other exploration | 100 | 13,909 | – | – | 14,009 | ||||||||||||||||
Revaluation of contingent consideration | – | – | (5,000 | ) | – | (5,000 | ) | ||||||||||||||
General and administrative | 12,685 | 16,068 | 267 | – | 29,020 | ||||||||||||||||
Depreciation, depletion and amortization | 69 | 41,196 | 57 | – | 41,322 | ||||||||||||||||
Accretion of asset retirement obligations | – | 475 | 33 | – | 508 | ||||||||||||||||
Total costs and expenses | 12,859 | 119,395 | (4,213 | ) | – | 128,041 | |||||||||||||||
Operating (loss) income | (12,859 | ) | 11,306 | 4,339 | – | 2,786 | |||||||||||||||
Interest and other expense | – | (3,929 | ) | – | – | (3,929 | ) | ||||||||||||||
Interest income | 284 | 1,056 | – | – | 1,340 | ||||||||||||||||
Loss on commodity derivative contracts | – | (2,698 | ) | – | – | (2,698 | ) | ||||||||||||||
Foreign exchange (loss) gain | (9 | ) | (9,664 | ) | 10 | – | (9,663 | ) | |||||||||||||
(Loss) income loss from continuing operations before income taxes | (12,584 | ) | (3,929 | ) | 4,349 | – | (12,164 | ) | |||||||||||||
Income tax provision | – | (1,107 | ) | – | – | (1,107 | ) | ||||||||||||||
Net (loss) income from continuing operations | $ | (12,584 | ) | $ | (5,036 | ) | $ | 4,349 | $ | – | $ | (13,271 | ) | ||||||||
Total assets at December 31, 2013 | $ | 14,070 | $ | 321,749 | $ | 10,231 | $ | – | $ | 346,050 | -1 | ||||||||||
Goodwill at December 31, 2013 | $ | – | $ | 7,535 | $ | – | $ | – | $ | 7,535 | |||||||||||
Capital expenditures for the year ended December 31, 2013 | $ | 1,003 | $ | 96,206 | $ | 2,742 | $ | – | $ | 99,951 | |||||||||||
For the year ended December 31, 2012 | |||||||||||||||||||||
Total revenues | $ | – | $ | 143,650 | $ | 258 | $ | – | $ | 143,908 | |||||||||||
Production | 169 | 17,328 | 307 | – | 17,804 | ||||||||||||||||
Exploration, abandonment, and impairment | 285 | 39,708 | – | – | 39,993 | ||||||||||||||||
Cost of purchased gas | – | 7,694 | – | – | 7,694 | ||||||||||||||||
Seismic and other exploration | 304 | 4,726 | 10 | – | 5,040 | ||||||||||||||||
General and administrative | 10,982 | 20,603 | 2,362 | – | 33,947 | ||||||||||||||||
Depreciation, depletion and amortization | 30 | 28,092 | 93 | – | 28,215 | ||||||||||||||||
Accretion of asset retirement obligations | – | 679 | 31 | – | 710 | ||||||||||||||||
Total costs and expenses | 11,770 | 118,830 | 2,803 | – | 133,403 | ||||||||||||||||
Operating (loss) income | (11,770 | ) | 24,820 | (2,545 | ) | – | 10,505 | ||||||||||||||
Interest and other expense | (1,890 | ) | (6,450 | ) | – | – | (8,340 | ) | |||||||||||||
Interest income | 308 | 2,110 | – | – | 2,418 | ||||||||||||||||
Loss on commodity derivative contracts | – | (5,548 | ) | – | – | (5,548 | ) | ||||||||||||||
Foreign exchange gain (loss) | 79 | 1,054 | (50 | ) | – | 1,083 | |||||||||||||||
(Loss) income from continuing operations before income taxes | (13,273 | ) | 15,986 | (2,595 | ) | – | 118 | ||||||||||||||
Income tax provision | – | (6,491 | ) | – | – | (6,491 | ) | ||||||||||||||
Net (loss) income from continuing operations | $ | (13,273 | ) | $ | 9,495 | $ | (2,595 | ) | $ | – | $ | (6,373 | ) | ||||||||
Total assets at December 31, 2012 | $ | 14,930 | $ | 339,752 | $ | 1,957 | $ | – | $ | 356,639 | -1 | ||||||||||
Goodwill at December 31, 2012 | $ | – | $ | 9,021 | $ | – | $ | – | $ | 9,021 | |||||||||||
Capital expenditures for the year ended December 31, 2012 | $ | – | $ | 80,957 | $ | 867 | $ | – | $ | 81,824 | |||||||||||
-1 | Excludes assets from our discontinued Moroccan operations of $28,000, $0.5 million, and $1.6 million at December 31, 2014, 2013 and 2012, respectively. |
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Financial instruments | ||||||||||||||||
13. Financial instruments | ||||||||||||||||
Interest rate risk | ||||||||||||||||
We are exposed to interest rate risk as a result of our variable rate short-term cash holdings and borrowings under the Senior Credit Facility. | ||||||||||||||||
Foreign currency risk | ||||||||||||||||
We have underlying foreign currency exchange rate exposure. Our currency exposures relate to transactions denominated in the Bulgarian Lev, European Union Euro, Albanian Lek, and TRY. We are also subject to foreign currency exposures resulting from translating the functional currency of our subsidiary financial statements into the U.S. Dollar reporting currency. We have not used foreign currency forward contracts to manage exchange rate fluctuations. At December 31, 2014, we had 12.5 million TRY (approximately $5.4 million) in cash and cash equivalents, which exposes us to exchange rate risk based on fluctuations in the value of the TRY. | ||||||||||||||||
Commodity price risk | ||||||||||||||||
We are exposed to fluctuations in commodity prices for oil and natural gas. Commodity prices are affected by many factors, including but not limited to, supply and demand. At December 31, 2014 and 2013, we were a party to commodity derivative contracts. | ||||||||||||||||
Concentration of credit risk | ||||||||||||||||
The majority of our receivables are within the oil and natural gas industry, primarily from our industry partners and from government agencies. Included in receivables are amounts due from Turkiye Petrolleri Anonim Ortakligi (“TPAO”), the national oil company of Turkey, Zorlu Dogal Gaz Ithalat Ihracat ve Toptan Ticaret A.S. (“Zorlu”), a privately owned natural gas distributor in Turkey, and TUPRAS, which purchase the majority of our oil and natural gas production. The receivables are not collateralized. To date, we have experienced minimal bad debts and have no allowance for doubtful accounts. The majority of our cash and cash equivalents are held by three financial institutions in the United States and Turkey. | ||||||||||||||||
Fair value measurements | ||||||||||||||||
Cash and cash equivalents, receivables, notes receivable, accounts payable, accrued liabilities, the TBNG credit facility, the Term Loan Facility, the Prepayment Agreement, the Viking International note, and the shareholder loan were each estimated to have a fair value approximating the carrying amount at December 31, 2014 and 2013 due to the short maturity of those instruments. Indebtedness under the Senior Credit Facility was estimated to have a fair value approximating the carrying amount at December 31, 2014 and 2013 since the interest rate is generally market sensitive. | ||||||||||||||||
The financial assets and liabilities measured on a recurring basis at December 31, 2014 and 2013 consisted of our commodity derivative contracts. Fair values for options are based on counterparty market prices. The counterparties use market standard valuation methodologies incorporating market inputs for volatility and risk free interest rates in arriving at a fair value for each option contract. Prices are verified by us using analytical tools. There are no performance obligations related to the call options purchased to hedge our oil production. | ||||||||||||||||
We utilize independent third-party pricing services to determine the fair values of derivative contracts. The independent third party determines fair values using models based on a range of observable market inputs, including pricing models, quoted market prices of publicly traded securities with similar duration and yield, time value, yield curve, prepayment spreads, default rates and discounted cash flow and the values for these contracts are disclosed in Level 2 of the fair value hierarchy. Generally, we obtain a single price or quote per instrument from independent third parties to assist in establishing the fair value of these contracts. We review prices received from service providers for unusual fluctuations to ensure that the prices represent a reasonable estimate of fair value. | ||||||||||||||||
The following table summarizes the valuation of our financial assets and liabilities as of December 31, 2014: | ||||||||||||||||
Fair Value Measurement Classification | ||||||||||||||||
Quoted Prices in | ||||||||||||||||
Active Markets for | ||||||||||||||||
Identical Assets or | Significant Other | Significant | ||||||||||||||
Liabilities | Observable Inputs | Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity derivative contracts | $ | – | $ | 31,587 | $ | – | $ | 31,587 | ||||||||
Liabilities: | ||||||||||||||||
Convertible notes | - | (47,400 | ) | - | (47,400 | ) | ||||||||||
Total | $ | – | $ | (15,813 | ) | $ | – | $ | (15,813 | ) | ||||||
The following table summarizes the valuation of our financial assets and liabilities as of December 31, 2013: | ||||||||||||||||
Fair Value Measurement Classification | ||||||||||||||||
Quoted Prices in | ||||||||||||||||
Active Markets for | ||||||||||||||||
Identical Assets or | Significant Other | Significant | ||||||||||||||
Liabilities | Observable Inputs | Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Liabilities: | ||||||||||||||||
Commodity derivative contracts | $ | – | $ | (7,967 | ) | $ | – | $ | (7,967 | ) | ||||||
Total | $ | – | $ | (7,967 | ) | $ | – | $ | (7,967 | ) | ||||||
Commitments
Commitments | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||
Commitments | 14. Commitments | ||||||||||||||||||||||||||||
Our aggregate annual commitments, other than our loans payable, as of December 31, 2014 were as follows: | |||||||||||||||||||||||||||||
Payments Due By Year | |||||||||||||||||||||||||||||
Total | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Interest | $ | 26,288 | $ | 11,077 | $ | 9,598 | $ | 4,977 | $ | 595 | $ | 41 | $ | - | |||||||||||||||
Leases | 7,097 | 2,826 | 346 | 195 | 33 | - | 3,697 | ||||||||||||||||||||||
Total | $ | 33,385 | $ | 13,903 | $ | 9,944 | $ | 5,172 | $ | 628 | $ | 41 | $ | 3,697 | |||||||||||||||
Normal operations purchase arrangements are excluded from the table as they are discretionary or being performed under contracts which are cancelable immediately or with a 30-day notice period. | |||||||||||||||||||||||||||||
We lease office space in Dallas, Texas, Bulgaria, Albania and Turkey. We also lease apartments in Turkey and Dallas, as well as operations yards in Turkey. Rent expense for the years ended December 31, 2014, 2013 and 2012 was $2.2 million, $3.3 million and $3.5 million, respectively. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 15. Contingencies |
Contingencies relating to production leases and exploration permits | |
Selmo | |
We are involved in litigation with persons who claim ownership of a portion of the surface at the Selmo oil field in Turkey. These cases are being vigorously defended by TEMI and Turkish governmental authorities. We do not have enough information to estimate the potential additional operating costs we would incur in the event the purported surface owners’ claims are ultimately successful. Any adjustment arising out of the claims will be recorded when it becomes probable and measurable. | |
Morocco | |
During 2012, we were notified that the Moroccan government may seek to recover approximately $5.5 million in contractual obligations under our Tselfat exploration permit work program. In February 2013, the Moroccan government drew down our $1.0 million bank guarantee that was put in place to ensure our performance of the Tselfat exploration permit work program. Although we believe that the bank guarantee satisfies our contractual obligations, we recorded $5.0 million in accrued liabilities relating to our Tselfat exploration permit during 2012 for this contingency. | |
Aglen | |
During 2012, we were notified that the Bulgarian government may seek to recover approximately $2.0 million in contractual obligations under our Aglen exploration permit work program. Due to the Bulgarian government’s January 2012 ban on fracture stimulation and related activities, a force majeure event under the terms of the exploration permit was recognized by the government. Although we invoked force majeure, we recorded $2.0 million in general and administrative expense relating to our Aglen exploration permit during 2012 for this contractual obligation. | |
Direct Petroleum | |
In July 2013, we entered into a second amendment (the “Amendment”) to the purchase agreement (the “Purchase Agreement”) with Direct. The Amendment set forth a new obligation to drill and test the Deventci-R2 well by May 1, 2014. We completed the drilling and testing requirements pursuant to the Amendment during April 2014, which resulted in the reversal of a $2.5 million contingent liability recorded in 2011. The reversal is recognized in our consolidated statements of comprehensive income (loss) under the caption “Revaluation of contingent consideration” for the year ended December 31, 2014. | |
In addition, the Amendment provides that we will issue $7.5 million in common shares if the Deventci-R2 well is a commercial success (as defined in the Purchase Agreement) on or prior to May 1, 2016. We will record any provision for this contingent consideration when it is estimable and probable. As of December 31, 2014, we had not recorded a contingent liability for this contingent consideration. | |
Additionally, the Amendment provides that if the Bulgarian government issues a production concession over the Stefenetz concession area (the “Stefenetz Concession Area”), Direct will be entitled to a payment of $10.0 million in common shares, or a pro rata amount if the production concession is less than 200,000 acres. We do not have enough information to estimate the potential contingent liability we would incur in the event the Bulgarian government issues a production concession over the Stefenetz Concession Area. Any provision for this contingent consideration will be recorded when it becomes probable and estimable. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Related party transactions | 16. Related party transactions | |||||||
Equity transactions | ||||||||
On September 1, 2010, we issued 730,000 common share purchase warrants to Dalea Partners, LP (“Dalea”) pursuant to a credit agreement with Dalea. The common share purchase warrants had an exercise price of $60.00 per share, and expired on September 1, 2013. Dalea is an affiliate of Mr. Mitchell. | ||||||||
On December 31, 2014, the Company issued 134,169 common share purchase warrants to Mr. Mitchell and 23,333 common share purchase warrants to each of Mr. Mitchell’s children (collectively, the “Warrants”) pursuant to warrant agreements. These Warrants were issued to Mr. Mitchell and his children as shareholders of the entity Gundem, which agreed to pledge its primary asset, a Turkish resort, in exchange for an extension of the maturity date of a credit agreement between the Company and a Turkish bank. As consideration for the pledge of the Gundem resort, the independent members of the Company’s board of directors approved the issuance of the Warrants to be allocated in accordance with each shareholder’s ownership percentage of Gundem. Pursuant to the warrant agreements, the Warrants are immediately exercisable, expire 18 months from the date of the release of the pledge on the Gundem resort, and entitle the holder to purchase one Common Share for each Warrant at an exercise price of $5.99 per share. | ||||||||
Sale of oilfield services business | ||||||||
On June 13, 2012, we closed the sale of our oilfield services business, which was substantially comprised of our wholly owned subsidiaries Viking International and Viking Geophysical Services, Ltd. (“Viking Geophysical”), to a joint venture owned by Dalea and funds advised by Abraaj Investment Management Limited for an aggregate purchase price of $168.5 million, consisting of approximately $157.0 million in cash and a $11.5 million promissory note from Dalea. The promissory note is payable five years from the date of issuance or earlier upon the occurrence of certain specified events, including an initial public offering by the joint venture. Upon the consummation of an initial public offering by the joint venture and the prior approval of Dalea, we can elect to convert the outstanding balance of the promissory note, including accrued interest, into the number of shares offered in the initial public offering equal to such outstanding balance divided by the per share purchase price paid by the public in the initial public offering. The promissory note bears interest at a rate of 3.0% per annum and is guaranteed by Mr. Mitchell. | ||||||||
Service transactions | ||||||||
Effective May 1, 2008, we entered into a service agreement, as amended (the “Service Agreement”), with Longfellow Energy, LP (“Longfellow”), Viking Drilling LLC (“Viking Drilling”), MedOil Supply, LLC and Riata Management, LLC (“Riata Management”). Mr. Mitchell and his wife own 100% of Riata Management. In addition, Mr. Mitchell, his wife and his children indirectly own 100% of Longfellow. Riata Management owns 100% of MedOil Supply, LLC. Dalea owns 85% of Viking Drilling. Under the terms of the Service Agreement, we pay, or are paid, for the actual cost of the services rendered plus the actual cost of reasonable expenses on a monthly basis. | ||||||||
Effective January 1, 2011, our wholly owned subsidiary, TEMI, entered into an accommodation agreement under which it leased rooms, flats and office space at a facility owned by Gundem. Under the accommodation agreement, TEMI leases six rooms and pays the TRY equivalent of $6,000 per month. | ||||||||
On August 23, 2011, the Company’s wholly owned subsidiary, TransAtlantic Petroleum (USA) Corp. (“TransAtlantic USA”), entered into an office lease with Longfellow to lease approximately 5,300 square feet of corporate office space in Addison, Texas. The initial lease term under the lease commenced on July 1, 2013, the date that TransAtlantic USA subleased a portion of its previous office space in Dallas, Texas (the “Commencement Date”). The lease expires five years after the Commencement Date, unless earlier terminated in accordance with the lease. During the initial lease term, TransAtlantic USA will pay monthly rent of $6,625 to Longfellow plus, utilities, real property taxes and liability insurance. Prior to the Commencement Date, no rent, utilities, real property taxes and/or liability insurance were required to be paid to Longfellow under the lease. | ||||||||
On June 13, 2012, we entered into separate master services agreements with each of Viking International, Viking Petrol Sahasi Hizmetleri AS (“VOS”) and Viking Geophysical in connection with the sale of our oilfield services business to a joint venture owned by Dalea and funds managed by Abraaj Investment Management Limited. Pursuant to the master services agreements with Viking International and VOS, we are entitled to receive certain oilfield services and materials, including, but not limited to, drilling rigs and fracture stimulation that are needed for our operations in Bulgaria and Turkey. Pursuant to the master services agreement with Viking Geophysical, we are also entitled to receive geophysical services and materials that are needed for our operations in those countries. Each master services agreement is for a five-year term. Currently, we can contract for services and materials on a firm basis and, to the extent that we do not contract for all of their services or materials, Viking International, VOS and Viking Geophysical are allowed to contract with third parties for any remaining capacity. | ||||||||
On June 13, 2012, we entered into a transition services agreement with Viking Services Management, Ltd. (“Viking Management”) in connection with the sale of our oilfield services business to a joint venture owned by Dalea and funds managed by Abraaj Investment Management Limited. Pursuant to the transition services agreement, we agreed to provide certain administrative services, including, but not limited to, continued use of certain of our employees and independent contractors, a guarantee of a lease for flats in Turkey, Turkish tax or legal advice and services, office space in Istanbul, Turkey, information technology support and certain software or licenses to Viking Management. In addition, Viking Management agreed to cause its subsidiaries to provide us with the continued use of certain office space in Tekirdag, Turkey. The transition services agreement terminated on June 13, 2014. In the third quarter of 2012, we entered into an addendum to the transition services agreement whereby Viking Management agreed to cause its subsidiaries to provide us with the continued use of certain equipment yards in the Thrace Basin and in southwestern Turkey. The addendum terminated on April 1, 2014. | ||||||||
On April 5, 2013 (the “First Floor Commencement Date”), TransAtlantic USA entered into an office lease with Longfellow to lease approximately 4,700 square feet of additional corporate office space in Addison, Texas. The initial lease term commenced on the First Floor Commencement Date and expires five years after the First Floor Commencement Date, unless earlier terminated in accordance with the lease. For the first year of the lease, TransAtlantic USA will pay monthly rent of $7,533 to Longfellow plus utilities, real property taxes and liability insurance. | ||||||||
On March 26, 2014, our wholly owned subsidiaries, TEMI and TBNG, entered into an equipment yard services agreement effective as of April 1, 2014 with Viking International for services related to the use of oilfield equipment yards located in Diyarbaki, Tekirdag and Muratli, Turkey. The initial term of the agreement is for twelve months, and the term of the agreement renews automatically for additional twelve-month periods unless earlier terminated. During the initial term, TEMI will pay monthly services fees of $17,250 to Viking International for services related to the use of Diyarbakir equipment yard, and TBNG will pay monthly service fees of $17,250 to Viking International for services related to the use of Tekirdag and Muratli equipment yards. | ||||||||
For the years ended December 31, 2014 and 2013, we incurred capital and operating expenditures of $96.4 million and $85.7 million, respectively, related to our various related party agreements. | ||||||||
Debt transactions | ||||||||
As of December 31, 2014 we sold $47.4 million of Notes in a non-brokered private placement. Dalea purchased $2.0 million of the Notes; trusts benefitting Mr. Mitchell’s four children each purchased $2.0 million of the Notes; Pinon Foundation, a non-profit charitable organization directed by Mr. Mitchell’s spouse, purchased $10.0 million of the Notes; the three children of Brian Bailey, a director of the Company, each purchased $100,000 of the Notes; Wil Saqueton, the Company’s vice president and chief financial officer, purchased $100,000 of the Notes; Matthew McCann, the Company’s general counsel and corporate secretary, purchased $200,000 of the Notes; and a trust benefitting Barbara and Terry Pope, Mr. Mitchell’s sister-in-law and brother-in-law, purchased $200,000 of the Notes. | ||||||||
On September 16, 2014, Stream issued to Viking International a note in the principal amount of $6.8 million. At December 31, 2014, we had $6.8 million outstanding under the Viking International note. At March 12, 2015, we had repaid the note (see Note 9). | ||||||||
Other related party transactions | ||||||||
During the year we incurred $60,000 of geology consulting services from Roxanna Oil Company, a private oil and natural gas exploration and production company (“Roxanna”). One of our directors is the chairman of the board of Roxanna. | ||||||||
The following table summarizes related party accounts receivable and accounts payable as of December 31, 2014 and December 31, 2013: | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Related party accounts receivable: | ||||||||
Viking International master services agreement | $ | 355 | $ | 939 | ||||
Riata Management Service Agreement | 159 | 65 | ||||||
Dalea promissory note | 88 | – | ||||||
Total related party accounts receivable | $ | 602 | $ | 1,004 | ||||
Related party accounts payable: | ||||||||
Viking International master services agreement | $ | 16,754 | $ | 15,956 | ||||
Riata Management Service Agreement | 1,734 | 334 | ||||||
Viking Geophysical master services agreement | – | 6,800 | ||||||
Total related party accounts payable | $ | 18,488 | $ | 23,090 | ||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | |||||||||||||
Discontinued operations | 17. Discontinued operations | ||||||||||||
Discontinued operations in Morocco | |||||||||||||
On June 27, 2011, we decided to discontinue our operations in Morocco. We have substantially completed the process of winding down our operations in Morocco. We have presented the Moroccan segment operating results as discontinued operations for all periods presented. | |||||||||||||
Discontinued operations of oilfield services business | |||||||||||||
On June 13, 2012, we closed the sale of our oilfield services business, which was substantially comprised of our wholly owned subsidiaries Viking International and Viking Geophysical, to a joint venture owned by Dalea and funds advised by Abraaj Investment Management Limited for an aggregate purchase price of $168.5 million, consisting of approximately $157.0 million in cash and a $11.5 million promissory note from Dalea. The transaction was approved by a special committee of our board of directors after the receipt of a fairness opinion solely for the benefit of the special committee, which was subject to certain assumptions and limitations as provided in such opinion. The promissory note is payable five years from the date of issuance or earlier upon the occurrence of certain specified events, including an initial public offering by the joint venture. Upon the consummation of an initial public offering by the joint venture and the prior approval of Dalea, we can elect to convert the outstanding balance of the promissory note, including accrued interest, into the number of shares offered in the initial public offering equal to such outstanding balance divided by the per share purchase price paid by the public in the initial public offering. The promissory note bears interest at a rate of 3.0% per annum and is guaranteed by Mr. Mitchell. We used a portion of the net proceeds from the sale to pay off our $73.0 million credit agreement with Dalea, our $11.0 million credit facility with Dalea, our $0.9 million promissory note with Viking Drilling and our $1.8 million credit agreement with a Turkish bank. In addition, we used a portion of the net proceeds from the sale of our oilfield services business to pay down approximately $45.2 million in outstanding indebtedness under our Amended and Restated Credit Facility. We have presented the oilfield services segment operating results as discontinued operations for the years ended December 31, 2014 and 2013. | |||||||||||||
The assets and liabilities held for sale at December 31, 2014 and 2013 were as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Cash | $ | 16 | $ | 23 | |||||||||
Other assets | 12 | 513 | |||||||||||
Total assets held for sale | $ | 28 | $ | 536 | |||||||||
Accrued expenses and other liabilities | $ | 6,928 | $ | 7,559 | |||||||||
Total liabilities held for sale | $ | 6,928 | $ | 7,559 | |||||||||
Our operating results from discontinued operations for the years ended December 31, 2014, 2013 and 2012 are summarized as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Total revenues | $ | – | $ | – | $ | 19,956 | |||||||
Total costs and expenses | (20 | ) | (505 | ) | (24,682 | ) | |||||||
Total other income (expense) | – | 63 | (357 | ) | |||||||||
Loss from discontinued operations before income taxes | (20 | ) | (442 | ) | (5,083 | ) | |||||||
Gain on disposal of discontinued operations | – | – | 35,999 | ||||||||||
Income tax provision | – | – | (8,297 | ) | |||||||||
Net (loss) income from discontinued operations | $ | (20 | ) | $ | (442 | ) | $ | 22,619 | |||||
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Dec. 31, 2014 | ||
Subsequent Events [Abstract] | ||
Subsequent events | 18. Subsequent events | |
Convertible Notes | ||
Subsequent to December 31, 2014, we sold an additional $7.6 million of Notes in a non-brokered private placement, bringing the total sale of the Notes to $55.0 million. We completed the private placement on February 20, 2015. | ||
Exchange Notes | ||
On February 20, 2015, we issued $55.0 million of Exchange Notes in exchange for all outstanding Notes. The Exchange Notes were issued pursuant to an indenture, dated as of February 20, 2015 (the “Indenture”), between us and U.S. Bank National Association, as trustee (the “Trustee”). | ||
The Exchange Notes bear interest at an annual rate of 13.0%, payable semi-annually, in arrears, on January 1 and July 1 of each year, commencing on July 1, 2015. The Exchange Notes will mature on July 1, 2017, unless earlier redeemed or converted. | ||
Holders may, at any time after July 1, 2015 and from time to time at such holder’s option, convert, subject to certain terms and conditions, any or all of the principal of any Exchange Note into fully paid and nonassessable Common Shares at the conversion price. The initial conversion price is $6.80 per Common Share, subject to adjustment as described in the Indenture. Prior to or contemporaneously with the conversion of any of the principal of an Exchange Note, all accrued but unpaid interest on the principal amount being converted will be paid in cash. The Exchange Notes may not be converted into Common Shares on the maturity date or the redemption date. | ||
At any time on or after July 1, 2015, we may redeem all or a part of the Exchange Notes at the redemption prices specified below (expressed in percentages of principal amount on the redemption date), plus accrued and unpaid interest to the redemption date. | ||
Period Beginning | Redemption Price | |
1-Jul-15 | 107.50% | |
1-Jan-16 | 105.00% | |
1-Jul-16 | 102.50% | |
1-Jan-17 | 100.00% | |
If we experience a fundamental change (as defined in the Indenture), we will be required to make an offer to repurchase the Exchange Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to but excluding the date of repurchase. Additionally, if we sell certain assets in exchange for $50.0 million or more in cash consideration, in certain circumstances, we will be required to use a portion of the net cash proceeds of such sale to make an offer to repurchase Exchange Notes at a price equal to the price we would be required to pay for an optional redemption at such time, plus accrued and unpaid interest, if any, up to but excluding the date of repurchase. The Indenture provides for customary events of default. The Indenture contains limited covenants, including a covenant that will limit our ability to incur liens securing funded debt. | ||
General_Policies
General (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Nature of operations | Nature of operations | |
TransAtlantic Petroleum Ltd. (together with its subsidiaries, “we,” “us,” “our,” the “Company” or “TransAtlantic”) is an international oil and natural gas company engaged in acquisition, exploration, development and production. We have focused our operations in countries that have established yet underexplored petroleum systems, are net importers of petroleum, have an existing petroleum transportation infrastructure and provide favorable commodity pricing, royalty rates and tax rates to exploration and production companies. As of December 31, 2014, we held interests in developed and undeveloped oil and natural gas properties in Turkey, Albania and Bulgaria. As of March 1, 2015, approximately 36% of our outstanding common shares were beneficially owned by N. Malone Mitchell 3rd, our chief executive officer and chairman of our board of directors. | ||
Basis of presentation | Basis of presentation | |
Our consolidated financial statements are expressed in U.S. Dollars and have been prepared by management in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). All amounts in these notes to the consolidated financial statements are in U.S. Dollars unless otherwise indicated. In preparing financial statements, management makes informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management reviews estimates, including those related to fair value measurements associated with acquisitions and financial derivatives, the recoverability and impairment of long-lived assets and goodwill, contingencies and income taxes. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates. | ||
Oil Price Decline | Oil Price Decline | |
As a result of the recent decline in prices for Brent crude, we have reduced our planned capital expenditures and deferred a significant amount of our planned exploration and development until prices for Brent crude improve. In order to mitigate the impact of reduced prices on our 2015 cash flows and liquidity, we have implemented cost reduction measures and will continue to implement cost-cutting initiatives to reduce our operating costs and general and administrative expenses. These initiatives include the negotiation of exploration and development and operating cost reductions with several key vendors and plans to continue to pursue further reductions. We believe this strategy will allow us to preserve our liquidity in order to execute our 2015 development program and continue to meet our contractual obligations. | ||
We believe that our cash flows from operations and existing cash on hand are sufficient to conduct our planned operations through 2015 and meet our contractual requirements, including license obligations. Additionally, at current Brent crude prices, our current hedge positions provide additional liquidity on a monthly recurring basis. | ||
Notwithstanding these measures, there remain risks and uncertainties that could negatively impact our results of operations and financial condition. For example, reductions in our borrowing capacity as a result of a redetermination to our borrowing base could have an impact on our capital resources and liquidity. The borrowing base redetermination process considers assumptions related to future commodity prices; therefore, our borrowing capacity could be negatively impacted by further declines in oil and natural gas prices. | ||
Basis of preparation | Basis of preparation | |
Our reporting standard for the presentation of our consolidated financial statements is U.S. GAAP. The consolidated financial statements include the accounts of the Company and all majority owned, controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. During the year ended December 31, 2014, we reclassified certain balance sheet amounts previously reported on our consolidated balance sheet at December 31, 2013 to conform to current year presentation. | ||
Reverse Stock Split | Reverse stock split | |
On March 4, 2014, the Company’s shareholders approved a 1-for-10 reverse stock split, which became effective March 6, 2014. Pursuant to the reverse stock split, all shareholders of record received one common share for each ten common shares owned (subject to minor adjustments as a result of fractional shares). The reverse stock split reduced the issued and outstanding common shares from 374,026,984 to 37,402,698. U.S. GAAP requires that the reverse stock split be applied retrospectively to all periods presented. As a result, all common share transactions described herein have been adjusted to reflect the 1-for-10 reverse stock split. | ||
Cash and cash equivalents | Cash and cash equivalents | |
Cash and cash equivalents include term deposits and investments with original maturities of three months or less at the date of acquisition. We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. We determine the appropriate classification of our investments in cash and cash equivalents and marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. | ||
Commodity derivative instruments | Commodity derivative instruments | |
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging (“ASC 815”), requires derivative instruments to be recognized as either assets or liabilities in the balance sheet at fair value. We do not designate our derivative financial instruments as hedging instruments and, as a result, we recognize the change in a derivative contract’s fair value currently in earnings as a component of other income (expense). | ||
Fair value measurements | Fair value measurements | |
We follow ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). This standard defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements, but applies to assets and liabilities that are required to be recorded at fair value under other accounting standards. | ||
ASC 820 characterizes inputs used in determining fair value according to a hierarchy that prioritizes those inputs based upon the degree to which they are observable. The three levels of the fair value measurement hierarchy are as follows: | ||
Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |
Level 2: | Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. | |
Level 3: | Measured based on prices or valuation models that required inputs that are both significant to the fair value measurement and less observable for objective sources (i.e., supported by little or no market activity). | |
As required by ASC 820, financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values takes into account the market for our financial assets and liabilities, the associated credit risk and other factors as required by ASC 820. We consider active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | ||
Foreign currency remeasurement and translation | Foreign currency remeasurement and translation | |
The functional currency of our subsidiaries in Turkey, Bulgaria, Romania, Morocco, and Albania is the New Turkish Lira (“TRY”), the Bulgarian Lev, the Romanian New Leu, the Moroccan Dirham, and the U.S. Dollar (“USD”) respectively. We follow ASC 830, Foreign Currency Matters (“ASC 830”). ASC 830 requires the assets, liabilities, and results of operations of a foreign operation to be measured using the functional currency of that foreign operation. Exchange gains or losses from remeasuring transactions and monetary accounts in a currency other than the functional currency are included in earnings. | ||
For certain subsidiaries, translation adjustments result from the process of translating the functional currency of subsidiary financial statements into the U.S. Dollar reporting currency. These translation adjustments are reported separately and accumulated in the consolidated balance sheets as a component of accumulated other comprehensive loss. | ||
Oil and natural gas properties | Oil and natural gas properties | |
In accordance with the successful efforts method of accounting for oil and natural gas properties, costs of productive wells, developmental dry holes and productive leases are capitalized into appropriate groups of properties based on geographical and geological similarities. Acquisition costs of proved properties are amortized using the unit-of-production method based on total proved reserves, and exploration well costs and additional development costs are amortized using the unit-of-production method based on proved developed reserves. Proceeds from the sale of properties are credited to property costs, and a gain or loss is recognized when a significant portion of an amortization base is sold or abandoned. | ||
Exploration costs, such as exploratory geological and geophysical costs, delay rentals and exploration overhead, are charged to expense as incurred. Exploratory drilling costs, including the cost of stratigraphic test wells, are initially capitalized but charged to exploration expense if and when the well is determined to be non-productive. The determination of an exploratory well’s ability to produce must be made within one year from the completion of drilling activities. The acquisition costs of unproved acreage are initially capitalized and are carried at cost, net of accumulated impairment provisions, until such leases are transferred to proved properties or charged to exploration expense as impairments of unproved properties. | ||
Equipment and other property | Equipment and other property | |
Equipment and other property are stated at cost, and inventory is stated at weighted average cost which does not exceed replacement cost. Depreciation is calculated using the straight-line method over the estimated useful lives (ranging from 3 to 7 years) of the respective assets. The costs of normal maintenance and repairs are charged to expense as incurred. Material expenditures that increase the life of an asset are capitalized and depreciated over the estimated remaining useful life of the asset. The cost of equipment sold, or otherwise disposed of, and the related accumulated depreciation, are removed from the accounts and any gain or loss is reflected in current earnings. | ||
Impairment of long-lived assets | Impairment of long-lived assets | |
We follow the provisions of ASC 360, Property, Plant, and Equipment (“ASC 360”). ASC 360 requires that our long-lived assets be assessed for potential impairment of their carrying values whenever events or changes in circumstances indicate such impairment may have occurred. Proved oil and natural gas properties are evaluated by field for potential impairment. An impairment on proved properties is recognized when the estimated undiscounted future net cash flows of a field are less than its carrying value. If an impairment occurs, the carrying value of the impaired field is reduced to its estimated fair value, which is generally estimated using a discounted cash flow approach. | ||
Unproved oil and natural gas properties do not have producing properties and are valued on acquisition by management, with the assistance of an independent expert when necessary. As reserves are proved through the successful completion of exploratory wells, the cost is transferred to proved properties. The cost of the remaining unproved basis is periodically evaluated by management to assess whether the value of a property has diminished. To do this assessment, management considers (i) estimated potential reserves and future net revenues from an independent expert, (ii) the Company’s history in exploring the area, (iii) the Company’s future drilling plans per its capital drilling program prepared by the Company’s reservoir engineers and operations management and (iv) other factors associated with the area. Impairment is taken on the unproved property value if it is determined that the costs are not likely to be recoverable. The valuation is subjective and requires management to make estimates and assumptions which, with the passage of time, may prove to be materially different from actual results. | ||
Goodwill | Goodwill | |
In accordance with ASC 350, Intangibles-Goodwill and Other (“ASC 350”), goodwill is not amortized, but is tested for impairment on an annual basis at December 31, or more frequently as impairment indicators arise. ASC 350 permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. We assessed the qualitative factors at December 31, 2014 and, based upon the results of the qualitative assessment, we determined that it was not necessary to perform the two-step goodwill impairment test and that our goodwill was not impaired. All of our goodwill is attributable to our Turkey operating segment. | ||
Joint interest activities | Joint interest activities | |
Certain of our exploration, development and production activities are conducted jointly with other entities and, accordingly, the consolidated financial statements reflect only our proportionate interest in such activities. | ||
Asset retirement obligations | Asset retirement obligations | |
We recognize a liability for the fair value of all legal obligations associated with the retirement of tangible, long-lived assets and capitalize an equal amount as a cost of the asset. The cost associated with the abandonment obligation is included in the computation of depreciation, depletion and amortization. The liability accretes until we settle the obligation. We use a credit-adjusted risk-free interest rate in our calculation of asset retirement obligations. | ||
Revenue recognition | Revenue recognition | |
Revenue from the sale of crude oil and natural gas is recognized upon delivery to the purchaser when title passes. During the years ended December 31, 2014, 2013 and 2012, we sold $102.8 million, $87.2 million and $91.8 million, respectively, of oil to Türkiye Petrol Rafinerileri A.Ş. (“TUPRAS”), a privately owned oil refinery in Turkey, which represented approximately 73.0%, 66.7% and 63.8% of our total revenues, respectively. | ||
Share-based compensation | Share-based compensation | |
We follow ASC 718, Compensation—Stock Compensation (“ASC 718”), which requires the measurement and recognition of compensation expense for all share-based payment awards, including restricted stock units, based on estimated grant date fair values. Restricted stock units are valued using the market price of our common shares on the date of grant. We record compensation expense, net of estimated forfeitures, over the requisite service period. | ||
Income taxes | Income taxes | |
We follow the asset and liability method prescribed by ASC 740, Income Taxes (“ASC 740”). Under this method of accounting for income taxes, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a change in enacted tax rates is recognized in earnings in the period that includes the enactment date. | ||
In connection with our acquisition Amity Oil International Pty Ltd (“Amity”) and Petrogas Petrol Gaz ve Petrokimya Ürünleri Inşaat Sanayi ve Ticaret A.Ş. (“Petrogas”) in August 2010, at December 31, 2012, we recognized a liability due to an uncertain tax position related to the transfer of Petrogas shares to Amity prior to the acquisition (see Note 11). We do not believe there will be any material changes in our unrecognized tax positions over the next twelve months. Our policy is that we recognize interest and penalties accrued on any unrecognized tax positions as a component of income tax expense. | ||
We are a Bermuda exempted company, and under current Bermuda law, we are not subject to tax on profits, income or dividends, nor is there any capital gains tax applicable to us in Bermuda. | ||
Comprehensive income | Comprehensive income | |
ASC 220, Comprehensive Income, establishes standards for reporting and displaying comprehensive income and its components (revenue, expenses, gains and losses) in a full set of general-purpose financial statements. | ||
Business combinations | Business combinations | |
We follow ASC 805, Business Combinations (“ASC 805”), and ASC 810-10-65, Consolidation (“ASC 810-10-65”). ASC 805 requires most identifiable assets, liabilities, non-controlling interests, and goodwill acquired in a business combination to be recorded at “fair value.” The statement applies to all business combinations, including combinations among mutual entities and combinations by contract alone. Under ASC 805, all business combinations are accounted for by applying the acquisition method. See Note 4. | ||
Per share information | Per share information | |
Basic per share amounts are calculated using the weighted average common shares outstanding during the year, excluding unvested restricted stock units. We use the treasury stock method to determine the dilutive effect of stock options and other dilutive instruments. Under the treasury stock method, only “in the money” dilutive instruments impact the diluted calculations in computing diluted earnings per share. Diluted calculations reflect the weighted average incremental common shares that would be issued upon exercise of dilutive options assuming the proceeds would be used to repurchase shares at average market prices for the period. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Business Combinations [Abstract] | ||||||||
Consideration Paid in Acquisition and Final Recognized Amounts of Assets Acquired and Liabilities Assumed | We are still assessing the assets acquired and liabilities assumed, thus the final determination of the value of assets acquired and liabilities assumed may result in adjustments to the values presented below. The following tables summarize the consideration paid in the acquisition and the preliminary amounts of assets acquired and liabilities assumed that have been recognized at the acquisition date: | |||||||
(in thousands) | ||||||||
Consideration: | ||||||||
Issuance of 3,218,641 common shares | $ | 23,850 | ||||||
Contingent payment event | 4,188 | |||||||
Fair value of total consideration | $ | 28,038 | ||||||
Acquisition-Related Costs: | ||||||||
Included in general and administrative expenses on our consolidated statements of comprehensive income (loss) for the year ended December 31, 2014 | $ | 1,129 | ||||||
Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed at Acquisition: | ||||||||
Assets: | ||||||||
Cash | $ | 66 | ||||||
Accounts receivable | 6,672 | |||||||
Other current assets | 347 | |||||||
Total current assets | 7,085 | |||||||
Oil and natural gas properties: | ||||||||
Proved properties | 99,927 | |||||||
Unproved properties | 16,140 | |||||||
Equipment and other property | 964 | |||||||
Total oil and natural gas properties and other equipment | 117,031 | |||||||
Total assets | 124,116 | |||||||
Liabilities: | ||||||||
Accounts payable | 20,673 | |||||||
Accounts payable - related party | 2,820 | |||||||
Other current liabilities | 10,000 | |||||||
Viking International note - related party | 6,800 | |||||||
Loans payable - current | 11,732 | |||||||
Other non-current liabilities | 5,036 | |||||||
Loans payable - non-current | 6,123 | |||||||
Asset retirement obligations | 827 | |||||||
Deferred income taxes | 32,067 | |||||||
Total liabilities | 96,078 | |||||||
Total identifiable net assets | $ | 28,038 | ||||||
Consolidated Results of Operation | The results of operations of Stream are included in our consolidated statement of comprehensive income (loss) beginning November 18, 2014. The revenues and expenses of Stream included in our consolidated statement of comprehensive income (loss) for the year ended December 31, 2014 were: | |||||||
Revenue | Loss | |||||||
(in thousands) | ||||||||
Actual from November 18, 2014 through December 31, 2014 | $ | 1,898 | $ | (118 | ) | |||
Unaudited Pro Forma Results of Operations | ||||||||
The following table presents the unaudited pro forma results of operations for the year ended December 31, 2014 and 2013 as though the acquisition of Stream had occurred at January 1, 2013 (in thousands, except per share amounts): | ||||||||
2014 | 2013 | |||||||
Total revenues | $ | 160,021 | $ | 153,794 | ||||
Income (loss) from continuing operations before income taxes | 45,166 | (15,118 | ) | |||||
Income (loss) from continuing operations | 32,467 | (19,435 | ) | |||||
Loss from discontinued operations | (20 | ) | (442 | ) | ||||
Net income (loss) | 32,447 | (19,877 | ) | |||||
Net loss per common share from continuing operations | ||||||||
Basic and diluted | $ | 0.8 | $ | (0.48 | ) | |||
Net loss per common share from discontinued operations | ||||||||
Basic and diluted | $ | - | $ | (0.01 | ) | |||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||
Schedule of Goodwill | All of our goodwill is attributable to our Turkey operating segment. Goodwill was as follows at December 31, 2014 and 2013: | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Goodwill at January 1, | $ | 7,535 | $ | 9,021 | ||||
Foreign exchange effect | (600 | ) | (1,486 | ) | ||||
Goodwill at December 31 | $ | 6,935 | $ | 7,535 | ||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property Plant And Equipment [Abstract] | ||||||||
Capitalized Costs under Successful Efforts Method for Oil and Natural Gas Properties | The following table sets forth the capitalized costs under the successful efforts method for oil and natural gas properties: | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Oil and natural gas properties, proved: | ||||||||
Turkey | $ | 323,442 | $ | 260,232 | ||||
Albania | 100,037 | – | ||||||
Bulgaria | 552 | 625 | ||||||
Total oil and natural gas properties, proved | 424,031 | 260,857 | ||||||
Oil and natural gas properties, unproved: | ||||||||
Turkey | 43,090 | 51,273 | ||||||
Albania | 18,301 | – | ||||||
Bulgaria | 4,047 | 3,119 | ||||||
Total oil and natural gas properties, unproved | 65,438 | 54,392 | ||||||
Gross oil and natural gas properties | 489,469 | 315,249 | ||||||
Accumulated depletion | (133,304 | ) | (96,958 | ) | ||||
Net oil and natural gas properties | $ | 356,165 | $ | 218,291 | ||||
Historical Cost of Equipment and Other Property on Gross Basis with Accumulated Depreciation | The historical cost of equipment and other property, presented on a gross basis with accumulated depreciation, is summarized as follows: | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Other equipment | $ | 3,035 | $ | 2,678 | ||||
Inventory | 24,309 | 24,318 | ||||||
Gas gathering system and facilities | 4,128 | 4,485 | ||||||
Vehicles | 536 | 321 | ||||||
Leasehold improvements, office equipment and software | 10,335 | 8,114 | ||||||
Gross equipment and other property | 42,343 | 39,916 | ||||||
Accumulated depreciation | (8,673 | ) | (7,235 | ) | ||||
Net equipment and other property | $ | 33,670 | $ | 32,681 | ||||
Commodity_Derivative_Instrumen1
Commodity Derivative Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||
Fair Value of Derivative Instruments of Future Crude Oil Production | At December 31, 2014, we had outstanding commodity derivative contracts with respect to our future crude oil production as set forth in the tables below: | ||||||||||||||||||||||
Fair Value of Derivative Instruments as of December 31, 2014 | |||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Quantity | Minimum | Maximum Price | Estimated Fair | ||||||||||||||||||||
Type | Period | (Bbl/day) | Price (per Bbl) | (per Bbl) | Value of Asset | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Collar | January 1, 2015—December 31, 2015 | 1,410 | $ | 85 | $ | 97.25 | $ | 12,518 | |||||||||||||||
Collars | Additional Call | ||||||||||||||||||||||
Weighted | Weighted | Weighted | |||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||
Minimum | Maximum | Maximum | Estimated Fair | ||||||||||||||||||||
Quantity | Price | Price | Price | Value of | |||||||||||||||||||
Type | Period | (Bbl/day) | (per Bbl) | (per Bbl) | (per Bbl) | Asset | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Three-way collar contract | January 1, 2016—December 31, 2016 | 1,066 | $ | 85 | $ | 97.25 | $ | 114.25 | $ | 7,609 | |||||||||||||
Three-way collar contract | January 1, 2017—December 31, 2017 | 888 | $ | 85 | $ | 97.25 | $ | 114.25 | 5,748 | ||||||||||||||
Three-way collar contract | January 1, 2018—December 31, 2018 | 726 | $ | 85 | $ | 97.25 | $ | 114.25 | 4,659 | ||||||||||||||
Three-way collar contract | January 1, 2019—March 31, 2019 | 663 | $ | 85 | $ | 97.25 | $ | 114.25 | 1,053 | ||||||||||||||
$ | 19,069 | ||||||||||||||||||||||
Fair Value of Derivative Instruments as of December 31, 2013 | |||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||
Quantity | Minimum | Maximum Price | Estimated Fair | ||||||||||||||||||||
Type | Period | (Bbl/day) | Price (per Bbl) | (per Bbl) | Value of Liability | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Collar | January 1, 2014—December 31, 2014 | 622 | $ | 80.83 | $ | 118.07 | $ | (387 | ) | ||||||||||||||
$ | (387 | ) | |||||||||||||||||||||
Collars | Additional Call | ||||||||||||||||||||||
Weighted | Weighted | Weighted | |||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||
Minimum | Maximum | Maximum | Estimated Fair | ||||||||||||||||||||
Quantity | Price | Price | Price | Value of | |||||||||||||||||||
Type | Period | (Bbl/day) | (per Bbl) | (per Bbl) | (per Bbl) | Liability | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Three-way collar contract | January 1, 2014—December 31, 2014 | 726 | $ | 85 | $ | 97.13 | $ | 162.13 | $ | (3,350 | ) | ||||||||||||
Three-way collar contract | January 1, 2015—December 31, 2015 | 1,016 | $ | 85 | $ | 91.88 | $ | 151.88 | (4,230 | ) | |||||||||||||
$ | (7,580 | ) | |||||||||||||||||||||
Summary of Gross Fair Value of Commodity Derivative Instruments by Balance Sheet Classification | The following table summarizes both: (i) the gross fair value of our commodity derivative instruments by the appropriate balance sheet classification even when the commodity derivative instruments are subject to netting arrangements and qualify for net presentation in our consolidated balance sheets at December 31, 2014 and December 31, 2013, and (ii) the net recorded fair value as reflected on our consolidated balance sheets at December 31, 2014 and December 31, 2013. | ||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||
Gross | |||||||||||||||||||||||
Amount | Net Amount of | ||||||||||||||||||||||
Gross | Offset in the | Assets | |||||||||||||||||||||
Amount of | Consolidated | Presented in the | |||||||||||||||||||||
Recognized | Balance | Consolidated | |||||||||||||||||||||
Underlying Commodity | Location on Balance Sheet | Assets | Sheet | Balance Sheet | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Crude oil | Current Assets | $ | 12,518 | $ | – | $ | 12,518 | ||||||||||||||||
Crude oil | Long-term Assets | 19,069 | – | 19,069 | |||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||
Gross | |||||||||||||||||||||||
Amount | Net Amount of | ||||||||||||||||||||||
Gross | Offset in the | Liabilities | |||||||||||||||||||||
Amount of | Consolidated | Presented in the | |||||||||||||||||||||
Recognized | Balance | Consolidated | |||||||||||||||||||||
Underlying Commodity | Location on Balance Sheet | Liabilities | Sheet | Balance Sheet | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Crude oil | Current liabilities | $ | 3,737 | $ | – | $ | 3,737 | ||||||||||||||||
Crude oil | Long-term liabilities | 4,230 | – | 4,230 | |||||||||||||||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Changes in Asset Retirement Obligations | The following table summarizes the changes in our ARO for the years ended December 31, 2014 and 2013: | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Asset retirement obligations at beginning of period | $ | 10,896 | $ | 11,958 | ||||
Change in estimates | – | (7 | ) | |||||
Liabilities settled | (373 | ) | (296 | ) | ||||
Foreign exchange change effect | (900 | ) | (2,258 | ) | ||||
Additions | 513 | 991 | ||||||
Accretion expense | 413 | 508 | ||||||
Acquisitions | 827 | – | ||||||
Asset retirement obligations at end of period | 11,376 | 10,896 | ||||||
Less: current portion | 323 | 610 | ||||||
Long-term portion | $ | 11,053 | $ | 10,286 | ||||
Loan_payable_Tables
Loan payable (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | As of the dates indicated, our third-party debt consisted of the following: | |||||||
2014 | 2013 | |||||||
Fixed and floating rate loans | (in thousands) | |||||||
Senior Credit Facility | $ | 68,298 | $ | – | ||||
Amended and Restated Credit Facility | – | 49,766 | ||||||
Convertible notes | 26,600 | – | ||||||
Convertible notes - related party | 20,800 | – | ||||||
TBNG credit facility | 20,025 | 20,000 | ||||||
Term Loan Facility | 10,452 | – | ||||||
Viking International note - related party | 6,800 | – | ||||||
Prepayment Agreement | 3,043 | – | ||||||
Shareholder loan | 2,580 | – | ||||||
Loans payable | 158,598 | 69,766 | ||||||
Less: current portion | 52,606 | 43,284 | ||||||
Long-term portion | $ | 105,992 | $ | 26,482 | ||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||
Restricted Stock Units Activity | Share-based compensation of approximately $1.4 million and $1.7 million with respect to awards of RSUs was recorded for the years ended December 31, 2014 and 2013, respectively. As of December 31, 2014, we had approximately $0.7 million of unrecognized compensation expense related to unvested RSUs, which is expected to be recognized over a weighted average period of 1.3 years. The following table sets forth RSU activity for the year ended December 31, 2014: | |||||||||||||||||||||||
Number of RSUs | Weighted Average Grant Date Fair Value Per RSU | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unvested RSUs outstanding at December 31, 2013 | 296 | $ | 8.91 | |||||||||||||||||||||
Granted | 179 | 8.57 | ||||||||||||||||||||||
Forfeited | (103 | ) | 8.17 | |||||||||||||||||||||
Vested | (149 | ) | 10.06 | |||||||||||||||||||||
Unvested RSUs outstanding at December 31, 2014 | 223 | $ | 8.21 | |||||||||||||||||||||
Details of Stock Option Activity | Details of stock option activity for the years ended December 31, 2014, 2013 and 2012 are presented below. | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Number of Options | Weighted Average Exercise Price Per share | Number of Options | Weighted Average Exercise Price Per share | Number of Options | Weighted Average Exercise Price Per share | |||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||
Outstanding at beginning of year | – | $ | – | 16 | $ | 12.3 | 114 | $ | 9.07 | |||||||||||||||
Granted | – | – | – | – | – | – | ||||||||||||||||||
Expired | – | – | (16 | ) | 12.3 | (17 | ) | 10 | ||||||||||||||||
Exercised | – | – | – | – | (81 | ) | 8.24 | |||||||||||||||||
Outstanding at end of year | – | $ | – | – | $ | – | 16 | $ | 12.3 | |||||||||||||||
Exercisable at end of year | – | $ | – | – | $ | – | 16 | $ | 12.3 | |||||||||||||||
Basic and Diluted Earnings Per Common Share Computations | The following table presents the basic and diluted earnings per common share computations: | |||||||||||||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Net income (loss) from continuing operations | $ | 29,096 | $ | (13,271 | ) | $ | (6,373 | ) | ||||||||||||||||
Net (loss) income from discontinued operations | $ | (20 | ) | $ | (442 | ) | $ | 22,619 | ||||||||||||||||
Basic net income (loss) per common share: | ||||||||||||||||||||||||
Shares: | ||||||||||||||||||||||||
Weighted average common shares outstanding | 37,829 | 37,069 | 36,742 | |||||||||||||||||||||
Basic net income (loss) per common share: | ||||||||||||||||||||||||
Continuing operations | $ | 0.77 | $ | (0.36 | ) | $ | (0.17 | ) | ||||||||||||||||
Discontinued operations | $ | – | $ | (0.01 | ) | $ | 0.62 | |||||||||||||||||
Diluted net income (loss) per common share: | ||||||||||||||||||||||||
Shares: | ||||||||||||||||||||||||
Weighted average shares outstanding | 37,829 | 37,069 | 36,742 | |||||||||||||||||||||
Dilutive effect of: | ||||||||||||||||||||||||
Restricted share units | 152 | – | – | |||||||||||||||||||||
Convertible notes | 50 | – | – | |||||||||||||||||||||
Weighted average common and common equivalent shares outstanding | 38,031 | 37,069 | 36,742 | |||||||||||||||||||||
Diluted net income (loss) per common share: | ||||||||||||||||||||||||
Continuing operations | $ | 0.77 | $ | (0.36 | ) | $ | (0.17 | ) | ||||||||||||||||
Discontinued operations | $ | – | $ | (0.01 | ) | $ | 0.62 | |||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Reconciliation of Bermuda Income Tax Expense to Actual Income Tax Expense | The income tax provision differs from the amount that would be obtained by applying the Bermuda statutory income tax rate of 0% for 2014, 2013 and 2012 to income (loss) for the year as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands except rates) | ||||||||||||
Statutory rate | 0 | % | 0 | % | 0 | % | ||||||
Income (loss) from continuing operations before income taxes | $ | 42,143 | $ | (12,164 | ) | $ | 118 | |||||
Increase (decrease) resulting from: | . | |||||||||||
Foreign tax rate differentials | 8,897 | (1,443 | ) | 8,607 | ||||||||
Change in valuation allowance | 228 | 982 | (2,026 | ) | ||||||||
Expiration of non-capital tax loss carryovers | 1,841 | 1,367 | 1,601 | |||||||||
Other | 2,081 | 201 | (1,691 | ) | ||||||||
Total | $ | 13,047 | $ | 1,107 | $ | 6,491 | ||||||
Components of Net Deferred Income Tax Liability | The components of the net deferred income tax liability at December 31, 2014 and 2013 were as follows: | |||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Deferred tax assets | ||||||||||||
Unrealized derivative losses | $ | – | $ | 1,594 | ||||||||
Timing of accruals | 692 | 1,043 | ||||||||||
Property and equipment | 9,761 | – | ||||||||||
Non-capital loss carryovers | 28,155 | 25,868 | ||||||||||
Valuation allowance | (37,153 | ) | (28,404 | ) | ||||||||
Total deferred tax assets | 1,455 | 101 | ||||||||||
Deferred tax liabilities | ||||||||||||
Unrealized derivative gain | (6,317 | ) | – | |||||||||
Property and equipment | (50,196 | ) | (13,093 | ) | ||||||||
Total deferred tax liabilities | (56,513 | ) | (13,093 | ) | ||||||||
Net deferred tax liabilities | $ | (55,058 | ) | $ | (12,992 | ) | ||||||
Components of net deferred tax liabilities | ||||||||||||
Current assets | $ | 329 | $ | 2,239 | ||||||||
Non-current assets | 1,181 | 903 | ||||||||||
Current liabilities | (2,138 | ) | – | |||||||||
Non-current liabilities | (54,430 | ) | (16,134 | ) | ||||||||
Net deferred tax liabilities | $ | (55,058 | ) | $ | (12,992 | ) | ||||||
Segment_information_Tables
Segment information (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Financial Information of Geographic Segments | In accordance with ASC 280, Segment Reporting (“ASC 280”), we have three reportable geographic segments: Turkey, Bulgaria and Albania. Summarized financial information from continuing operations concerning our geographic segments is shown in the following tables: | ||||||||||||||||||||
Corporate | Turkey | Bulgaria | Albania | Total | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
For the year ended December 31, 2014 | |||||||||||||||||||||
Total revenues | $ | – | $ | 138,807 | $ | 23 | $ | 1,898 | $ | 140,728 | |||||||||||
Production | – | 18,059 | 134 | 1,806 | 19,999 | ||||||||||||||||
Transportation costs | – | – | – | 284 | 284 | ||||||||||||||||
Exploration, abandonment, and impairment | – | 19,820 | 44 | – | 19,864 | ||||||||||||||||
Cost of purchased gas | – | 2,055 | – | – | 2,055 | ||||||||||||||||
Seismic and other exploration | 178 | 4,106 | 1 | – | 4,285 | ||||||||||||||||
Revaluation of contingent consideration | – | – | (2,500 | ) | – | (2,500 | ) | ||||||||||||||
General and administrative | 14,418 | 14,984 | 1,669 | 554 | 31,625 | ||||||||||||||||
Depreciation, depletion and amortization | 124 | 48,452 | 18 | 333 | 48,927 | ||||||||||||||||
Accretion of asset retirement obligations | – | 387 | 19 | 7 | 413 | ||||||||||||||||
Total costs and expenses | 14,720 | 107,863 | (615 | ) | 2,984 | 124,952 | |||||||||||||||
Operating (loss) income | (14,720 | ) | 30,944 | 638 | (1,086 | ) | 15,776 | ||||||||||||||
Interest and other expense | (36 | ) | (6,007 | ) | (1 | ) | (169 | ) | (6,213 | ) | |||||||||||
Interest income | 350 | 770 | 4 | – | 1,124 | ||||||||||||||||
Gain on commodity derivative contracts | – | 37,454 | – | – | 37,454 | ||||||||||||||||
Foreign exchange (loss) gain | (4 | ) | (6,497 | ) | (22 | ) | 525 | (5,998 | ) | ||||||||||||
(Loss) income from continuing operations before income taxes | (14,410 | ) | 56,664 | 619 | (730 | ) | 42,143 | ||||||||||||||
Income tax provision | – | (13,659 | ) | – | 612 | (13,047 | ) | ||||||||||||||
Net (loss) income from continuing operations | $ | (14,410 | ) | $ | 43,005 | $ | 619 | $ | (118 | ) | $ | 29,096 | |||||||||
Total assets at December 31, 2014 | $ | 51,919 | $ | 363,162 | $ | 4,675 | $ | 126,619 | $ | 546,375 | -1 | ||||||||||
Goodwill at December 31, 2014 | $ | – | $ | 6,935 | $ | – | $ | – | $ | 6,935 | |||||||||||
Capital expenditures for the year ended December 31, 2014 | $ | 545 | $ | 109,563 | $ | 1,393 | $ | 2,271 | $ | 113,772 | |||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||
Total revenues | $ | – | $ | 130,701 | $ | 126 | $ | – | $ | 130,827 | |||||||||||
Production | 5 | 18,384 | 213 | – | 18,602 | ||||||||||||||||
Exploration, abandonment, and impairment | – | 27,116 | 217 | – | 27,333 | ||||||||||||||||
Cost of purchased gas | – | 2,247 | – | – | 2,247 | ||||||||||||||||
Seismic and other exploration | 100 | 13,909 | – | – | 14,009 | ||||||||||||||||
Revaluation of contingent consideration | – | – | (5,000 | ) | – | (5,000 | ) | ||||||||||||||
General and administrative | 12,685 | 16,068 | 267 | – | 29,020 | ||||||||||||||||
Depreciation, depletion and amortization | 69 | 41,196 | 57 | – | 41,322 | ||||||||||||||||
Accretion of asset retirement obligations | – | 475 | 33 | – | 508 | ||||||||||||||||
Total costs and expenses | 12,859 | 119,395 | (4,213 | ) | – | 128,041 | |||||||||||||||
Operating (loss) income | (12,859 | ) | 11,306 | 4,339 | – | 2,786 | |||||||||||||||
Interest and other expense | – | (3,929 | ) | – | – | (3,929 | ) | ||||||||||||||
Interest income | 284 | 1,056 | – | – | 1,340 | ||||||||||||||||
Loss on commodity derivative contracts | – | (2,698 | ) | – | – | (2,698 | ) | ||||||||||||||
Foreign exchange (loss) gain | (9 | ) | (9,664 | ) | 10 | – | (9,663 | ) | |||||||||||||
(Loss) income loss from continuing operations before income taxes | (12,584 | ) | (3,929 | ) | 4,349 | – | (12,164 | ) | |||||||||||||
Income tax provision | – | (1,107 | ) | – | – | (1,107 | ) | ||||||||||||||
Net (loss) income from continuing operations | $ | (12,584 | ) | $ | (5,036 | ) | $ | 4,349 | $ | – | $ | (13,271 | ) | ||||||||
Total assets at December 31, 2013 | $ | 14,070 | $ | 321,749 | $ | 10,231 | $ | – | $ | 346,050 | -1 | ||||||||||
Goodwill at December 31, 2013 | $ | – | $ | 7,535 | $ | – | $ | – | $ | 7,535 | |||||||||||
Capital expenditures for the year ended December 31, 2013 | $ | 1,003 | $ | 96,206 | $ | 2,742 | $ | – | $ | 99,951 | |||||||||||
For the year ended December 31, 2012 | |||||||||||||||||||||
Total revenues | $ | – | $ | 143,650 | $ | 258 | $ | – | $ | 143,908 | |||||||||||
Production | 169 | 17,328 | 307 | – | 17,804 | ||||||||||||||||
Exploration, abandonment, and impairment | 285 | 39,708 | – | – | 39,993 | ||||||||||||||||
Cost of purchased gas | – | 7,694 | – | – | 7,694 | ||||||||||||||||
Seismic and other exploration | 304 | 4,726 | 10 | – | 5,040 | ||||||||||||||||
General and administrative | 10,982 | 20,603 | 2,362 | – | 33,947 | ||||||||||||||||
Depreciation, depletion and amortization | 30 | 28,092 | 93 | – | 28,215 | ||||||||||||||||
Accretion of asset retirement obligations | – | 679 | 31 | – | 710 | ||||||||||||||||
Total costs and expenses | 11,770 | 118,830 | 2,803 | – | 133,403 | ||||||||||||||||
Operating (loss) income | (11,770 | ) | 24,820 | (2,545 | ) | – | 10,505 | ||||||||||||||
Interest and other expense | (1,890 | ) | (6,450 | ) | – | – | (8,340 | ) | |||||||||||||
Interest income | 308 | 2,110 | – | – | 2,418 | ||||||||||||||||
Loss on commodity derivative contracts | – | (5,548 | ) | – | – | (5,548 | ) | ||||||||||||||
Foreign exchange gain (loss) | 79 | 1,054 | (50 | ) | – | 1,083 | |||||||||||||||
(Loss) income from continuing operations before income taxes | (13,273 | ) | 15,986 | (2,595 | ) | – | 118 | ||||||||||||||
Income tax provision | – | (6,491 | ) | – | – | (6,491 | ) | ||||||||||||||
Net (loss) income from continuing operations | $ | (13,273 | ) | $ | 9,495 | $ | (2,595 | ) | $ | – | $ | (6,373 | ) | ||||||||
Total assets at December 31, 2012 | $ | 14,930 | $ | 339,752 | $ | 1,957 | $ | – | $ | 356,639 | -1 | ||||||||||
Goodwill at December 31, 2012 | $ | – | $ | 9,021 | $ | – | $ | – | $ | 9,021 | |||||||||||
Capital expenditures for the year ended December 31, 2012 | $ | – | $ | 80,957 | $ | 867 | $ | – | $ | 81,824 | |||||||||||
· | Excludes assets from our discontinued Moroccan operations of $28,000, $0.5 million, and $1.6 million at December 31, 2014, 2013 and 2012, respectively. |
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Valuation of Financial Assets and Liabilities | The following table summarizes the valuation of our financial assets and liabilities as of December 31, 2014: | |||||||||||||||
Fair Value Measurement Classification | ||||||||||||||||
Quoted Prices in | ||||||||||||||||
Active Markets for | ||||||||||||||||
Identical Assets or | Significant Other | Significant | ||||||||||||||
Liabilities | Observable Inputs | Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity derivative contracts | $ | – | $ | 31,587 | $ | – | $ | 31,587 | ||||||||
Liabilities: | ||||||||||||||||
Convertible notes | - | (47,400 | ) | - | (47,400 | ) | ||||||||||
Total | $ | – | $ | (15,813 | ) | $ | – | $ | (15,813 | ) | ||||||
The following table summarizes the valuation of our financial assets and liabilities as of December 31, 2013: | ||||||||||||||||
Fair Value Measurement Classification | ||||||||||||||||
Quoted Prices in | ||||||||||||||||
Active Markets for | ||||||||||||||||
Identical Assets or | Significant Other | Significant | ||||||||||||||
Liabilities | Observable Inputs | Unobservable Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Liabilities: | ||||||||||||||||
Commodity derivative contracts | $ | – | $ | (7,967 | ) | $ | – | $ | (7,967 | ) | ||||||
Total | $ | – | $ | (7,967 | ) | $ | – | $ | (7,967 | ) | ||||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||
Aggregate Annual Commitments Other Than Debt | Our aggregate annual commitments, other than our loans payable, as of December 31, 2014 were as follows: | ||||||||||||||||||||||||||||
Payments Due By Year | |||||||||||||||||||||||||||||
Total | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Interest | $ | 26,288 | $ | 11,077 | $ | 9,598 | $ | 4,977 | $ | 595 | $ | 41 | $ | - | |||||||||||||||
Leases | 7,097 | 2,826 | 346 | 195 | 33 | - | 3,697 | ||||||||||||||||||||||
Total | $ | 33,385 | $ | 13,903 | $ | 9,944 | $ | 5,172 | $ | 628 | $ | 41 | $ | 3,697 | |||||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Related Party Accounts Receivable and Accounts Payable | The following table summarizes related party accounts receivable and accounts payable as of December 31, 2014 and December 31, 2013: | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Related party accounts receivable: | ||||||||
Viking International master services agreement | $ | 355 | $ | 939 | ||||
Riata Management Service Agreement | 159 | 65 | ||||||
Dalea promissory note | 88 | – | ||||||
Total related party accounts receivable | $ | 602 | $ | 1,004 | ||||
Related party accounts payable: | ||||||||
Viking International master services agreement | $ | 16,754 | $ | 15,956 | ||||
Riata Management Service Agreement | 1,734 | 334 | ||||||
Viking Geophysical master services agreement | – | 6,800 | ||||||
Total related party accounts payable | $ | 18,488 | $ | 23,090 | ||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | |||||||||||||
Summary of Assets and Liabilities Held for Sale and Operating Results from Discontinued Operations | The assets and liabilities held for sale at December 31, 2014 and 2013 were as follows: | ||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Cash | $ | 16 | $ | 23 | |||||||||
Other assets | 12 | 513 | |||||||||||
Total assets held for sale | $ | 28 | $ | 536 | |||||||||
Accrued expenses and other liabilities | $ | 6,928 | $ | 7,559 | |||||||||
Total liabilities held for sale | $ | 6,928 | $ | 7,559 | |||||||||
Our operating results from discontinued operations for the years ended December 31, 2014, 2013 and 2012 are summarized as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Total revenues | $ | – | $ | – | $ | 19,956 | |||||||
Total costs and expenses | (20 | ) | (505 | ) | (24,682 | ) | |||||||
Total other income (expense) | – | 63 | (357 | ) | |||||||||
Loss from discontinued operations before income taxes | (20 | ) | (442 | ) | (5,083 | ) | |||||||
Gain on disposal of discontinued operations | – | – | 35,999 | ||||||||||
Income tax provision | – | – | (8,297 | ) | |||||||||
Net (loss) income from discontinued operations | $ | (20 | ) | $ | (442 | ) | $ | 22,619 | |||||
Subsequent_Events_Tables
Subsequent Events (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Subsequent Events [Abstract] | ||
Exchange Notes at the Redemption Prices | At any time on or after July 1, 2015, we may redeem all or a part of the Exchange Notes at the redemption prices specified below (expressed in percentages of principal amount on the redemption date), plus accrued and unpaid interest to the redemption date. | |
Period Beginning | Redemption Price | |
1-Jul-15 | 107.50% | |
1-Jan-16 | 105.00% | |
1-Jul-16 | 102.50% | |
1-Jan-17 | 100.00% | |
General_Additional_Information
General - Additional Information (Detail) (Subsequent Event [Member]) | Mar. 01, 2015 |
Subsequent Event [Member] | |
Nature Of Business [Line Items] | |
Percentage of common shares owned | 36.00% |
Significant_Accounting_Policie1
Significant Accounting Policies - Additional information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 04, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Accounting Policies [Line Items] | ||||
Reverse stock splits number of shares outstanding stock converted into one share of common stock | 0.1 | |||
Issued and outstanding common shares before stock splits | 374,026,984 | |||
Issued and outstanding common shares after stock splits | 37,402,698 | |||
Effective date of stock split | 6-Mar-14 | |||
Determination of exploratory well's ability to produce, term | 1 year | |||
Sales revenue, crude oil and natural gas | $102.80 | $87.20 | $91.80 | |
Sales Revenue, Goods, Net [Member] | Revenue from Rights Concentration Risk [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 73.00% | 66.70% | 63.80% | |
Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Equipment and other property, estimated useful lives | 3 years | |||
Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Equipment and other property, estimated useful lives | 7 years |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (Stream Oil and Gas Ltd [Member], USD $) | 0 Months Ended | 12 Months Ended |
Nov. 18, 2014 | Dec. 31, 2014 | |
Stream Oil and Gas Ltd [Member] | ||
Business Acquisition [Line Items] | ||
Business acquisition, effective date of acquisition | 18-Nov-14 | |
Common shares issued | 3,218,641 | |
Issuable of additional common shares | 600,000 | |
Common shares issued, price per share | $7.41 |
Acquisitions_Consideration_Pai
Acquisitions - Consideration Paid in Acquisition and Final Recognized Amounts of Assets Acquired and Liabilities Assumed, Stream Oil & Gas Ltd (Detail) (USD $) | 12 Months Ended | 0 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Nov. 18, 2014 |
Business Acquisition [Line Items] | ||
Contingent payment event | $4,188 | |
Asset retirement obligations | 827 | |
Stream Oil and Gas Ltd [Member] | ||
Business Acquisition [Line Items] | ||
Value of common shares issued | 23,850 | |
Contingent payment event | 4,188 | |
Fair value of total consideration | 28,038 | |
Acquisition related costs included in general and administrative expenses | 1,129 | |
Cash | 66 | |
Accounts receivable | 6,672 | |
Other current assets | 347 | |
Total current assets | 7,085 | |
Proved properties | 99,927 | |
Unproved properties | 16,140 | |
Equipment and other property | 964 | |
Total oil and natural gas properties and other equipment | 117,031 | |
Total assets | 124,116 | |
Accounts payable | 20,673 | |
Accounts payable - related party | 2,820 | |
Other current liabilities | 10,000 | |
Viking International note - related party | 6,800 | |
Loans payable - current | 11,732 | |
Other non-current liabilities | 5,036 | |
Loans payable - non-current | 6,123 | |
Asset retirement obligations | 827 | |
Deferred income taxes | 32,067 | |
Total liabilities | 96,078 | |
Total identifiable net assets | $28,038 |
Acquisitions_Consideration_Pai1
Acquisitions - Consideration Paid in Acquisition and Final Recognized Amounts of Assets Acquired and Liabilities Assumed, Stream Oil & Gas Ltd (Parenthetical) (Detail) (Stream Oil and Gas Ltd [Member]) | 0 Months Ended |
Nov. 18, 2014 | |
Stream Oil and Gas Ltd [Member] | |
Business Acquisition [Line Items] | |
Common shares issued | 3,218,641 |
Acquisitions_Consolidated_Resu
Acquisitions - Consolidated Results of Operation (Detail) (Stream Oil and Gas Ltd [Member], USD $) | 2 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Stream Oil and Gas Ltd [Member] | |
Business Acquisition [Line Items] | |
Revenue | $1,898 |
Loss | ($118) |
Acquisitions_Unaudited_Pro_For
Acquisitions - Unaudited Pro Forma Results of Operations (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Business Combinations [Abstract] | ||
Total revenues | $160,021 | $153,794 |
Income (loss) from continuing operations before income taxes | 45,166 | -15,118 |
Income (loss) from continuing operations | 32,467 | -19,435 |
Loss from discontinued operations | -20 | -442 |
Net income (loss) | $32,447 | ($19,877) |
Net loss per common share from continuing operations | ||
Basic and diluted | $0.80 | ($0.48) |
Net loss per common share from discontinued operations | ||
Basic and diluted | ($0.01) |
Goodwill_Schedule_of_Goodwill_
Goodwill - Schedule of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill, Beginning balance | $7,535 | $9,021 |
Foreign exchange effect | -600 | -1,486 |
Goodwill, Ending balance | $6,935 | $7,535 |
Property_and_Equipment_Capital
Property and Equipment - Capitalized Costs under Successful Efforts Method for Oil and Natural Gas Properties (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ||
Oil and natural gas properties, proved | $424,031 | $260,857 |
Oil and natural gas properties, unproved | 65,438 | 54,392 |
Gross oil and natural gas properties | 489,469 | 315,249 |
Accumulated depletion | -133,304 | -96,958 |
Net oil and natural gas properties | 356,165 | 218,291 |
Turkey [Member] | ||
Property Plant And Equipment [Line Items] | ||
Oil and natural gas properties, proved | 323,442 | 260,232 |
Oil and natural gas properties, unproved | 43,090 | 51,273 |
Albania [Member] | ||
Property Plant And Equipment [Line Items] | ||
Oil and natural gas properties, proved | 100,037 | |
Oil and natural gas properties, unproved | 18,301 | |
Bulgaria [Member] | ||
Property Plant And Equipment [Line Items] | ||
Oil and natural gas properties, proved | 552 | 625 |
Oil and natural gas properties, unproved | $4,047 | $3,119 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property Plant And Equipment [Line Items] | |||
Proved development wells excluded from depletion | $0.90 | $1.50 | |
Acquisition costs of proved properties | 129 | 35.5 | |
Well costs and additional development costs | 160.8 | 126.9 | |
Exploratory dry hole costs | 0.5 | 16 | 24.7 |
Cash spent during the period for dry hole cost | 0.3 | ||
Impairment charge on proved and unproved properties | 19.4 | ||
Inventory [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property plant and equipment excluded from depreciation | 24.3 | 24.3 | |
Software [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property plant and equipment excluded from depreciation | 3 | 0.7 | |
Bulgaria [Member] | Deventci-R2 well [Member] | |||
Property Plant And Equipment [Line Items] | |||
Exploratory drilling costs capitalized | 4 | ||
Banarli license [Member] | |||
Property Plant And Equipment [Line Items] | |||
Impairment charge on proved and unproved properties | 5.2 | ||
Hayrabolu-10 well [Member] | Turkey [Member] | |||
Property Plant And Equipment [Line Items] | |||
Exploratory drilling costs capitalized | 1.6 | ||
Unproved Properties [Member] | |||
Property Plant And Equipment [Line Items] | |||
Impairment charge on proved and unproved properties | 13.8 | 11.3 | 8.4 |
Unproved Properties [Member] | Catak-1 Well [Member] | |||
Property Plant And Equipment [Line Items] | |||
Impairment charge on proved and unproved properties | 3.5 | ||
Unproved Properties [Member] | Kazanci-5 Well [Member] | |||
Property Plant And Equipment [Line Items] | |||
Impairment charge on proved and unproved properties | 2.8 | ||
Unproved Properties [Member] | Bahar-2 Side Track Well [Member] | |||
Property Plant And Equipment [Line Items] | |||
Impairment charge on proved and unproved properties | 7.5 | ||
Proved properties [Member] | |||
Property Plant And Equipment [Line Items] | |||
Impairment charge on proved and unproved properties | 11.3 | 6.7 | |
Proved properties [Member] | Revisions in natural gas reserves, Alpullu field [Member] | |||
Property Plant And Equipment [Line Items] | |||
Impairment charge on proved and unproved properties | $2.70 |
Property_and_Equipment_Histori
Property and Equipment - Historical Cost of Equipment and Other Property on Gross Basis with Accumulated Depreciation (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ||
Gross equipment and other property | $42,343 | $39,916 |
Accumulated depreciation | -8,673 | -7,235 |
Net equipment and other property | 33,670 | 32,681 |
Other equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross equipment and other property | 3,035 | 2,678 |
Inventory [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross equipment and other property | 24,309 | 24,318 |
Gas gathering system and facilities [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross equipment and other property | 4,128 | 4,485 |
Vehicles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross equipment and other property | 536 | 321 |
Leasehold improvements, office equipment and software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross equipment and other property | $10,335 | $8,114 |
Commodity_Derivative_Instrumen2
Commodity Derivative Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative [Line Items] | |||
Gain (loss) on commodity derivative contracts | $37,454 | ($2,698) | ($5,548) |
Turkey [Member] | Senior Credit Facility [Member] | Minimum [Member] | |||
Derivative [Line Items] | |||
Percentage of hedge of anticipated production volume | 30.00% | ||
Turkey [Member] | Senior Credit Facility [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Percentage of hedge of anticipated production volume | 75.00% |
Commodity_Derivative_Instrumen3
Commodity Derivative Instruments - Fair Value of Derivative Instruments of Future Crude Oil Production (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
bbl | bbl | |
Derivative [Line Items] | ||
Estimated Fair Value of Asset | $19,069 | |
Estimated Fair Value of Liability | -387 | |
Collar [Member] | January 1, 2015 - December 31, 2015 [Member] | ||
Derivative [Line Items] | ||
Quantity (Bbl/day) | 1,410 | |
Collars Weighted Average Minimum Price (per Bbl) | 85 | |
Weighted Average Maximum Price (per Bbl) | 97.25 | |
Estimated Fair Value of Asset | 12,518 | |
Collar [Member] | January 1, 2014 - December 31, 2014 [Member] | ||
Derivative [Line Items] | ||
Quantity (Bbl/day) | 622 | |
Collars Weighted Average Minimum Price (per Bbl) | 80.83 | |
Weighted Average Maximum Price (per Bbl) | 118.07 | |
Estimated Fair Value of Liability | -387 | |
Three-way collar contract [Member] | ||
Derivative [Line Items] | ||
Estimated Fair Value of Liability | -7,580 | |
Three-way collar contract [Member] | January 1, 2015 - December 31, 2015 [Member] | ||
Derivative [Line Items] | ||
Quantity (Bbl/day) | 1,016 | |
Collars Weighted Average Minimum Price (per Bbl) | 85 | |
Weighted Average Maximum Price (per Bbl) | 91.88 | |
Estimated Fair Value of Liability | -4,230 | |
Three-way collar contract [Member] | January 1, 2015 - December 31, 2015 [Member] | Additional Call [Member] | ||
Derivative [Line Items] | ||
Weighted Average Maximum Price (per Bbl) | 151.88 | |
Three-way collar contract [Member] | January 1, 2016 - December 31, 2016 [Member] | ||
Derivative [Line Items] | ||
Quantity (Bbl/day) | 1,066 | |
Collars Weighted Average Minimum Price (per Bbl) | 85 | |
Weighted Average Maximum Price (per Bbl) | 97.25 | |
Estimated Fair Value of Asset | 7,609 | |
Three-way collar contract [Member] | January 1, 2016 - December 31, 2016 [Member] | Additional Call [Member] | ||
Derivative [Line Items] | ||
Weighted Average Maximum Price (per Bbl) | 114.25 | |
Three-way collar contract [Member] | January 1, 2017 - December 31, 2017 [Member] | ||
Derivative [Line Items] | ||
Quantity (Bbl/day) | 888 | |
Collars Weighted Average Minimum Price (per Bbl) | 85 | |
Weighted Average Maximum Price (per Bbl) | 97.25 | |
Estimated Fair Value of Asset | 5,748 | |
Three-way collar contract [Member] | January 1, 2017 - December 31, 2017 [Member] | Additional Call [Member] | ||
Derivative [Line Items] | ||
Weighted Average Maximum Price (per Bbl) | 114.25 | |
Three-way collar contract [Member] | January 1, 2018 - December 31, 2018 [Member] | ||
Derivative [Line Items] | ||
Quantity (Bbl/day) | 726 | |
Collars Weighted Average Minimum Price (per Bbl) | 85 | |
Weighted Average Maximum Price (per Bbl) | 97.25 | |
Estimated Fair Value of Asset | 4,659 | |
Three-way collar contract [Member] | January 1, 2018 - December 31, 2018 [Member] | Additional Call [Member] | ||
Derivative [Line Items] | ||
Weighted Average Maximum Price (per Bbl) | 114.25 | |
Three-way collar contract [Member] | January 1, 2019 - December 31, 2019 [Member] | ||
Derivative [Line Items] | ||
Quantity (Bbl/day) | 663 | |
Collars Weighted Average Minimum Price (per Bbl) | 85 | |
Weighted Average Maximum Price (per Bbl) | 97.25 | |
Estimated Fair Value of Asset | 1,053 | |
Three-way collar contract [Member] | January 1, 2019 - December 31, 2019 [Member] | Additional Call [Member] | ||
Derivative [Line Items] | ||
Weighted Average Maximum Price (per Bbl) | 114.25 | |
Three-way collar contract [Member] | January 1, 2014 - December 31, 2014 [Member] | ||
Derivative [Line Items] | ||
Quantity (Bbl/day) | 726 | |
Collars Weighted Average Minimum Price (per Bbl) | 85 | |
Weighted Average Maximum Price (per Bbl) | 97.13 | |
Estimated Fair Value of Liability | ($3,350) | |
Three-way collar contract [Member] | January 1, 2014 - December 31, 2014 [Member] | Additional Call [Member] | ||
Derivative [Line Items] | ||
Weighted Average Maximum Price (per Bbl) | 162.13 |
Commodity_Derivative_Instrumen4
Commodity Derivative Instruments - Summary of Gross Fair Value of Commodity Derivative Instruments by Balance Sheet Classification (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives Fair Value [Line Items] | ||
Estimated Fair Value of Asset | $19,069 | |
Net Amount of Assets Presented in the Consolidated Balance Sheet | 12,518 | |
Net Amount of Assets Presented in the Consolidated Balance Sheet | 19,069 | |
Gross Amount of Recognized Liabilities | 387 | |
Net Amount of Liabilities Presented in the Consolidated Balance Sheet | 3,737 | |
Net Amount of Liabilities Presented in the Consolidated Balance Sheet | 4,230 | |
Crude Oil [Member] | Current Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Estimated Fair Value of Asset | 12,518 | |
Crude Oil [Member] | Long Term Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Estimated Fair Value of Asset | 19,069 | |
Crude Oil [Member] | Current Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Gross Amount of Recognized Liabilities | 3,737 | |
Crude Oil [Member] | Long Term Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Gross Amount of Recognized Liabilities | $4,230 |
Asset_retirement_obligations_A
Asset retirement obligations - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Asset Retirement Obligations [Line Items] | |||
Asset retirement obligation, net present value | 11,376 | 10,896 | $11,958 |
Asset retirement obligation, undiscounted value | 29,800 | ||
Turkey [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Inflation rate per annum used to adjust asset retirement obligation | 6.60% | ||
Credit-adjusted risk-free rate used to discount asset retirement obligation | 5.30% | 5.30% | |
Bulgaria [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Inflation rate per annum used to adjust asset retirement obligation | 1.40% | ||
Credit-adjusted risk-free rate used to discount asset retirement obligation | 5.30% | 5.30% | |
Albania [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Inflation rate per annum used to adjust asset retirement obligation | 1.60% | ||
Credit-adjusted risk-free rate used to discount asset retirement obligation | 7.00% | 7.00% |
Asset_Retirement_Obligations_C
Asset Retirement Obligations - Changes in Asset Retirement Obligations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Asset Retirement Obligation Disclosure [Abstract] | |||
Asset retirement obligations at beginning of period | $10,896 | $11,958 | |
Change in estimates | -7 | ||
Liabilities settled | -373 | -296 | |
Foreign exchange change effect | -900 | -2,258 | |
Additions | 513 | 991 | |
Accretion expense | 413 | 508 | 710 |
Acquisitions | 827 | ||
Asset retirement obligations at end of period | 11,376 | 10,896 | 11,958 |
Less: current portion | 323 | 610 | |
Long-term portion | $11,053 | $10,286 |
Loan_Payable_Debt_Detail
Loan Payable - Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Loans payable | $158,598 | $69,766 |
Less: current portion | 52,606 | 43,284 |
Long-term portion | 105,992 | 26,482 |
Senior Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Loans payable | 68,298 | |
Amended and Restated Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Loans payable | 49,766 | |
TBNG credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Loans payable | 20,025 | 20,000 |
Prepayment Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Loans payable | 3,043 | |
Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Loans payable | 10,452 | |
Shareholder Loan [Member] | ||
Debt Instrument [Line Items] | ||
Loans payable | 2,580 | |
Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Loans payable | 26,600 | |
Convertible Notes - Related Party [Member] | Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Loans payable | 20,800 | |
Viking International Note - Related Party [Member] | Notes Payable Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Loans payable | $6,800 |
Loan_Payable_Additional_Inform
Loan Payable - Additional Information (Detail) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||||||
6-May-14 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 13, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Oct. 31, 2013 | Dec. 31, 2014 | Oct. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 16, 2014 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 6-May-14 | Dec. 31, 2014 | 6-May-14 | 6-May-14 | 6-May-14 | Dec. 31, 2014 | Oct. 01, 2014 | 6-May-14 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | Convertible Notes [Member] | Convertible Notes [Member] | Unsecured lines of credit [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Letter of Credit | Term Loan Facility [Member] | Term Loan Facility [Member] | Term Loan Facility [Member] | Prepayment Agreement [Member] | Prepayment Agreement [Member] | Prepayment Agreement [Member] | Prepayment Agreement [Member] | Prepayment Agreement [Member] | Viking International Note [Member] | Viking International Note [Member] | Shareholder Loan [Member] | Shareholder Loan [Member] | Loan Financing Costs [Member] | Loan Financing Costs [Member] | Loan Financing Costs [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | Senior Credit Facility [Member] | TBNG credit facility [Member] | TBNG credit facility [Member] | |||
USD ($) | Private Placement [Member] | USD ($) | Mr Mitchell And Affiliates [Member] | Turkey [Member] | Other Than Mr Mitchell And Affiliates [Member] | USD ($) | USD ($) | USD ($) | LIBOR [Member] | USD ($) | USD ($) | LIBOR [Member] | LIBOR [Member] | Minimum [Member] | USD ($) | USD ($) | USD ($) | CAD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Letter Of Credit Cash Collateralized [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | 5 May 2014 Line Of Credit [Member] | Letter Of Credit Other Than Cash Collateralized [Member] | USD ($) | Mitchell, and his Children [Member] | ||||||
USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Initiation Date | 6-May-14 | ||||||||||||||||||||||||||||||||||||
Line of credit facility | $10,000,000 | $150,000,000 | |||||||||||||||||||||||||||||||||||
Individual commitments | 40,000,000 | ||||||||||||||||||||||||||||||||||||
Lenders initial aggregate commitments | 80,000,000 | ||||||||||||||||||||||||||||||||||||
Maximum commitments available | 150,000,000 | ||||||||||||||||||||||||||||||||||||
Commitments reduction percentage | 7.69% | ||||||||||||||||||||||||||||||||||||
Loans payable | 158,598,000 | 69,766,000 | 26,600,000 | 0 | 10,452,000 | 10,452,000 | 3,043,000 | 6,800,000 | 2,580,000 | 68,298,000 | 71,500,000 | 20,025,000 | |||||||||||||||||||||||||
Field life coverage ratio for debt value calculation | 1.50% | ||||||||||||||||||||||||||||||||||||
Loan life coverage ratio for debt value calculation | 1.30% | ||||||||||||||||||||||||||||||||||||
Maturity date of credit facility | 31-Mar-19 | 1-Jul-17 | |||||||||||||||||||||||||||||||||||
Accelerated senior credit facility maturity trigger, remaining hydrocarbon percentage | 25.00% | ||||||||||||||||||||||||||||||||||||
Accelerated senior credit facility maturity trigger description | The last date of the borrowing base calculation period that immediately precedes the date that the semi-annual banking case of BNP Paribas and the Borrowers determines that the aggregate amount of hydrocarbons to be produced from the borrowing base assets in Turkey are less than 25% of the amount of hydrocarbons to be produced from the borrowing base assets shown in the initial banking case prepared by BNP Paribas and the Borrowers. | ||||||||||||||||||||||||||||||||||||
Description of variable rate basis | LIBOR plus 5.00% per annum (5.26% at December 31, 2014) | ||||||||||||||||||||||||||||||||||||
Debt instrument basis spread on variable rate | 5.50% | 6.00% | 6.17% | 5.00% | 5.26% | ||||||||||||||||||||||||||||||||
Commitment fee percentage, unused | 2.00% | ||||||||||||||||||||||||||||||||||||
Commitment fee percentage, unused | 1.00% | ||||||||||||||||||||||||||||||||||||
Percentage of Fronting Fee | 0.25% | 1.00% | 5.00% | ||||||||||||||||||||||||||||||||||
Combined current ratio | 110.00% | ||||||||||||||||||||||||||||||||||||
EBITDAX to Credit facility ratio | 150.00% | ||||||||||||||||||||||||||||||||||||
EBITDAX to interest expense ratio | 400.00% | ||||||||||||||||||||||||||||||||||||
Total debt to EBITDAX ratio | 250.00% | ||||||||||||||||||||||||||||||||||||
Ownership percentage triggering default | 35.00% | 35.00% | |||||||||||||||||||||||||||||||||||
Available borrowings under credit facility | 3,200,000 | ||||||||||||||||||||||||||||||||||||
Anticipated oil production volume hedging percentage | 75.00% | 30.00% | |||||||||||||||||||||||||||||||||||
Hedge designations used for price of oil | TEMI has entered into three-way collar contracts with BNP Paribas, which hedge the price of oil through March 2019. | ||||||||||||||||||||||||||||||||||||
Required current ratio | 1.10% | ||||||||||||||||||||||||||||||||||||
Notes Payable | 7,600,000 | 47,400,000 | |||||||||||||||||||||||||||||||||||
Debt instrument interest rate stated percentage | 3.00% | 13.00% | 10.00% | 6.60% | |||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | $6.80 | ||||||||||||||||||||||||||||||||||||
Debt Instrument, Redemption Period, Start Date | 1-Jul-15 | ||||||||||||||||||||||||||||||||||||
Debt instrument principal installments | 2,300,000 | ||||||||||||||||||||||||||||||||||||
Line of credit facility expiration date | 31-Dec-16 | 30-Sep-15 | |||||||||||||||||||||||||||||||||||
Line of credit facility ownership percentage | 97.50% | ||||||||||||||||||||||||||||||||||||
Amendment Description | On September 17, 2014, Stream Oil & Gas Ltd., a Cayman Islands corporation (bStream Subb) and Raiffeisen Bank Sh.A (bRaiffeisenb) entered into the term loan facility (the bTerm Loan Facilityb), which amended and restated a facility agreement, dated December 15, 2011, as amended (the bFacility Agreementb). | ||||||||||||||||||||||||||||||||||||
Revolving Credit Facility With Company Libor Minimum Rate | 7.00% | ||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Frequency of Payments | The loan matures on December 31, 2016 and bears interest at the rate of LIBOR plus 5.5%, with a minimum interest rate of 7.0%. Stream Sub is required to pay 1/16th of the total commitment each quarter on the last business day of each of March, June, September and December each year. | ||||||||||||||||||||||||||||||||||||
Penalty Plus Breakage Costs | 3.00% | ||||||||||||||||||||||||||||||||||||
Administrative over heads related to salary and employment of employee | 31,625,000 | 29,020,000 | 33,947,000 | 500,000 | |||||||||||||||||||||||||||||||||
Earnings before interest, taxes, depreciation and amortization | 10,000,000 | 10,000,000 | |||||||||||||||||||||||||||||||||||
Voting right | 75.00% | 75.00% | |||||||||||||||||||||||||||||||||||
Loans payable | 158,598,000 | 69,766,000 | 26,600,000 | 0 | 10,452,000 | 10,452,000 | 3,043,000 | 6,800,000 | 2,580,000 | 68,298,000 | 71,500,000 | 20,025,000 | |||||||||||||||||||||||||
Payments to Acquire Receivables | 7,000,000 | ||||||||||||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayment Terms | 8/31/15 | ||||||||||||||||||||||||||||||||||||
Debt covenant, minimum coverage ratio | 150.00% | ||||||||||||||||||||||||||||||||||||
Debt instrument, face amount | 6,800,000 | 3,000,000 | |||||||||||||||||||||||||||||||||||
Deferred Finance Costs, Current, Net | 2,700,000 | 1,200,000 | |||||||||||||||||||||||||||||||||||
Amortization of Deferred Loan Origination Fees, Net | $1,000,000 | $500,000 | $2,000,000 |
Shareholders_Equity_Additional
Shareholders Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2014 | Jul. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Class Of Stock [Line Items] | ||||||
Issuance of common shares (in shares) | 3,218,641 | 351,074 | ||||
Issuance of common shares, price per share | $7.41 | $7.12 | ||||
Options previously outstanding, term | 5 years | |||||
Number of options outstanding | 0 | 0 | 16,000 | 114,000 | ||
Share-based compensation expense, stock option | $0 | $0 | $0 | |||
Contingent liability | 4,200,000 | |||||
Common shares potentially dilutive | 600,000 | |||||
Share based awards anti-dilutive | 758,586 | 959,438 | ||||
Warrants shares issued | 233,334 | |||||
Common share purchase warrants exercise price per share | $5.99 | |||||
Warrants issued expiration date | 30-Jun-16 | |||||
Restricted Stock Units [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Estimated forfeiture rate of RSUs | 12.50% | |||||
Share-based compensation expense | 1,400,000 | 1,700,000 | ||||
Unrecognized compensation expense | $700,000 | |||||
Unrecognized compensation expense recognition period | 1 year 3 months 18 days | |||||
Restricted Stock Units [Member] | Maximum [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Restricted stock unit, vesting period | 4 years |
Shareholders_Equity_Restricted
Shareholders' Equity - Restricted Stock Unit Activity (Detail) (Restricted Stock Units [Member], USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unvested RSUs outstanding, beginning balance | 296 |
Granted | 179 |
Forfeited | -103 |
Vested | -149 |
Unvested RSUs outstanding, ending balance | 223 |
Unvested RSUs, weighted average grant date fair value Per RSU, beginning balance | $8.91 |
Granted, weighted average grant date fair value Per RSU | $8.57 |
Forfeited, weighted average grant date fair value Per RSU | $8.17 |
Vested, weighted average grant date fair value Per RSU | $10.06 |
Unvested RSUs weighted average grant date fair value Per RSU, ending balance | $8.21 |
Shareholders_Equity_Details_of
Shareholders' Equity - Details of Stock Options Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Equity [Abstract] | |||
Number of Options, Outstanding, Beginning Balance | 16,000 | 114,000 | 0 |
Number of Options, Expired | -16,000 | -17,000 | |
Number of Options, Exercised | -81,000 | ||
Number of Options, Outstanding Ending balance | 0 | 16,000 | 0 |
Number of Options, Exercisable | 16,000 | ||
Outstanding, Weighted Average Exercise Price Per Share, Beginning balance | $12.30 | $9.07 | |
Expired, Weighted Average Exercise Price Per Share | $12.30 | $10 | |
Exercised, Weighted Average Exercise Price Per Share | $8.24 | ||
Outstanding, Weighted Average Exercise Price Per Share, Ending balance | $12.30 | ||
Exercisable, Weighted Average Exercise Price Per Share | $12.30 |
Shareholders_Equity_Basic_and_
Shareholders' Equity - Basic and Diluted Earnings Per Common Share Computations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity [Abstract] | |||
Net income (loss) from continuing operations | $29,096 | ($13,271) | ($6,373) |
Net (loss) income from discontinued operations | ($20) | ($442) | $22,619 |
Weighted average common shares outstanding | 37,829 | 37,069 | 36,742 |
Continuing operations | $0.77 | ($0.36) | ($0.17) |
Discontinued operations | ($0.01) | $0.62 | |
Restricted share units | 152 | ||
Convertible notes | 50 | ||
Weighted average common and common equivalent shares outstanding | 38,031 | 37,069 | 36,742 |
Continuing operations | $0.77 | ($0.36) | ($0.17) |
Discontinued operations | ($0.01) | $0.62 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Bermuda Income Tax Expense to Actual Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 0.00% | 0.00% | 0.00% |
Income (loss) from continuing operations before income taxes | $42,143 | ($12,164) | $118 |
Increase (decrease) resulting from: | |||
Foreign tax rate differentials | 8,897 | -1,443 | 8,607 |
Change in valuation allowance | 228 | 982 | -2,026 |
Expiration of non-capital tax loss carryovers | 1,841 | 1,367 | 1,601 |
Other | 2,081 | 201 | -1,691 |
Total | $13,047 | $1,107 | $6,491 |
Income_Taxes_Components_of_Net
Income Taxes - Components of Net Deferred Income Tax Liability (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ||
Unrealized derivative losses | $1,594 | |
Timing of accruals | 692 | 1,043 |
Property and equipment | 9,761 | |
Non-capital loss carryovers | 28,155 | 25,868 |
Valuation allowance | -37,153 | -28,404 |
Total deferred tax assets | 1,455 | 101 |
Deferred tax liabilities | ||
Unrealized derivative gain | -6,317 | |
Property and equipment | -50,196 | -13,093 |
Total deferred tax liabilities | -56,513 | -13,093 |
Net deferred tax liabilities | -55,058 | -12,992 |
Components of net deferred tax liabilities | ||
Current assets | 329 | 2,239 |
Deferred income taxes | 1,181 | 903 |
Current liabilities | -2,138 | |
Non-current liabilities | -54,430 | -16,134 |
Net deferred tax liabilities | ($55,058) | ($12,992) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | USD ($) | Amity And Petrogas [Member] | Amity And Petrogas [Member] | Turkey [Member] | Turkey [Member] | Romania [Member] | Romania [Member] | Bulgaria [Member] | Bulgaria [Member] | U.S | |
Maximum [Member] | USD ($) | TRY | USD ($) | RON | USD ($) | BGN | USD ($) | |||||
Income Tax [Line Items] | ||||||||||||
Non-capital tax losses | $65.30 | 151.5 | $2.10 | 7.8 | $5.10 | 8.3 | $40.70 | |||||
Non-capital tax losses, expiration date | 2018 | 2018 | 2015 | 2015 | 2015 | 2015 | 2018 | |||||
Tax indemnification period | 6 years | |||||||||||
Tax indemnification percentage on purchase price | 50.00% | |||||||||||
Purchase price of acquired entity | 96.3 | |||||||||||
Unrecognized tax benefits, tax portion | 3 | |||||||||||
Unrecognized tax benefits, tax penalties | 0.6 | |||||||||||
Unrecognized tax benefits, interest portion on tax | 2.2 | |||||||||||
Unrecognized tax benefits, interest on income taxes expense | $0.50 | $0.50 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | |
Number of reportable geographic segments | 3 |
Segment_Information_Financial_
Segment Information - Financial Information of Geographic Segments (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||
Total revenues | $140,728 | $130,827 | $143,908 | |||
Production | 19,999 | 18,602 | 17,804 | |||
Transportation costs | 284 | |||||
Exploration, abandonment and impairment | 19,864 | 27,333 | 39,993 | |||
Cost of purchased gas | 2,055 | 2,247 | 7,694 | |||
Seismic and other exploration | 4,285 | 14,009 | 5,040 | |||
Revaluation of contingent consideration | -2,500 | -5,000 | ||||
General and administrative | 31,625 | 29,020 | 33,947 | |||
Depreciation, depletion and amortization | 48,927 | 41,322 | 28,215 | |||
Accretion expense | 413 | 508 | 710 | |||
Total costs and expenses | 124,952 | 128,041 | 133,403 | |||
Operating income | 15,776 | 2,786 | 10,505 | |||
Interest and other expense | -6,213 | -3,929 | -8,340 | |||
Interest income | 1,124 | 1,340 | 2,418 | |||
Gain on commodity derivative contracts | 37,454 | -2,698 | -5,548 | |||
Foreign exchange (loss) gain | -5,998 | -9,663 | 1,083 | |||
Income (loss) from continuing operations before income taxes | 42,143 | -12,164 | 118 | |||
Income tax provision | -13,047 | -1,107 | -6,491 | |||
Net income (loss) from continuing operations | 29,096 | -13,271 | -6,373 | |||
Total assets | 546,375 | [1] | 346,050 | [1] | 356,639 | [1] |
Goodwill | 6,935 | 7,535 | 9,021 | |||
Capital expenditures | 113,772 | 99,951 | 81,824 | |||
Corporate, Non-Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Production | 5 | 169 | ||||
Exploration, abandonment and impairment | 285 | |||||
Seismic and other exploration | 178 | 100 | 304 | |||
General and administrative | 14,418 | 12,685 | 10,982 | |||
Depreciation, depletion and amortization | 124 | 69 | 30 | |||
Total costs and expenses | 14,720 | 12,859 | 11,770 | |||
Operating income | -14,720 | -12,859 | -11,770 | |||
Interest and other expense | -36 | -1,890 | ||||
Interest income | 350 | 284 | 308 | |||
Foreign exchange (loss) gain | -4 | -9 | 79 | |||
Income (loss) from continuing operations before income taxes | -14,410 | -12,584 | -13,273 | |||
Net income (loss) from continuing operations | -14,410 | -12,584 | -13,273 | |||
Total assets | 51,919 | 14,070 | 14,930 | |||
Capital expenditures | 545 | 1,003 | ||||
Operating Segments [Member] | Turkey [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 138,807 | 130,701 | 143,650 | |||
Production | 18,059 | 18,384 | 17,328 | |||
Exploration, abandonment and impairment | 19,820 | 27,116 | 39,708 | |||
Cost of purchased gas | 2,055 | 2,247 | 7,694 | |||
Seismic and other exploration | 4,106 | 13,909 | 4,726 | |||
General and administrative | 14,984 | 16,068 | 20,603 | |||
Depreciation, depletion and amortization | 48,452 | 41,196 | 28,092 | |||
Accretion expense | 387 | 475 | 679 | |||
Total costs and expenses | 107,863 | 119,395 | 118,830 | |||
Operating income | 30,944 | 11,306 | 24,820 | |||
Interest and other expense | -6,007 | -3,929 | -6,450 | |||
Interest income | 770 | 1,056 | 2,110 | |||
Gain on commodity derivative contracts | 37,454 | -2,698 | -5,548 | |||
Foreign exchange (loss) gain | -6,497 | -9,664 | 1,054 | |||
Income (loss) from continuing operations before income taxes | 56,664 | -3,929 | 15,986 | |||
Income tax provision | -13,659 | -1,107 | -6,491 | |||
Net income (loss) from continuing operations | 43,005 | -5,036 | 9,495 | |||
Total assets | 363,162 | 321,749 | 339,752 | |||
Goodwill | 6,935 | 7,535 | 9,021 | |||
Capital expenditures | 109,563 | 96,206 | 80,957 | |||
Operating Segments [Member] | Bulgaria [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 23 | 126 | 258 | |||
Production | 134 | 213 | 307 | |||
Exploration, abandonment and impairment | 44 | 217 | ||||
Seismic and other exploration | 1 | 10 | ||||
Revaluation of contingent consideration | -2,500 | -5,000 | ||||
General and administrative | 1,669 | 267 | 2,362 | |||
Depreciation, depletion and amortization | 18 | 57 | 93 | |||
Accretion expense | 19 | 33 | 31 | |||
Total costs and expenses | -615 | -4,213 | 2,803 | |||
Operating income | 638 | 4,339 | -2,545 | |||
Interest and other expense | -1 | |||||
Interest income | 4 | |||||
Foreign exchange (loss) gain | -22 | 10 | -50 | |||
Income (loss) from continuing operations before income taxes | 619 | 4,349 | -2,595 | |||
Net income (loss) from continuing operations | 619 | 4,349 | -2,595 | |||
Total assets | 4,675 | 10,231 | 1,957 | |||
Capital expenditures | 1,393 | 2,742 | 867 | |||
Operating Segments [Member] | Albania [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 1,898 | |||||
Production | 1,806 | |||||
Transportation costs | 284 | |||||
General and administrative | 554 | |||||
Depreciation, depletion and amortization | 333 | |||||
Accretion expense | 7 | |||||
Total costs and expenses | 2,984 | |||||
Operating income | -1,086 | |||||
Interest and other expense | -169 | |||||
Foreign exchange (loss) gain | 525 | |||||
Income (loss) from continuing operations before income taxes | -730 | |||||
Income tax provision | 612 | |||||
Net income (loss) from continuing operations | -118 | |||||
Total assets | 126,619 | |||||
Capital expenditures | $2,271 | |||||
[1] | Excludes assets from our discontinued Moroccan operations of $28,000, $0.5B million, and $1.6 million at DecemberB 31, 2014, 2013 and 2012, respectively. |
Segment_Information_Financial_1
Segment Information - Financial Information of Geographic Segments (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Segment Reporting [Abstract] | |||
Assets from discontinued operations and services | $28 | $536 | $1,600 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | Foreign Currency Risk | Foreign Currency Risk |
USD ($) | TRY | |||||
Fair Value Disclosures [Line Items] | ||||||
Cash and cash equivalents | $35,132 | $12,881 | $14,768 | $15,116 | $5,400 | 12,500 |
Financial_Instruments_Valuatio
Financial Instruments - Valuation of Financial Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (liabilities), fair value | ($15,813) | ($7,967) |
Derivative Financial Instruments (commodity) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | -7,967 | |
Derivative Financial Instruments (commodity) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | 31,587 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (liabilities), fair value | -15,813 | -7,967 |
Significant Other Observable Inputs (Level 2) [Member] | Derivative Financial Instruments (commodity) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | -7,967 | |
Significant Other Observable Inputs (Level 2) [Member] | Derivative Financial Instruments (commodity) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | 31,587 | |
Convertible Notes [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | -47,400 | |
Convertible Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | ($47,400) |
Commitments_Aggregate_Annual_C
Commitments - Aggregate Annual Commitments Other Than Debt (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Other Commitments [Line Items] | |
Total | $33,385 |
2015 | 13,903 |
2016 | 9,944 |
2017 | 5,172 |
2018 | 628 |
2019 | 41 |
Thereafter | 3,697 |
Interest [Member] | |
Other Commitments [Line Items] | |
Total | 26,288 |
2015 | 11,077 |
2016 | 9,598 |
2017 | 4,977 |
2018 | 595 |
2019 | 41 |
Leases [Member] | |
Other Commitments [Line Items] | |
Total | 7,097 |
2015 | 2,826 |
2016 | 346 |
2017 | 195 |
2018 | 33 |
Thereafter | $3,697 |
Commitments_Additional_Informa
Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments And Contingencies Disclosure [Abstract] | |||
Normal operations purchase arrangements, notice period | 30 days | ||
Rent expense | $2.20 | $3.30 | $3.50 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2014 | Feb. 28, 2013 | |
Loss Contingencies [Line Items] | |||||
General and administrative | $31,625,000 | $29,020,000 | $33,947,000 | ||
Direct Petroleum [Member] | Deventci-R2 well [Member] | |||||
Loss Contingencies [Line Items] | |||||
Contingent liability reversed | 2,500,000 | ||||
Amendment [Member] | Stefenetz Concession Area [Member] | |||||
Loss Contingencies [Line Items] | |||||
Area of land leased under the production | 200,000 | ||||
Stock issued, non cash consideration, value | 10,000,000 | ||||
Amendment [Member] | Direct Petroleum [Member] | Deventci-R2 well [Member] | |||||
Loss Contingencies [Line Items] | |||||
Contingency, Purchase obligation | 7,500,000 | ||||
Moroccan Government [Member] | |||||
Loss Contingencies [Line Items] | |||||
Recovery of contractual obligations | 5,500,000 | ||||
Bank guarantee | 1,000,000 | ||||
Accrued liabilities relating to our Tselfat exploration permit | 5,000,000 | ||||
Bulgaria [Member] | |||||
Loss Contingencies [Line Items] | |||||
Recovery of contractual obligations | 2,000,000 | ||||
Bulgaria [Member] | Aglen Exploration Permit Work Program [Member] | |||||
Loss Contingencies [Line Items] | |||||
General and administrative | $2,000,000 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||
Jun. 13, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 23, 2011 | Apr. 05, 2013 | Mar. 26, 2014 | Sep. 01, 2010 | Sep. 16, 2014 | Feb. 20, 2015 | |
sqft | sqft | ||||||||
Related Party Transaction [Line Items] | |||||||||
Warrants issued expiration date | 30-Jun-16 | ||||||||
Common share purchase warrants, exercise price | $5.99 | ||||||||
Common share purchase warrants issued, expiration period | 18 months | ||||||||
Sale of business, aggregate sales price | $168,500,000 | ||||||||
Cash received from sale of business | 157,000,000 | ||||||||
Aggregate purchase price in promissory note | 11,500,000 | 11,500,000 | |||||||
Debt instrument interest rate stated percentage | 3.00% | ||||||||
Amount due to related party | 6,000 | ||||||||
Capital and operating expenditures | 96,400,000 | 85,700,000 | |||||||
Subsequent Event [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Debt instrument, face amount | 47,400,000 | ||||||||
Lease Agreement With Gundem [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of rooms leased | 6 | ||||||||
Longfellow [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Lease agreement area, additional office space leased | 5,300 | ||||||||
Lease expiration period | 5 years | ||||||||
Lease rent payable | 6,625 | ||||||||
Longfellow [Member] | First Floor Commencement Date [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Lease agreement area, additional office space leased | 4,700 | ||||||||
Lease expiration period | 5 years | ||||||||
Lease rent payable | 7,533 | ||||||||
TransAtlantic Exploration Mediterranean International Pty Ltd [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Monthly rent on equipment yard | 17,250 | ||||||||
Thrace Basin Natural Gas (Turkiye) Corporation [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Monthly rent on equipment yard | 17,250 | ||||||||
Roxanna [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Geology consulting services | 60,000 | ||||||||
Warrant [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Common share purchase | 1 | ||||||||
Dalea [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Common share purchase warrants issued | 730,000 | ||||||||
Warrants issued expiration date | 1-Sep-13 | ||||||||
Common share purchase warrants, exercise price | $60 | ||||||||
Dalea [Member] | Subsequent Event [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Purchase of notes | 2,000,000 | ||||||||
Dalea [Member] | Viking Drilling [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of ownership interest owned by related party | 85.00% | ||||||||
Mr. Mitchell | |||||||||
Related Party Transaction [Line Items] | |||||||||
Common share purchase warrants issued | 134,169 | ||||||||
Mitchell, and his Children [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Common share purchase warrants issued | 23,333 | ||||||||
Mitchell, and his Children [Member] | Subsequent Event [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Purchase of notes | 2,000,000 | ||||||||
Joint Venture [Member] | Dalea and Funds [Member] | Promissory Note [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Aggregate purchase price in promissory note | 11,500,000 | ||||||||
Promissory note payable, term | 5 years | ||||||||
Mitchell, his wife and his children [Member] | Riata Management [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of ownership interest owned by related party | 100.00% | ||||||||
Mitchell, his wife and his children [Member] | Longfellow [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of ownership interest owned by related party | 100.00% | ||||||||
MedOil Supply, LLC [Member] | Riata Management [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of ownership interest owned by related party | 100.00% | ||||||||
Viking International Master Service Agreement [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Service agreement term | 5 years | ||||||||
Pinon Foundation [Member] | Subsequent Event [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Purchase of notes | 10,000,000 | ||||||||
Brian Bailey and his children [Member] | Subsequent Event [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Purchase of notes | 100,000 | ||||||||
Wil Saqueton [Member] | Subsequent Event [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Purchase of notes | 100,000 | ||||||||
Matthew McGann [Member] | Subsequent Event [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Purchase of notes | 200,000 | ||||||||
Barbara And Terry Pope [Member] | Subsequent Event [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Purchase of notes | 200,000 | ||||||||
Viking International Promissory Note [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Issuance of promissory note | 6,800,000 | ||||||||
Notes outstanding | $6,800,000 |
Related_Party_Transactions_Rel
Related Party Transactions - Related Party Accounts Receivable and Accounts Payable (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Total related party accounts receivable | $602 | $1,004 |
Total related party accounts payable | 18,488 | 23,090 |
Viking International Master Service Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party accounts receivable | 355 | 939 |
Total related party accounts payable | 16,754 | 15,956 |
Riata Management Service Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party accounts receivable | 159 | 65 |
Total related party accounts payable | 1,734 | 334 |
Dalea Promissory Note [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party accounts receivable | 88 | |
Viking Geophysical Master Services Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party accounts payable | $6,800 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jun. 13, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ||||
Sale of business, aggregate sales price | $168,500,000 | |||
Cash received from sale of business | 157,000,000 | |||
Aggregate purchase price in promissory note | 11,500,000 | 11,500,000 | ||
Debt instrument interest rate stated percentage | 3.00% | |||
Pay down of debt | 29,770,000 | 29,785,000 | 78,931,000 | |
Dalea and Funds [Member] | Joint Venture [Member] | Promissory Note [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate purchase price in promissory note | 11,500,000 | |||
Promissory note payable, term | 5 years | |||
Amended and Restated Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Pay down of debt | 45,200,000 | |||
Credit agreement with dalea [Member] | ||||
Debt Instrument [Line Items] | ||||
Pay down of debt | 73,000,000 | |||
Dalea credit agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Pay down of debt | 11,000,000 | |||
Promissory note with Viking Drilling [Member] | ||||
Debt Instrument [Line Items] | ||||
Pay down of debt | 900,000 | |||
Credit agreement with a Turkish bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Pay down of debt | $1,800,000 |
Discontinued_Operations_Assets
Discontinued Operations - Assets and Liabilities Held for Sale (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Discontinued Operations And Disposal Groups [Abstract] | |||
Cash | $16 | $23 | |
Other assets | 12 | 513 | |
Total assets held for sale | 28 | 536 | 1,600 |
Accrued expenses and other liabilities | 6,928 | 7,559 | |
Total liabilities held for sale | $6,928 | $7,559 |
Discontinued_Operations_Operat
Discontinued Operations - Operating Results from Discontinued Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Discontinued Operations And Disposal Groups [Abstract] | |||
Total revenues | $19,956 | ||
Total costs and expenses | -20 | -505 | -24,682 |
Total other income (expense) | 63 | -357 | |
Loss from discontinued operations before income taxes | -20 | -442 | -5,083 |
Gain on disposal of discontinued operations | 35,999 | ||
Income tax provision | -8,297 | ||
Net (loss) income from discontinued operations | ($20) | ($442) | $22,619 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Jun. 13, 2012 | Feb. 20, 2015 |
Subsequent Event [Line Items] | |||
Exchange notes, annual rate | 3.00% | ||
Exchange notes, maturity date | 31-Mar-19 | ||
Exchange Notes | |||
Subsequent Event [Line Items] | |||
Convertible notes, terms of conversion feature | On February 20, 2015, we issued $55.0 million of Exchange Notes in exchange for all outstanding Notes. The Exchange Notes were issued pursuant to an indenture, dated as of February 20, 2015 (the bIndentureb), between us and U.S. Bank National Association, as trustee (the bTrusteeb). | ||
Exchange notes, annual rate | 13.00% | ||
Exchange notes, frequency of periodic payment | Payable semi-annually, in arrears, on January 1 and July 1 of each year, commencing on July 1, 2015. | ||
Exchange notes, maturity date | 1-Jul-17 | ||
Exchange notes, payment terms | The Exchange Notes bear interest at an annual rate of 13.0%, payable semi-annually, in arrears, on January 1 and July 1 of each year, commencing on July 1, 2015. | ||
Initial conversion price per common share | 6.8 | ||
Repurchase price percentage of principal amount | 100.00% | ||
Sale of certain assets in exchange of amount | 50 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Convertible notes issued, amount | 55 | ||
Private Placement [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Convertible notes issued, amount | $7.60 |
Subsequent_Events_Exchange_Not
Subsequent Events - Exchange Notes at the Redemption Prices (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Exchange Notes, Redemption, Period One | |
Debt Instrument Redemption [Line Items] | |
Period Beginning | 1-Jul-15 |
Redemption Price | 107.50% |
Exchange Notes, Redemption, Period Two | |
Debt Instrument Redemption [Line Items] | |
Period Beginning | 1-Jan-16 |
Redemption Price | 105.00% |
Exchange Notes, Redemption, Period Three | |
Debt Instrument Redemption [Line Items] | |
Period Beginning | 1-Jul-16 |
Redemption Price | 102.50% |
Exchange Notes, Redemption, Period Four | |
Debt Instrument Redemption [Line Items] | |
Period Beginning | 1-Jan-17 |
Redemption Price | 100.00% |