Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 07, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | TAT | |
Entity Registrant Name | TRANSATLANTIC PETROLEUM LTD. | |
Entity Central Index Key | 1,092,289 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 50,384,698 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Cash and cash equivalents | $ 16,251 | $ 18,926 | |
Accounts receivable, net | |||
Oil and natural gas sales | 15,554 | 15,808 | |
Joint interest and other | 1,569 | 1,576 | |
Related party | 1,269 | 1,023 | |
Prepaid and other current assets | 4,957 | 3,866 | |
Inventory | 7,158 | 7,494 | |
Total current assets | 46,758 | 48,693 | |
Oil and natural gas properties (successful efforts method) | |||
Proved | 194,577 | 193,647 | |
Unproved | 19,359 | 24,445 | |
Equipment and other property | 14,223 | 14,075 | |
Property and equipment, gross | 228,159 | 232,167 | |
Less accumulated depreciation, depletion and amortization | (127,894) | (129,183) | |
Property and equipment, net | 100,265 | 102,984 | |
Other long-term assets: | |||
Other assets | 571 | 2,247 | |
Note receivable - related party | 6,507 | 6,726 | |
Total other assets | 7,078 | 8,973 | |
Total assets | 154,101 | 160,650 | |
Current liabilities: | |||
Accounts payable | 5,082 | 4,853 | |
Accounts payable - related party | 4,554 | 3,141 | |
Accrued liabilities | [1] | 11,131 | 10,014 |
Derivative liability | 1,633 | 2,215 | |
Asset retirement obligations - current | 2 | ||
Loans payable | 15,100 | 15,625 | |
Total current liabilities | 37,502 | 35,848 | |
Long-term liabilities: | |||
Asset retirement obligations less current portion | 4,680 | 4,727 | |
Accrued liabilities | 8,721 | 8,810 | |
Deferred income taxes | 19,161 | 19,611 | |
Loans payable | 9,400 | 13,000 | |
Total long-term liabilities | 41,962 | 46,148 | |
Total liabilities | 79,464 | 81,996 | |
Commitments and contingencies | |||
Shareholders' equity: | |||
Common shares, $0.10 par value, 100,000,000 shares authorized; 50,383,870 shares and 50,319,156 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively | 5,038 | 5,032 | |
Treasury stock | (970) | (970) | |
Additional paid-in-capital | 575,506 | 575,411 | |
Accumulated other comprehensive loss | (127,109) | (124,766) | |
Accumulated deficit | (423,878) | (422,103) | |
Total shareholders' equity | 28,587 | 32,604 | |
Total liabilities, Series A preferred shares and shareholders' equity | 154,101 | 160,650 | |
Series A Preferred Shares [Member] | |||
Long-term liabilities: | |||
Preferred shares, value | 21,300 | 21,300 | |
Related Party [Member] | Series A Preferred Shares [Member] | |||
Long-term liabilities: | |||
Preferred shares, value | $ 24,750 | $ 24,750 | |
[1] | Includes income tax payable of $6.7 million and $6.2 million at March 31, 2018 and December 31, 2017, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Common shares, par value | $ 0.10 | $ 0.10 |
Common shares, authorized | 100,000,000 | 100,000,000 |
Common shares, issued | 50,383,870 | 50,319,156 |
Common shares, outstanding | 50,383,870 | 50,319,156 |
Accrued Liabilities [Member] | ||
Income tax payable | $ 6.7 | $ 6.2 |
Series A Preferred Shares [Member] | ||
Preferred shares, outstanding | 921,000 | |
Unrelated Party [Member] | Series A Preferred Shares [Member] | ||
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 426,000 | 426,000 |
Preferred shares, issued | 426,000 | 426,000 |
Preferred shares, outstanding | 426,000 | 426,000 |
Preferred shares, liquidation preference per share | $ 50 | $ 50 |
Related Party [Member] | Series A Preferred Shares [Member] | ||
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 495,000 | 495,000 |
Preferred shares, issued | 495,000 | 495,000 |
Preferred shares, outstanding | 495,000 | 495,000 |
Preferred shares, liquidation preference per share | $ 50 | $ 50 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Oil and natural gas sales | $ 16,661 | $ 15,768 |
Sales of purchased natural gas | 654 | |
Other | 265 | 14 |
Total revenues | 16,926 | 16,436 |
Costs and expenses: | ||
Production | 2,869 | 3,087 |
Transportation and processing | 1,193 | |
Exploration, abandonment and impairment | 40 | 106 |
Cost of purchased natural gas | 568 | |
Seismic and other exploration | 159 | 15 |
General and administrative | 3,337 | 3,590 |
Depreciation, depletion and amortization | 4,459 | 4,497 |
Accretion of asset retirement obligations | 46 | 48 |
Total costs and expenses | 12,103 | 11,911 |
Operating income (loss) | 4,823 | 4,525 |
Other income (expense): | ||
Loss on sale of TBNG | (15,226) | |
Interest and other expense | (2,782) | (2,371) |
Interest and other income | 254 | 293 |
(Loss) gain on commodity derivative contracts | (725) | 988 |
Foreign exchange (loss) | (2,058) | (2,123) |
Total other expense | (5,311) | (18,439) |
Loss from continuing operations before income taxes | (488) | (13,914) |
Income tax expense | (1,287) | (2,135) |
Net loss | (1,775) | (16,049) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (2,343) | 20,919 |
Comprehensive income (loss) | $ (4,118) | $ 4,870 |
Basic net loss per common share | ||
Continuing operations | $ (0.04) | $ (0.34) |
Weighted average common shares outstanding | 50,374 | 47,298 |
Diluted net loss per common share | ||
Continuing operations | $ (0.04) | $ (0.34) |
Weighted average common and common equivalent shares outstanding | 50,374 | 47,298 |
Consolidated Statement of Equit
Consolidated Statement of Equity (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands | Total | Common Shares [Member] | Treasury Stock [Member] | Warrants [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Beginning balance at Dec. 31, 2017 | $ 32,604 | $ 5,032 | $ (970) | $ 575,411 | $ (124,766) | $ (422,103) | |
Beginning balance, shares at Dec. 31, 2017 | 50,319,156 | 50,319,000 | 333,000 | 700,000 | |||
Expiration of warrants | (700,000) | ||||||
Issuance of restricted stock units | $ 6 | (6) | |||||
Issuance of restricted stock units, shares | 64,000 | ||||||
Share-based compensation | $ 101 | 101 | |||||
Foreign currency translation adjustment | (2,343) | (2,343) | |||||
Net loss | (1,775) | (1,775) | |||||
Ending balance at Mar. 31, 2018 | $ 28,587 | $ 5,038 | $ (970) | $ 575,506 | $ (127,109) | $ (423,878) | |
Ending balance, shares at Mar. 31, 2018 | 50,383,870 | 50,383,000 | 333,000 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |||||
Operating activities: | |||||||
Net loss | $ (1,775) | $ (16,049) | |||||
Net loss from continuing operations | (1,775) | (16,049) | |||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Share-based compensation | 101 | 136 | |||||
Foreign currency loss (gain) | 2,634 | 1,039 | |||||
Loss (gain) on commodity derivative contracts | 725 | (988) | |||||
Cash settlement on commodity derivative contracts | (1,339) | ||||||
Loss on sale of TBNG | 15,226 | ||||||
Amortization on loan financing costs | 10 | 37 | |||||
Deferred income tax expense | 767 | 1,251 | |||||
Exploration, abandonment and impairment | 40 | 106 | |||||
Depreciation, depletion and amortization | 4,459 | 4,497 | |||||
Accretion of asset retirement obligations | 46 | 48 | $ 190 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (548) | (1,665) | |||||
Prepaid expenses and other assets | (1,091) | (1,151) | |||||
Accounts payable and accrued liabilities | 3,781 | (628) | |||||
Net cash provided by operating activities | 7,810 | 1,859 | |||||
Investing activities: | |||||||
Additions to oil and natural gas properties | (6,337) | (6,383) | |||||
Additions to equipment and other properties | (677) | (155) | |||||
Proceeds from the sale of TBNG | 17,779 | ||||||
Net cash provided by (used in) investing activities | (7,014) | 11,241 | |||||
Financing activities: | |||||||
Tax withholding on restricted share units | (35) | ||||||
Loan repayment | (4,125) | (8,650) | |||||
Loan repayment - related party | (2,694) | ||||||
Net cash used in financing activities | (4,125) | (11,379) | |||||
Effect of exchange rate on cash flows, cash equivalents, and restricted cash | (716) | (369) | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (4,045) | 1,352 | |||||
Cash, cash equivalents and restricted cash, beginning of period | [1] | 20,431 | 15,071 | 15,071 | |||
Cash, cash equivalents and restricted cash, end of period | 16,386 | [2] | 16,423 | [2] | $ 20,431 | [1] | |
Supplemental disclosures: | |||||||
Cash paid for interest | 3,104 | 2,713 | |||||
Cash paid for taxes | $ 657 | $ 989 | |||||
[1] | The beginning of period balance at December 31, 2016 includes cash and cash equivalents of $10 million, restricted cash of $3.5 million in other assets and TBNG cash held for sale of $1.6 million. The beginning of period balance at December 31, 2017 includes cash and cash equivalents of $18.9 million and restricted cash of $1.5 million in other assets | ||||||
[2] | The end of period balance at March 31, 2017 includes cash and cash equivalents of $15.3 million and restricted cash of $1.1 million in other assets. The end of period balance at March 31, 2018 includes cash and cash equivalents of $16.3 million and restricted cash of $0.1 million in other assets. |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Cash and cash equivalents | $ 10,000 | $ 16,251 | $ 18,926 | $ 15,300 |
Thrace Basin Natural Gas (Turkiye) Corporation [Member] | ||||
Cash held for sale | 1,600 | |||
Other Assets [Member] | ||||
Restricted cash | $ 3,500 | $ 100 | $ 1,500 | $ 1,100 |
General
General | 3 Months Ended |
Mar. 31, 2018 | |
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. We hold interests in developed and undeveloped oil and natural gas properties in Turkey and Bulgaria. As of May 7, 2018, approximately 47% of our outstanding common shares were beneficially owned by N. Malone Mitchell 3rd, our chief executive officer and chairman of our board of directors. TransAtlantic is a holding company with two operating segments – Turkey and Bulgaria. Its assets consist of its ownership interests in subsidiaries that primarily own assets in Turkey and Bulgaria. 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 the 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, contingencies and income taxes. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2017. On February 24, 2017, we closed the sale of our ownership interests in our subsidiary Thrace Basin Natural Gas (Turkiye) Corporation (“TBNG”) for gross proceeds of $20.7 million, and approximate net cash proceeds of $16.1 million, which amounts reflect a $0.2 million post-closing purchase price adjustment. We classified the assets and liabilities of TBNG within the captions “Assets held for sale” and “Liabilities held for sale” on our consolidated balance sheets as of December 31, 2016. Although the sale of TBNG met the threshold to classify its assets and liabilities as held for sale, it didn’t meet the requirements to classify its operations as discontinued as the sale wasn’t considered a strategic shift in our operations. As such, TBNG’s results of operations are classified as continuing operations for all periods presented (See Note 13, “Assets and liabilities held for sale and discontinued operations”). Revenue Recognition As explained below, on January 1, 2018, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers The Company’s revenue consists of sales under two contracts, one for crude oil and one for natural gas. The crude oil is delivered to the inlet of a processing center and control is passed through a custodian to the customer at that point. The Company is paid for crude oil at the inlet plus or minus an adjustment for quality. The Company’s natural gas is metered at the inlet of a transportation pipeline and control is passed at that point. The Company records natural gas sales at the delivery point to the customer, net of any pricing differentials. There is no material inventory remaining at the end of each reporting period. The Company has previously deducted any transportation costs, processing fees, or adjustments from revenue and recorded the net amount. Under the new revenue guidance, on January 1, 2018, the Company now records the gross amount of the revenue and records any fees, or deductions as expenses. The Company’s revenue excludes any amounts collected on behalf of third parties. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent accounting pronouncements | 2. Recent accounting pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. We have adopted the standard on January 1, 2018 using the modified retrospective approach. We have a small number of contracts with customers and have identified transactions within the scope of the standard. As a result of adoption of ASU 2014-09, we have determined that it will change our method of recording certain transportation and processing charges that were previously recorded as a reduction of revenues to record such charges as an expense under the new standard. The result of this change was an increase to both revenue and expenses of $1.2 million for the three months ended March 31, 2018. The application of the new standard has no impact on our retained earnings and no impact to our net income on an ongoing basis. As of the three months ended December 31, 2017, this change would have been an increase to both revenue and expenses of $1.1 million. Contracts for the sale of natural gas and crude oil are evidenced by (1) base contracts for the sale and purchase of natural gas or crude oil, which document the general terms and conditions for the sale, and (2) transaction confirmations, which document the terms of each specific sale. Revenue is measured based on consideration specified in the contract with the customer. The Company recognizes revenue in the amount that reflects the consideration it expects to be entitled to in exchange for transferring control of those goods to the customer. Revenues are recognized for the sale of the Company’s net share of production volumes. Sales on behalf of other working interest owners and royalty interest owners are not recognized as revenues. The contract consideration in the Company’s contracts are typically allocated to specific performance obligations in the contract according to the price stated in the contract which usually sets the base oil and gas prices based on benchmark prices based on volumes and adjustments for product quality. Payment is generally received one or two months after the sale has occurred. Three Months Ended March 31, December 31, 2018 2017 (in thousands) Disaggregation of revenue Product type Oil $ 16,324 $ 15,827 Gas 337 298 Total revenue from customers $ 16,661 $ 16,125 *As noted above, prior period amounts have not been adjusted under the modified retrospective method. All of the Company’s revenues from contracts with customers represent products transferred at a point in time as control is transferred to the customer and are generated in Turkey. Transaction Price Allocated to Remaining Performance Obligations. A significant number of the Company’s product sales are short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. Contract Balances. Receivables from contracts with customers are recorded when the right to consideration becomes unconditional, generally when control of the product has been transferred to the customer. Receivables from contracts with customers were $15.6 million and $15.8 million as of March 31, 2018 and December 31, 2017, respectively, and are reported in accounts receivable, net on the Consolidated Balance Sheet. The Company currently has no assets or liabilities related to its revenue contracts, including no upfront or rights to deficiency payments. Practical Expedients. The Company has made use of certain practical expedients in adopting the new revenue standard, including the value of unsatisfied performance obligations are not disclosed for (i) contracts with an original expected length of one year or less, (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice, (iii) variable consideration which is allocated entirely to a wholly unsatisfied performance obligation and meets the variable allocation criteria in the standard and (iv) only contracts that are not completed at transition. The Company has not adjusted the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash We adopted ASU 2016-18 effective January 1, 2018. The adoption of ASU 2016-18 had no impact on our retained earnings, and no impact to our net income on an ongoing basis. Adoption of the new standard requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash, or restricted cash equivalents. The amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statements of cash flows. The amendments have been applied using a retrospective transition method to each period presented, as required. The period ended March 31, 2017 has been reclassified to reflect this change. In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting Compensation – Stock Compensation In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) 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. |
Series A Preferred Shares
Series A Preferred Shares | 3 Months Ended |
Mar. 31, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Series A preferred shares | 3. Series A Preferred Shares Series A Preferred Shares As of March 31, 2018 and 2017, we had 921,000 outstanding shares of our 12.0% Series A Convertible Redeemable Preferred Shares (“Series A Preferred Shares”). The Series A Preferred Shares contain a substantive conversion option, are mandatorily redeemable and convert into a fixed number of common shares. As a result, under U.S GAAP, we have classified the Series A Preferred Shares within mezzanine equity in our consolidated balance sheets. As of March 31, 2018, there were $21.3 million of Series A Preferred Shares and $24.8 million of Series A Preferred Shares – related party outstanding (see Note 12 “Related party transactions”). Pursuant to the Certificate of Designations for the Series A Preferred Shares (the “Certificate of Designations”), each Series A Preferred Share may be converted at any time, at the option of the holder, into 45.754 common shares (which is equal to an initial conversion price of approximately $1.0928 per common share and is subject to customary adjustments for stock splits, stock dividends, recapitalizations or other fundamental changes). If not converted sooner, on November 4, 2024, we are required to redeem the outstanding Series A Preferred Shares in cash at a price per share equal to the liquidation preference plus accrued and unpaid dividends. At any time on or after November 4, 2020, we may redeem all or a portion of the Series A Preferred Shares at the redemption prices listed below (expressed as a percentage of the liquidation preference amount per share) plus accrued and unpaid dividends to the date of redemption, if the closing sale price of the common shares equals or exceeds 150% of the conversion price then in effect for at least 10 trading days (whether or not consecutive) in a period of 20 consecutive trading days, including the last trading day of such 20 trading day period, ending on, and including, the trading day immediately preceding the business day on which we issue a notice of optional redemption. The redemption prices for the 12-month period starting on the dates below are: Period Commencing Redemption Price November 4, 2020 105.000% November 4, 2021 103.000% November 4, 2022 101.000% November 4, 2023 and thereafter 100.000% Additionally, upon the occurrence of a change of control, we are required to offer to redeem the Series A Preferred Shares within 120 days after the first date on which such change of control occurred, for cash at a redemption price equal to the liquidation preference per share, plus any accrued and unpaid dividends. Dividends on the Series A Preferred Shares are payable quarterly at our election in cash, common shares or a combination of cash and common shares at an annual dividend rate of 12.0% of the liquidation preference if paid all in cash or 16.0% of the liquidation preference if paid in common shares. If paid partially in cash and partially in common shares, the dividend rate on the cash portion is 12.0%, and the dividend rate on the common share portion is 16.0%. Dividends are payable quarterly on March 31, June 30, September 30, and December 31 of each year. The holders of the Series A Preferred Shares also are entitled to participate pro-rata in any dividends paid on the common shares on an as-converted-to-common shares basis. For the three months ended March 31, 2018, we paid $1.3 million in cash dividends on the Series A Preferred Shares, which is recorded in our consolidated statements of comprehensive (loss) income under the caption Except as required by Bermuda law, the holders of Series A Preferred Shares have no voting rights, except that for so long as at least 400,000 Series A Preferred Shares are outstanding, the holders of the Series A Preferred Shares voting as a separate class have the right to elect two directors to our Board of Directors. For so long as between 80,000 and 399,999 Series A Preferred Shares are outstanding, the holders of the Series A Preferred Shares voting as a separate class have the right to elect one director to our Board of Directors. Upon less than 80,000 Series A Preferred Shares remaining outstanding, any directors elected by the holders of Series A Preferred Shares shall immediately resign from our Board of Directors. The Certificate of Designation also provides that without the approval of the holders of a majority of the outstanding Series A Preferred Shares, we will not issue indebtedness for money borrowed or other securities which are senior to the Series A Preferred Shares in excess of the greater of (i) $100 million or (ii) 35% of our PV-10 of proved reserves as disclosed in our most recent independent reserve report filed or furnished by us on EDGAR. |
Property and equipment
Property and equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and equipment | 4. Property and equipment Oil and natural gas properties The following table sets forth the capitalized costs under the successful efforts method for our oil and natural gas properties as of: March 31, 2018 December 31, 2017 (in thousands) Oil and natural gas properties, proved: Turkey $ 194,026 $ 193,111 Bulgaria 551 536 Total oil and natural gas properties, proved 194,577 193,647 Oil and natural gas properties, unproved: Turkey 19,359 24,445 Total oil and natural gas properties, unproved 19,359 24,445 Gross oil and natural gas properties 213,936 218,092 Accumulated depletion (121,995 ) (123,225 ) Net oil and natural gas properties $ 91,941 $ 94,867 For the three months ended March 31, 2018, we recorded foreign currency translation adjustments, which decreased proved properties and increased accumulated other comprehensive loss within shareholders’ equity on our consolidated balance sheets. At March 31, 2018 and December 31, 2017, we excluded $3.0 million and $0.5 million, respectively, from the depletion calculation for proved development wells currently in progress and for costs associated with fields currently not in production. At March 31, 2018, the capitalized costs of our oil and natural gas properties, net of accumulated depletion, included $10.1 million relating to acquisition costs of proved properties, which are being depleted by the unit-of-production method using total proved reserves, and $58.8 million relating to well costs and additional development costs, which are being depleted by the unit-of-production method using proved developed reserves. At December 31, 2017, the capitalized costs of our oil and natural gas properties included $11.2 million relating to acquisition costs of proved properties, which are being amortized by the unit-of-production method using total proved reserves, and $58.7 million relating to well costs and additional development costs, which are being amortized by the unit-of-production method using proved developed reserves. Impairments of proved properties and impairment of exploratory well costs Proved oil and natural gas properties are reviewed for impairment when events and circumstances indicate the carrying value of such properties may not be recoverable. We primarily use Level 3 inputs to determine fair value, including but not limited to, estimates of proved reserves, future commodity prices, the timing and amount of future production and capital expenditures and discount rates commensurate with the risk reflective of the lives remaining for the respective oil and natural gas properties. During the three months ended March 31, 2018 and 2017, we recorded $0.04 million and $0.1 million, respectively, of impairment of proved properties and exploratory well costs which are primarily measured using Level 3 inputs. Capitalized cost greater than one year As of March 31, 2018, we had $2.3 million of exploratory well costs capitalized for the Pinar-1ST well in Turkey, which we spud in March 2014. The Pinar-1ST well started producing in the first quarter of 2018. Equipment and other property The historical cost of equipment and other property, presented on a gross basis with accumulated depreciation, is summarized as follows: March 31, 2018 December 31, 2017 (in thousands) Inventory $ 4,924 $ 4,619 Leasehold improvements, office equipment and software 7,062 7,214 Gas gathering system and facilities 259 135 Vehicles 331 343 Other equipment 1,647 1,764 Gross equipment and other property 14,223 14,075 Accumulated depreciation (5,899 ) (5,958 ) Net equipment and other property $ 8,324 $ 8,118 At March 31, 2018, we have classified $7.2 million of inventory as a current asset, which represents our expected inventory consumption in the next twelve months. We classify our materials and supply inventory 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 March 31, 2018 and December 31, 2017, we excluded $12.1 million and $12.1 million of inventory, respectively, from depreciation as the inventory had not been placed into service. |
Asset Retirement obligations
Asset Retirement obligations | 3 Months Ended |
Mar. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement obligations | 5. Asset retirement obligations The following table summarizes the changes in our asset retirement obligations (“ARO”) for the three months ended March 31, 2018 and for the year ended December 31, 2017: March 31, 2018 December 31, 2017 (in thousands) Asset retirement obligations at beginning of period $ 4,727 $ 4,833 Liabilities settled - (37 ) Foreign exchange change effect (182 ) (259 ) Additions 91 - Accretion expense 46 190 Asset retirement obligations at end of period $ 4,682 $ 4,727 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. |
Commodity derivative instrument
Commodity derivative instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Commodity derivative instruments | 6. Commodity derivative instruments We use collar and put 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 (loss) income under the caption “(Loss) gain 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.” During the three months ended March 31, 2018 and 2017, we recorded a net loss on commodity derivative contracts of $0.7 million and a net gain of $1.0 million, respectively. At March 31, 2018 and December 31, 2017, we had outstanding derivative contracts with respect to our future crude oil production as set forth in the tables below: Fair Value of Derivative Instruments as of March 31, 2018 Weighted Weighted Average Average Quantity Minimum Maximum Price Additional Call Estimated Fair Type Period (Bbl/day) Price (per Bbl) (per Bbl) Ceiling Value of Liability (in thousands) Collar April 1, 2018 - May 31, 2018 295 $ 47.50 $ 61.00 $ - $ (200 ) Collar April 1, 2018 - June 30, 2018 742 $ 47.50 $ 57.10 $ - (1,016 ) Collar April 1, 2018 - December 31, 2018 442 $ 55.00 $ 70.00 $ - (229 ) Collar April 1, 2018 - December 31, 2018 491 $ 56.00 $ 70.00 $ 84.00 (189 ) Total Estimated Fair Value of Liability $ (1,633 ) Fair Value of Derivative Instruments as of December 31, 2017 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, 2018 — February 28, 2018 458 $ 50.00 $ 61.50 $ (178 ) Collar January 1, 2018 — March 31, 2018 500 $ 47.00 $ 59.65 (376 ) Collar January 1, 2018 — May 31, 2018 298 $ 47.50 $ 61.00 (286 ) Collar January 1, 2018 — June 30, 2018 746 $ 47.50 $ 57.10 (1,375 ) Total Estimated Fair Value of Liability $ (2,215 ) 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 March 31, 2018 and December 31, 2017, and (ii) the net recorded fair value as reflected on our consolidated balance sheets at March 31, 2018 and December 31, 2017. As of March 31, 2018 Gross Amount Net Amount of Gross Offset in the Liabilities Amount of Consolidated Presented in the Location on Consolidated Recognized Balance Consolidated Underlying Commodity Balance Sheets Liabilities Sheet s Balance Sheets (in thousands) Crude oil Current liabilities $ 1,633 $ - $ 1,633 Crude oil Long-term liabilities $ - $ - $ - As of December 31, 2017 Gross Amount Net Amount of Gross Offset in the Liabilities Amount of Consolidated Presented in the Location on Consolidated Recognized Balance Consolidated Underlying Commodity Balance Sheets Liabilities Sheets Balance Sheets (in thousands) Crude oil Current liabilities $ 2,215 $ - $ 2,215 Crude oil Long-term liabilities $ - $ - $ - |
Loans payable
Loans payable | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Loans payable | 7. Loans payable As of the dates indicated, our third-party debt consisted of the following: March 31, December 31, 2018 2017 Fixed and floating rate loans (in thousands) Term Loan (1) $ 24,500 $ 28,625 Less: current portion 15,100 15,625 Long-term portion $ 9,400 $ 13,000 _________________________________________________________ (1) Includes both the 2017 Term Loan (as defined below) and the 2016 Term Loan (as defined below). 2016 Term Loan On August 23, 2016, the Turkish branch of TransAtlantic Exploration Mediterranean International Pty Ltd (“TEMI”) entered into a Credit Agreement (the “Credit Agreement”) with DenizBank, A.S. (“DenizBank”). The Credit Agreement is a master agreement pursuant to which DenizBank may make loans to TEMI from time to time pursuant to additional loan agreements. On August 31, 2016, DenizBank entered into a $30.0 million term loan with TEMI (the “2016 Term Loan”) under the Credit Agreement. In addition, we and DenizBank entered into additional agreements with respect to up to $20.0 million of non-cash facilities, including guarantee letters and treasury instruments for future hedging transactions. The 2016 Term Loan bears interest at a fixed rate of 5.25% (plus 0.2625% for Banking and Insurance Transactions Tax per the Turkish government) per annum and was payable in six monthly installments of $1.25 million each through February 2017 and thereafter in twelve monthly installments of $1.88 million each through February 2018. On April 27, 2017, TEMI and DenizBank approved a revised amortization schedule for the 2016 Term Loan. Pursuant to the revised amortization schedule, the maturity date of the 2016 Term Loan was extended from February 2018 to June 2018, and the monthly principal payments were reduced from $1.88 million to $1.38 million. The other terms of the 2016 Term Loan remain unchanged. The 2016 Term Loan is guaranteed by DMLP, Ltd. (“DMLP”), TransAtlantic Turkey, Ltd. (“TransAtlantic Turkey”), Talon Exploration, Ltd. (“Talon Exploration”) and TransAtlantic Worldwide, Ltd. (“TransAtlantic Worldwide”) (collectively, the “Guarantors”). The 2016 Term Loan contains standard prohibitions on the activities of TEMI as the borrower, including prohibitions on granting of liens on its assets, incurring additional debt, dissolving, liquidating, merging, consolidating, paying dividends, making certain investments, selling assets or transferring revenue, and other similar matters. In addition, the 2016 Term Loan prohibits Amity Oil International Pty Ltd (“Amity”) and Petrogas Petrol Gaz ve Petrokimya Urunleri Insaat Sanayi ve Ticaret A.S. (“Petrogas”) from incurring additional debt. An event of default under the 2016 Term Loan includes, among other events, failure to pay principal or interest when due, breach of certain covenants, representations, warranties and obligations, bankruptcy or insolvency and the occurrence of a material adverse effect. The 2016 Term Loan is secured by a pledge of (i) the stock of TEMI, DMLP, TransAtlantic Turkey and Talon Exploration, (ii) substantially all of the assets of TEMI, (iii) certain real estate owned by Petrogas, (iv) the Gundem real estate and Muratli real estate owned by Gundem Turizm Yatirim ve Isletmeleri A.S. (“Gundem”) and (v) certain Diyarbakir real estate owned 80% by N. Malone Mitchell 3 rd At March 31, 2018, we had $4.1 million outstanding under the 2016 Term Loan and no availability and were in compliance with the covenants in the 2016 Term Loan . 2017 Term Loan On November 17, 2017, Denizbank entered into a $20.4 million term loan with TEMI (the “2017 Term Loan”) under the Credit Agreement. We will use the proceeds from the 2017 Term Loan for general corporate purposes. The 2017 Term Loan bears interest at a fixed rate of 6.0% (plus 0.3% for Banking and Insurance Transactions Tax per the Turkish government) per annum. The 2017 Term Loan has a grace period which bears no interest or payments due until July 2018 and then is payable in one monthly installment of $1.38 million, nine monthly installments of $1.2 million each through April 2019 and thereafter in eight monthly installments of $1.0 million each through December 2019, with the exception of one monthly installment of $1.2 million occurring in October 2019. The 2017 Term Loan matures in December 2019. Amounts repaid under the 2017 Term Loan may not be re-borrowed, and early repayments under the 2017 Term Loan are subject to early repayment fees. The 2017 Term Loan is guaranteed by the Guarantors. The 2017 Term Loan contains standard prohibitions on the activities of TEMI as the borrower, including prohibitions on granting of liens on its assets, incurring additional debt, dissolving, liquidating, merging, consolidating, paying dividends, making certain investments, selling assets or transferring revenue, and other similar matters. In addition, the 2017 Term Loan prohibits Amity and Petrogas from incurring additional debt. An event of default under the 2017 Term Loan includes, among other events, failure to pay principal or interest when due, breach of certain covenants, representations, warranties and obligations, bankruptcy or insolvency and the occurrence of a material adverse effect. The 2017 Term Loan is be secured by a pledge of (i) the stock of TEMI, DMLP, TransAtlantic Turkey, and Talon Exploration, (ii) substantially all of the assets of TEMI, (iii) certain real estate owned by Petrogas, (iv) the Gundem real estate and Muratli real estate owned by Gundem, (v) certain Diyarbakir real estate owned 80% by N. Malone Mitchell 3rd and 20% Selami Erdem Uras, and (vi) certain Ankara real estate owned 100% by Mr. Uras. In addition, TEMI assigned its Turkish collection accounts and its receivables from the sale of oil to DenizBank as additional security for the 2017 Term Loan. Gundem is beneficially owned by Mr. Mitchell, his adult children, and Mr. Uras. Mr. Mitchell is our chief executive officer and chairman of our board of directors. Mr. Uras is our vice president, Turkey. At March 31, 2018, we had $20.4 million outstanding under the 2017 Term Loan and no availability, and we were in compliance with the covenants in the 2017 Term Loan. 2017 Notes The 2017 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 2017 Notes bore interest at an annual rate of 13.0%, payable semi-annually, in arrears, on January 1 and July 1 of each year. The 2017 Notes matured on July 1, 2017, and on July 3, 2017, we paid off and retired all remaining outstanding 2017 Notes . ANBE Note On December 30, 2015, TransAtlantic Petroleum (USA) Corp (“TransAtlantic USA”) entered into a $5.0 million draw down convertible promissory note (the “ANBE Note”) with ANBE Holdings, L.P. (“ANBE”), an entity owned by the adult children of our chairman and chief executive officer, N. Malone Mitchell 3rd, and controlled by an entity managed by Mr. Mitchell and his wife. The ANBE Note bore interest at a rate of 13.0% per annum. On October 31, 2016, TransAtlantic USA entered into an amendment of the ANBE Note with ANBE (the “ANBE Amendment”). The ANBE Amendment extended the maturity date of the Note from October 31, 2016 to September 30, 2017, provided for the ANBE Note to be repaid in four quarterly installments of $0.9 million each in December 2016 and March, June and September 2017, and provided for monthly payments of interest. On February 27, 2017, we repaid the ANBE Note in full with proceeds from the sale of TBNG and terminated it. 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 March 31, 2018, we had no outstanding borrowings under these lines of credit. |
Contingencies relating to produ
Contingencies relating to production leases and exploration permits | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies relating to production leases and exploration permits | 8. 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. Bulgaria 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. In October 2015, the Bulgarian Ministry of Energy and Economy filed a suit against our subsidiary, Direct Petroleum Bulgaria EOOD (“Direct Bulgaria”), claiming a $200,000 penalty for Direct Bulgaria’s alleged failure to fulfill the work program associated with the Aglen exploration permit. Direct Bulgaria received a force majeure recognition in 2012 from the Bulgarian Ministry of Energy and Economy, and the force majeure event has not been rectified. While we believe that Direct Bulgaria is not under any obligation to fulfill the work program until the force majeure event is rectified and continue to vigorously defend this claim, we continue to engage in discussions with the Ministry of Energy and Economy regarding settlement possibilities. |
Shareholders' equity
Shareholders' equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Shareholders' equity | 9. Shareholders’ equity Restricted stock units We recorded share-based compensation expense of $0.1 million and $0.1 million for awards of restricted stock units (“RSUs”) for the three months ended March 31, 2018 and 2017, respectively. As of March 31, 2018, we had approximately $0.2 million of unrecognized compensation expense related to unvested RSUs, which is expected to be recognized over a weighted average period of 0.5 years. Earnings per share We account for earnings per share in accordance with ASC Subtopic 260-10, Earnings Per Share The following table presents the basic and diluted earnings per common share computations: Three Months Ended March 31, (in thousands, except per share amounts) 2018 2017 Net loss from continuing operations $ (1,775 ) $ (16,049 ) Basic net loss per common share: Shares: Weighted average common shares outstanding 50,374 47,298 Basic net loss per common share: Continuing operations $ (0.04 ) $ (0.34 ) Diluted net loss per common share: Shares: Weighted average common shares outstanding 50,374 47,298 Diluted net loss per common share: Continuing operations $ (0.04 ) $ (0.34 ) Warrants On December 31, 2014, April 24, 2015 and August 13, 2015, we issued 233,334, 233,333 and 233,333 common share purchase warrants (“Warrants”), respectively, to the shareholders of Gundem as consideration for the pledge of Turkish real estate in exchange for an extension of the maturity of a credit agreement between us and a Turkish bank. As consideration for the pledge of Turkish real estate, the independent members of our board of directors approved the issuance of the Warrants to be allocated in accordance with each shareholder’s ownership percentage of Gundem. The Warrants were issued pursuant to a warrant agreement, whereby the |
Segment information
Segment information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment information | 10. Segment information In accordance with ASC 280, Segment Reporting Corporate Turkey Bulgaria Total (in thousands) For the three months ended March 31, 2018 Total revenues $ - $ 16,926 $ - $ 16,926 (Loss) income from continuing operations before income taxes (3,806 ) 3,364 (46 ) (488 ) Capital expenditures $ 5,246 $ 5,246 For the three months ended March 31, 2017 Total revenues $ - $ 16,436 $ - $ 16,436 (Loss) income from continuing operations before income taxes (18,921 ) 5,077 (70 ) (13,914 ) Capital expenditures $ - $ 6,538 $ - $ 6,538 Segment assets March 31, 2018 $ 9,643 $ 143,727 $ 731 $ 154,101 December 31, 2017 $ 10,966 $ 149,185 $ 499 $ 160,650 |
Financial instruments
Financial instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial instruments | 11. Financial instruments Interest rate risk We are exposed to interest rate risk as a result of our variable rate short-term cash holdings. Foreign currency risk We have underlying foreign currency exchange rate exposure. Our currency exposures primarily relate to transactions denominated in the Bulgarian Lev, the European Union Euro, and the New Turkish Lira (“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 March 31, 2018, we had 15.8 million TRY (approximately $4.0 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 March 31, 2018 and December 31, 2017, we were a party to commodity derivative contracts (See Note 6 “Commodity derivative instruments”). 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 for TUPRAS. 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, restricted cash, accounts receivable, accounts payable, accrued liabilities and our loans payable were each estimated to have a fair value approximating the carrying amount at March 31, 2018 and December 31, 2017, due to the short maturity of those instruments. The following table summarizes the valuation of our financial assets and liabilities as of March 31, 2018: 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) Measured on a recurring basis Liabilities: Commodity derivative contracts $ - $ (1,633 ) $ - $ (1,633 ) Disclosed but not carried at fair value Liabilities: 2017 Term Loan - - (17,309 ) (17,309 ) 2016 Term Loan - - (4,014 ) (4,014 ) Total $ - $ (1,633 ) $ (21,323 ) $ (22,956 ) The following table summarizes the valuation of our financial assets and liabilities as of December 31, 2017: 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) Measured on a recurring basis Liabilities: Commodity derivative contracts $ - $ (2,215 ) $ - $ (2,215 ) Disclosed but not carried at fair value Liabilities: 2017 Term Loan - - (16,613 ) (16,613 ) 2016 Term Loan - - (7,866 ) (7,866 ) Total $ - $ (2,215 ) $ (24,479 ) $ (26,694 ) We remeasure our derivative contracts on a recurring basis, with changes flowing through earnings. At March 31, 2018 and December 31, 2017, both of the fair values of the 2017 Term Loan and the 2016 Term Loan were estimated using a discounted cash flow analysis based on unobservable Level 3 inputs, including our own credit risk associated with the loans payable. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related party transactions | 12. Related party transactions The following table summarizes related party accounts receivable and accounts payable as of the dates indicated: March 31, December 31, 2018 2017 (in thousands) Related party accounts receivable: Riata Management Service Agreement $ 527 $ 576 PSIL MSA 742 447 Total related party accounts receivable $ 1,269 $ 1,023 Related party accounts payable: Riata Management Service Agreement $ 352 $ 341 PSIL MSA 4,202 2,119 Interest payable on Series A Preferred - 681 Total related party accounts payable $ 4,554 $ 3,141 Services 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”) (collectively, the “Service Entities”). 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 Partners, LP (“Dalea”), an affiliate of Mr. Mitchell, owns 100% 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. Under the terms of the Service Agreement, the Service Entities agreed to provide the Company upon its request certain computer services, payroll and benefits services, insurance administration services and entertainment services, and the Company and the Service Entities agreed to provide to each other certain management consulting services, oil and natural gas services and general accounting services (collectively, the “Services”). Under the terms of the Service Agreement, the Company pays, or is paid, for the actual cost of the Services rendered plus the actual cost of reasonable expenses on a monthly basis. The Company or the Service Entities may terminate the Service Agreement at any time by providing advance notice of termination to the other party. On March 20, 2017, we entered into a second amendment to the Service Agreement among us and Longfellow, Viking Drilling, Riata Management, Longfellow Nemaha, LLC, a Texas limited liability company, Red Rock Minerals, LP, a Delaware limited partnership, Red Rock Advisors, LLC, a Texas limited liability company, Production Solutions International Limited, a Bermuda exempted company, and Nexlube Operating, LLC, a Delaware limited liability company, and their subsidiaries (collectively, the “Riata Entities”), adding and removing certain of the Service Entities and the Riata Entities and expanding the scope of Services. As this agreement is a related party transaction, the independent members of our board of directors reviewed and approved this amendment. As of March 31, 2018, we had $0.5 million of outstanding receivables and $0.4 million of outstanding payables pursuant to the Service Agreement. On March 3, 2016, Mr. Mitchell closed a transaction whereby he sold his interests in Viking Services B.V. (“Viking Services”), the beneficial owner of Viking International Limited (“Viking International”), Viking Petrol Sahasi Hizmetleri A.S. (“VOS”) and Viking Geophysical Services Ltd. (“Viking Geophysical”), to a third party. As part of the transaction, Mr. Mitchell acquired certain equipment used in the performance of stimulation, wireline, workover and similar services, which equipment will be owned and operated by a new entity, Production Solutions International Petrol Arama Hizmetleri Anonim Sirketi (“PSIL”). PSIL is beneficially owned by Dalea Investment Group, LLC, which is controlled by Mr. Mitchell. Consequently, on March 3, 2016, TEMI entered into a master services agreement (the “PSIL MSA”) with PSIL on substantially similar terms to our then current master services agreements with Viking International, VOS and Viking Geophysical. Pursuant to the PSIL MSA, PSIL will perform the services on behalf of TEMI and its affiliates. The master services agreement with each of Viking International, VOS and Viking Geophysical currently remain in effect. As of March 31, 2018, we had $0.7 million of outstanding receivables and $4.2 million of outstanding payables pursuant to the PSIL MSA. Office On June 26, 2017, and effective as of January 1, 2017, our wholly owned subsidiary, TransAtlantic USA entered into an Amended and Restated Office Lease (the “Office Lease”) with Longfellow to lease approximately 10,000 square feet of corporate office space in Addison, Texas. The initial lease term under the Office Lease commenced on January 1, 2017 (the “Commencement Date”), and expires five years after the Commencement Date, unless earlier terminated in accordance with the Office Lease. TransAtlantic USA has the option to extend the lease term for two additional periods of five years each. If TransAtlantic USA exercises its option to extend the lease term, the monthly rent payable during such extended term shall be at a mutually agreed upon amount for monthly rent during the renewal term. During the first five months of the initial lease term, TransAtlantic USA is required to pay monthly rent of $14,745.16 to Longfellow, plus utilities, real property taxes and liability insurance (to the extent that TransAtlantic does not obtain its own liability insurance). Monthly rent increases by $2,754.84 the sixth month of the initial lease term, by $833.33 the second year of the initial lease term and by approximately $417 each year thereafter during the initial lease term. Dalea Amended Note and Pledge Agreement On April 19, 2016, we entered into a note amendment agreement (the “Note Amendment Agreement”) with Mr. Mitchell, and Dalea Partners, LP (“Dalea”), pursuant to which Dalea agreed to deliver an amended and restated promissory note (the “Amended Note”) in favor of us, in the principal sum of $7,964,053, which Amended Note would amend and restate that certain Promissory Note, dated June 13, 2012, made by Dalea in favor of us in the principal amount of $11.5 million (the “Original Note”). The Note Amendment Agreement reduced the principal amount of the Original Note to $7,964,053 in exchange for the cancellation of an account payable of approximately $3.5 million (the “Account Payable”) owed by TransAtlantic Albania Ltd. (“TransAtlantic Albania”), a former subsidiary of TransAtlantic, to Viking International Limited. We have indemnified a third party for any liability relating to the payment of the Account Payable. Pursuant to the Note Amendment Agreement, on April 19, 2016, we entered into the Amended Note, which amended and restated the Original Note that was issued in connection with our sale of our subsidiaries, Viking International and Viking Geophysical Services, to a joint venture owned by Dalea and Abraaj Investment Management Limited in June 2012. In the Amended Note, we and Dalea acknowledged that (i) while the sale of Dalea’s interest in Viking Services enabled us to take the position that the Original Note was accelerated in accordance with its terms, the principal purpose of including the acceleration events in the Original Note was to ensure that certain oilfield services provided by Viking Services to us would continue to be available to us, and (ii) such services will now be provided pursuant to the PSIL MSA. PSIL is beneficially owned by Dalea Investment Group, LLC, which is controlled by Mr. Mitchell. As a result, the Amended Note revised the events triggering acceleration of the repayment of the Original Note to the following: (i) a reduction of ownership by Dalea (and other controlled affiliates of Mr. Mitchell) of equity interest in PSIL to less than 50%; (ii) the sale or transfer by Dalea or PSIL of all or substantially all of its assets to any person (a “Transferee”) that does not own a controlling interest in Dalea or PSIL and is not controlled by Mr. Mitchell (an “Unrelated Person”), or the subsequent transfer by any Transferee that is not an Unrelated Person of all or substantially all of its assets to an Unrelated Person; (iii) the acquisition by an Unrelated Person of more than 50% of the voting interests of Dalea or PSIL; (iv) termination of the PSIL MSA other than as a result of an uncured default thereunder by TEMI; (v) default by PSIL under the PSIL MSA, which default is not remedied within a period of 30 days after notice thereof to PSIL; and (vi) insolvency or bankruptcy of PSIL. The maturity date of the Amended Note was extended to June 13, 2019. The interest rate on the Amended Note remains at 3.0% per annum and continues to be guaranteed by Mr. Mitchell. The Amended Note contains customary events of default. In addition, pursuant to the Note Amendment Agreement, on April 19, 2016, we entered into a pledge agreement (the “Pledge Agreement”) with Dalea, whereby Dalea pledged the $2.0 million principal amount of the 2017 Notes owned by Dalea (the “Dalea Convertible Notes”), including any future securities for which the Dalea Convertible Notes are converted or exchanged, as security for the performance of Dalea’s obligations under the Amended Note. The Pledge Agreement provides that interest payable to Dalea under the Dalea Convertible Notes (or any future securities for which the Dalea Convertible Notes are converted or exchanged) will be credited first against the outstanding principal balance of the Amended Note and, upon full repayment of the outstanding principal balance of the Amended Note, any accrued and unpaid interest on the Amended Note. The Pledge Agreement contains customary events of default. On November 4, 2016, Dalea exchanged $2.0 million of 2017 Notes for 40,000 Series A Preferred Shares. On June 30, 2016, we entered into a waiver with Dalea, whereby we waived our right under the Pledge Agreement to receive the interest payment due July 1, 2016 under the Dalea Convertible Notes in connection with the payment of 201,459 common shares to Dalea with respect to the 2017 Note interest payment paid on June 30, 2016. During the three months ended March 31, 2018, we reduced the principal amount of the Amended Note by $0.1 million for cash dividends paid on the Series A Preferred Shares. As of March 31, 2018, the amount receivable under the Amended Note was $6.5 million. Pledge fee agreements In connection with the pledge of the Gundem real estate and Muratli real estate to DenizBank as collateral for the 2016 Term Loan, on August 31, 2016, we entered into a pledge fee agreement with Gundem (the “Gundem Fee Agreement”) pursuant to which we pay Gundem a fee equal to 5% per annum of the collateral value of the Gundem real estate and Muratli real estate. Pursuant to the Gundem Fee Agreement, the Gundem real estate has a deemed collateral value of $10.0 million and the Muratli real estate has a deemed collateral value of $5.0 million. In connection with the pledge of the Diyarbakir real estate to DenizBank as collateral for the 2016 Term Loan, on August 31, 2016, we entered into a pledge fee agreement with Messrs. Mitchell and Uras (the “Diyarbakir Fee Agreement”) pursuant to which we pay Mr. Mitchell and Selami Erdem Uras a fee of 5% per annum of the collateral value of the Diyarbakir real estate. Mr. Uras is our vice president, Turkey. Pursuant to the Diyarbakir Fee Agreement, the Diyarbakir real estate has a deemed collateral value of $5.0 million. Amounts payable to Mr. Mitchell under the Gundem Fee Agreement and the Diyarbakir Fee Agreement are used to reduce the outstanding principal amount of the Amended Note. During the three months ended March 31, 2018, we reduced the principal amount of the Amended Note by $0.2 million for amounts payable under the pledge fee agreements. |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale and Discontinued Operations | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Assets and liabilities held for sale and discontinued operations | 13. Assets and liabilities held for sale and discontinued operations TBNG assets and liabilities held for sale On October 13, 2016, we entered into a share purchase agreement (the “Purchase Agreement”) with Valeura Energy Netherlands B.V. (“Valeura Netherlands”) for the sale of all of the equity interests in TBNG, our wholly-owned subsidiary. TBNG owned a portion of our interests in the Thrace Basin area in Turkey. We classified the assets and liabilities of TBNG within the captions “Assets held for sale” and “Liabilities held for sale” on our consolidated balance sheets as of December 31, 2016. Although the sale of TBNG met the threshold to classify its assets and liabilities as held for sale, it didn’t meet the requirements to classify its operations as discontinued as the sale wasn’t considered a strategic shift in our operations. As such, TBNG’s results of operations are classified as continuing operations for all periods presented. On February 24, 2017, we closed on the sale of TBNG for gross proceeds of $20.7 million, and approximate net cash proceeds of $16.1 million, which amounts reflect a $0.2 million post-closing purchase price adjustment. For the three months March 31, 2017, we recorded a non-cash net loss of $15.2 million on the sale of TBNG. The loss related to the reclassification of the TBNG accumulated foreign currency translation adjustment that was realized into earnings from accumulated other comprehensive loss within shareholders’ equity, and presented below: Loss on Sale (in thousands) Total cash proceeds for TBNG $ 20,707 Less: TBNG net assets 12,869 Gain on sale before accumulated foreign currency translation adjustment 7,838 Less: TBNG accumulated foreign currency translation adjustment (23,064 ) Net loss on sale of TBNG $ (15,226 ) As a result of the TBNG sale, there were no remaining assets or liabilities held for sale as of December 31, 2017. As of March 31, 2018, there were no assets or liabilities held for sale. For the three months ended March 31, 2018 and March 31, 2017, we had no significant operating results from discontinued operations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events Exploration License 5046 in West Molla expires in June 2018. Based on the successful discovery on the Pinar-1ST exploration well, we applied to convert the exploration license to a production license in the first quarter of 2018. In March 2018, we spud the Yeniev-1 exploration well on Exploration License 5046. If a successful discovery is made on the Yeniev-1 exploration well, the southern portion of Exploration License 5046 may also convert to a production license. |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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. We hold interests in developed and undeveloped oil and natural gas properties in Turkey and Bulgaria. As of May 7, 2018, approximately 47% of our outstanding common shares were beneficially owned by N. Malone Mitchell 3rd, our chief executive officer and chairman of our board of directors. TransAtlantic is a holding company with two operating segments – Turkey and Bulgaria. Its assets consist of its ownership interests in subsidiaries that primarily own assets in Turkey and Bulgaria. |
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 the 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, contingencies and income taxes. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2017. On February 24, 2017, we closed the sale of our ownership interests in our subsidiary Thrace Basin Natural Gas (Turkiye) Corporation (“TBNG”) for gross proceeds of $20.7 million, and approximate net cash proceeds of $16.1 million, which amounts reflect a $0.2 million post-closing purchase price adjustment. We classified the assets and liabilities of TBNG within the captions “Assets held for sale” and “Liabilities held for sale” on our consolidated balance sheets as of December 31, 2016. Although the sale of TBNG met the threshold to classify its assets and liabilities as held for sale, it didn’t meet the requirements to classify its operations as discontinued as the sale wasn’t considered a strategic shift in our operations. As such, TBNG’s results of operations are classified as continuing operations for all periods presented (See Note 13, “Assets and liabilities held for sale and discontinued operations”). Revenue Recognition As explained below, on January 1, 2018, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers The Company’s revenue consists of sales under two contracts, one for crude oil and one for natural gas. The crude oil is delivered to the inlet of a processing center and control is passed through a custodian to the customer at that point. The Company is paid for crude oil at the inlet plus or minus an adjustment for quality. The Company’s natural gas is metered at the inlet of a transportation pipeline and control is passed at that point. The Company records natural gas sales at the delivery point to the customer, net of any pricing differentials. There is no material inventory remaining at the end of each reporting period. The Company has previously deducted any transportation costs, processing fees, or adjustments from revenue and recorded the net amount. Under the new revenue guidance, on January 1, 2018, the Company now records the gross amount of the revenue and records any fees, or deductions as expenses. The Company’s revenue excludes any amounts collected on behalf of third parties. |
Recent Accounting Pronounceme23
Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Summary of Disaggregation of Revenue | Revenue is measured based on consideration specified in the contract with the customer. The Company recognizes revenue in the amount that reflects the consideration it expects to be entitled to in exchange for transferring control of those goods to the customer. Revenues are recognized for the sale of the Company’s net share of production volumes. Sales on behalf of other working interest owners and royalty interest owners are not recognized as revenues. The contract consideration in the Company’s contracts are typically allocated to specific performance obligations in the contract according to the price stated in the contract which usually sets the base oil and gas prices based on benchmark prices based on volumes and adjustments for product quality. Payment is generally received one or two months after the sale has occurred. Three Months Ended March 31, December 31, 2018 2017 (in thousands) Disaggregation of revenue Product type Oil $ 16,324 $ 15,827 Gas 337 298 Total revenue from customers $ 16,661 $ 16,125 *As noted above, prior period amounts have not been adjusted under the modified retrospective method. |
Series A Preferred Shares (Tabl
Series A Preferred Shares (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Redemption Prices | The redemption prices for the 12-month period starting on the dates below are: Period Commencing Redemption Price November 4, 2020 105.000% November 4, 2021 103.000% November 4, 2022 101.000% November 4, 2023 and thereafter 100.000% |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 our oil and natural gas properties as of: March 31, 2018 December 31, 2017 (in thousands) Oil and natural gas properties, proved: Turkey $ 194,026 $ 193,111 Bulgaria 551 536 Total oil and natural gas properties, proved 194,577 193,647 Oil and natural gas properties, unproved: Turkey 19,359 24,445 Total oil and natural gas properties, unproved 19,359 24,445 Gross oil and natural gas properties 213,936 218,092 Accumulated depletion (121,995 ) (123,225 ) Net oil and natural gas properties $ 91,941 $ 94,867 |
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: March 31, 2018 December 31, 2017 (in thousands) Inventory $ 4,924 $ 4,619 Leasehold improvements, office equipment and software 7,062 7,214 Gas gathering system and facilities 259 135 Vehicles 331 343 Other equipment 1,647 1,764 Gross equipment and other property 14,223 14,075 Accumulated depreciation (5,899 ) (5,958 ) Net equipment and other property $ 8,324 $ 8,118 |
Asset Retirement obligations (T
Asset Retirement obligations (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Changes in Asset Retirement Obligations | The following table summarizes the changes in our asset retirement obligations (“ARO”) for the three months ended March 31, 2018 and for the year ended December 31, 2017: March 31, 2018 December 31, 2017 (in thousands) Asset retirement obligations at beginning of period $ 4,727 $ 4,833 Liabilities settled - (37 ) Foreign exchange change effect (182 ) (259 ) Additions 91 - Accretion expense 46 190 Asset retirement obligations at end of period $ 4,682 $ 4,727 |
Commodity derivative instrume27
Commodity derivative instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments of Future Crude Oil Production | At March 31, 2018 and December 31, 2017, we had outstanding derivative contracts with respect to our future crude oil production as set forth in the tables below: Fair Value of Derivative Instruments as of March 31, 2018 Weighted Weighted Average Average Quantity Minimum Maximum Price Additional Call Estimated Fair Type Period (Bbl/day) Price (per Bbl) (per Bbl) Ceiling Value of Liability (in thousands) Collar April 1, 2018 - May 31, 2018 295 $ 47.50 $ 61.00 $ - $ (200 ) Collar April 1, 2018 - June 30, 2018 742 $ 47.50 $ 57.10 $ - (1,016 ) Collar April 1, 2018 - December 31, 2018 442 $ 55.00 $ 70.00 $ - (229 ) Collar April 1, 2018 - December 31, 2018 491 $ 56.00 $ 70.00 $ 84.00 (189 ) Total Estimated Fair Value of Liability $ (1,633 ) Fair Value of Derivative Instruments as of December 31, 2017 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, 2018 — February 28, 2018 458 $ 50.00 $ 61.50 $ (178 ) Collar January 1, 2018 — March 31, 2018 500 $ 47.00 $ 59.65 (376 ) Collar January 1, 2018 — May 31, 2018 298 $ 47.50 $ 61.00 (286 ) Collar January 1, 2018 — June 30, 2018 746 $ 47.50 $ 57.10 (1,375 ) Total Estimated Fair Value of Liability $ (2,215 ) |
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 March 31, 2018 and December 31, 2017, and (ii) the net recorded fair value as reflected on our consolidated balance sheets at March 31, 2018 and December 31, 2017. As of March 31, 2018 Gross Amount Net Amount of Gross Offset in the Liabilities Amount of Consolidated Presented in the Location on Consolidated Recognized Balance Consolidated Underlying Commodity Balance Sheets Liabilities Sheet s Balance Sheets (in thousands) Crude oil Current liabilities $ 1,633 $ - $ 1,633 Crude oil Long-term liabilities $ - $ - $ - As of December 31, 2017 Gross Amount Net Amount of Gross Offset in the Liabilities Amount of Consolidated Presented in the Location on Consolidated Recognized Balance Consolidated Underlying Commodity Balance Sheets Liabilities Sheets Balance Sheets (in thousands) Crude oil Current liabilities $ 2,215 $ - $ 2,215 Crude oil Long-term liabilities $ - $ - $ - |
Loans payable (Tables)
Loans payable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | As of the dates indicated, our third-party debt consisted of the following: March 31, December 31, 2018 2017 Fixed and floating rate loans (in thousands) Term Loan (1) $ 24,500 $ 28,625 Less: current portion 15,100 15,625 Long-term portion $ 9,400 $ 13,000 _________________________________________________________ (1) Includes both the 2017 Term Loan (as defined below) and the 2016 Term Loan (as defined below). |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Basic and Diluted Earnings Per Common Share Computations | The following table presents the basic and diluted earnings per common share computations: Three Months Ended March 31, (in thousands, except per share amounts) 2018 2017 Net loss from continuing operations $ (1,775 ) $ (16,049 ) Basic net loss per common share: Shares: Weighted average common shares outstanding 50,374 47,298 Basic net loss per common share: Continuing operations $ (0.04 ) $ (0.34 ) Diluted net loss per common share: Shares: Weighted average common shares outstanding 50,374 47,298 Diluted net loss per common share: Continuing operations $ (0.04 ) $ (0.34 ) |
Segment information (Tables)
Segment information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Financial Information of Geographic Segments | In accordance with ASC 280, Segment Reporting Corporate Turkey Bulgaria Total (in thousands) For the three months ended March 31, 2018 Total revenues $ - $ 16,926 $ - $ 16,926 (Loss) income from continuing operations before income taxes (3,806 ) 3,364 (46 ) (488 ) Capital expenditures $ 5,246 $ 5,246 For the three months ended March 31, 2017 Total revenues $ - $ 16,436 $ - $ 16,436 (Loss) income from continuing operations before income taxes (18,921 ) 5,077 (70 ) (13,914 ) Capital expenditures $ - $ 6,538 $ - $ 6,538 Segment assets March 31, 2018 $ 9,643 $ 143,727 $ 731 $ 154,101 December 31, 2017 $ 10,966 $ 149,185 $ 499 $ 160,650 |
Financial instruments (Tables)
Financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Valuation of Financial Assets and Liabilities | The following table summarizes the valuation of our financial assets and liabilities as of March 31, 2018: 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) Measured on a recurring basis Liabilities: Commodity derivative contracts $ - $ (1,633 ) $ - $ (1,633 ) Disclosed but not carried at fair value Liabilities: 2017 Term Loan - - (17,309 ) (17,309 ) 2016 Term Loan - - (4,014 ) (4,014 ) Total $ - $ (1,633 ) $ (21,323 ) $ (22,956 ) The following table summarizes the valuation of our financial assets and liabilities as of December 31, 2017: 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) Measured on a recurring basis Liabilities: Commodity derivative contracts $ - $ (2,215 ) $ - $ (2,215 ) Disclosed but not carried at fair value Liabilities: 2017 Term Loan - - (16,613 ) (16,613 ) 2016 Term Loan - - (7,866 ) (7,866 ) Total $ - $ (2,215 ) $ (24,479 ) $ (26,694 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Accounts Receivable and Accounts Payable | The following table summarizes related party accounts receivable and accounts payable as of the dates indicated: March 31, December 31, 2018 2017 (in thousands) Related party accounts receivable: Riata Management Service Agreement $ 527 $ 576 PSIL MSA 742 447 Total related party accounts receivable $ 1,269 $ 1,023 Related party accounts payable: Riata Management Service Agreement $ 352 $ 341 PSIL MSA 4,202 2,119 Interest payable on Series A Preferred - 681 Total related party accounts payable $ 4,554 $ 3,141 |
Assets and Liabilities Held f33
Assets and Liabilities Held for Sale and Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Reclassification of Accumulated Foreign Currency Translation Adjustment Realized Into Earnings from Accumulated Other Comprehensive Loss | For the three months March 31, 2017, we recorded a non-cash net loss of $15.2 million on the sale of TBNG. The loss related to the reclassification of the TBNG accumulated foreign currency translation adjustment that was realized into earnings from accumulated other comprehensive loss within shareholders’ equity, and presented below: Loss on Sale (in thousands) Total cash proceeds for TBNG $ 20,707 Less: TBNG net assets 12,869 Gain on sale before accumulated foreign currency translation adjustment 7,838 Less: TBNG accumulated foreign currency translation adjustment (23,064 ) Net loss on sale of TBNG $ (15,226 ) |
General - Additional Informatio
General - Additional Information (Detail) $ in Thousands | Feb. 24, 2017USD ($) | Mar. 31, 2018SegmentContract | Mar. 31, 2017USD ($) | May 07, 2018 |
Nature Of Business [Line Items] | ||||
Number of operating segments | Segment | 2 | |||
Gross proceeds on sale of ownership interests | $ 17,779 | |||
Post closing purchase price adjustment | $ 200 | |||
Number of sales contracts consists revenue | Contract | 2 | |||
Thrace Basin Natural Gas (Turkiye) Corporation [Member] | ||||
Nature Of Business [Line Items] | ||||
Gross proceeds on sale of ownership interests | 20,700 | |||
Net cash proceeds on sale of ownership interests | $ 16,100 | |||
Subsequent Event [Member] | ||||
Nature Of Business [Line Items] | ||||
Percentage of common shares owned | 47.00% |
Recent Accounting Pronounceme35
Recent Accounting Pronouncements - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2018USD ($)OperatingLease | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Increase in expenses | $ 12,103,000 | $ 11,911,000 | |
Accumulated deficit | (423,878,000) | $ (422,103,000) | |
Net loss | (1,775,000) | $ (16,049,000) | |
Receivables from contracts with customers | $ 15,554,000 | 15,808,000 | |
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Number of operating leases | OperatingLease | 19 | ||
Expiration year of last lease | 2,022 | ||
Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Increase in revenue | $ 16,661,000 | 16,125,000 | |
Receivables from contracts with customers | 15,600,000 | 15,800,000 | |
Assets related to revenue contracts | 0 | ||
Liabilities related to revenue contracts | 0 | ||
Upfront or rights to deficiency payments from contract with customers | $ 0 | ||
Accounting Standards Update 2014-09 [Member] | Minimum [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Term of payment received after sale | 1 month | ||
Accounting Standards Update 2014-09 [Member] | Maximum [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Term of payment received after sale | 2 months | ||
Transaction price allocated to remaining performance obligations contract term | 1 year | ||
Exemption period from disclosure | 1 year | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Increase in revenue | $ 1,200,000 | 1,100,000 | |
Increase in expenses | 1,200,000 | $ 1,100,000 | |
Accumulated deficit | 0 | ||
Net loss | $ 0 |
Recent Accounting Pronounceme36
Recent Accounting Pronouncements - Summary of Disaggregation of Revenue (Detail) - Accounting Standards Update 2014-09 [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of revenue | ||
Increase in revenue | $ 16,661 | $ 16,125 |
Oil [Member] | ||
Disaggregation of revenue | ||
Increase in revenue | 16,324 | 15,827 |
Gas [Member] | ||
Disaggregation of revenue | ||
Increase in revenue | $ 337 | $ 298 |
Series A Preferred Shares - Add
Series A Preferred Shares - Additional Information (Detail) - Series A Preferred Shares [Member] | Nov. 04, 2016USD ($)Director$ / sharesshares | Mar. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Mar. 31, 2017shares |
Redeemable Noncontrolling Interest [Line Items] | ||||
Preferred shares, outstanding | 921,000 | 921,000 | ||
Preferred shares, value | $ | $ 21,300,000 | $ 21,300,000 | ||
Preferred stock, dividend rate, percentage | 12.00% | |||
Convertible preferred stock, terms of conversion | each Series A Preferred Share may be converted at any time, at the option of the holder, into 45.754 common shares (which is equal to an initial conversion price of approximately $1.0928 per common share and is subject to customary adjustments for stock splits, stock dividends, recapitalizations or other fundamental changes) | |||
Convertible preferred shares issued upon conversion | 45.754 | |||
Conversion of stock, per share | $ / shares | $ 1.0928 | |||
Preferred stock redemption period end date | Nov. 4, 2024 | |||
Preferred stock redemption period start date | Nov. 4, 2020 | |||
Maximum closing sale price of common shares on conversion price | 150.00% | |||
Preferred stock, redemption description | At any time on or after November 4, 2020, we may redeem all or a portion of the Series A Preferred Shares at the redemption prices listed below (expressed as a percentage of the liquidation preference amount per share) plus accrued and unpaid dividends to the date of redemption, if the closing sale price of the common shares equals or exceeds 150% of the conversion price then in effect for at least 10 trading days (whether or not consecutive) in a period of 20 consecutive trading days, including the last trading day of such 20 trading day period, ending on, and including, the trading day immediately preceding the business day on which we issue a notice of optional redemption. | |||
Change in control, offering redemption period | 120 days | |||
Preferred stock, dividend payment terms | Dividends on the Series A Preferred Shares are payable quarterly at our election in cash, common shares or a combination of cash and common shares at an annual dividend rate of 12.0% of the liquidation preference if paid all in cash or 16.0% of the liquidation preference if paid in common shares. If paid partially in cash and partially in common shares, the dividend rate on the cash portion is 12.0%, and the dividend rate on the common share portion is 16.0%. | |||
Dividend payment description | Dividends are payable quarterly on March 31, June 30, September 30, and December 31 of each year. | |||
Cash dividend paid | $ | $ 1,300,000 | |||
Preferred stock voting rights | no voting rights | |||
Certificate of designation description | The Certificate of Designation also provides that without the approval of the holders of a majority of the outstanding Series A Preferred Shares, we will not issue indebtedness for money borrowed or other securities which are senior to the Series A Preferred Shares in excess of the greater of (i) $100 million or (ii) 35% of our PV-10 of proved reserves as disclosed in our most recent independent reserve report filed or furnished by us on EDGAR. | |||
Maximum amount of indebtedness for borrowed money allowed under certificate of designation | $ | $ 100,000,000 | |||
PV10 reserve value percentage | 35.00% | |||
Maximum [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Right to elect number of directors | Director | 2 | |||
Minimum [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Right to elect number of directors | Director | 1 | |||
Two Director [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Preferred shares, outstanding | 400,000 | |||
One Director [Member] | Maximum [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Preferred shares, outstanding | 80,000 | |||
One Director [Member] | Minimum [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Preferred shares, outstanding | 399,999 | |||
Dividend Paid in Cash [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Preferred stock, dividend rate, percentage | 12.00% | |||
Dividend Paid in Common Shares [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Preferred stock, dividend rate, percentage | 16.00% | |||
Related Party [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Preferred shares, outstanding | 495,000 | 495,000 | ||
Preferred shares, value | $ | $ 24,750,000 | $ 24,750,000 |
Series A Preferred Shares - Sch
Series A Preferred Shares - Schedule of Redemption Prices (Detail) - Series A Preferred Shares [Member] | Nov. 04, 2016 |
Redeemable Noncontrolling Interest [Line Items] | |
November 4, 2020 | 105.00% |
November 4, 2021 | 103.00% |
November 4, 2022 | 101.00% |
November 4, 2023 and thereafter | 100.00% |
Property and Equipment - Capita
Property and Equipment - Capitalized Costs under Successful Efforts Method for Oil and Natural Gas Properties (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Oil and natural gas properties, proved | $ 194,577 | $ 193,647 |
Oil and natural gas properties, unproved | 19,359 | 24,445 |
Gross oil and natural gas properties | 213,936 | 218,092 |
Accumulated depletion | (121,995) | (123,225) |
Net oil and natural gas properties | 91,941 | 94,867 |
Turkey [Member] | ||
Property Plant And Equipment [Line Items] | ||
Oil and natural gas properties, proved | 194,026 | 193,111 |
Oil and natural gas properties, unproved | 19,359 | 24,445 |
Bulgaria [Member] | ||
Property Plant And Equipment [Line Items] | ||
Oil and natural gas properties, proved | $ 551 | $ 536 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | |||
Proved development wells excluded from depletion | $ 3,000 | $ 500 | |
Acquisition costs of proved properties | 10,100 | 11,200 | |
Well costs and additional development costs | 58,800 | 58,700 | |
Exploratory dry hole costs | 40 | $ 100 | |
Inventory | 7,158 | 7,494 | |
Inventory [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property plant and equipment excluded from depreciation | 12,100 | $ 12,100 | |
Pinar - 1ST well [Member] | Turkey [Member] | |||
Property Plant And Equipment [Line Items] | |||
Exploratory drilling costs capitalized | $ 2,300 |
Property and Equipment - Histor
Property and Equipment - Historical Cost of Equipment and Other Property on Gross Basis with Accumulated Depreciation (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Gross equipment and other property | $ 14,223 | $ 14,075 |
Accumulated depreciation | (5,899) | (5,958) |
Net equipment and other property | 8,324 | 8,118 |
Other equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross equipment and other property | 1,647 | 1,764 |
Inventory [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross equipment and other property | 4,924 | 4,619 |
Vehicles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross equipment and other property | 331 | 343 |
Leasehold improvements, office equipment and software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross equipment and other property | 7,062 | 7,214 |
Gas gathering system and facilities [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross equipment and other property | $ 259 | $ 135 |
Asset Retirement Obligations -
Asset Retirement Obligations - Changes in Asset Retirement Obligations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Asset retirement obligations at beginning of period | $ 4,727 | $ 4,833 | $ 4,833 |
Liabilities settled | (37) | ||
Foreign exchange change effect | (182) | (259) | |
Additions | 91 | ||
Accretion expense | 46 | $ 48 | 190 |
Asset retirement obligations at end of period | $ 4,682 | $ 4,727 |
Commodity Derivative Instrume43
Commodity Derivative Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
(Loss) gain on commodity derivative contracts | $ (725) | $ 988 |
Commodity Derivative Instrume44
Commodity Derivative Instruments - Fair Value of Derivative Instruments of Future Crude Oil Production (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)$ / bbl$ / Callbbl | Dec. 31, 2017USD ($)$ / bblbbl | |
Derivatives Fair Value [Line Items] | ||
Estimated Fair Value of Liability | $ | $ (1,633) | $ (2,215) |
Collar - April 1, 2018 - May 31, 2018 [Member] | ||
Derivatives Fair Value [Line Items] | ||
Quantity (Bbl/day) | bbl | 295 | |
Collars Weighted Average Minimum Price (per Bbl) | 47.50 | |
Weighted Average Maximum Price (per Bbl) | 61 | |
Estimated Fair Value of Liability | $ | $ (200) | |
Collar - April 1, 2018 - June 30, 2018 [Member] | ||
Derivatives Fair Value [Line Items] | ||
Quantity (Bbl/day) | bbl | 742 | |
Collars Weighted Average Minimum Price (per Bbl) | 47.50 | |
Weighted Average Maximum Price (per Bbl) | 57.10 | |
Estimated Fair Value of Liability | $ | $ (1,016) | |
Collar - April 1, 2018 - December 31, 2018 [Member] | ||
Derivatives Fair Value [Line Items] | ||
Quantity (Bbl/day) | bbl | 442 | |
Collars Weighted Average Minimum Price (per Bbl) | 55 | |
Weighted Average Maximum Price (per Bbl) | 70 | |
Estimated Fair Value of Liability | $ | $ (229) | |
Collar - Aprill 1, 2018 - December 31, 2018 [Member] | ||
Derivatives Fair Value [Line Items] | ||
Quantity (Bbl/day) | bbl | 491 | |
Collars Weighted Average Minimum Price (per Bbl) | 56 | |
Weighted Average Maximum Price (per Bbl) | 70 | |
Additional Call Ceiling | $ / Call | 84 | |
Estimated Fair Value of Liability | $ | $ (189) | |
Collar - January 1, 2018 - February 28, 2018 [Member] | ||
Derivatives Fair Value [Line Items] | ||
Quantity (Bbl/day) | bbl | 458 | |
Collars Weighted Average Minimum Price (per Bbl) | 50 | |
Weighted Average Maximum Price (per Bbl) | 61.50 | |
Estimated Fair Value of Liability | $ | $ (178) | |
Collar - January 1, 2018 - March 31, 2018 [Member] | ||
Derivatives Fair Value [Line Items] | ||
Quantity (Bbl/day) | bbl | 500 | |
Collars Weighted Average Minimum Price (per Bbl) | 47 | |
Weighted Average Maximum Price (per Bbl) | 59.65 | |
Estimated Fair Value of Liability | $ | $ (376) | |
Collar - January 1, 2018 - May 31, 2018 [Member] | ||
Derivatives Fair Value [Line Items] | ||
Quantity (Bbl/day) | bbl | 298 | |
Collars Weighted Average Minimum Price (per Bbl) | 47.50 | |
Weighted Average Maximum Price (per Bbl) | 61 | |
Estimated Fair Value of Liability | $ | $ (286) | |
Collar - January 1, 2018 - June 30, 2018 [Member] | ||
Derivatives Fair Value [Line Items] | ||
Quantity (Bbl/day) | bbl | 746 | |
Collars Weighted Average Minimum Price (per Bbl) | 47.50 | |
Weighted Average Maximum Price (per Bbl) | 57.10 | |
Estimated Fair Value of Liability | $ | $ (1,375) |
Commodity Derivative Instrume45
Commodity Derivative Instruments - Summary of Gross Fair Value of Commodity Derivative Instruments by Balance Sheet Classification (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives Fair Value [Line Items] | ||
Gross Amount of Recognized Liabilities | $ 1,633 | $ 2,215 |
Net Amount of Liabilities Presented in the Consolidated Balance Sheets, Current Liabilities | 1,633 | 2,215 |
Crude Oil [Member] | Current Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Gross Amount of Recognized Liabilities | $ 1,633 | $ 2,215 |
Loans Payable - Debt (Detail)
Loans Payable - Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Term Loan | $ 24,500 | $ 28,625 |
Less: current portion | 15,100 | 15,625 |
Long-term portion | $ 9,400 | $ 13,000 |
Loans Payable - Additional Info
Loans Payable - Additional Information (Detail) | Apr. 27, 2017USD ($) | Jun. 30, 2016shares | Oct. 31, 2016Installment | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Nov. 17, 2017USD ($) | Aug. 31, 2016USD ($) | Dec. 30, 2015USD ($) |
Line Of Credit Facility [Line Items] | ||||||||||||
Loans payable | $ 24,500,000 | $ 28,625,000 | ||||||||||
Non-cash Facilities [Member] | DenizBank [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Line Of Credit Facility Maximum Borrowing Capacity | $ 20,000,000 | |||||||||||
2016 TEMI Term Loan [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Debt instrument interest rate stated percentage | 5.25% | |||||||||||
Debt instrument interest rate basis for effective rate | The 2016 Term Loan bears interest at a fixed rate of 5.25% (plus 0.2625% for Banking and Insurance Transactions Tax per the Turkish government) | |||||||||||
Debt instrument payment terms | Payable in six monthly installments of $1.25 million each through February 2017 and thereafter in twelve monthly installments of $1.88 million each through February 2018. | |||||||||||
Amount of each installment payable through February 2017 | $ 1,250,000 | |||||||||||
Amount of each installment payable through February 2018 | $ 1,880,000 | |||||||||||
Line of credit facility, expiration date | Feb. 28, 2018 | |||||||||||
2016 TEMI Term Loan [Member] | Turkish Banking and Insurance Transactions Tax Rate [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Debt instrument basis spread on variable rate | 0.2625% | |||||||||||
2016 TEMI Term Loan [Member] | Credit Agreement [Member] | DenizBank [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Line of credit facility, initiation date | Aug. 31, 2016 | |||||||||||
Line Of Credit Facility Maximum Borrowing Capacity | $ 30,000,000 | |||||||||||
Line of credit facility, expiration date | Jun. 30, 2018 | |||||||||||
Debt instrument, monthly payments | $ 1,380,000 | |||||||||||
2016 TEMI Term Loan [Member] | Line of Credit [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Loans payable | $ 4,100,000 | |||||||||||
2016 TEMI Term Loan [Member] | Line of Credit [Member] | N. Malone Mitchell 3rd [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Line of credit facility ownership percentage | 80.00% | |||||||||||
2016 TEMI Term Loan [Member] | Line of Credit [Member] | Selami Erdem Uras [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Line of credit facility ownership percentage | 20.00% | |||||||||||
2017 Term Loan [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Debt instrument interest rate stated percentage | 6.00% | |||||||||||
Debt instrument interest rate basis for effective rate | The 2017 Term Loan bears interest at a fixed rate of 6.0% (plus 0.3% for Banking and Insurance Transactions Tax per the Turkish government) per annum. | |||||||||||
Debt instrument payment terms | The 2017 Term Loan has a grace period which bears no interest or payments due until July 2018 and then is payable in one monthly installment of $1.38 million, nine monthly installments of $1.2 million each through April 2019 and thereafter in eight monthly installments of $1.0 million each through December 2019, with the exception of one monthly installment of $1.2 million occurring in October 2019. | |||||||||||
Line of credit facility, expiration date | Dec. 31, 2019 | |||||||||||
2017 Term Loan [Member] | Due until July 2018 [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Debt instrument interest rate stated percentage | 0.00% | |||||||||||
Amount of each installment payable | $ 0 | |||||||||||
2017 Term Loan [Member] | One Monthly Installment Payable through April 2019 [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Amount of each installment payable | 1,380,000 | |||||||||||
2017 Term Loan [Member] | Nine Monthly Installments Payable through April 2019 [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Amount of each installment payable | 1,200,000 | |||||||||||
2017 Term Loan [Member] | Eight Monthly Installments Payable through December 2019 [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Amount of each installment payable | 1,000,000 | |||||||||||
2017 Term Loan [Member] | One Monthly Installment Occurring in October 2019 [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Amount of each installment payable occurring in October 2019 | $ 1,200,000 | |||||||||||
2017 Term Loan [Member] | Turkish Banking and Insurance Transactions Tax Rate [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Debt instrument basis spread on variable rate | 0.30% | |||||||||||
2017 Term Loan [Member] | Credit Agreement [Member] | DenizBank [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Line of credit facility, initiation date | Nov. 17, 2017 | |||||||||||
Line Of Credit Facility Maximum Borrowing Capacity | $ 20,400,000 | |||||||||||
2017 Term Loan [Member] | Line of Credit [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Loans payable | $ 20,400,000 | |||||||||||
2017 Term Loan [Member] | Line of Credit [Member] | N. Malone Mitchell 3rd [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Line of credit facility ownership percentage | 80.00% | |||||||||||
2017 Term Loan [Member] | Line of Credit [Member] | Selami Erdem Uras [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Line of credit facility ownership percentage | 20.00% | |||||||||||
2017 Term Loan [Member] | Line of Credit [Member] | Mr. Uras [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Line of credit facility ownership percentage | 100.00% | |||||||||||
13.0% Convertible Notes Due 2017 [Member] | Convertible Debt [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Debt instrument interest rate stated percentage | 13.00% | |||||||||||
Frequency of payments | semi-annually | |||||||||||
Debt instrument, maturity date | Jul. 1, 2017 | |||||||||||
ANBE Note [Member] | Convertible Promissory Note [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Shares issued in lieu of cash interest | shares | 355,826 | |||||||||||
ANBE Note [Member] | TransAtlantic USA [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Number of installments | Installment | 4 | |||||||||||
Debt instrument, principal installments | $ 900,000 | $ 900,000 | $ 900,000 | $ 900,000 | ||||||||
ANBE Note [Member] | TransAtlantic USA [Member] | Convertible Promissory Note [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Line Of Credit Facility Maximum Borrowing Capacity | $ 5,000,000 | |||||||||||
Debt instrument interest rate stated percentage | 13.00% | |||||||||||
Line of credit facility borrowing capacity | $ 3,600,000 | |||||||||||
Extender ANBE Note [Member] | TransAtlantic USA [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Debt instrument, maturity date | Sep. 30, 2017 | |||||||||||
Unsecured lines of credit [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Loans payable | $ 0 | |||||||||||
Turkey [Member] | 2016 TEMI Term Loan [Member] | Credit Agreement [Member] | DenizBank [Member] | ||||||||||||
Line Of Credit Facility [Line Items] | ||||||||||||
Line of credit facility, initiation date | Aug. 23, 2016 |
Contingencies Relating to Pro48
Contingencies Relating to Production Leases and Exploration Permits - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2012 | Oct. 31, 2015 | |
Loss Contingencies [Line Items] | ||||
General and administrative | $ 3,337,000 | $ 3,590,000 | ||
Bulgaria [Member] | ||||
Loss Contingencies [Line Items] | ||||
Recovery of contractual obligations | $ 2,000,000 | |||
Estimated Litigation Liability | $ 200,000 | |||
Bulgaria [Member] | Aglen Exploration Permit Work Program [Member] | ||||
Loss Contingencies [Line Items] | ||||
General and administrative | $ 2,000,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Aug. 13, 2015 | Apr. 24, 2015 | Dec. 31, 2014 | Mar. 31, 2018 | Mar. 31, 2017 |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Common share purchase warrants issued | 233,333 | 233,333 | 233,334 | ||
Common share purchase warrants, exercise price | $ 2.99 | $ 5.65 | $ 5.99 | ||
Warrants [Member] | |||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Common share purchase | 1 | ||||
Restricted Stock Units [Member] | |||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||||
Share-based compensation expense | $ 0.1 | $ 0.1 | |||
Unrecognized compensation expense | $ 0.2 | ||||
Unrecognized compensation expense recognition period | 6 months | ||||
Dilutive securities included in the calculation of diluted earnings per share | 0 |
Shareholders' Equity - Basic an
Shareholders' Equity - Basic and Diluted Earnings Per Common Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Abstract] | ||
Net loss from continuing operations | $ (1,775) | $ (16,049) |
Weighted average common shares outstanding | 50,374 | 47,298 |
Continuing operations | $ (0.04) | $ (0.34) |
Weighted average common shares outstanding | 50,374 | 47,298 |
Continuing operations | $ (0.04) | $ (0.34) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable geographic segments | 2 |
Segment Information - Financial
Segment Information - Financial Information of Geographic Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 16,926 | $ 16,436 | |
(Loss) income from continuing operations before income taxes | (488) | (13,914) | |
Capital expenditures | 5,246 | 6,538 | |
Segment assets | 154,101 | $ 160,650 | |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
(Loss) income from continuing operations before income taxes | (3,806) | (18,921) | |
Segment assets | 9,643 | 10,966 | |
Operating Segments [Member] | Turkey [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 16,926 | 16,436 | |
(Loss) income from continuing operations before income taxes | 3,364 | 5,077 | |
Capital expenditures | 5,246 | 6,538 | |
Segment assets | 143,727 | 149,185 | |
Operating Segments [Member] | Bulgaria [Member] | |||
Segment Reporting Information [Line Items] | |||
(Loss) income from continuing operations before income taxes | (46) | $ (70) | |
Segment assets | $ 731 | $ 499 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - 3 months ended Mar. 31, 2018 ₺ in Millions | USD ($)Institution | TRY (₺) |
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | ||
Currency risk descriptions | We have underlying foreign currency exchange rate exposure. Our currency exposures primarily relate to transactions denominated in the Bulgarian Lev, the European Union Euro, and the New Turkish Lira (“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 March 31, 2018, we had 15.8 million TRY (approximately $4.0 million) in cash and cash equivalents, which exposes us to exchange rate risk based on fluctuations in the value of the TRY. | |
Number of financial institutions | Institution | 3 | |
TUPRAS [Member] | ||
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | ||
Allowance for doubtful accounts | $ | $ 0 | |
Cash and cash equivalents [Member] | ||
Financial Statement Line Items With Differences In Reported Amount And Reporting Currency Denominated Amounts [Line Items] | ||
Cash and cash equivalents | $ 4,000,000 | ₺ 15.8 |
Financial Instruments - Valuati
Financial Instruments - Valuation of Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (liabilities), fair value | $ (22,956) | $ (26,694) |
Disclosed but not carried at fair value [Member] | 2017 Term Loan [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | (17,309) | (16,613) |
Disclosed but not carried at fair value [Member] | 2016 Term Loan [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | (4,014) | (7,866) |
Measured on a recurring basis [Member] | Derivative Financial Instruments (commodity) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | (1,633) | (2,215) |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (liabilities), fair value | (1,633) | (2,215) |
Significant Other Observable Inputs (Level 2) [Member] | Measured on a recurring basis [Member] | Derivative Financial Instruments (commodity) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | (1,633) | (2,215) |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets (liabilities), fair value | (21,323) | (24,479) |
Significant Unobservable Inputs (Level 3) [Member] | Disclosed but not carried at fair value [Member] | 2017 Term Loan [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | (17,309) | (16,613) |
Significant Unobservable Inputs (Level 3) [Member] | Disclosed but not carried at fair value [Member] | 2016 Term Loan [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities, fair value | $ (4,014) | $ (7,866) |
Related Party Transactions - Re
Related Party Transactions - Related Party Accounts Receivable and Accounts Payable (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Total related party accounts receivable | $ 1,269 | $ 1,023 |
Total related party accounts payable | 4,554 | 3,141 |
Accounts payable - related party | 4,554 | 3,141 |
Riata Management Service Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party accounts receivable | 527 | 576 |
Total related party accounts payable | 352 | 341 |
Accounts payable - related party | 352 | 341 |
PSIL MSA [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party accounts receivable | 742 | 447 |
Total related party accounts payable | 4,202 | 2,119 |
Accounts payable - related party | $ 4,202 | 2,119 |
Interest payable on Series A Preferred [Member] | ||
Related Party Transaction [Line Items] | ||
Total related party accounts payable | 681 | |
Accounts payable - related party | $ 681 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | Jan. 26, 2017ft²Period | Nov. 04, 2016shares | Apr. 19, 2016USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 31, 2016USD ($) | Jun. 30, 2016shares | Jun. 13, 2012USD ($) |
Related Party Transaction [Line Items] | ||||||||
Related parties outstanding receivables | $ 1,269,000 | $ 1,023,000 | ||||||
Related parties outstanding payables | 4,554,000 | 3,141,000 | ||||||
Note receivable - related party | 6,507,000 | 6,726,000 | $ 11,500,000 | |||||
Dalea and Funds [Member] | 2017 Notes [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payment of common shares | shares | 201,459 | |||||||
Interest receivable | 6,500,000 | |||||||
Dalea and Funds [Member] | 2017 Notes [Member] | Series A Preferred Stock [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Repayments of debt | $ 100,000 | |||||||
Mitchell and his wife [Member] | Riata Management [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of ownership interest owned by related party | 100.00% | |||||||
Riata Management Service Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related parties outstanding receivables | $ 527,000 | 576,000 | ||||||
Related parties outstanding payables | $ 352,000 | 341,000 | ||||||
Mitchell and Family [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% | |||||||
Dalea [Member] | Viking Drilling [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of ownership interest owned by related party | 100.00% | |||||||
PSIL MSA [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related parties outstanding receivables | $ 742,000 | 447,000 | ||||||
Related parties outstanding payables | $ 4,202,000 | $ 2,119,000 | ||||||
Longfellow [Member] | TransAtlantic USA [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Office lease space | ft² | 10,000 | |||||||
Office lease commencement date | Jan. 1, 2017 | |||||||
Office lease expiration period from commencement date | 5 years | |||||||
Office lease number of extendable period | Period | 2 | |||||||
Office lease each extendable period | 5 years | |||||||
Office lease monthly rent payable during first five months | $ 14,745.16 | |||||||
Office lease monthly rent payable increase from sixth month. | 2,754.84 | |||||||
Office lease monthly rent payable increase from second year | 833.33 | |||||||
Office lease monthly rent payable increase from year three and thereafter | 417 | |||||||
Joint Venture [Member] | Dalea and Funds [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Convertible preferred shares issued upon conversion | shares | 40,000 | |||||||
Joint Venture [Member] | Dalea and Funds [Member] | Promissory Note [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Note receivable - related party | $ 7,964,053 | |||||||
Cancellation of purchase price in promissory note | $ 3,500,000 | |||||||
Debt instrument, maturity date | Jun. 13, 2019 | |||||||
Debt instrument interest rate stated percentage | 3.00% | |||||||
Promissory note, collateral amount | $ 2,000,000 | |||||||
Dalea Promissory Note [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Noncontrolling equity voting interest percentage | 50.00% | |||||||
Promissory notes default remedy period | 30 days | |||||||
Gundem Fee Agreement [Member] | Gundem Real Estate [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt instrument interest rate stated percentage | 5.00% | |||||||
Promissory note, collateral amount | $ 10,000,000 | |||||||
Gundem Fee Agreement [Member] | Muratli Real Estate [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt instrument interest rate stated percentage | 5.00% | |||||||
Promissory note, collateral amount | $ 5,000,000 | |||||||
Diyarbakir Fee Agreement [Member] | Diyarbakir Real Estate [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt instrument interest rate stated percentage | 5.00% | |||||||
Promissory note, collateral amount | $ 5,000,000 | |||||||
Gundem Fee Agreement and the Diyarbakir Fee Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Decrease in principal amount of Amended Note | $ 200,000 |
Assets and Liabilities Held f57
Assets and Liabilities Held for Sale and Discontinued Operations - Additional Information (Detail) - USD ($) | Feb. 24, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Discontinued Operations And Disposal Groups [Line Items] | |||
Gross proceeds on sale of ownership interests | $ 17,779,000 | ||
Post closing purchase price adjustment | $ 200,000 | ||
Loss on sale of TBNG | 15,200,000 | ||
Operating results from discontinued operations | $ 0 | $ 0 | |
Thrace Basin Natural Gas (Turkiye) Corporation [Member] | |||
Discontinued Operations And Disposal Groups [Line Items] | |||
Gross proceeds on sale of ownership interests | 20,700,000 | ||
Net cash proceeds on sale of ownership interests | $ 16,100,000 | ||
Assets held for sale | 0 | ||
Liabilities held for sale | $ 0 |
Assets and Liabilities Held f58
Assets and Liabilities Held for Sale and Discontinued Operations - Reclassification of Accumulated Foreign Currency Translation Adjustment Realized Into Earnings from Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Discontinued Operations And Disposal Groups [Line Items] | ||
Gross proceeds on sale of ownership interests | $ 17,779 | |
Net loss on sale of TBNG | $ (15,200) | |
Thrace Basin Natural Gas (Turkiye) Corporation [Member] | ||
Discontinued Operations And Disposal Groups [Line Items] | ||
Gross proceeds on sale of ownership interests | $ 20,707 | |
Less: TBNG net assets | 12,869 | |
Gain on sale before accumulated foreign currency translation adjustment | 7,838 | |
Less: TBNG accumulated foreign currency translation adjustment | (23,064) | |
Net loss on sale of TBNG | $ (15,226) |