Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 02, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Erin Energy Corp. | |
Entity Central Index Key | 1,402,281 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 211,562,664 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 4,201 | $ 25,143 |
Restricted cash | 9,277 | 1,496 |
Accounts receivable - partners | 145 | 496 |
Accounts receivable - related party | 624 | 624 |
Accounts receivable - other | 50 | 54 |
Crude oil inventory | 36,694 | 1,089 |
Prepaids and other current assets | 1,815 | 2,929 |
Total current assets | 52,806 | 31,831 |
Property, plant and equipment: | ||
Oil and gas properties (successful efforts method of accounting), net | 659,330 | 595,269 |
Other property, plant and equipment, net | 1,169 | 1,060 |
Total property, plant and equipment, net | 660,499 | 596,329 |
Other non-current assets: | ||
Restricted cash | 0 | 8,909 |
Debt issuance costs | 1,044 | 1,307 |
Other non-current assets | 67 | 67 |
Other assets, net | 1,111 | 10,283 |
Total assets | 714,416 | 638,443 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 188,918 | 108,047 |
Accounts payable and accrued liabilities - related party | 26,154 | 9,391 |
Accounts payable - partners | 35 | 0 |
Asset retirement obligations | 0 | 12,703 |
Current portion of long-term debt | 24,609 | 6,200 |
Short-term note payable - related party | 2,000 | 0 |
Short-term borrowings | 11,303 | 0 |
Total current liabilities | 253,019 | 136,341 |
Long-term notes payable - related party | 119,352 | 61,185 |
Term loan facility | 73,827 | 93,000 |
Asset retirement obligations | 24,360 | 13,830 |
Other long-term liabilities | 0 | 82 |
Total liabilities | $ 470,558 | $ 304,438 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock $0.001 par value - 50,000,000 shares authorized; none issued and outstanding at September 30, 2015 and December 31, 2014 | $ 0 | $ 0 |
Common stock $0.001 par value - 416,666,667 shares authorized; 211,562,664 and 210,307,502 shares outstanding as of September 30, 2015 and December 31, 2014 | 212 | 210 |
Additional paid-in capital | 788,986 | 778,095 |
Accumulated deficit | (545,857) | (444,954) |
Total equity - Erin Energy Corporation | 243,341 | 333,351 |
Non-controlling interests | 517 | 654 |
Total equity | 243,858 | 334,005 |
Total liabilities and equity | $ 714,416 | $ 638,443 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized shares | 50,000,000 | 50,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 416,666,667 | 416,666,667 |
Common stock, outstanding shares | 211,562,664 | 210,307,502 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Crude oil sales, net of royalties | $ 28,667 | $ 19,010 | $ 28,667 | $ 53,844 |
Operating costs and expenses: | ||||
Production costs | 28,019 | 34,261 | 43,731 | 72,617 |
Workover expenses | 354 | 0 | 972 | 0 |
Exploratory expenses | 5,266 | 1,148 | 13,283 | 3,851 |
Depreciation, depletion and amortization | 43,815 | 21,720 | 44,934 | 32,676 |
Loss on settlement of asset retirement obligations | 779 | 0 | 4,233 | 0 |
General and administrative expenses | 3,857 | 3,427 | 12,789 | 12,200 |
Total operating costs and expenses | 82,090 | 60,556 | 119,942 | 121,344 |
Operating loss | (53,423) | (41,546) | (91,275) | (67,500) |
Other income (expense): | ||||
Currency transaction gain | 176 | 394 | 2,167 | 426 |
Interest expense | (5,650) | (771) | (12,485) | (1,637) |
Other, net | 0 | (300) | 0 | (300) |
Total other income (expense) | (5,474) | (677) | (10,318) | (1,511) |
Loss before income taxes | (58,897) | (42,223) | (101,593) | (69,011) |
Income tax expense | 0 | 0 | 0 | 0 |
Net loss before non-controlling interest | (58,897) | (42,223) | (101,593) | (69,011) |
Net loss attributable to non-controlling interest | 215 | 0 | 690 | 0 |
Net loss attributable to Erin Energy Corporation | $ (58,682) | $ (42,223) | $ (100,903) | $ (69,011) |
Net loss per common share: | ||||
Basic (dollars per share) | $ (0.28) | $ (0.20) | $ (0.48) | $ (0.40) |
Diluted (dollars per share) | $ (0.28) | $ (0.20) | $ (0.48) | $ (0.40) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 211,517 | 210,274 | 211,036 | 174,247 |
Diluted (in shares) | 211,517 | 210,274 | 211,036 | 174,247 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Non-controlling Interest |
Balance at December 31, 2014 at Dec. 31, 2014 | $ 334,005 | $ 210 | $ 778,095 | $ (444,954) | $ 654 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued | 1,980 | 2 | 1,978 | ||
Stock based compensation | 4,002 | 4,002 | |||
Warrants issued with debt | 4,911 | 4,911 | |||
Funding from non-controlling interest | 553 | 553 | |||
Net loss | (101,593) | (100,903) | (690) | ||
Balance at September 30, 2015 at Sep. 30, 2015 | $ 243,858 | $ 212 | $ 788,986 | $ (545,857) | $ 517 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net loss | $ (101,593) | $ (69,011) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation, depletion and amortization | 43,536 | 31,327 |
Accretion of asset retirement obligations | 1,398 | 1,349 |
Amortization of debt discount and debt issuance costs | 1,920 | 0 |
Loss on settlement of asset retirement obligations | 4,233 | 0 |
Foreign currency transaction gain | (2,167) | 0 |
Share-based compensation | 4,398 | 2,216 |
Related party liability offset | 0 | (32,880) |
Payments to settle asset retirement obligations | (17,220) | 0 |
Other | 0 | 21 |
Change in operating assets and liabilities: | ||
Decrease (increase) in accounts receivable | 390 | (10) |
Decrease (increase) in inventories | (9,493) | 13,715 |
Decrease (increase) in prepaids and other current assets | 324 | (7,103) |
Increase in accounts payable and accrued liabilities | 58,126 | 27,277 |
Net cash used in operating activities | (16,148) | (33,099) |
Cash flows from investing activities | ||
Capital expenditures | (83,156) | (59,481) |
Allied transaction | 0 | (170,000) |
Net cash used in investing activities | (83,156) | (229,481) |
Cash flows from financing activities | ||
Proceeds from the issuance of common stock | 0 | 270,000 |
Proceeds from exercise of stock options and warrants | 1,855 | 415 |
Proceeds from term loan facility | 0 | 50,000 |
Proceeds from notes payable - related party, net | 63,815 | 10,649 |
Proceeds from short-term borrowings, net | 11,303 | 0 |
Debt issuance costs | 0 | (1,943) |
Allied transaction adjustments | 0 | (12,440) |
Funding from non-controlling interest | 553 | 0 |
Net cash provided by financing activities | 77,526 | 316,681 |
Effect of exchange rate changes on cash and cash equivalents | 836 | 0 |
Net increase (decrease) in cash and cash equivalents | (20,942) | 54,101 |
Cash and cash equivalents at beginning of period | 25,143 | 163 |
Cash and cash equivalents at end of period | 4,201 | 54,264 |
Cash paid for: | ||
Interest, net | 7,886 | 8 |
Non-cash investing and financing activities: | ||
Issuance of common shares for settlement of liabilities | 125 | 0 |
Discount on notes payable pursuant to issuance of warrants | 4,911 | 0 |
Related party liability offset | 0 | 32,880 |
Reduction in accounts payable from settlement of Northern Offshore contingency | $ 24,307 | $ 0 |
Company Description
Company Description | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Description | Company Description Erin Energy Corporation (NYSE MKT: ERN; JSE: ERN), formerly CAMAC Energy, Inc., is an independent oil and gas exploration and production company focused on energy resources in Africa. The Company’s asset portfolio consists of nine licenses across four countries covering an area of approximately 40,000 square kilometers (approximately 10 million acres). The Company owns producing properties offshore Nigeria and conducts exploration activities offshore Nigeria, onshore and offshore Kenya, offshore The Gambia, and offshore Ghana. In April 2015, the Company changed its name to Erin Energy Corporation from CAMAC Energy Inc. The Company is headquartered in Houston, Texas and has offices in Lagos, Nigeria, Nairobi, Kenya, Banjul, The Gambia, Accra, Ghana and Johannesburg, South Africa. The Company’s operating subsidiaries include CAMAC Petroleum Limited (“CPL”), CAMAC Energy Kenya Limited, CAMAC Energy Gambia Ltd., and CAMAC Energy Ghana Limited. The terms “we,” “us,” “our,” “the Company,” and “our Company” refer to Erin Energy Corporation and its subsidiaries. The Company also conducts certain business transactions with its majority shareholder, CAMAC Energy Holdings Limited (“CEHL”), and its affiliates, which include Allied Energy Plc. (“Allied”). See Note 8 - Related Party Transactions for further information. The Company’s Executive Chairman of the Board of Directors and Chief Executive Officer is a director of each of the above listed related parties. He indirectly owns 27.7% of CEHL, which is the majority shareholder of the Company. As a result, he may be deemed to have an indirect material interest in transactions contemplated with CEHL and any of its affiliates. |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Recently Issued Accounting Standards | Basis of Presentation and Recently Issued Accounting Standards The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly owned and majority-owned direct and indirect subsidiaries and have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). All significant intercompany transactions and balances have been eliminated in consolidation. The unaudited consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position and results of operations for the indicated periods. All such adjustments are of a normal recurring nature. This Form 10-Q should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014 , filed with the SEC on March 16, 2015. Reverse Stock Split Effective April 22, 2015, the Company implemented a reverse stock split, whereby each six shares of outstanding common stock pre-split was converted into one share of common stock post-split (the “reverse stock split”). All share and per share amounts for all periods presented herein have been adjusted to reflect the reverse stock split as if it had occurred at the beginning of the first period presented. Use of Estimates The preparation of the Company's consolidated financial statements in conformity with U.S. GAAP requires management to make estimates based on certain assumptions. Estimates affect the reported amounts of assets and liabilities, disclosure of contingent liabilities, and the reported amounts of revenues and expenses attributable to the reporting periods. Accordingly, accounting estimates in conformity with U.S. GAAP require the exercise of judgment. These estimates and assumptions used in the preparation of the Company’s consolidated financial statements are based on information available as of the date of the consolidated financial statements, and while management believes that the estimates and assumptions are appropriate, actual results could differ from management's estimates. Estimates that may have a significant effect on the Company’s financial position and results from operations include share-based compensation assumptions, oil and natural gas reserve quantities, depletion and amortization relating to oil and natural gas properties, asset retirement obligation assumptions, and income taxes. The accounting estimates used in the preparation of the Company's consolidated financial statements may change as new events occur, more experience is acquired, additional information is obtained and our operating environment changes. Capitalized Interest The Company capitalizes interest costs for qualifying oil and gas properties. The capitalization period begins when expenditures are incurred on qualified properties, activities begin which are necessary to prepare the property for production, and interest costs have been incurred. The capitalization period continues as long as these events occur. Capitalized interest is added to the cost of the underlying assets and is depleted using the unit-of-production method in the same manner as the underlying assets. During the nine months ended September 30, 2015 and 2014 , the Company capitalized $2.2 million and $0.3 million , respectively, in interest cost as additions to property, plant and equipment related to the Oyo field redevelopment campaign. Net Earnings (Loss) Per Common Share Basic net earnings or loss per common share is computed by dividing net earnings or loss by the weighted average number of shares of common stock outstanding at the end of the reporting period. Diluted net earnings or loss per share is computed by dividing net earnings or loss by the fully diluted common stock equivalent, which consists of shares outstanding, augmented by potentially dilutive shares issuable upon the exercise of stock options, unvested restricted stock awards, warrants, and conversion of the Convertible Subordinated Note, calculated using the treasury stock method. The table below sets forth the number of shares issuable pursuant to stock options, unvested restricted stock awards, and shares issuable upon conversion of the Convertible Subordinated Note that were excluded from diluted shares outstanding during the three and nine months ended September 30, 2015 and 2014 , as these securities are anti-dilutive because the Company was in a loss position for each period. Three Months Ended September 30, Nine Months Ended September 30, ( In thousands ) 2015 2014 2015 2014 Stock options 1,094 1,068 1,110 1,168 Stock warrants 650 2 504 1 Unvested restricted stock awards 1,278 1,023 1,308 993 Convertible subordinated note 12,454 11,844 12,302 10,491 15,476 13,937 15,224 12,653 Upon the occurrence of certain events, the Company is also contingently liable to make additional payments to Allied, under the Transfer Agreement, up to an additional amount totaling $50.0 million in cash, or the equivalent in shares of the Company’s common stock, at Allied’s option. See Note 9 - Commitments and Contingencies for further information. Fair Value of Financial Instruments The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements. Fair value is the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, inventory, deposits, accounts payable and accrued liabilities, and debts at floating interest rates, approximate their fair values at September 30, 2015 , and December 31, 2014 , respectively, principally due to the short-term nature, maturities or nature of interest rates of the above listed items. Recently Issued Accounting Standards In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU No. 2015-01 eliminates from US GAAP the concept of extraordinary items, and is effective for fiscal years beginning after December 15, 2015. The Company will adopt this standards update, as required, beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. ASU No. 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU No. 2015-02 is effective for interim and annual periods beginning after December 15, 2015, and the Company will adopt this standards update, as required, beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which is guidance for the reporting of debt issuance costs related to a recognized debt liability on an entity's balance sheet. Under the guidance, an entity must report debt issuance costs as a direct deduction from the carrying amount of that debt liability, consistent with the treatment for debt discounts. ASU No. 2015-03 is effective for interim and annual periods beginning after December 15, 2015; early adoption is permitted for financial statements that have not been previously issued. The Company will adopt this standards update beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in Cloud Computing Arrangement. ASU No. 2015-05 is new guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. ASU No. 2015-05 is effective for interim and annual periods beginning after December 15, 2015, and the Company will adopt this standards update, as required, beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-08, Business Combinations (Topic 805): Pushdown Accounting - Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115. The amendments in ASU No. 2015-08 amend various SEC paragraphs included in the FASB’s Accounting Standards Codification to reflect the issuance of Staff Accounting Bulletin No. 115 (“SAB 115”). SAB 115 rescinds portions of the interpretive guidance included in the SEC’s Staff Accounting Bulletins series and brings existing guidance into conformity with ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting,” which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The Company has adopted the amendments in ASU No. 2015-08, effective May 8, 2015, as the amendments in the update are effective upon issuance. The adoption did not have an impact on the Company's consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. ASU No. 2015-11 simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. The FASB defines net realizable value as the “estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” Under current guidance, an entity subsequently measures inventory at the lower of cost or market, with market defined as the replacement cost, net realizable value or net realizable value less a normal profit margin. An entity uses current replacement cost provided that it is not above net realizable value (i.e. the ceiling) or below net realizable value less an “approximately normal profit margin” (i.e. the floor). ASU No. 2015-11 eliminates this analysis for entities within the scope of the guidance. ASU No. 2015-11 applies to entities that recognize inventory within the scope of ASC 330, except for inventory measured under the LIFO method or the retail inventory method. ASU No. 2015-11 is effective for interim and annual periods beginning after December 15, 2016, and the Company will adopt this standards update, as required, beginning with the first quarter of 2017. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date. ASU 2015-14 defers the effective date of revenue standard ASU 2014-09 by one year for all entities. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU No. 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. With the issuance of ASU No. 2015-14, the Company is required to adopt revenue standard ASU No. 2014-09 beginning with the first quarter of 2018. The Company is continuing to evaluate the impact of the adoption of this guidance on its consolidated financial statements. In August 2015, the FASB issued ASU No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting. ASU 2015-15 addresses line-of-credit arrangements that were omitted from Accounting Standards Update No. 2015-03. Under the guidance, the SEC staff would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU No. 2015-15 is effective for interim and annual periods beginning after December 15, 2015; early adoption is permitted for financial statements that have not been previously issued. The Company will adopt this standards update beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. Under ASU NO. 2015-16, an acquirer must recognize adjustments to provisional amounts in business combinations that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, including the cumulative effect of the change in provisional amount as if the accounting had been completed at the acquisition date. The adjustments related to previous reporting periods since the acquisition date must be disclosed by income statement line item either on the face of the income statement or in the notes. ASU No. 2015-16 is effective for interim and annual periods beginning after December 15, 2016, and the Company will adopt this standards update, as required, beginning with the first quarter of 2017. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. |
Liquidity Matters
Liquidity Matters | 9 Months Ended |
Sep. 30, 2015 | |
Liquidity Matters [Abstract] | |
Liquidity Matters | Liquidity Matters The Company’s primary cash requirements are for capital expenditures for the redevelopment of the Oyo field in Nigeria, operating expenditures for the Oyo field, exploration activities in its unevaluated leaseholds, working capital needs, and interest and principal payments under current indebtedness. Crude oil production is a primary source of operating cash for the Company. The Company commenced production from the Oyo-8 well in early May 2015 and from the Oyo-7 well in mid-June 2015. Combined daily production from both wells in the three months ended September 30, 2015 was approximately 11,600 barrels of oil per day ("BOPD") (approximately 10,200 BOPD net to the Company after royalty), and the Company lifted and sold approximately 649,000 Bbls of crude oil (approximately 571,000 Bbls net to the Company). In October 2015, the Company lifted and sold approximately 845,000 Bbls of crude oil (approximately 744,000 Bbls net to the Company). Net proceeds to the Company were approximately $35.1 million . The Government of Nigeria has implemented certain control measures with regards to the exportation and sale of crude oil products from Nigeria. Accordingly, petroleum producers are required to obtain export permits for each crude oil lifting. In arriving at determining the quantity of crude oil to grant each oil producer, the Government considers factors, such as the overall strategic volume of crude oil to be sold for the whole country, current fiscal needs, and each producer’s pro-rata share of total country production. During the period from May to September 2015, the Company produced approximately 1.5 million Bbls of crude oil but was only able to sell approximately 0.6 million Bbls due to export permit limitations. The resulting crude oil inventory of approximately 0.9 million Bbls, as of September 30, 2015, was approaching the Company’s maximum crude oil storage capacity on its Floating Production Storage and Offloading vessel (“FPSO”). As a result, the Company had to curtail production from its producing wells. The Company subsequently received a permit to export approximately 1.3 million Bbls for the period from October to December 2015. This would allow for re-establishing production at previous levels. Accordingly, the Company lifted and sold approximately 0.8 million Bbls in October, and is expecting to lift and sell approximately 0.5 million additional Bbls by December 31, 2015. The Company is currently in the process of re-establishing production from its producing wells that were affected by the FPSO storage capacity issue, and expects to resume full production at previous rates. If actual production rates decline substantially below anticipated rates, or if oil prices decline significantly from current levels, the Company may need to seek additional sources of capital. In March 2015, the Company entered into a borrowing facility with Allied in the form of a Convertible Note (the "2015 Convertible Note"), separate from the existing $25.0 million Promissory Note and the $50.0 million Convertible Subordinated Note, allowing the Company to borrow up to $50.0 million for general corporate purposes. As of September 30, 2015, the outstanding principal under the 2015 Convertible Note was $48.0 million . See Note 7 - Debt for additional information. In July 2015, the Company received $13.0 million as an advance under a stand-alone spot sales contract with Glencore Energy UK (the “July Advance”). Interest accrued on the July Advance at the rate of the 30-day LIBOR plus 6.5% per annum. Repayment of the July Advance was made from the July crude oil lifting. In August 2015, the Company received a $26.5 million advance under a stand-alone spot sales contract with Glencore Energy UK Ltd. (the “August Advance”). Interest accrues on the August Advance at the rate of 30-day LIBOR plus 6.5% per annum. Partial repayment of the August Advance was made from the September crude oil lifting. The outstanding principal and interest under the August Advance of $11.3 million and $0.2 million , respectively, as of September 30, 2015 , were fully repaid in October 2015. In September 2015, the Company borrowed $2.0 million under a 30-day Promissory Note agreement entered into with an entity related to the Company's majority shareholder (the “2015 Short-Term Note”). The 2015 Short-Term Note accrued interest at a rate of the 30-day LIBOR plus 3% per annum, and was fully repaid in October 2015. The Company’s majority shareholder has formally committed to provide the Company with additional funding, the form of which would be determined at the time of funding, sufficient to maintain the Company’s operations and to allow the Company to meet its current and future obligations as they become due for one year from March 12, 2015, the date of said commitment. |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment were comprised of the following: ( In thousands ) September 30, December 31, 2014 Wells and production facilities $ 327,893 $ 33,690 Proved properties 386,196 386,196 Work in progress and other 99,454 261,346 Oilfield assets 813,543 681,232 Accumulated depletion (164,653 ) (95,403 ) Oilfield assets, net 648,890 585,829 Unevaluated leaseholds 10,440 9,440 Oil and gas properties, net 659,330 595,269 Other property and equipment 2,831 2,324 Accumulated depreciation (1,662 ) (1,264 ) Other property and equipment, net 1,169 1,060 Total property, plant and equipment, net $ 660,499 $ 596,329 All of the Company’s Oilfield assets are located in Nigeria. “Work-in-progress and other” includes ongoing costs for wells that are not yet completed, suspended exploratory well costs, as well as warehouse inventory items purchased as part of the redevelopment plan of the Oyo field . |
Suspended Exploratory Well Cost
Suspended Exploratory Well Costs | 9 Months Ended |
Sep. 30, 2015 | |
Extractive Industries [Abstract] | |
Suspended Exploratory Well Costs | Suspended Exploratory Well Costs In November 2013, the Company achieved both its primary and secondary drilling objectives for the Oyo-7 well. The primary drilling objective was to establish production from the existing Pliocene reservoir. The secondary drilling objective was to confirm the presence of hydrocarbons in the deeper Miocene formation. Hydrocarbons were encountered in three intervals totaling approximately 65 feet, as interpreted by logging-while-drilling (“LWD”) data. Management is making plans to further explore the Miocene formation in future wells. Suspended exploratory well costs were $26.5 million at both September 30, 2015 and December 31, 2014 for the costs related to the Miocene exploratory drilling activities. In August 2014, the Oyo-8 well was drilled to a total vertical depth of approximately 6,059 feet (approximately 1,847 meters) and successfully encountered four new oil and gas reservoirs in the eastern fault block, with total gross hydrocarbon thickness of 112 feet, based on results from the LWD data, reservoir pressure measurement, and reservoir fluid sampling. Management has commenced a detailed evaluation of the results and plans to further explore the Pliocene formation in the eastern fault block and establish the size of the incremental additions. Suspended exploratory well costs were $6.5 million at both September 30, 2015 and December 31, 2014 for the costs related to the Pliocene exploration drilling activities in the eastern fault block. |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations The Company’s asset retirement obligations primarily represent the estimated fair value of the amounts that will be incurred to plug, abandon and remediate certain oil and gas properties at the end of their productive lives. Significant inputs used in determining such obligations include, but are not limited to, estimates of plugging and abandonment costs, estimated future inflation rates and changes in property lives. The inputs are calculated based on historical data as well as current estimated costs. On a quarterly basis, the Company reviews the assumptions used to estimate the expected cash flows required to settle the asset retirement obligations, including changes in estimated probabilities, amounts and timing of the settlement of the asset retirement obligations, as well as changes in the legal obligation for each of its properties. Changes in any one or more of these assumptions may cause revisions in the estimated liabilities for the corresponding assets. The following summarizes changes in the Company’s asset retirement obligations during the nine months ended September 30, 2015 ( in thousands ): Balance at January 1, 2015 $ 26,533 Accretion expense 1,398 Additions 9,416 Loss on settlement of asset retirement obligations 4,233 Payments to settle asset retirement obligations (17,220 ) Balance at September 30, 2015 $ 24,360 In April 2015, the Company completed plug and abandonment ("P&A") activities for well Oyo-6 that was previously shut-in. Actual P&A expenditures exceeded estimated P&A liabilities by $4.2 million . Accordingly, the Company recorded a $4.2 million loss on settlement of asset retirement obligations. The table below shows the current and long-term portions of the Company's asset retirement obligations as of the end of each period: ( In thousands ) September 30, December 31, 2014 Asset retirement obligations, current portion — 12,703 Asset retirement obligations, long-term portion 24,360 13,830 $ 24,360 $ 26,533 Accretion expense is recognized as a component of depreciation, depletion and amortization expense in the accompanying consolidated statements of operations. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-Term Debt: Promissory Note - Short-Term (Related Party) In September 2015, the Company borrowed $2.0 million under a 30-day Promissory Note agreement entered into with an entity related to the Company's majority shareholder (the “2015 Short-Term Note”). The 2015 Short-Term Note accrued interest at a rate of the 30-day LIBOR plus 3% per annum, and was fully repaid in October 2015. Short-Term Borrowing - Glencore Advances In July 2015, the Company received $13.0 million as an advance under a stand-alone spot sales contract with Glencore Energy UK (the “July Advance”). Interest accrued on the July Advance at the rate of the 30-day LIBOR plus 6.5% per annum. Repayment of the July Advance was made from the July crude oil lifting. In August 2015, the Company received a $26.5 million advance under a stand-alone spot sales contract with Glencore Energy UK Ltd. (the “August Advance”). Interest accrues on the August Advance at the rate of 30-day LIBOR plus 6.5% per annum. Partial repayment of the August Advance was made from the September crude oil lifting. The outstanding principal and interest under the August Advance of $11.3 million and $0.2 million , respectively, as of September 30, 2015 , were fully repaid in October 2015. Long-Term Debt: Promissory Note - Related Party The Company has a $25.0 million borrowing facility under a Promissory Note (the “Promissory Note”) with Allied. Interest accrues on the outstanding principal under the Promissory Note at a rate of the 30-day LIBOR plus 2% per annum, payable quarterly. In October 2015, the Promissory Note was amended to extend the maturity date to July 30, 2017. The entire $25.0 million facility amount can be utilized for general corporate purposes. As of September 30, 2015 , the outstanding principal and interest under the Promissory Note was $25.0 million and $0.7 million , respectively. Convertible Subordinated Note – Related Party As partial consideration in connection with the February 2014 closing of the Allied Transaction, the Company issued a $50.0 million Convertible Subordinated Note in favor of Allied (the “Convertible Subordinated Note”). Interest on the Convertible Subordinated Note accrues at a rate per annum of one-month LIBOR plus 5% , payable quarterly in cash until the maturity of the Convertible Subordinated Note five years from the closing of the Allied Transaction. At the election of the holder, the Convertible Subordinated Note is convertible into shares of the Company’s common stock at an initial conversion price of $4.2984 per share, subject to anti-dilution adjustments. The Convertible Subordinated Note is subordinated to the Company’s existing and future senior indebtedness and is subject to acceleration upon an Event of Default (as defined in the Convertible Subordinated Note). The Company may, at its option, prepay the Convertible Subordinated Note in whole or in part, at any time, without premium or penalty, and is subject to mandatory prepayment upon (i) the Company’s issuance of capital stock or incurrence of indebtedness, the proceeds of which the Company does not apply to repayment of senior indebtedness or (ii) any capital markets debt issuance to the extent the net proceeds of such issuance exceed $250.0 million . Allied may assign all or any part of its rights and obligations under the Convertible Subordinated Note to any person upon written notice to the Company. As of September 30, 2015 , the outstanding principal and accrued interest under the Convertible Subordinated Note was $50.0 million and $4.4 million , respectively. 2015 Convertible Note – Related Party In March 2015, the Company entered into a new borrowing facility with Allied in the form of a Convertible Note (the “2015 Convertible Note”), allowing the Company to borrow up to $50.0 million for general corporate purposes. The 2015 Convertible Note will mature in December 2016. Interest accrues at the rate of LIBOR plus 5% , and is payable quarterly. The 2015 Convertible Note is convertible into shares of the Company’s common stock upon the occurrence and continuation of an event of default, at the sole option of the holder. The number of shares issuable upon conversion is equal to the sum of the principal amount and the accrued and unpaid interest divided by the conversion price, defined as the volume weighted average of the closing sales prices on the NYSE MKT for a share of common stock for the five complete trading days immediately preceding the conversion date. As of September 30, 2015, the Company had borrowed $48.0 million under the note and issued to Allied warrants to purchase approximately 2.6 million shares of the Company’s common stock at prices ranging from $2.46 to $7.85 per share. The total fair market value of the warrants amounting to $4.9 million based on the Black-Scholes option pricing model was recorded as a discount from the note, and is being amortized using the effective interest method over the life of the note. As of September 30, 2015 , the unamortized balance of the note discount was $3.6 million . Additional warrants are issuable in connection with future borrowings, with the per share price for those warrants determined based on the market price of the Company’s common stock at the time of such future borrowings. As of September 30, 2015 , the Company owed $44.4 million under the 2015 Convertible Note, net of discount. Accrued interest on the 2015 Convertible Note was $1.3 million as of September 30, 2015 . Term Loan Facility In September 2014, the Company, through its wholly owned subsidiary CPL, entered into a credit facility with a Nigerian bank for a five -year senior secured term loan providing initial borrowing capacity of up to $100.0 million (the “Term Loan Facility”). 90% of the Term Loan Facility is available in U.S. dollar, while the remaining 10% is available in Nigerian Naira. U.S. dollar borrowings under the Term Loan Facility currently bear interest at the rate of LIBOR plus 10.5% . The obligations under the Term Loan Facility include a legal charge over OMLs 120 and 121 and an assignment of proceeds from oil sales. The obligations of CPL have been guaranteed by the Company and rank in priority with all its other obligations. Proceeds from the Term Loan Facility were used for the further expansion and development of the Oyo field offshore Nigeria. Under the Term Loan Facility, the following events, among others, constitute events of default: CPL failing to pay any amounts due within thirty days of the due date; bankruptcy, insolvency, liquidation or dissolution of CPL; a material breach of the Loan Agreement by CPL that remains unremedied within thirty days of written notice by CPL; or a representation or warranty of CPL proves to have been incorrect or materially inaccurate when made. Upon any event of default, all outstanding principal and interest under any loans will become immediately due and payable. The Term Loan Facility contains normal and customary covenants including the delivery of the Company’s annual audited financial information each year, and a provision of priority of interest, in which the Company is to procure that its obligations under the Term Loan Facility do and will rank in priority with all its other current and future unsecured and unsubordinated obligations. The Company is also to provide a production and lifting schedule each month displaying the daily production totals and quantities lifted respectively from OMLs 120 and 121. The Company was in compliance with all loan covenants as of September 30, 2015 . Upon executing the Term Loan Facility, the Company paid fees totaling $2.6 million , which were recorded as debt issuance cost and are being amortized over the life of the Term Loan Facility using the effective interest method. As of September 30, 2015 , $1.8 million of the debt issuance cost remain unamortized. As of September 30, 2015 , the Company recognized an unrealized foreign currency gain of $1.6 million on the Naira portion of the loan, reducing the net balance under the Term Loan Facility to $98.4 million . Of this amount, $73.8 million was classified as long-term and $24.6 million as short-term. Accrued interest for the Term Loan Facility was $2.5 million as of September 30, 2015 . |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Assets and Liabilities The Company has transactions in the normal course of business with its shareholders, CEHL and their affiliates. The following table sets forth the related party assets and liabilities as of September 30, 2015 , and December 31, 2014 : ( In thousands ) September 30, December 31, 2014 Accounts receivable, CEHL $ 624 $ 624 Accounts payable and accrued liabilities, CEHL $ 26,154 $ 9,391 Short-term notes payable - related party, CEHL $ 2,000 $ — Long-term notes payable - related party, CEHL $ 119,352 $ 61,185 As of September 30, 2015 and December 31, 2014 , the Company owed $26.2 million and $9.4 million , respectively, to an affiliate primarily for logistical and support services in relation to the Company's oilfield operations in Nigeria, as well as accrued interest on the various related party notes payable. As of September 30, 2015 and December 31, 2014 , accrued and unpaid interest on the various related party notes payable were $6.7 million and $2.8 million , respectively. In September 2015, the Company borrowed $2.0 million from an entity related to CEHL under a 30-day Promissory Note. See Note 7 – Debt for further information. As of September 30, 2015 , the Company had a long-term note payable balance of $119.4 million owed to an affiliate, consisting of the $50.0 million Convertible Subordinated Note, $25.0 million borrowings under the Promissory Note, and $44.4 million borrowings under the 2015 Convertible Note, net of discount. As of December 31, 2014 , the Company had a long-term note payable balance of $61.2 million owed to an affiliate, consisting of the $50.0 million Convertible Subordinated Note and $11.2 million borrowings under the Promissory Note. See Note 7 – Debt for further information relating to the notes payable transactions. Results from Operations The table below sets forth a summary of transactions included in the Company's results of operations that were incurred with affiliates during the three and nine months ended September 30, 2015 and 2014 : Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2015 2014 2015 2014 Total operating expenses, CEHL $ 4,316 $ 5,939 $ 9,239 $ 10,185 Interest expense, CEHL $ 1,591 $ 773 $ 3,868 $ 1,629 An affiliate of the Company provides procurement and logistical support services to the Company’s Nigerian operations. In connection therewith, during the three months ended September 30, 2015 and 2014 , the Company incurred operating costs amounting to approximately $4.3 million and $5.9 million , respectively, and during the nine months ended September 30, 2015 and 2014 , the Company incurred operating costs amounting to approximately $9.2 million and $10.2 million , respectively. During the three months ended September 30, 2015 and 2014 , the Company incurred interest expense, excluding debt discount amortization, totaling approximately $1.6 million and $0.8 million , respectively, in relation to related party notes payable. During the nine months ended September 30, 2015 and 2014 , the Company incurred interest expense, excluding debt discount amortization, totaling approximately $3.9 million and $1.6 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments In February 2014, a long-term contract was signed for the floating, production, storage, and offloading vessel (“FPSO”) Armada Perdana, which is the vessel currently connected to the Company’s producing wells Oyo-8 and Oyo-7 in Nigeria. The contract provides for an initial term of seven years beginning January 1, 2014, with an automatic extension for an additional term of two years unless terminated by the Company with prior notice. The FPSO can process up to 40,000 barrels of liquid per day, with a storage capacity of approximately one million barrels. In June 2015, the operator of the FPSO agreed to a price reduction for the operating day rates incurred by the Company for the period from July 2014 to April 2015. This resulted in a $26.0 million reduction in previously accrued production costs. The remaining annual minimum commitment per the terms of the agreement is approximately $48.4 million through 2020. In December 2014, the Company entered into a short-term drilling contract for the semi-submersible drilling rig Sedco Express to complete the horizontal drilling portion of wells Oyo-7 and Oyo-8. The Company finished completion operations for well Oyo-8 in March 2015, and the drilling rig was released in June 2015 upon successful completion of the Oyo-7 well. The Company also has commitments related to four production sharing contracts with the Government of the Republic of Kenya (the “Kenya PSCs”), two Petroleum Exploration, Development & Production Licenses with the Republic of The Gambia (the “Gambia Licenses”), and one Petroleum Agreement with the Republic of Ghana. In all cases, the Company entered into these commitments through a subsidiary. To maintain compliance and ownership, the Company is required to fulfill certain minimum work obligations and to make certain payments as stated in each of the Kenya PSCs, the Gambia Licenses, and the Ghana Petroleum Agreement. In July 2015, having satisfied all material contractual obligations under the initial exploration period on its onshore blocks L1B and L16 in Kenya, the Company received approval from the Kenya Ministry of Energy and Petroleum to enter into the First Additional Exploration Period for both blocks, which will last two contract years, through July 2017. In accordance with the Kenya PSCs, during the First Additional Exploration Period, the Company is obligated, for each block, to (i) acquire, process, and interpret high density 300 square kilometer 3-D seismic at a minimum expenditure of $12.0 million , and (ii) drill one exploration well to a minimum depth of 3,000 meters at a minimum expenditure of $20.0 million . Contingencies Legal Contingencies From time to time, the Company may be involved in various legal proceedings and claims in the ordinary course of business. As of September 30, 2015 , and through the filing date of this report, the Company does not believe the ultimate resolution of such actions or potential actions of which the Company is currently aware will have a material effect on its consolidated financial position or results of operations. On June 28, 2015, the Company, CPL and an affiliate of CEHL, the Company's majority shareholder (collectively, the "Erin Parties") entered into a Settlement Agreement with Northern Offshore International Drilling Company Ltd. ("Northern"), pursuant to which the parties agreed (i) to settle all disputes and release all claims relating to the daywork drilling contract for Northern’s drillship Energy Searcher and (ii) to terminate the arbitration proceedings in London. Under the terms of the Settlement Agreement, neither the Erin Parties nor Northern paid any amounts to the other to settle the disputes, and each party agreed to bear its own legal fees and to share equally the arbitration costs. As a result of the settlement, the Company recorded a reduction in accounts payable and accrued liabilities of approximately $24.3 million . Contingency under the Allied Transfer Agreement As provided for under the Transfer Agreement with Allied, the Company is required to make the following additional payments upon the occurrence of certain future events: (i) $25.0 million cash or the equivalent in shares of the Company’s common stock within fifteen days following the approval of a development plan by the Nigerian Department of Petroleum Resources ("DPR")with respect to a first new discovery of hydrocarbons in a non-Oyo field area; and (ii) $25.0 million cash or the equivalent in shares of the Company’s common stock within fifteen days starting from the commencement of the first hydrocarbon production in commercial quantities in a non-Oyo field area. The number of shares to be issued shall be determined by calculating the average closing price of the Company’s common stock over a period of thirty days, counted back from the first business day immediately prior to the approval of a development plan by DPR or the date of the first hydrocarbon production in commercial quantities, as applicable. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Options During the nine months ended September 30, 2015 , the Company granted to certain employees options to purchase a total of 266,668 shares of common stock with a three -year vesting period. During the same period, options to purchase 152,844 shares of common stock were forfeited. During the nine months ended September 30, 2015 , the Company issued 5,000 shares of common stock as a result of the exercise of stock options. Stock Warrants During the nine months ended September 30, 2015 , in connection with the execution of the 2015 Convertible Note, the Company issued to Allied warrants to purchase approximately 2.6 million shares of the Company’s common stock at exercise prices ranging from $2.46 to $7.85 per share. The warrants are exercisable at any time starting from the date of issuance and have a five -year term. During the nine months ended September 30, 2015 , 0.2 million previously issued warrants were forfeited. During the nine months ended September 30, 2015 , the Company issued 0.3 million shares of common stock as a result of the exercise of stock warrants for cash proceeds totaling approximately $1.8 million . Restricted Stock Awards During the nine months ended September 30, 2015 , the Company granted officers, directors, and employees a total of approximately 1.2 million shares of restricted common stock with vesting periods varying from immediate vesting to 36 months . During the same period, 39,397 shares of restricted common stock were forfeited. In February 2015, the Company granted performance-based restricted stock awards (PBRSA) to certain officers totaling 0.4 million shares. Each grant will vest if the individuals remain employed three years from the date of grant and the Company achieves specific performance objectives at the end of the designated performance period. Up to 50% additional shares may be awarded if performance objectives are exceeded. None of the PBRSAs will vest if certain minimum performance goals are not met. The performance conditions are based on the Company’s total shareholder return over the performance period compared to an industry peer group of companies. Total estimated compensation expense is $0.4 million over three years. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s current operations are based in Nigeria, Kenya, The Gambia, and Ghana. Management reviews and evaluates the operations of each geographic segment separately. Operations include exploration for and production of hydrocarbons where commercial reserves have been found and developed. Revenues and expenditures are recognized at the relevant geographical location. The Company evaluates each segment based on operating income (loss). Segment activity for the three and nine months ended September 30, 2015 and 2014 , are as follows: ( In thousands ) Nigeria Kenya The Gambia Ghana Corporate and Other Total Three months ended September 30, 2015 Revenues $ 28,667 $ — $ — $ — $ — $ 28,667 Operating income (loss) $ (44,858 ) $ (1,056 ) $ (3,985 ) $ (444 ) $ (3,080 ) $ (53,423 ) 2014 Revenues $ 19,010 $ — $ — $ — $ — $ 19,010 Operating income (loss) $ (37,040 ) $ (614 ) $ (341 ) $ (43 ) $ (3,508 ) $ (41,546 ) Nine months ended September 30, 2015 Revenues $ 28,667 $ — $ — $ — $ — $ 28,667 Operating loss $ (65,883 ) $ (7,162 ) $ (4,647 ) $ (1,393 ) $ (12,190 ) $ (91,275 ) 2014 Revenues $ 53,844 $ — $ — $ — $ — $ 53,844 Operating loss $ (51,349 ) $ (2,689 ) $ (983 ) $ (49 ) $ (12,430 ) $ (67,500 ) Total assets by segment as of September 30, 2015 , and December 31, 2014 , are as follows: ( In thousands ) Nigeria Kenya The Gambia Ghana Corporate and Other Total Total Assets As of September 30, 2015 $ 705,697 $ 1,383 $ 3,028 $ 1,937 $ 2,371 $ 714,416 As of December 31, 2014 $ 609,243 $ 8,527 $ 2,739 $ 1,413 $ 16,521 $ 638,443 |
Basis of Presentation and Rec18
Basis of Presentation and Recently Issued Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly owned and majority-owned direct and indirect subsidiaries and have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). All significant intercompany transactions and balances have been eliminated in consolidation. The unaudited consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position and results of operations for the indicated periods. All such adjustments are of a normal recurring nature. This Form 10-Q should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014 , filed with the SEC on March 16, 2015. |
Use of Estimates | The preparation of the Company's consolidated financial statements in conformity with U.S. GAAP requires management to make estimates based on certain assumptions. Estimates affect the reported amounts of assets and liabilities, disclosure of contingent liabilities, and the reported amounts of revenues and expenses attributable to the reporting periods. Accordingly, accounting estimates in conformity with U.S. GAAP require the exercise of judgment. These estimates and assumptions used in the preparation of the Company’s consolidated financial statements are based on information available as of the date of the consolidated financial statements, and while management believes that the estimates and assumptions are appropriate, actual results could differ from management's estimates. Estimates that may have a significant effect on the Company’s financial position and results from operations include share-based compensation assumptions, oil and natural gas reserve quantities, depletion and amortization relating to oil and natural gas properties, asset retirement obligation assumptions, and income taxes. The accounting estimates used in the preparation of the Company's consolidated financial statements may change as new events occur, more experience is acquired, additional information is obtained and our operating environment changes. |
Capitalized Interest | The Company capitalizes interest costs for qualifying oil and gas properties. The capitalization period begins when expenditures are incurred on qualified properties, activities begin which are necessary to prepare the property for production, and interest costs have been incurred. The capitalization period continues as long as these events occur. Capitalized interest is added to the cost of the underlying assets and is depleted using the unit-of-production method in the same manner as the underlying assets. |
Net Earnings (Loss) Per Common Share | Basic net earnings or loss per common share is computed by dividing net earnings or loss by the weighted average number of shares of common stock outstanding at the end of the reporting period. Diluted net earnings or loss per share is computed by dividing net earnings or loss by the fully diluted common stock equivalent, which consists of shares outstanding, augmented by potentially dilutive shares issuable upon the exercise of stock options, unvested restricted stock awards, warrants, and conversion of the Convertible Subordinated Note, calculated using the treasury stock method. |
Fair Value of Financial Instruments | The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements. Fair value is the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, inventory, deposits, accounts payable and accrued liabilities, and debts at floating interest rates, approximate their fair values at September 30, 2015 , and December 31, 2014 , respectively, principally due to the short-term nature, maturities or nature of interest rates of the above listed items. |
Recently Issued Accounting Standards | In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU No. 2015-01 eliminates from US GAAP the concept of extraordinary items, and is effective for fiscal years beginning after December 15, 2015. The Company will adopt this standards update, as required, beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. ASU No. 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU No. 2015-02 is effective for interim and annual periods beginning after December 15, 2015, and the Company will adopt this standards update, as required, beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which is guidance for the reporting of debt issuance costs related to a recognized debt liability on an entity's balance sheet. Under the guidance, an entity must report debt issuance costs as a direct deduction from the carrying amount of that debt liability, consistent with the treatment for debt discounts. ASU No. 2015-03 is effective for interim and annual periods beginning after December 15, 2015; early adoption is permitted for financial statements that have not been previously issued. The Company will adopt this standards update beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in Cloud Computing Arrangement. ASU No. 2015-05 is new guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. ASU No. 2015-05 is effective for interim and annual periods beginning after December 15, 2015, and the Company will adopt this standards update, as required, beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-08, Business Combinations (Topic 805): Pushdown Accounting - Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115. The amendments in ASU No. 2015-08 amend various SEC paragraphs included in the FASB’s Accounting Standards Codification to reflect the issuance of Staff Accounting Bulletin No. 115 (“SAB 115”). SAB 115 rescinds portions of the interpretive guidance included in the SEC’s Staff Accounting Bulletins series and brings existing guidance into conformity with ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting,” which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The Company has adopted the amendments in ASU No. 2015-08, effective May 8, 2015, as the amendments in the update are effective upon issuance. The adoption did not have an impact on the Company's consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. ASU No. 2015-11 simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. The FASB defines net realizable value as the “estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” Under current guidance, an entity subsequently measures inventory at the lower of cost or market, with market defined as the replacement cost, net realizable value or net realizable value less a normal profit margin. An entity uses current replacement cost provided that it is not above net realizable value (i.e. the ceiling) or below net realizable value less an “approximately normal profit margin” (i.e. the floor). ASU No. 2015-11 eliminates this analysis for entities within the scope of the guidance. ASU No. 2015-11 applies to entities that recognize inventory within the scope of ASC 330, except for inventory measured under the LIFO method or the retail inventory method. ASU No. 2015-11 is effective for interim and annual periods beginning after December 15, 2016, and the Company will adopt this standards update, as required, beginning with the first quarter of 2017. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date. ASU 2015-14 defers the effective date of revenue standard ASU 2014-09 by one year for all entities. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU No. 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. With the issuance of ASU No. 2015-14, the Company is required to adopt revenue standard ASU No. 2014-09 beginning with the first quarter of 2018. The Company is continuing to evaluate the impact of the adoption of this guidance on its consolidated financial statements. In August 2015, the FASB issued ASU No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting. ASU 2015-15 addresses line-of-credit arrangements that were omitted from Accounting Standards Update No. 2015-03. Under the guidance, the SEC staff would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU No. 2015-15 is effective for interim and annual periods beginning after December 15, 2015; early adoption is permitted for financial statements that have not been previously issued. The Company will adopt this standards update beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. Under ASU NO. 2015-16, an acquirer must recognize adjustments to provisional amounts in business combinations that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, including the cumulative effect of the change in provisional amount as if the accounting had been completed at the acquisition date. The adjustments related to previous reporting periods since the acquisition date must be disclosed by income statement line item either on the face of the income statement or in the notes. ASU No. 2015-16 is effective for interim and annual periods beginning after December 15, 2016, and the Company will adopt this standards update, as required, beginning with the first quarter of 2017. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. |
Basis of Presentation and Rec19
Basis of Presentation and Recently Issued Accounting Standards (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | The table below sets forth the number of shares issuable pursuant to stock options, unvested restricted stock awards, and shares issuable upon conversion of the Convertible Subordinated Note that were excluded from diluted shares outstanding during the three and nine months ended September 30, 2015 and 2014 , as these securities are anti-dilutive because the Company was in a loss position for each period. Three Months Ended September 30, Nine Months Ended September 30, ( In thousands ) 2015 2014 2015 2014 Stock options 1,094 1,068 1,110 1,168 Stock warrants 650 2 504 1 Unvested restricted stock awards 1,278 1,023 1,308 993 Convertible subordinated note 12,454 11,844 12,302 10,491 15,476 13,937 15,224 12,653 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment were comprised of the following: ( In thousands ) September 30, December 31, 2014 Wells and production facilities $ 327,893 $ 33,690 Proved properties 386,196 386,196 Work in progress and other 99,454 261,346 Oilfield assets 813,543 681,232 Accumulated depletion (164,653 ) (95,403 ) Oilfield assets, net 648,890 585,829 Unevaluated leaseholds 10,440 9,440 Oil and gas properties, net 659,330 595,269 Other property and equipment 2,831 2,324 Accumulated depreciation (1,662 ) (1,264 ) Other property and equipment, net 1,169 1,060 Total property, plant and equipment, net $ 660,499 $ 596,329 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Summary of Changes in Asset Retirement Obligations | The following summarizes changes in the Company’s asset retirement obligations during the nine months ended September 30, 2015 ( in thousands ): Balance at January 1, 2015 $ 26,533 Accretion expense 1,398 Additions 9,416 Loss on settlement of asset retirement obligations 4,233 Payments to settle asset retirement obligations (17,220 ) Balance at September 30, 2015 $ 24,360 |
Schedule of Asset Retirement Obligation Current and Long-term Balances | The table below shows the current and long-term portions of the Company's asset retirement obligations as of the end of each period: ( In thousands ) September 30, December 31, 2014 Asset retirement obligations, current portion — 12,703 Asset retirement obligations, long-term portion 24,360 13,830 $ 24,360 $ 26,533 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions and Balances | The table below sets forth a summary of transactions included in the Company's results of operations that were incurred with affiliates during the three and nine months ended September 30, 2015 and 2014 : Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2015 2014 2015 2014 Total operating expenses, CEHL $ 4,316 $ 5,939 $ 9,239 $ 10,185 Interest expense, CEHL $ 1,591 $ 773 $ 3,868 $ 1,629 The following table sets forth the related party assets and liabilities as of September 30, 2015 , and December 31, 2014 : ( In thousands ) September 30, December 31, 2014 Accounts receivable, CEHL $ 624 $ 624 Accounts payable and accrued liabilities, CEHL $ 26,154 $ 9,391 Short-term notes payable - related party, CEHL $ 2,000 $ — Long-term notes payable - related party, CEHL $ 119,352 $ 61,185 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Activity | Segment activity for the three and nine months ended September 30, 2015 and 2014 , are as follows: ( In thousands ) Nigeria Kenya The Gambia Ghana Corporate and Other Total Three months ended September 30, 2015 Revenues $ 28,667 $ — $ — $ — $ — $ 28,667 Operating income (loss) $ (44,858 ) $ (1,056 ) $ (3,985 ) $ (444 ) $ (3,080 ) $ (53,423 ) 2014 Revenues $ 19,010 $ — $ — $ — $ — $ 19,010 Operating income (loss) $ (37,040 ) $ (614 ) $ (341 ) $ (43 ) $ (3,508 ) $ (41,546 ) Nine months ended September 30, 2015 Revenues $ 28,667 $ — $ — $ — $ — $ 28,667 Operating loss $ (65,883 ) $ (7,162 ) $ (4,647 ) $ (1,393 ) $ (12,190 ) $ (91,275 ) 2014 Revenues $ 53,844 $ — $ — $ — $ — $ 53,844 Operating loss $ (51,349 ) $ (2,689 ) $ (983 ) $ (49 ) $ (12,430 ) $ (67,500 ) Total assets by segment as of September 30, 2015 , and December 31, 2014 , are as follows: ( In thousands ) Nigeria Kenya The Gambia Ghana Corporate and Other Total Total Assets As of September 30, 2015 $ 705,697 $ 1,383 $ 3,028 $ 1,937 $ 2,371 $ 714,416 As of December 31, 2014 $ 609,243 $ 8,527 $ 2,739 $ 1,413 $ 16,521 $ 638,443 |
Company Description (Details)
Company Description (Details) - Sep. 30, 2015 km² in Thousands, a in Millions | a | km² | country | license |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of exploration and production licenses | 9 | |||
Number of countries company operates in Africa | country | 4 | |||
Area of land held for exploration activities | 10 | 40 |
Company Description - Related P
Company Description - Related Party (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Chief Executive Officer | |
Related Party Transaction [Line Items] | |
Director ownership interest of majority shareholder of the company | 27.70% |
Basis of Presentation and Rec26
Basis of Presentation and Recently Issued Accounting Standards - Narrative (Details) $ in Millions | Apr. 22, 2015 | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Stock issued during period, shares, reverse stock split | 0.1667 | ||
Interest costs capitalized | $ 2.2 | $ 0.3 | |
Allied | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Contingent additional payment under transfer agreement (up to) | $ 50 |
Basis of Presentation and Rec27
Basis of Presentation and Recently Issued Accounting Standards - Antidilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 15,476 | 13,937 | 15,224 | 12,653 |
Stock options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 1,094 | 1,068 | 1,110 | 1,168 |
Stock warrants | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 650 | 2 | 504 | 1 |
Unvested restricted stock awards | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 1,278 | 1,023 | 1,308 | 993 |
Convertible subordinated note | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 12,454 | 11,844 | 12,302 | 10,491 |
Liquidity Matters - Production
Liquidity Matters - Production (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 9 Months Ended | |||
Oct. 31, 2015USD ($)bbl | Dec. 31, 2015bbl | Sep. 30, 2015USD ($)bbl | Sep. 30, 2014USD ($) | Sep. 30, 2015bbl | Sep. 30, 2015USD ($)bbl | Sep. 30, 2014USD ($) | |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||||||
Crude oil sales, net of royalties | $ | $ 28,667 | $ 19,010 | $ 28,667 | $ 53,844 | |||
Crude Oil | |||||||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||||||
Production rates of oil per day (in bbl per day) | 11,600 | 11,600 | 11,600 | ||||
Production rates of oil per day, net of royalty (in bbl per day) | 10,200 | 10,200 | 10,200 | ||||
Barrels of oil sold (in bbl) | 649,000 | 600,000 | |||||
Barrels of oil sold, net of royalty (in bbl) | 571,000 | ||||||
Production rates of oil (in bbl) | 1,500,000 | ||||||
Barrels of oil remaining in inventory (in bbl) | 900,000 | 900,000 | 900,000 | ||||
Crude Oil | Subsequent Event | |||||||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||||||
Barrels of oil sold (in bbl) | 845,000 | ||||||
Barrels of oil sold, net of royalty (in bbl) | 744,000 | ||||||
Crude oil sales, net of royalties | $ | $ 35,100 | ||||||
Scenario, Forecast | Crude Oil | |||||||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||||||
Barrels of oil sold (in bbl) | 500,000 | ||||||
Barrels of oil, maximum export amount (in bbl) | 1,300,000 |
Liquidity Matters - Debt (Detai
Liquidity Matters - Debt (Details) - USD ($) | Mar. 12, 2015 | Sep. 30, 2015 | Aug. 31, 2015 | Jul. 31, 2015 | Feb. 28, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | |||||||
Long-term notes payable - related party | $ 119,352,000 | $ 61,185,000 | |||||
Short-term borrowings | 11,303,000 | 0 | |||||
Short-term note payable - related party | 2,000,000 | 0 | |||||
Majority Shareholder | |||||||
Line of Credit Facility [Line Items] | |||||||
Commitment to additional funding, time period | 1 year | ||||||
Convertible Subordinated Debt | |||||||
Line of Credit Facility [Line Items] | |||||||
Long-term notes payable - related party | 50,000,000 | $ 50,000,000 | $ 50,000,000 | ||||
Interest payable | 4,400,000 | ||||||
Convertible Subordinated Debt | 30-Day London Interbank Offered Rate (LIBOR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 5.00% | ||||||
Convertible Debt | 2015 Convertible Note | |||||||
Line of Credit Facility [Line Items] | |||||||
Long-term notes payable - related party | 44,400,000 | ||||||
Maximum borrowing capacity (up to) | $ 50,000,000 | ||||||
Long-term debt | 48,000,000 | ||||||
Interest payable | 1,300,000 | ||||||
Advance | Advance Under Stand-alone Spot Sales Contract | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, face amount | $ 26,500,000 | $ 13,000,000 | |||||
Short-term borrowings | 11,300,000 | ||||||
Interest payable | 200,000 | ||||||
Advance | Advance Under Stand-alone Spot Sales Contract | 30-Day London Interbank Offered Rate (LIBOR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 6.50% | 6.50% | |||||
Line of Credit | Majority Shareholder | Promissory Note to Majority Shareholder Related Party | |||||||
Line of Credit Facility [Line Items] | |||||||
Short-term note payable - related party | $ 2,000,000 | ||||||
Line of Credit | Majority Shareholder | Promissory Note to Majority Shareholder Related Party | 30-Day London Interbank Offered Rate (LIBOR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 3.00% |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Wells and production facilities | $ 327,893 | $ 33,690 |
Proved properties | 386,196 | 386,196 |
Work in progress and other | 99,454 | 261,346 |
Oilfield assets | 813,543 | 681,232 |
Accumulated depletion | (164,653) | (95,403) |
Oilfield assets, net | 648,890 | 585,829 |
Unevaluated leaseholds | 10,440 | 9,440 |
Oil and gas properties, net | 659,330 | 595,269 |
Other property and equipment | 2,831 | 2,324 |
Accumulated depreciation | (1,662) | (1,264) |
Other property and equipment, net | 1,169 | 1,060 |
Total property, plant and equipment, net | $ 660,499 | $ 596,329 |
Suspended Exploratory Well Co31
Suspended Exploratory Well Costs - Narrative (Details) $ in Millions | 1 Months Ended | |||||
Aug. 31, 2014m | Aug. 31, 2014ft | Aug. 31, 2014reservoir | Nov. 30, 2013intervalft | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Costs Incurred Oil And Gas Property Acquisition Exploration And Development Activities [Line Items] | ||||||
Number of hydrocarbons miocene formation intervals | interval | 3 | |||||
Number of feet encountered by hydrocarbons in three intervals, as interpreted by “LWD” data | ft | 65 | |||||
Pliocene formation eastern fault block vertical depth | 1,847 | 6,059 | ||||
Number of pliocene formation eastern fault block new oil and gas reservoirs | reservoir | 4 | |||||
Hydrocarbons pliocene formation eastern fault block gross thickness | ft | 112 | |||||
Miocene Exploratory Drilling Activities | ||||||
Costs Incurred Oil And Gas Property Acquisition Exploration And Development Activities [Line Items] | ||||||
Suspended exploratory well cost | $ 26.5 | $ 26.5 | ||||
Pliocene Exploratory Drilling Activity | ||||||
Costs Incurred Oil And Gas Property Acquisition Exploration And Development Activities [Line Items] | ||||||
Suspended exploratory well cost | $ 6.5 | $ 6.5 |
Asset Retirement Obligations -
Asset Retirement Obligations - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Asset Retirement Obligation Disclosure [Abstract] | |||||
Loss on settlement of asset retirement obligations | $ 4,200 | $ 779 | $ 0 | $ 4,233 | $ 0 |
Asset Retirement Obligations 33
Asset Retirement Obligations - Summary of Change in Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||||
Asset retirement obligations beginning balance | $ 26,533 | ||||
Accretion expense | 1,398 | $ 1,349 | |||
Additions | 9,416 | ||||
Loss on settlement of asset retirement obligations | $ 4,200 | $ 779 | $ 0 | 4,233 | $ 0 |
Payments to settle asset retirement obligations | (17,220) | ||||
Asset retirement obligations ending balance | $ 24,360 | $ 24,360 |
Asset Retirement Obligations 34
Asset Retirement Obligations - Current and Long-term Balance (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligations, current portion | $ 0 | $ 12,703 |
Asset retirement obligations, long-term portion | 24,360 | 13,830 |
Asset retirement obligation | $ 24,360 | $ 26,533 |
Debt - Short-term Promissory No
Debt - Short-term Promissory Note (Details) - USD ($) $ in Thousands | 1 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Short-term Debt [Line Items] | ||
Short-term note payable - related party | $ 2,000 | $ 0 |
Majority Shareholder | Line of Credit | Promissory Note to Majority Shareholder Related Party | ||
Short-term Debt [Line Items] | ||
Short-term note payable - related party | $ 2,000 | |
Majority Shareholder | Line of Credit | 30-Day London Interbank Offered Rate (LIBOR) | Promissory Note to Majority Shareholder Related Party | ||
Short-term Debt [Line Items] | ||
Basis spread on variable rate | 3.00% |
Debt - Short-term Borrowing (De
Debt - Short-term Borrowing (Details) - USD ($) | 1 Months Ended | |||
Aug. 31, 2015 | Jul. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Short-term Debt [Line Items] | ||||
Short-term borrowings | $ 11,303,000 | $ 0 | ||
Advance Under Stand-alone Spot Sales Contract | Advance | ||||
Short-term Debt [Line Items] | ||||
Debt instrument, face amount | $ 26,500,000 | $ 13,000,000 | ||
Short-term borrowings | 11,300,000 | |||
Interest payable | $ 200,000 | |||
Advance Under Stand-alone Spot Sales Contract | Advance | 30-Day London Interbank Offered Rate (LIBOR) | ||||
Short-term Debt [Line Items] | ||||
Basis spread on variable rate | 6.50% | 6.50% |
Debt - Promissory Note (Details
Debt - Promissory Note (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Long-term notes payable - related party | $ 119,352,000 | $ 61,185,000 | |
Line of Credit | Promissory Note To Allied | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 25,000,000 | ||
Long-term notes payable - related party | 25,000,000 | $ 25,000,000 | $ 11,200,000 |
Interest payable | $ 700,000 | ||
Line of Credit | Promissory Note To Allied | 30-Day London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% |
Debt - Convertible Subordinated
Debt - Convertible Subordinated Note (Details) - USD ($) | 1 Months Ended | |||
Feb. 28, 2014 | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Long-term notes payable - related party | $ 119,352,000 | $ 61,185,000 | ||
Convertible Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Convertible subordinate note issued | $ 50,000,000 | |||
Debt term | 5 years | |||
Convertible debt conversion price | $ 4.2984 | |||
Minimum proceeds from capital market debt issuance for mandatory prepayment option | $ 250,000,000 | |||
Long-term notes payable - related party | 50,000,000 | $ 50,000,000 | $ 50,000,000 | |
Interest payable | $ 4,400,000 | |||
Convertible Subordinated Debt | 30-Day London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 5.00% |
Debt - Convertible Note (Detail
Debt - Convertible Note (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 9 Months Ended | |
Mar. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | |||
Number of shares called by warrants issued (in shares) | 2.6 | ||
Warrants issued with debt | $ 4,911,000 | ||
Long-term notes payable - related party | 119,352,000 | $ 61,185,000 | |
Convertible Debt | 2015 Convertible Note | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity (up to) | $ 50,000,000 | ||
Long term debt, gross | 48,000,000 | ||
Debt issuance, unamortized discount | 3,600,000 | ||
Long-term notes payable - related party | 44,400,000 | ||
Interest payable | $ 1,300,000 | ||
Convertible Debt | London Interbank Offered Rate (LIBOR) | 2015 Convertible Note | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 5.00% | ||
Minimum | |||
Line of Credit Facility [Line Items] | |||
Warrants exercise price (in dollars per share) | $ 2.46 | ||
Maximum | |||
Line of Credit Facility [Line Items] | |||
Warrants exercise price (in dollars per share) | $ 7.85 | ||
Additional Paid-in Capital | |||
Line of Credit Facility [Line Items] | |||
Warrants issued with debt | $ 4,911,000 |
Debt - Term Loan Facility (Deta
Debt - Term Loan Facility (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | ||||
Foreign currency transaction gain | $ 2,167,000 | $ 0 | ||
Long-term debt, current | 24,609,000 | $ 6,200,000 | ||
Term Loan Facility | ||||
Line of Credit Facility [Line Items] | ||||
Debt term | 5 years | |||
Maximum borrowing capacity (up to) | $ 100,000,000 | $ 100,000,000 | ||
Percent of maximum borrowing capacity available in USD | 90.00% | |||
Percent of maximum borrowing capacity available in Naira | 10.00% | |||
Line of credit facility, commitment fee amount | $ 2,600,000 | |||
Debt issuance, unamortized discount | 1,800,000 | |||
Foreign currency transaction gain | 1,600,000 | |||
Long-term debt | 98,400,000 | |||
Long-term debt, non-current | 73,800,000 | |||
Long-term debt, current | 24,600,000 | |||
Interest payable | $ 2,500,000 | |||
Term Loan Facility | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 10.50% |
Related Party Transactions - Su
Related Party Transactions - Summary of Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Related Party Transactions [Abstract] | ||
Accounts receivable, CEHL | $ 624 | $ 624 |
Accounts payable and accrued liabilities, CEHL | 26,154 | 9,391 |
Short-term notes payable - related party, CEHL | 2,000 | 0 |
Long-term notes payable - related party, CEHL | $ 119,352 | $ 61,185 |
Related Party Transactions - 42
Related Party Transactions - Summary of Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ||||
Total operating expenses, CEHL | $ 4,316 | $ 5,939 | $ 9,239 | $ 10,185 |
Interest expense, CEHL | $ 1,591 | $ 773 | $ 3,868 | $ 1,629 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||||||
Accounts payable and accrued expenses | $ 26,154 | $ 26,154 | $ 9,391 | |||
Accrued and unpaid interest on notes payable | 6,700 | 6,700 | 2,800 | |||
Short-term note payable - related party | 2,000 | 2,000 | 0 | |||
Long-term notes payable - related party | 119,352 | 119,352 | 61,185 | |||
Total operating expenses, CEHL | 4,316 | $ 5,939 | 9,239 | $ 10,185 | ||
Interest expense, CEHL | 1,591 | $ 773 | 3,868 | $ 1,629 | ||
Convertible Subordinated Debt | ||||||
Related Party Transaction [Line Items] | ||||||
Long-term notes payable - related party | 50,000 | 50,000 | $ 50,000 | 50,000 | ||
Line of Credit | Promissory Note To Allied | ||||||
Related Party Transaction [Line Items] | ||||||
Long-term notes payable - related party | 25,000 | 25,000 | $ 25,000 | $ 11,200 | ||
Convertible Debt | 2015 Convertible Note | ||||||
Related Party Transaction [Line Items] | ||||||
Long-term notes payable - related party | 44,400 | 44,400 | ||||
Line of Credit | Majority Shareholder | Promissory Note to Majority Shareholder Related Party | ||||||
Related Party Transaction [Line Items] | ||||||
Short-term note payable - related party | $ 2,000 | $ 2,000 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Jun. 28, 2015USD ($) | Jul. 31, 2015USD ($)km²m | Jun. 30, 2015USD ($) | Feb. 28, 2014bbl | Sep. 30, 2015USD ($)contractlicense | Sep. 30, 2014USD ($) |
Other Commitments [Line Items] | ||||||
Decrease in accounts payable and accrued liabilities | $ 24,307,000 | $ 0 | ||||
Kenya PSCs | ||||||
Other Commitments [Line Items] | ||||||
Production sharing contracts | contract | 4 | |||||
The Gambia | ||||||
Other Commitments [Line Items] | ||||||
Development and production licenses | license | 2 | |||||
Approval by Nigerian Department of Petroleum Resources | ||||||
Other Commitments [Line Items] | ||||||
Payment of cash or the equivalent in shares | $ 25,000,000 | |||||
Payment of cash or the equivalent of shares in period | 15 days | |||||
Number of shares to be issued in period | 30 days | |||||
Long-term Floating Production Storage and Offloading System Contract | ||||||
Other Commitments [Line Items] | ||||||
Initial contract term | 7 years | |||||
Additional contract term | 2 years | |||||
Barrels processing capacity (up to) | bbl | 40,000 | |||||
Maximum storage capacity for the FPSO | bbl | 1,000,000 | |||||
Reduction of accrued production costs | $ 26,000,000 | |||||
Minimum remaining annual commitment | $ 48,400,000 | |||||
First Additional Exploration Period Contractual Obligation | Kenya PSCs | ||||||
Other Commitments [Line Items] | ||||||
Additional contract term | 2 years | |||||
First Additional Exploration Period Contractual Obligation One | Kenya PSCs | ||||||
Other Commitments [Line Items] | ||||||
High density 3-D seismic area to acquire, process, and interpret | km² | 300 | |||||
Minimum expenditure | $ 12,000,000 | |||||
First Additional Exploration Period Contractual Obligation Two | Kenya PSCs | ||||||
Other Commitments [Line Items] | ||||||
Exploration well minimum drilling depth | m | 3,000 | |||||
Minimum expenditure | $ 20,000,000 | |||||
Settlement Agreement with Northern | ||||||
Other Commitments [Line Items] | ||||||
Decrease in accounts payable and accrued liabilities | $ 24,300,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 9 Months Ended |
Feb. 28, 2015 | Sep. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options granted | 266,668 | |
Options forfeited | 152,844 | |
Common stock exercised on issuance of warrant | 2,600,000 | |
Weighted-average remaining contractual term | 5 years | |
Proceeds from the exercise of warrants | $ 1.8 | |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Warrants exercise price (in dollars per share) | $ 2.46 | |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Warrants exercise price (in dollars per share) | $ 7.85 | |
Stock Option | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Shares of common stock issued during period | 5,000 | |
Warrants exercised in period | 300,000 | |
Restricted Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number forfeited in period | 39,397 | |
Number of grants in period | 1,200,000 | |
Restricted Stock | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award vesting period | 36 months | |
Stock warrants | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number forfeited in period | 200,000 | |
Senior Officer | Performance-Based Restricted Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Number of grants in period | 400,000 | |
Maximum percentage of additional shares awarded (up to) | 50.00% | |
Estimated compensation expense | $ 0.4 | |
Estimated compensation cost not yet recognized, period of recognition | 3 years |
Segment Information - Segment A
Segment Information - Segment Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 28,667 | $ 19,010 | $ 28,667 | $ 53,844 |
Operating Income (loss) | (53,423) | (41,546) | (91,275) | (67,500) |
Operating Segments | Nigeria | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 28,667 | 19,010 | 28,667 | 53,844 |
Operating Income (loss) | (44,858) | (37,040) | (65,883) | (51,349) |
Operating Segments | Kenya | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Income (loss) | (1,056) | (614) | (7,162) | (2,689) |
Operating Segments | The Gambia | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Income (loss) | (3,985) | (341) | (4,647) | (983) |
Operating Segments | Ghana | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | ||
Operating Income (loss) | (444) | (43) | (1,393) | (49) |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Income (loss) | $ (3,080) | $ (3,508) | $ (12,190) | $ (12,430) |
Segment Information - Segment47
Segment Information - Segment Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Assets | $ 714,416 | $ 638,443 |
Operating Segments | Nigeria | ||
Segment Reporting Information [Line Items] | ||
Assets | 705,697 | 609,243 |
Operating Segments | Kenya | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,383 | 8,527 |
Operating Segments | The Gambia | ||
Segment Reporting Information [Line Items] | ||
Assets | 3,028 | 2,739 |
Operating Segments | Ghana | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,937 | 1,413 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 2,371 | $ 16,521 |