Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 01, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Erin Energy Corp. | ||
Entity Central Index Key | 1,402,281 | ||
Trading Symbol | ERN | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 212,014,383 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 352,126,588 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 8,363 | $ 25,143 |
Restricted cash | 8,661 | 1,496 |
Accounts receivable - trade | 1,029 | 0 |
Accounts receivable - partners | 287 | 496 |
Accounts receivable - related party | 1,186 | 624 |
Accounts receivable - other | 28 | 54 |
Crude oil inventory | 4,789 | 1,089 |
Prepaids and other current assets | 2,245 | 2,929 |
Total current assets | 26,588 | 31,831 |
Property, plant and equipment: | ||
Oil and gas properties (successful efforts method of accounting), net | 348,331 | 595,269 |
Other property, plant and equipment, net | 1,174 | 1,060 |
Total property, plant and equipment, net | 349,505 | 596,329 |
Other non-current assets | ||
Restricted cash | 0 | 8,909 |
Debt issuance costs | 0 | 1,307 |
Other non-current assets | 67 | 67 |
Other assets, net | 67 | 10,283 |
Total assets | 376,160 | 638,443 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 213,120 | 108,047 |
Accounts payable and accrued liabilities - related party | 30,133 | 9,391 |
Asset retirement obligations | 0 | 12,703 |
Current portion of long-term debt - Term loan facility | 98,119 | 6,200 |
Total current liabilities | 341,372 | 136,341 |
Term loan facility | 0 | 93,000 |
Long-term notes payable - related party | 120,006 | 61,185 |
Asset retirement obligations | 20,609 | 13,830 |
Other long-term liabilities | 0 | 82 |
Total liabilities | $ 481,987 | $ 304,438 |
Commitments and contingencies (Note 11) | ||
Equity (Capital deficiency): | ||
Preferred stock $0.001 par value - 50,000,000 shares authorized; none issued and outstanding as of December 31, 2015 and 2014, respectively | $ 0 | $ 0 |
Common stock $0.001 par value - 416,666,667 shares authorized; 211,615,773 and 210,307,502 shares outstanding as of December 31, 2015 and 2014, respectively | 212 | 210 |
Additional paid-in capital | 789,615 | 778,095 |
Accumulated deficit | (896,451) | (444,954) |
Total equity (deficit) - Erin Energy Corporation | (106,624) | 333,351 |
Non-controlling interests | 797 | 654 |
Total equity (capital deficiency) | (105,827) | 334,005 |
Total liabilities and equity (capital deficiency) | $ 376,160 | $ 638,443 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 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 | 211,615,773 | 210,307,502 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Crude oil sales, net of royalties | $ 68,429,000 | $ 53,844,000 | $ 63,736,000 |
Operating costs and expenses: | |||
Production costs | 90,079,000 | 80,296,000 | 84,431,000 |
Crude oil inventory (increase) decrease | (2,502,000) | 14,512,000 | (14,004,000) |
Workover expenses | 972,000 | 0 | 0 |
Exploratory expenses | 16,437,000 | 14,283,000 | 5,501,000 |
Depreciation, depletion and amortization | 99,110,000 | 23,756,000 | 16,875,000 |
Impairment of oil and gas properties | 281,768,000 | 0 | 0 |
Loss on settlement of asset retirement obligations | 3,653,000 | 0 | 0 |
General and administrative expenses | 15,905,000 | 14,322,000 | 14,460,000 |
Total operating costs and expenses | 505,422,000 | 147,169,000 | 107,263,000 |
Operating loss | (436,993,000) | (93,325,000) | (43,527,000) |
Other income (expense): | |||
Currency transaction gain (loss) | 2,520,000 | 1,758,000 | 224,000 |
Interest expense | (17,986,000) | (4,383,000) | (99,000) |
Other, net | 0 | (358,000) | (87,000) |
Total other income (expense) | (15,466,000) | (2,983,000) | 38,000 |
Loss from continuing operations before income taxes | (452,459,000) | (96,308,000) | (43,489,000) |
Income tax expense | 0 | 0 | 0 |
Net loss from continuing operations | (452,459,000) | (96,308,000) | (43,489,000) |
Discontinued operations | |||
Net loss from discontinued operations, net of tax | 0 | 0 | (36,000) |
Net loss from discontinued operations | 0 | 0 | (36,000) |
Net loss before non-controlling interest from continuing operations | (452,459,000) | (96,308,000) | (43,525,000) |
Net loss attributable to non-controlling interest | 962,000 | 246,000 | 0 |
Net loss attributable to Erin Energy Corporation | $ (451,497,000) | $ (96,062,000) | $ (43,525,000) |
Net loss per common share attributable to Erin Energy Corporation - basic: | |||
Continuing operations (Dollars per share) | $ (2.13) | $ (0.49) | $ (0.30) |
Discontinued operations (Dollars per share) | 0 | 0 | 0 |
Total (Dollars per share) | (2.13) | (0.49) | (0.30) |
Net loss per common share attributable to Erin Energy Corporation - diluted: | |||
Continuing operations (Dollars per share) | (2.13) | (0.49) | (0.30) |
Discontinued operations (Dollars per share) | 0 | 0 | 0 |
Total (Dollars per share) | $ (2.13) | $ (0.49) | $ (0.30) |
Weighted-average common shares outstanding: | |||
Basic (shares) | 211,616 | 194,745 | 146,452 |
Diluted (shares) | 211,616 | 194,745 | 146,452 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss, including non-controlling interest | $ (452,459) | $ (96,308) | $ (43,525) |
Other comprehensive income (loss): | |||
Foreign currency transactions | 0 | 0 | (224) |
Total other comprehensive (loss) income | 0 | 0 | (224) |
Comprehensive loss | (452,459) | (96,308) | (43,749) |
Comprehensive loss attributable to non-controlling interests | 962 | 246 | 0 |
Comprehensive loss attributable to Erin Energy Corporation | $ (451,497) | $ (96,062) | $ (43,749) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CAPITAL DEFICIENCY) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest |
Beginning balance (in shares) at Dec. 31, 2012 | 146,254,000 | |||||
Beginning balance at Dec. 31, 2012 | $ 333,402 | $ 146 | $ 638,405 | $ (305,367) | $ 224 | $ (6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of restricted stock (in shares) | 383,000 | |||||
Vesting of restricted stock | 2 | 2 | ||||
Stock-based compensation | 2,013 | 2,013 | ||||
Realized foreign currency gain | (224) | (224) | ||||
Adjustments to non-controlling interest | 6 | 6 | ||||
Net loss | (43,525) | (43,525) | ||||
Net assets contributed by parent | 61,205 | 61,205 | ||||
Allied Transaction adjustments | 35,067 | 35,067 | ||||
Ending balance at Dec. 31, 2013 | 387,946 | $ 146 | 736,692 | (348,892) | 0 | 0 |
Ending balance (in shares) at Dec. 31, 2013 | 146,637,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 3,492 | 3,492 | ||||
Net loss | (96,308) | (96,062) | (246) | |||
Net assets contributed by parent | 0 | |||||
Allied Transaction adjustments | (12,440) | (12,440) | ||||
Common stock issued (in shares) | 63,671,000 | |||||
Common stock issued | 270,415 | $ 64 | 270,351 | |||
Non-controlling interest | 900 | 900 | ||||
Allied acquisition | (220,000) | (220,000) | ||||
Ending balance at Dec. 31, 2014 | $ 334,005 | $ 210 | 778,095 | (444,954) | 0 | 654 |
Ending balance (in shares) at Dec. 31, 2014 | 210,307,502 | 210,308,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | $ 4,631 | 4,631 | ||||
Net loss | (452,459) | (451,497) | (962) | |||
Net assets contributed by parent | 0 | |||||
Common stock issued (in shares) | 1,308,000 | |||||
Common stock issued | 1,980 | $ 2 | 1,978 | |||
Non-controlling interest | 1,105 | 1,105 | ||||
Warrants issued with debt | 4,911 | 4,911 | ||||
Ending balance at Dec. 31, 2015 | $ (105,827) | $ 212 | $ 789,615 | $ (896,451) | $ 0 | $ 797 |
Ending balance (in shares) at Dec. 31, 2015 | 211,615,773 | 211,616,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net loss, including non-controlling interest | $ (452,459,000) | $ (96,308,000) | $ (43,525,000) |
Adjustments to reconcile net loss to cash (used in) provided by operating activities: | |||
Depreciation, depletion and amortization | 97,179,000 | 21,590,000 | 14,640,000 |
Impairment of oil and gas properties | 281,768,000 | 0 | 0 |
Asset retirement obligation accretion | 1,931,000 | 2,166,000 | 2,235,000 |
Amortization of debt issuance costs | 2,766,000 | 147,000 | 0 |
Loss on settlement of asset retirement obligations | 3,653,000 | 0 | 0 |
Related party liability offset | 0 | (32,880,000) | 0 |
Unrealized currency transaction (gain) loss | (2,520,000) | (1,572,000) | (224,000) |
Share-based compensation | 5,027,000 | 3,095,000 | 2,013,000 |
Payments to settle asset retirement obligations | (16,640,000) | 0 | 0 |
Other | 0 | (17,000) | 16,000 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | (804,000) | 562,000 | (3,046,000) |
(Increase) decrease in crude oil inventory | (2,502,000) | 14,512,000 | (14,004,000) |
(Increase) decrease in prepaids and other current assets | 746,000 | (1,672,000) | 156,000 |
(Increase) decrease in other non-current assets | 0 | (15,000) | 0 |
Increase in accounts payable and accrued liabilities | 84,000,000 | 56,845,000 | 5,114,000 |
Net cash provided by (used in) operating activities | 2,145,000 | (33,547,000) | (36,625,000) |
Cash flows from investing activities | |||
Capital expenditures | (84,039,000) | (128,510,000) | (602,000) |
Allied transaction | 0 | (170,000,000) | 0 |
Net cash used in investing activities | (84,039,000) | (298,510,000) | (602,000) |
Cash flows from financing activities | |||
Proceeds from the issuance of common stock | 0 | 270,000,000 | 0 |
Proceeds from the exercise of stock options and warrants | 1,855,000 | 415,000 | 0 |
Proceeds from (repayments of) term loan facility | (337,000) | 100,000,000 | 0 |
Debt issuance costs | 0 | (2,082,000) | 0 |
Proceeds from note payable - related party, net | 61,815,000 | 10,649,000 | 4,350,000 |
Funds restricted for debt service | 0 | (10,405,000) | 0 |
Allied Transaction adjustments | 0 | (12,440,000) | 29,234,000 |
Funding from non-controlling interest | 553,000 | 900,000 | 0 |
Net cash provided by financing activities | 63,886,000 | 357,037,000 | 33,584,000 |
Effect of exchange rate on cash and cash equivalents | 1,228,000 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (16,780,000) | 24,980,000 | (3,643,000) |
Cash and cash equivalents at beginning of year | 25,143,000 | 163,000 | 3,806,000 |
Cash and cash equivalents at end of year | 8,363,000 | 25,143,000 | 163,000 |
Cash paid for: | |||
Interest, net | 11,114,000 | 8,000 | 99,000 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Issuance of common shares for settlement of liabilities | 125,000 | 0 | 0 |
Discount on notes payable pursuant to issuance of warrants | 4,911,000 | 0 | 0 |
Reduction in accounts payable from settlement of Northern Offshore contingency | 24,307,000 | 0 | 0 |
Receivable from non-controlling interest | 552,000 | 0 | 0 |
Related party accounts payable, net, settled with related party notes payable | 0 | (32,880,000) | 1,274,000 |
Non-cash gain from asset retirement obligation extinguishment | 0 | 0 | 5,833,000 |
Change in asset retirement obligation estimate | (4,284,000) | 3,766,000 | 0 |
Net assets contributed by parent | $ 0 | $ 0 | $ 61,205,000 |
Company Description
Company Description | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Description | COMPANY DESCRIPTION Erin Energy Corporation (NYSE MKT: ERN, JSE: ERN) is an independent exploration and production company engaged in the acquisition and development of 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 and conducts exploration activities offshore Nigeria, conducts exploration activities offshore Ghana and The Gambia, and both offshore and onshore Kenya. 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 Erin Petroleum Nigeria Limited (“EPNL”), CAMAC Energy Kenya Limited, Erin Energy Gambia Ltd., and Erin 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 10. — 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 any of the above companies and their affiliates. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying 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”) 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 consolidated financial statements reflect all adjustments that 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. In January 2014, the Company’s Board of Directors declared a stock dividend on all shares of the Company’s outstanding common stock entitling stockholders of record as of the close of business on February 13, 2014, to receive an additional 1.4348 shares of common stock for every share of common stock held (the “Stock Dividend”). Payment of the Stock Dividend was effected on February 21, 2014 . Because the Stock Dividend exceeded 25% of the total shares of common stock outstanding prior to the distribution, it was considered a large stock dividend. Accordingly, it has been accounted for as a stock split under current accounting rules. The effect is a retroactive adjustment to the financial statements and associated footnotes as if the dividend had occurred at the beginning of the first period presented. In February 2014, the Company completed the acquisition of the remaining economic interests that it did not already own in the Production Sharing Contract covering Oil Mining Leases 120 and 121 located offshore Nigeria (the “OMLs”), which include the currently producing Oyo field (the “Allied Assets”), from Allied (the “Allied Transaction”). Pursuant to the terms of the Transfer Agreement entered into with Allied, the Company issued approximately 82.9 million shares of common stock to Allied, as partial consideration for the Allied Assets. Allied is a subsidiary of CEHL, the Company’s majority shareholder, and deemed to be under common control. Accordingly, the net assets acquired from Allied were recorded at their respective carrying values as of the acquisition date. The shares issued to Allied and the financial statements presented for all periods included herein are presented as though the transfer of the Allied Assets had occurred in June 2012, the effective date when Allied acquired the Allied Assets from an independent third party. See Note 4. — Acquisitions for further information. 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. Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts and activities of the Company, subsidiaries in which the Company has a controlling financial interest, and entities for which the Company is the primary beneficiary. All material intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates based on assumptions. Estimates affect the reported amounts of assets and liabilities, disclosure of contingent liabilities, and the reported amounts of revenues and expenses during the reporting periods. Accordingly, accounting estimates require the exercise of judgment. While management believes that the estimates and assumptions used in the preparation of the Company’s consolidated financial statements are appropriate, actual results could differ from those 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, impairment of oil and gas properties, depletion and amortization relating to oil and gas properties, asset retirement obligation assumptions, and income taxes. The accounting estimates used in the preparation of the consolidated financial statements may change as new events occur, more experience is acquired, additional information is obtained and our operating environment changes. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and short-term investments with initial maturities of three months or less. Restricted Cash Restricted cash consists of cash deposits that are contractually restricted for withdrawal or required to be maintained in a reserve bank account for a specific period of time, as provided for under certain agreements with third parties. Restricted cash as of December 31, 2015 and 2014 , consists of $8.7 million and $10.4 million , respectively, held in a debt service reserve account to secure certain interest and principal repayments pursuant to the Term Loan Facility in Nigeria. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are accounted for at cost less allowance for doubtful accounts. The Company establishes provisions for losses on accounts receivable if it is determined that collection of all or a part of an outstanding balance is not probable. Collectability is reviewed regularly and an allowance is established or adjusted, as necessary, using the specific identification method. As of December 31, 2015 and 2014 , no allowance for doubtful accounts was necessary. As of December 31, 2015 , the Company had a $1.0 million trade receivable for the remaining balance owed from its December 2015 crude oil sale. As of December 31, 2014, the trade receivable balance was nil . Partner accounts receivable consist of balances owed from joint venture (“JV”) partners. As of December 31, 2015 and 2014 , the Company was owed $0.3 million and $0.5 million from its Ghana JV partners for their share of the expenditures incurred in the Shallow Water Tano block, pursuant to the Ghana JV Joint Operating Agreement. Crude Oil Inventory Inventories of crude oil are valued at the lower of cost or market using the first-in, first-out method and include certain costs directly related to the production process. The Company had crude oil inventory of $4.8 million and $1.1 million as of December 31, 2015 and 2014 , respectively. Successful Efforts Method of Accounting for Oil and Gas Activities The Company follows the successful efforts method of accounting for its costs of acquisition, exploration and development of oil and gas properties. Under this method, oil and gas lease acquisition costs and intangible drilling costs associated with exploration efforts that result in the discovery of proved reserves and costs associated with development drilling, whether or not successful, are capitalized when incurred. Drilling costs of exploratory wells are capitalized pending determination that proved reserves have been found. If the determination is dependent upon the results of planned additional wells and require additional capital expenditures to develop the reserves, the drilling costs will be capitalized as long as sufficient reserves have been found to justify completion of the exploratory well as a producing well, and additional wells are underway or firmly planned to complete the evaluation of the well. Exploratory wells not meeting the criteria for continued capitalization are expensed when such a determination is made. Other exploration costs are expensed as incurred. A portion of the Company’s oil and gas properties include oilfield materials and supplies inventory to be used in connection with the Company’s drilling program. These inventories are stated at the lower of cost or market, which approximates fair value, and they are regularly assessed for obsolescence. Oilfield materials and supplies inventory balances were $30.0 million and $30.5 million at December 31, 2015 and 2014 , respectively. Depreciation, depletion and amortization costs for productive oil and gas properties are recorded on a unit-of-production basis. For other depreciable property, depreciation is recorded on a straight-line basis over the estimated useful life of the assets, which range between three to five years , or the lease term if shorter. Repairs and maintenance charges, including workover costs, are charged to expense as incurred. Impairment of Long-Lived Assets The Company reviews its long-lived assets in property, plant and equipment for impairment each reporting period, or whenever changes in circumstances indicate that the carrying amount of assets may not be fully recoverable. Possible indicators of impairment include lower expected future oil and gas prices, actual or expected future development or operating costs significantly higher than previously anticipated, significant downward oil and gas reserve revisions, or when changes in other circumstances indicate the carrying amount of an asset may not be recoverable. An impairment loss is recognized for proved properties when the estimated undiscounted future cash flows expected to result from the asset are less than its carrying amount. The Company estimates the future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts. Cash flows are determined on the basis of reasonable and documented assumptions that represent the best estimate of the future economic conditions during the remaining useful life of the asset. The Company’s cash flow projections into the future include assumptions on variables, such as future sales, sales prices, operating costs, economic conditions, market competition and inflation. Prices used to quantify the expected future cash flows are estimated based on forward prices prevailing in the marketplace and management’s long-term planning assumptions. Impairment is measured by the excess of carrying amount over the fair value of the assets. Unevaluated leasehold costs are assessed for impairment at the end of each reporting period and transferred to proved oil and gas properties to the extent they are associated with successful exploration activities. Significant unevaluated leasehold costs are assessed individually for impairment, based on the Company’s current exploration plans, and any indicated impairment is charged to expense. Asset Retirement Obligations The Company accounts for asset retirement obligations in accordance with applicable accounting guidelines , which require that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred. Specifically, the Company records a liability for the present value, using a credit-adjusted risk free interest rate, of the estimated site restoration costs with a corresponding increase to the carrying amount of the related long-lived assets. Revenues Revenues are recognized when crude oil is delivered to a buyer. The recognition criteria are satisfied when there exists a signed contract with defined pricing, delivery, and acceptance, as defined in a contract, and there is no significant uncertainty of collectability. Crude oil revenues are recorded net of royalties. Income Taxes The Company provides for income taxes using the asset and liability method of accounting for income taxes in accordance with applicable accounting rules. Under the asset and liability method, deferred tax assets and liabilities are recognized for temporary differences between the tax bases of assets and liabilities and their carrying values for financial reporting purposes and for operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established to reduce deferred tax assets to their net realizable amounts if it is more likely than not that the related tax benefits will not be fully realized. The Company routinely evaluates any tax deduction and tax refund positions in a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained. If that test is met, the second step is to determine the amount of benefit or expense to recognize in the consolidated financial statements. See Note 13. — Income Taxes for further information. Debt Issuance Costs Debt issuance costs consist of certain costs paid to lenders in the process of securing a borrowing facility. Debt issuance costs incurred are capitalized and subsequently charged to interest expense over the term of the related debt, using the effective interest rate method. As of December 31, 2015 and 2014 , unamortized debt issuance costs were $1.6 million and $1.9 million , of which nil and $1.3 million was classified as long-term, respectively. The current portion of the debt issuance costs, which was $1.6 million and $0.6 million as of December 31, 2015 and 2014 , respectively, was recorded in prepaids and other current assets. 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 years ended December 31, 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. Stock-Based Compensation The Company recognizes all stock-based payments to employees, including grants of employee stock options, in the consolidated financial statements based on their grant-date fair values. The Company values its stock options awarded using the Black-Scholes option pricing model. Restricted stock awards are valued at the grant date closing market price. Stock-based compensation costs are recognized over the vesting period, which is the period during which the employee is required to provide service in exchange for the award. Stock-based compensation paid to non-employees are valued at the fair value of the goods or services provided at the applicable measurement date and charged to expense as services are rendered. Reporting and Functional Currency The Company has adopted the U.S. dollar as the functional currency for all of its foreign subsidiaries. Gains and losses on foreign currency transactions are included in results of operations. 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 dilutive common stock equivalent, which consists of shares outstanding, augmented by potentially dilutive shares issuable upon the exercise of the Company’s stock options, non-vested restricted stock awards, and stock warrants and conversion of the Convertible Subordinated Note, calculated using the treasury stock method. The table below sets forth the number of stock options, warrants, non-vested restricted stock, and shares issuable upon conversion of Convertible Subordinated Note that were excluded from dilutive shares outstanding during the years ended December 31, 2015 , 2014 and 2013 , as these securities are anti-dilutive because the Company was in a loss position each year. Years Ended December 31, (In thousands) 2015 2014 2013 Stock options 1,101 1,038 — Stock warrants 541 6 — Non-vested restricted stock awards 1,275 997 359 Convertible note 12,379 10,932 — 15,296 12,973 359 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 11. — Commitments and Contingencies for further information. Non-Controlling Interests The Company reports its non-controlling interests as a separate component of equity. The Company also presents the consolidated net loss and the portion of the consolidated net loss allocable to the non-controlling interests and to the shareholders of the Company separately in its consolidated statements of operations. Losses attributable to the non-controlling interests are allocated to the non-controlling interests even when those losses are in excess of the non-controlling interests’ investment basis. As of December 31, 2015 and 2014 , the non-controlling interest recorded in equity was $0.8 million and $0.7 million , respectively, attributable to the joint ownership of an affiliate in our Erin Energy Ghana Limited subsidiary. Fair Value Measurements Fair value is defined as the amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in an orderly transaction between market participants at the measurement date. The established framework for measuring fair value establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and includes certain disclosure requirements. Fair value estimates are based on either (i) actual market data or (ii) assumptions that other market participants would use in pricing an asset or liability, including estimates of risk. There are three levels of valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an on-going basis. Level 2 - Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Substantially all of these inputs are observable in the marketplace throughout the term, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace. Level 3 - Inputs that are unobservable and significant to the fair value measurement (including the Company’s own assumptions in determining fair value). The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Fair Value on a Non-Recurring Basis The Company used discounted cash flow techniques to determine the estimated fair value of its oil and gas properties as part of the Company's analysis for impairment. Accordingly, the Company estimated the present value of expected future net cash flows from the Oyo field, discounted using risk-adjusted cost of capital. Significant Level 3 assumptions used in the calculation include the Company's estimate of future crude oil prices, production costs, development costs, and anticipated production of proved reserves, as well as appropriate risk-adjusted probable and possible reserves. The following table presents information about the Company’s oil and gas properties measured at fair value on a non-recurring basis: Level 3 As of December 31, (in thousands) 2015 2014 Value of oil and gas properties (1) $ 272,848 $ — (1) This represents non-financial assets that are measured at fair value on a non-recurring basis due to impairments. This is the fair value of the asset base that was subjected to impairment and does not reflect the entire asset balance as presented on the accompanying balance sheets. Please see Note 5. — Property, Plant and Equipment for further information. There was no impairment to the Company's oil and gas properties for the year ended December 31, 2014 . Fair Value of Financial Instruments 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 December 31, 2015 and 2014 , respectively, principally due to the short-term nature, maturities or nature of interest rates of the above listed items. Risks and Uncertainties The Company’s producing properties are located offshore Nigeria. Substantially all of the Company’s crude oil available for sale is sold under spot sales contracts and is delivered Free on Board ("FOB") at the point of transfer from the FPSO, as is customary in the industry. During 2015, the Company sold its crude oil under spot sales contracts with two ( 2 ) customers. The Company believes that the potential loss of one or both of these customers would not prevent it from selling its crude oil, as it will find other buyers for its crude oil. Reclassification Certain reclassifications have been made to the 2014 and 2013 consolidated financial statements to conform to the 2015 presentation. These reclassifications were not material to the accompanying consolidated financial statements. 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 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. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 704): Balance Sheet Classification of Deferred Taxes. ASU No. 2015-17 eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and non-current in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as non-current. ASU No. 2015-17 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 and Going Con
Liquidity Matters and Going Concern | 12 Months Ended |
Dec. 31, 2015 | |
Liquidity Matters [Abstract] | |
Liquidity Matters and Going Concern | LIQUIDITY AND GOING CONCERN The Company has incurred losses from operations in each of the years ended December 31, 2015, 2014 and 2013. As of December 31, 2015, the Company's total current liabilities of $341.4 million exceeded its total current assets of $26.6 million , resulting in a working capital deficit of $314.8 million . As a result of the current low commodity prices and the Company’s low oil production volumes due to the currently shut-in well Oyo-8, the Company has not been able to generate sufficient cash from operations to satisfy certain obligations as they became due. Further, pursuant to the Company's indebtedness under the Term Loan Facility, it will owe a total of approximately $9.0 million for quarterly principal and interest on March 31, 2016. In addition, the lender, under the Term Loan Facility, has the right to unilaterally review the terms and conditions of the Term Loan Facility and, among other things, terminate the Term Loan Facility and accelerate its maturity based on any adverse information putting the Term Loan Facility at risk. See Note 9. - Debt for further information. The Company is currently pursuing a number of actions, including i) working on re-establishing production from well Oyo-8, ii) obtaining additional funds through public or private financing sources, iii) restructuring existing debts from lenders, iv) obtaining forbearance of debt from trade creditors, v) reducing ongoing operating costs, vi) minimizing projected capital costs for the 2016 exploration and development campaign and vii) farming-out a portion of our rights to certain of our oil and gas properties. There can be no assurances that sufficient liquidity can be raised from one or more of these actions or that these actions can be consummated within the period needed to meet certain obligations. The Company's consolidated financial statements have been prepared under the assumption that it will continue as a going concern, which assumes the continuity of operations, the realization of assets and the satisfaction of liabilities as they come due in the normal course of business. Although the Company believes that it will be able to generate sufficient liquidity from the measures described above, its current circumstances raise substantial doubt about its ability to continue to operate as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS The Allied Assets In February 2014, the Company completed the Allied Transaction, thereby acquiring the Allied Assets. Pursuant to the terms of the Transfer Agreement, the Company, as partial consideration for the Allied Assets, paid $170.0 million in cash, issued approximately 82.9 million shares of the Company’s common stock and delivered a $50.0 million Convertible Subordinated Note to Allied (the “Convertible Subordinated Note”). To fund the cash portion of the Allied Transaction and a portion of the anticipated capital expenditures for development of the Oyo field, the Company also entered into a Share Purchase Agreement (the “Share Purchase Agreement”) with the Public Investment Corporation (SOC) Limited, a state-owned company incorporated in the Republic of South Africa (“PIC”), for an aggregate cash investment of $270.0 million through a private placement of 62.8 million shares of common stock (the “Private Placement”). Additional contingent payments are owed to Allied upon the occurrence of certain future events. See Note 11. — Commitments and Contingencies for additional information regarding the contingent payments due to Allied. The table below sets forth a summary of the contractual purchase consideration paid for the Allied Assets ( In thousands ): Cash consideration paid $ 170,000 Erin Energy Corporation common stock (1) — Long-term convertible subordinated note payable - related party 50,000 Total purchase price $ 220,000 Asset acquired and liabilities assumed as of February 21, 2014: Property, plant and equipment, net 248,736 Accounts payable (25,429 ) Asset retirement obligations (20,890 ) Net assets acquired 202,417 Excess of consideration paid over carrying value of assets acquired $ 17,583 (1) Since the cash and debt consideration exceeds the carrying value of the assets acquired, no value was assigned to the shares issued Because Allied is a wholly owned subsidiary of CEHL, the Company’s majority shareholder, Allied and the Company are deemed under common control. Accordingly, the net assets acquired from Allied were recorded at their respective carrying values as of the acquisition date. The consolidated financial statements, included herein, are presented as though the Allied Transaction had occurred in June 2012, the date Allied acquired the Allied Assets from an independent third party. For the periods prior to January 1, 2014, the Allied Assets were recorded as if CEHL had acquired the Allied Assets and contributed them to the Company. This includes the cost to acquire the Allied Assets from a third party in June 2012, as well as costs related to the drilling of the Oyo-7 well incurred by Allied in 2013. The table below shows the carrying values of the net Allied Assets deemed contributed by our parent company at their respective periods ( in thousands ): Years ended December 31 2013 2012 Asset acquired and liabilities assumed: Property, plant and equipment, net $ 61,205 $ 214,710 Asset retirement obligations — (23,785 ) Net assets acquired $ 61,205 $ 190,925 Because these assets were deemed paid for by CEHL and contributed to the Company, they have been treated as non-cash transactions in the accompanying Consolidated Statements of Cash Flows. Award of the Tano Block in Ghana In April 2014, the Company, through an indirect 50% -owned subsidiary, signed a Petroleum Agreement with the Republic of Ghana (the “Petroleum Agreement”) for the Expanded Shallow Water Tano block offshore Ghana ("ESWT"). The contracting parties, which hold 90% of the participating interest in the block, are Erin Energy Ghana Limited as the operator, GNPC Exploration and Production Company Limited, and Base Energy (collectively the "Contracting Parties"), holding 60% , 25% , and 15% share of the participating interest of the Contracting Parties, respectively. The Ghana National Petroleum Company initially has a 10% carried interest through the exploration phase, and will have the option to acquire an additional paying interest of up to 10% following a declaration of commercial discovery. The ESWT block contains three previously discovered fields (the "Fields") and the work program requires the Contracting Parties to determine, within nine months of the effective date of the Petroleum Agreement, the economic viability of developing the Fields. In addition, the Petroleum Agreement provides for an initial exploration period of two years from the effective date of the Petroleum Agreement, with specified work obligations during that period, including the reprocessing of existing 2-D and 3-D seismic data and the drilling of one exploration well on the ESWT block. The Contracting Parties have the right to apply for a first extension period of one and one-half years and a second extension period of up to two and one-half years. Each extension period has specified additional minimum work obligations, including (i) conducting geological and geophysical studies during the first extension period and (ii) drilling one exploration well during the first extension period and, depending on the length of the extension, one or two wells during the second extension period. In January 2015, the Petroleum Agreement became effective, following the signing of a Joint Operating Agreement between the Contracting Parties. In October 2015, at the completion of the initial technical and commercial evaluation of the Fields, the Contracting Parties concluded that certain fiscal terms in the Petroleum Agreement had to be adjusted in order to achieve commerciality of the Fields under current economic conditions. The Contracting Parties have presented this conclusion to the relevant government entities. The Ghanian Government is currently reviewing the requests for adjustment of the fiscal terms. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment were comprised of the following: As of December 31, (In thousands) 2015 2014 Wells and production facilities $ 329,133 $ 33,690 Proved properties 386,196 386,196 Work in progress and other 65,043 261,346 Oilfield assets 780,372 681,232 Accumulated depletion (442,481 ) (95,403 ) Oilfield assets, net 337,891 585,829 Unevaluated leaseholds 10,440 9,440 Oil and gas properties, net 348,331 595,269 Other property and equipment 2,963 2,324 Accumulated depreciation (1,789 ) (1,264 ) Other property and equipment, net 1,174 1,060 Total property, plant and equipment, net $ 349,505 $ 596,329 All of the Company’s oilfield assets are located offshore Nigeria in the OMLs. “Work-in-progress and other” includes suspended costs for wells that are not yet completed, as well as warehouse inventory items purchased as part of the redevelopment plan of the Oyo field. The Company’s unevaluated leasehold costs include costs to acquire the rights to the exploration acreage in its various oil and gas properties. The $10.4 million unevaluated leasehold cost as of December 31, 2015 includes the $1.0 million payment during 2015 to extend the initial exploration period for the Gambia Licenses and the $1.2 million payment in 2014 to acquire rights to the Ghana properties. Impairment of Oil and Gas Properties The Company used discounted cash flow techniques to determine the estimated fair value of its oil and gas properties as part of the Company's analysis for impairment. Accordingly, the Company estimated the present value of expected future net cash flows from the Oyo field, discounted using risk-adjusted cost of capital. Significant Level 3 assumptions used in the calculation include the Company's estimate of future crude oil prices, production costs, development costs, and anticipated production of proved reserves, as well as appropriate risk-adjusted probable and possible reserves. In December 2015, the Company concluded that the carrying value of its oilfield assets would not be recoverable under current market conditions. Accordingly, the Company recorded a non-cash impairment charge of $249.2 million to reduce the carrying value of its oil and gas properties to their estimated fair values as of December 31, 2015 . In addition, the Company recorded a charge of $32.6 million to write-off the carrying value of well Oyo-5 from work in progress because the Company no longer intends to recomplete it into a water injection well under current plans. There were no impairment charges recorded for the years ended December 31, 2014 . |
Suspended Exploratory Well Cost
Suspended Exploratory Well Costs | 12 Months Ended |
Dec. 31, 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 well Oyo-7. 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 Miocene intervals totaling approximately 65 feet, as interpreted by the logging-while-drilling (“LWD”) data. Plans are underway to secure a rig to drill at least one exploration well in the nearby G-Prospect. The primary objective of the G-Prospect is to target the same Miocene-age sediments as the ones found in the Oyo-7 exploratory drilling objective. As of December 31, 2015 and 2014 , the Company’s suspended exploratory well costs were $26.5 million for the costs related to the Miocene exploratory drilling activities. In August 2014, the Company drilled well Oyo-8 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 completed a detailed evaluation of the results and has future development plans in the area. Suspended exploratory well costs were $6.5 million at December 31, 2015 and 2014 for the costs related to the Pliocene exploration drilling activities in the eastern fault block. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES The table below sets forth a summary of the Company’s accounts payable and accrued liabilities at December 31, 2015 and 2014 : As of December 31, (In thousands) 2015 2014 Accounts payable - vendors $ 153,085 $ 79,512 Amounts due to government entities 53,119 24,515 Accrued interest 2,510 394 Accrued payroll and benefits 629 1,792 Other liabilities 3,777 1,834 $ 213,120 $ 108,047 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 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 its producing 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 used in the fair value determination were based on Level 3 inputs, which were essentially management's assumptions. The following table summarizes changes in the Company’s asset retirement obligations during the years ended December 31, 2015 and 2014 : (In thousands) 2015 2014 Asset retirement obligations at January 1 $ 26,533 $ 20,601 Accretion expense 1,931 2,166 Additions 9,416 — Revisions in estimated liabilities (4,284 ) 3,766 Loss on settlement of asset retirement obligations 3,653 — Payments to settle asset retirement obligations (16,640 ) — Asset retirement obligations at December 31 $ 20,609 $ 26,533 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 approximately $3.7 million . Accordingly, the Company recorded a $3.7 million loss on settlement of asset retirement obligations. Accretion expense is recognized as a component of depreciation, depletion and amortization expense in the accompanying consolidated statements of operations. The table below shows the current and long-term portions of the Company's asset retirement obligations as of the end of December 31, 2015 and 2014 : As of December 31, (In thousands) 2015 2014 Asset retirement obligations, current portion $ — $ 12,703 Asset retirement obligations, long-term portion 20,609 13,830 $ 20,609 $ 26,533 |
Debt
Debt | 12 Months Ended |
Dec. 31, 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 London Interbank Offered Rate (“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 accrued on the August Advance at the rate of 30 -day LIBOR plus 6.5% per annum. Repayment of the August Advance was made from the September and October 2015 crude oil liftings. Term Loan Facility In September 2014, the Company, through its wholly owned subsidiary EPNL, entered into a credit facility with a Nigerian bank (the "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. dollars, 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 10.8% . The obligations under the Term Loan Facility include a legal charge over the OMLs and an assignment of proceeds from oil sales. The obligations of EPNL 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 in Nigeria. Upon executing the Term Loan Facility, the Company paid fees totaling $2.6 million , including $0.5 million billed and paid during 2015, which were recorded as debt issuance costs and are being amortized over the life of the Term Loan Facility using the effective interest method. As of December 31, 2015 , $1.6 million of the debt issuance costs remained unamortized. During the year ended December 31, 2015, the Company made principal payments on the Naira portion of the Term Loan Facility totaling to $0.3 million . As of December 31, 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 $98.1 million . Accrued interest for the Term Loan Facility was $2.5 million as of December 31, 2015 . Under the Term Loan Facility, the following events, among others, constitute events of default: EPNL failing to pay any amounts due within thirty days of the due date; bankruptcy, insolvency, liquidation or dissolution of EPNL; a material breach of the Loan Agreement by EPNL that remains unremedied within thirty days of written notice by EPNL; or a representation or warranty of EPNL 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. As of the date of this report, the Company was out of compliance with the funding requirement for a debt service reserve account ("DSRA"). However, the Bank has agreed to waive its rights under the default provisions of the Term Loan Facility, as it relates to the funding requirement of the DSRA through December 31, 2016. Pursuant to the Term Loan Facility, the Company will owe approximately $9.0 million for quarterly principal and interest on March 31, 2016. Further, the Bank has the right to unilaterally review the terms and conditions of the Term Loan Facility and, among other things, terminate the Term Loan Facility and accelerate its maturity based on any adverse information putting the Term Loan Facility at risk. The Company is engaged in discussions with the Bank to, among other things, reduce and/or defer interest and principal repayments through March 31, 2017. Although the Company believes that its discussions with the Bank will yield favorable results, there can be no assurances that the Bank will agree to the Company’s requests. Accordingly, the obligation under the Term Loan Facility is classified as a current liability as of December 31, 2015 in the consolidated financial statements. Long-Term Debt: As of December 31, 2015 , the Company’s long-term debt, excluding asset retirement obligations, was $120.0 million , consisting of $25.0 million owed under a Promissory Note, $50.0 million Convertible Subordinated Note , and $45.0 million , net of discount, under a 2015 Convertible Note. Allied, a related party, is the holder of each of the Promissory Note, the Convertible Subordinated Note, and the 2015 Convertible Note (the “Allied Notes”). Each of the Allied Notes contains certain default and cross-default provisions, including failure to pay interest and principal amounts when due, and default under other indebtedness. As of December 31, 2015, the Company was not in compliance with the default provisions of each of the Allied Notes, with respect to the payment of quarterly interest. Further, the risk of cross-default exists for each of the Allied Notes if the holder of the Term Loan Facility exercises its right to terminate the Term Loan Facility and accelerate its maturity. In March 2016, Allied agreed to waive its rights under all default provisions of each of the Allied Notes through March 2017. Promissory Note – Long-Term 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 by one year to July 2017 . The entire $25.0 million facility amount can be utilized for general corporate purposes. The stock of the Company’s subsidiary that holds the exploration licenses in The Gambia and Kenya were pledged as collateral to secure the Promissory Note, pursuant to an Equitable Share Mortgage arrangement. As of December 31, 2015 , the outstanding principal and accrued interest under the Promissory Note was $25.0 million and $0.9 million , respectively. Convertible Subordinated Note – Long-Term As partial consideration in connection with the February 2014 acquisition of the Allied Assets, 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 following events, among others, constitute an Event of Default under the Convertible Subordinated Note: the Company failing to pay interest within thirty days of the due date; the Company failing to pay principal when due; bankruptcy, insolvency, liquidation or dissolution of the Company; a material breach of the Convertible Subordinated Note agreement by the Company that remains unremedied within ten days of such material breach; or a representation or warranty of the Company 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. Interest is due and payable quarterly on the Convertible Subordinated Note. As of December 31, 2015, the Company owed $5.2 million in interest under 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. Further, the Convertible Subordinated Note 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 December 31, 2015 , the outstanding principal under the Convertible Subordinated Note was $50.0 million . 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. In March 2016, the maturity date of the 2015 Convertible Note was extended to December 2017. 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 December 31, 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 December 31, 2015 , the unamortized balance of the note discount was $3.0 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 December 31, 2015 , the outstanding balance of the 2015 Convertible Note, net of discount, was $45.0 million . Accrued interest on the 2015 Convertible Note was $2.0 million as of December 31, 2015 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 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 table below sets forth the related party assets and liabilities as of December 31, 2015 and 2014 : As of December 31, (In thousands) 2015 2014 Accounts receivable, CEHL $ 1,186 $ 624 Accounts payable and accrued liabilities, CEHL $ 30,133 $ 9,391 Long-term notes payable - related party, CEHL $ 120,006 $ 61,185 As of December 31, 2015 and 2014 , the Company owed $30.1 million and $9.4 million , respectively, to affiliates 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 December 31, 2015 and 2014 , accrued and unpaid interest on the various related party notes payable were $8.3 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. The Company repaid the Promissory Note in October 2015. See Note 9. — Debt for further information. As of December 31, 2015 , the Company had a combined note payable balance of $120.0 million owed to an affiliate, consisting of a $50.0 million Convertible Subordinated Note, $25.0 million in borrowings under the Promissory Note, and $45.0 million borrowing 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 9. — Debt for further information. Results from Operations The table below sets forth the transactions incurred with affiliates during the years ended December 31, 2015 , 2014 and 2013 : Year Ended December 31, (In thousands) 2015 2014 2013 Total operating (income) and expenses, CEHL $ 15,106 $ 14,449 $ (1,167 ) Interest expense, CEHL $ 5,490 $ 2,414 $ 99 Certain affiliates of the Company provides procurement and logistical support services to the Company’s operations. In connection therewith, during the year ended December 31, 2015 and 2014 , the Company incurred operating costs amounting to approximately $15.1 million and $14.4 million , respectively. During the year ended December 31, 2015 and 2014 , the Company incurred interest expense, excluding debt discount amortization, totaling approximately $5.5 million and $2.4 million , respectively, in relation to related party notes payable. Non-controlling Interests In April 2014, the Company, through its 50% ownership of its Erin Energy Ghana Limited subsidiary, signed a Petroleum Agreement with the Republic of Ghana relating to the Expanded Shallow Water Tano block offshore Ghana. An affiliate of the Company’s majority shareholder owns the remaining 50% non-controlling interest in the Erin Energy Ghana Limited subsidiary. See Note 4. — Acquisitions for further information. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments The following table summarizes the Company’s significant future commitments on non-cancellable operating leases and estimated obligations arising from its minimum work obligations at December 31, 2015 : Payments Due By Period (In thousands) Total 2016 2017 2018 2019 2020 Thereafter Operating lease obligations: FPSO and drilling rig leases - Nigeria $ 241,813 $ 48,362 $ 48,363 $ 48,362 $ 48,363 $ 48,363 $ — Office leases 2,034 664 553 425 378 14 — Minimum work obligations: Kenya 66,086 1,043 65,043 — — — — The Gambia 1,800 600 600 600 — — — Ghana 9,450 9,450 — — — — — Total $ 321,183 $ 60,119 $ 114,559 $ 49,387 $ 48,741 $ 48,377 $ — 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 productive wells, Oyo-7 and Oyo-8, offshore 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 per year through 2020. 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. The table above sets forth the Company's future contractual obligations with regards to the minimum work obligations in each country. The Company rents office space and miscellaneous office equipment under non-cancelable operating leases. Office rent expense, net of sublease income, for the years ended December 31, 2015 , 2014 and 2013 , was $0.9 million , $1.0 million and $0.7 million , respectively. At December 31, 2015 , minimum future rental commitments for operating leases were a total of $2.0 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 December 31, 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 . On January 22, 2016, a request for arbitration was filed with the London Court of International Arbitration by Transocean Offshore Gulf of Guinea VII Limited and Indigo Drilling Limited, as Claimants, against the Company and its Nigerian subsidiary, Erin Petroleum Nigeria Limited (fka CAMAC Petroleum Limited), as Respondents (the “Arbitration”). The Arbitration is in relation to a drilling contract entered into by the Claimants and CAMAC Petroleum Limited, and a parent company guarantee provided by the Company in relation thereto. The Claimants are seeking an order that the Respondents pay the sum of approximately $20.2 million together with interest and costs. The Company is in the process of obtaining legal advice in relation to the Arbitration. On February 5, 2016, a class action and derivative complaint was filed in the Delaware Chancery Court purportedly on behalf of the Company and on behalf of a putative class of persons who were stockholders as of the date the Company (1) acquired the Allied Assets pursuant to the Transfer Agreement and (2) issued shares to the PIC in a private placement (collectively the “February 2014 Transactions”). The complaint alleges the February 2014 Transactions were unfair to the Company and purports to assert derivative claims against (1) the seven individuals who served on our Board at the time of the February 2014 Transactions and (2) our majority shareholder, CEHL. The complaint also purports to assert a direct breach of fiduciary duty claim on behalf of the putative class against the seven individuals who served on our Board at the time of the February 2014 Transactions on the grounds that they purportedly caused the Company to disseminate a false and misleading proxy statement in connection with the 2014 Transactions, and a direct claim for aiding and abetting against Dr. Lawal. The plaintiff is seeking, on behalf of the Company and the putative class, an undisclosed amount of compensatory damages. The Company is named solely as a nominal defendant against whom the plaintiff seeks no recovery. Unrecognized Loss Contingency As of December 31, 2015, the Company has not accrued penalty and interest related to certain outstanding transactional tax obligations in Nigeria, including withholding taxes, value-added taxes, Nigerian Oil and Gas Industry Content Development Act (NCD) tax, Cabotage taxes, and Niger Delta Development Corporation taxes (NDDC). As of the date of this report, the Company believes that, based on its experience with local practices in Nigeria, the likelihood of being assessed penalty and interest is reasonably possible, with an estimated liability up to $8.2 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. Contingency under the 2015 Convertible Note As part of the condition to the extension of the maturity date of the 2015 Convertible Note entered into in March 2016, the Company is required to (i) pay to Allied an amount equal to ten percent ( 10% ) of any successful debt fundraising event completed during the remaining term of the 2015 Convertible Note ; and (ii) pay to Allied an amount equal to twenty percent ( 20% ) of any successful equity fundraising event completed during the remaining term of the 2015 Convertible Note. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | STOCK BASED COMPENSATION Under the Company’s amended 2009 Equity Incentive Plan (“2009 Plan”), the Company may issue restricted stock awards and stock options to result in issuance of a maximum aggregate of 16.7 million shares of common stock. Options awarded expire between five and ten years from the date of the grant, or a shorter term as fixed by the Board of Directors. In February 2014, the Company executed an amendment to the 2009 Plan, thereby increasing the number of shares that may be granted thereunder to 16.7 million shares. Stock Options During 2015 , the Company granted approximately 0.4 million stock options with a three year vesting period. The table below sets forth a summary of stock option activity for the year ended December 31, 2015 . Shares Underlying Options (In Thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Stock Options Outstanding at December 31, 2014 2,395 $2.10 3.0 Granted 400 $5.29 4.8 Exercised (5 ) $1.92 — Forfeited (258 ) $5.41 — Expired — — — Outstanding at December 31, 2015 2,532 $2.29 1.6 Expected to vest 622 $3.10 3.7 Exercisable at December 31, 2015 1,910 $2.02 1.0 The total intrinsic value of options outstanding and options exercisable were $2.6 million and $2.3 million , respectively, at December 31, 2015 . The total intrinsic values realized by recipients on options exercised were $0.01 million , $0.9 million , and nil in 2015 , 2014 and 2013 , respectively. The Company recorded compensation expense relative to stock options in 2015 , 2014 and 2013 of $1.3 million , $1.3 million and $1.1 million , respectively. As of December 31, 2015 , there were approximately $0.8 million of total unrecognized compensation cost related to stock options, with $0.5 million , $0.2 million and $0.1 million to be recognized during the years ended December 31, 2016, 2017 and 2018, respectively. The fair values of stock options used in recording compensation expense are computed using the Black-Scholes option pricing model. The table below shows the weighted-average amounts and the assumptions used in the model for options awarded in each year under equity incentive plans. 2015 2014 2013 Expected price volatility 77.1% - 83.1% 87.7 % 77.9 % Risk free interest rate (U.S. treasury bonds) 1.0 to 1.2 % 1.1 % 0.5 % Expected annual dividend yield — — — Expected option term (years) 3.0 3.0 3.5 Weighted-average grant date fair value per share $ 2.73 $ 1.92 $ 1.38 Stock Warrants The table below sets forth a summary of stock warrant activity for the year ended December 31, 2015 . Shares Underlying Warrants (In Thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Stock warrants Outstanding at December 31, 2014 2,416 $6.37 1.4 Granted 2,635 $3.64 4.3 Exercised (286 ) $6.46 — Forfeited (1,830 ) $6.85 — Expired — — — Outstanding at December 31, 2015 2,935 $3.61 4.2 Expected to vest — — — Exercisable at December 31, 2015 2,935 $3.61 4.2 The total intrinsic value of warrants outstanding and exercisable was $1.2 million at December 31, 2015 . During the year ended December 31, 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 year ended December 31, 2014, as compensation for services received, the Company issued warrants to a service provider to purchase 0.3 million shares of common stock at an exercise price of approximately $3.36 . The warrants are exercisable at any time starting from the date of issuance and have a five year term. During the years ended December 31, 2015 and 2014, the Company recognized stock-based compensation expense of $0.4 million and $0.1 million , respectively, related to these warrants, based on the Black-Scholes option pricing model. The table below shows the weighted-average amounts and the assumptions used in the model for warrants issued during each year. 2015 2014 Expected price volatility 76.8% - 83.2% 82.7 % Risk free interest rate (U.S. treasury bonds) 0.8% - 1.1% 1.1 % Expected annual dividend yield — — Expected option term (years) 3.0 3.0 Weighted-average grant date fair value per share $ 1.86 $ 1.80 Restricted Stock Awards (“RSA”) In addition to stock options, the Company’s 2009 Plan allows for the grant of restricted stock awards (“RSAs”). The Company determines the fair value of RSAs based on the market price of its common stock on the date of grant. Compensation cost for RSAs is recognized on a straight-line basis over the vesting or service period and is net of forfeitures. The table below sets forth a summary of RSA activity for the year ended December 31, 2015 . Shares (In Thousands) Weighted-Average Grant Date Fair Value Restricted Stock Non-vested at December 31, 2014 1,007 $3.12 Granted 1,292 $3.27 Vested (965 ) $3.18 Forfeited (220 ) $3.24 Non-vested as of December 31, 2015 1,114 $3.21 During the year ended December 31, 2015 , the Company granted performance-based restricted stock awards ("PBRSAs") 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, net of forfeitures, is $0.3 million over three years . The Company recorded compensation expense relative to RSAs, including PBRSAs, in 2015 , 2014 and 2013 of $3.3 million , $1.7 million and $0.9 million , respectively. The total grant date fair value of RSA shares that vested during 2015 and 2014 was approximately $3.1 million and $2.8 million , respectively. As of December 31, 2015 , there were approximately $1.6 million of total unrecognized compensation cost related to non-vested RSAs, with $1.3 million and $0.3 million to be recognized during the years ended December 31, 2016 and 2017, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Following is a reconciliation of the expected statutory U.S. Federal income tax provision to the actual income tax expense for the respective periods: Years Ended December 31, (In thousands) 2015 2014 2013 Net loss attributable to Erin Energy Corporation before income tax expense $ (451,497 ) $ (96,062 ) $ (43,525 ) Expected income tax provision at statutory rate of 35% (158,024 ) (33,622 ) (15,234 ) Increase (decrease) due to: Foreign rate differential (62,551 ) (10,083 ) (3,581 ) Change in valuation allowance 267,190 98,376 20,205 Investment tax credit - Nigeria (35,580 ) (40,765 ) (15,302 ) Non-deductible expenses and other (11,035 ) (13,906 ) 13,912 Total income tax expense $ — $ — $ — Significant components of our deferred tax assets are as follows: As of December 31, (In thousands) 2015 2014 Basis difference in fixed assets $ 22,173 $ (100,798 ) Unused capital allowances 506,795 407,899 Net operating losses 88,391 54,673 Other 12,239 621 629,598 362,395 Valuation allowance (629,598 ) (362,395 ) Net deferred income tax assets $ — $ — The majority of the Company’s basis difference in fixed assets and unused capital allowances were generated from its Nigerian operations. The Company’s foreign net operating losses in Nigeria are not subject to expiration, and can be carried forward indefinitely. The foreign operating losses in The Gambia, Kenya and Ghana are included in the respective subsidiaries cost oil accounts, which will be offset against future taxable revenues. Management assesses the available positive and negative evidence to estimate if existing deferred tax assets will be utilized. Based on current facts and circumstances related to its Nigerian operations, Management has determined that it cannot demonstrate that it is more likely than not that the Nigerian losses and unutilized capital allowances will be utilized to reduce the Company’s petroleum profit tax liability within the foreseeable future. Furthermore, since the Company does not currently have any revenue generating activities either in the U.S. or in any of its non-Nigerian subsidiaries, it cannot demonstrate that it is more likely than not that any of the related deferred tax assets will be utilized in the foreseeable future. On the basis of this assessment, valuation allowances of $629.6 million and $362.4 million were recorded as of December 31, 2015 and 2014 , respectively. At December 31, 2015 and 2014 , the Company was subject to foreign and United States federal taxes only, with no allocations made to state and local taxes. The following table summarizes the tax years that remain subject to examination by major tax jurisdictions: United States: 2007 - 2015 Nigeria: 2010 - 2015 Kenya: 2012 - 2015 The Gambia: 2012 - 2015 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 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. Segments 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). The table below sets forth segment activity for the years ended December 31, 2015 , 2014 , and 2013 . (In thousands) Nigeria Kenya The Gambia Ghana Corporate and Other Total For the Years Ended December 31, 2015 Revenues $ 68,429 $ — $ — $ — $ — $ 68,429 Operating loss $ (408,008 ) $ (8,038 ) $ (5,209 ) $ (1,931 ) $ (13,807 ) $ (436,993 ) 2014 Revenues $ 53,844 $ — $ — $ — $ — $ 53,844 Operating loss $ (64,716 ) $ (12,130 ) $ (1,347 ) $ (492 ) $ (14,640 ) $ (93,325 ) 2013 Revenues $ 63,736 $ — $ — $ — $ — $ 63,736 Operating loss $ (23,705 ) $ (3,404 ) $ (1,070 ) $ — $ (15,348 ) $ (43,527 ) The table below sets forth the total assets by segment as of December 31, 2015 and 2014 . (In thousands) Nigeria Kenya The Gambia Ghana Corporate and Other Total Total Assets December 31, 2015 $ 368,327 $ 1,399 $ 3,016 $ 2,447 $ 971 $ 376,160 December 31, 2014 $ 609,243 $ 8,527 $ 2,739 $ 1,413 $ 16,521 $ 638,443 |
Selected Unaudited Quarterly Fi
Selected Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Unaudited Quarterly Financial Data | SELECTED UNAUDITED QUARTERLY FINANCIAL DATA (In thousands, except for per share amounts) Three Months Ended, March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 Total revenues $ — $ — $ 28,667 $ 39,762 Operating loss $ (32,031 ) $ (5,821 ) $ (53,423 ) $ (345,718 ) Net loss attributable to Erin Energy Corporation $ (33,059 ) $ (9,162 ) $ (58,682 ) $ (350,594 ) Net loss per common share attributable to Erin Energy Corporation Basic $ (0.16 ) $ (0.04 ) $ (0.28 ) $ (1.66 ) Diluted $ (0.16 ) $ (0.04 ) $ (0.28 ) $ (1.66 ) Three Months Ended, March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 Total revenues $ 19,894 $ 14,940 $ 19,010 $ — Operating loss $ (14,683 ) $ (11,271 ) $ (41,546 ) $ (25,825 ) Net loss attributable to Erin Energy Corporation $ (14,858 ) $ (11,930 ) $ (42,223 ) $ (27,051 ) Net loss per common share attributable to Erin Energy Corporation Basic $ (0.13 ) $ (0.06 ) $ (0.20 ) $ (0.13 ) Diluted $ (0.13 ) $ (0.06 ) $ (0.20 ) $ (0.13 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Subsequent to December 31, 2015, the Company issued 0.2 million shares of common stock as a result of the exercise of stock options. In February 2016, the Company granted to employees approximately 0.7 million shares of restricted stock, and granted performance-based restricted stock awards (PBRSA) to certain officers totaling 0.5 million shares. |
Basis of Presentation and Sig24
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying 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”) 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 consolidated financial statements reflect all adjustments that 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. In January 2014, the Company’s Board of Directors declared a stock dividend on all shares of the Company’s outstanding common stock entitling stockholders of record as of the close of business on February 13, 2014, to receive an additional 1.4348 shares of common stock for every share of common stock held (the “Stock Dividend”). Payment of the Stock Dividend was effected on February 21, 2014 . Because the Stock Dividend exceeded 25% of the total shares of common stock outstanding prior to the distribution, it was considered a large stock dividend. Accordingly, it has been accounted for as a stock split under current accounting rules. The effect is a retroactive adjustment to the financial statements and associated footnotes as if the dividend had occurred at the beginning of the first period presented. In February 2014, the Company completed the acquisition of the remaining economic interests that it did not already own in the Production Sharing Contract covering Oil Mining Leases 120 and 121 located offshore Nigeria (the “OMLs”), which include the currently producing Oyo field (the “Allied Assets”), from Allied (the “Allied Transaction”). Pursuant to the terms of the Transfer Agreement entered into with Allied, the Company issued approximately 82.9 million shares of common stock to Allied, as partial consideration for the Allied Assets. Allied is a subsidiary of CEHL, the Company’s majority shareholder, and deemed to be under common control. Accordingly, the net assets acquired from Allied were recorded at their respective carrying values as of the acquisition date. The shares issued to Allied and the financial statements presented for all periods included herein are presented as though the transfer of the Allied Assets had occurred in June 2012, the effective date when Allied acquired the Allied Assets from an independent third party. See Note 4. — Acquisitions for further information. 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. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts and activities of the Company, subsidiaries in which the Company has a controlling financial interest, and entities for which the Company is the primary beneficiary. All material intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates based on assumptions. Estimates affect the reported amounts of assets and liabilities, disclosure of contingent liabilities, and the reported amounts of revenues and expenses during the reporting periods. Accordingly, accounting estimates require the exercise of judgment. While management believes that the estimates and assumptions used in the preparation of the Company’s consolidated financial statements are appropriate, actual results could differ from those 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, impairment of oil and gas properties, depletion and amortization relating to oil and gas properties, asset retirement obligation assumptions, and income taxes. The accounting estimates used in the preparation of the consolidated financial statements may change as new events occur, more experience is acquired, additional information is obtained and our operating environment changes. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and short-term investments with initial maturities of three months or less. |
Restricted Cash | Restricted Cash Restricted cash consists of cash deposits that are contractually restricted for withdrawal or required to be maintained in a reserve bank account for a specific period of time, as provided for under certain agreements with third parties. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are accounted for at cost less allowance for doubtful accounts. The Company establishes provisions for losses on accounts receivable if it is determined that collection of all or a part of an outstanding balance is not probable. Collectability is reviewed regularly and an allowance is established or adjusted, as necessary, using the specific identification method. As of December 31, 2015 and 2014 , no allowance for doubtful accounts was necessary. |
Crude Oil Inventory | Crude Oil Inventory Inventories of crude oil are valued at the lower of cost or market using the first-in, first-out method and include certain costs directly related to the production process. |
Successful Efforts Method of Accounting for Oil and Gas Activities | Successful Efforts Method of Accounting for Oil and Gas Activities The Company follows the successful efforts method of accounting for its costs of acquisition, exploration and development of oil and gas properties. Under this method, oil and gas lease acquisition costs and intangible drilling costs associated with exploration efforts that result in the discovery of proved reserves and costs associated with development drilling, whether or not successful, are capitalized when incurred. Drilling costs of exploratory wells are capitalized pending determination that proved reserves have been found. If the determination is dependent upon the results of planned additional wells and require additional capital expenditures to develop the reserves, the drilling costs will be capitalized as long as sufficient reserves have been found to justify completion of the exploratory well as a producing well, and additional wells are underway or firmly planned to complete the evaluation of the well. Exploratory wells not meeting the criteria for continued capitalization are expensed when such a determination is made. Other exploration costs are expensed as incurred. A portion of the Company’s oil and gas properties include oilfield materials and supplies inventory to be used in connection with the Company’s drilling program. These inventories are stated at the lower of cost or market, which approximates fair value, and they are regularly assessed for obsolescence. Oilfield materials and supplies inventory balances were $30.0 million and $30.5 million at December 31, 2015 and 2014 , respectively. Depreciation, depletion and amortization costs for productive oil and gas properties are recorded on a unit-of-production basis. For other depreciable property, depreciation is recorded on a straight-line basis over the estimated useful life of the assets, which range between three to five years , or the lease term if shorter. Repairs and maintenance charges, including workover costs, are charged to expense as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets in property, plant and equipment for impairment each reporting period, or whenever changes in circumstances indicate that the carrying amount of assets may not be fully recoverable. Possible indicators of impairment include lower expected future oil and gas prices, actual or expected future development or operating costs significantly higher than previously anticipated, significant downward oil and gas reserve revisions, or when changes in other circumstances indicate the carrying amount of an asset may not be recoverable. An impairment loss is recognized for proved properties when the estimated undiscounted future cash flows expected to result from the asset are less than its carrying amount. The Company estimates the future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts. Cash flows are determined on the basis of reasonable and documented assumptions that represent the best estimate of the future economic conditions during the remaining useful life of the asset. The Company’s cash flow projections into the future include assumptions on variables, such as future sales, sales prices, operating costs, economic conditions, market competition and inflation. Prices used to quantify the expected future cash flows are estimated based on forward prices prevailing in the marketplace and management’s long-term planning assumptions. Impairment is measured by the excess of carrying amount over the fair value of the assets. Unevaluated leasehold costs are assessed for impairment at the end of each reporting period and transferred to proved oil and gas properties to the extent they are associated with successful exploration activities. Significant unevaluated leasehold costs are assessed individually for impairment, based on the Company’s current exploration plans, and any indicated impairment is charged to expense. |
Asset Retirement Obligations | Asset Retirement Obligations The Company accounts for asset retirement obligations in accordance with applicable accounting guidelines , which require that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred. Specifically, the Company records a liability for the present value, using a credit-adjusted risk free interest rate, of the estimated site restoration costs with a corresponding increase to the carrying amount of the related long-lived assets. |
Revenues | Revenues Revenues are recognized when crude oil is delivered to a buyer. The recognition criteria are satisfied when there exists a signed contract with defined pricing, delivery, and acceptance, as defined in a contract, and there is no significant uncertainty of collectability. Crude oil revenues are recorded net of royalties. |
Income Taxes | Income Taxes The Company provides for income taxes using the asset and liability method of accounting for income taxes in accordance with applicable accounting rules. Under the asset and liability method, deferred tax assets and liabilities are recognized for temporary differences between the tax bases of assets and liabilities and their carrying values for financial reporting purposes and for operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established to reduce deferred tax assets to their net realizable amounts if it is more likely than not that the related tax benefits will not be fully realized. The Company routinely evaluates any tax deduction and tax refund positions in a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained. If that test is met, the second step is to determine the amount of benefit or expense to recognize in the consolidated financial statements. See Note 13. — Income Taxes for further information. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs consist of certain costs paid to lenders in the process of securing a borrowing facility. Debt issuance costs incurred are capitalized and subsequently charged to interest expense over the term of the related debt, using the effective interest rate method. |
Capitalized Interest | 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. |
Share-Based Compensation | . Stock-Based Compensation The Company recognizes all stock-based payments to employees, including grants of employee stock options, in the consolidated financial statements based on their grant-date fair values. The Company values its stock options awarded using the Black-Scholes option pricing model. Restricted stock awards are valued at the grant date closing market price. Stock-based compensation costs are recognized over the vesting period, which is the period during which the employee is required to provide service in exchange for the award. Stock-based compensation paid to non-employees are valued at the fair value of the goods or services provided at the applicable measurement date and charged to expense as services are render |
Reporting and Functional Currency | Reporting and Functional Currency The Company has adopted the U.S. dollar as the functional currency for all of its foreign subsidiaries. Gains and losses on foreign currency transactions are included in results of operatio |
Net Earnings (Loss) Per Common Share | 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 dilutive common stock equivalent, which consists of shares outstanding, augmented by potentially dilutive shares issuable upon the exercise of the Company’s stock options, non-vested restricted stock awards, and stock warrants and conversion of the Convertible Subordinated Note, calculated using the treasury stock meth |
Non-Controlling Interest | Non-Controlling Interests The Company reports its non-controlling interests as a separate component of equity. The Company also presents the consolidated net loss and the portion of the consolidated net loss allocable to the non-controlling interests and to the shareholders of the Company separately in its consolidated statements of operations. Losses attributable to the non-controlling interests are allocated to the non-controlling interests even when those losses are in excess of the non-controlling interests’ investment bas |
Fair Value of Financial Instruments | Fair Value of Financial Instruments 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 December 31, 2015 and 2014 , respectively, principally due to the short-term nature, maturities or nature of interest rates of the above listed item Fair Value Measurements Fair value is defined as the amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in an orderly transaction between market participants at the measurement date. The established framework for measuring fair value establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and includes certain disclosure requirements. Fair value estimates are based on either (i) actual market data or (ii) assumptions that other market participants would use in pricing an asset or liability, including estimates of risk. There are three levels of valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an on-going basis. Level 2 - Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Substantially all of these inputs are observable in the marketplace throughout the term, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace. Level 3 - Inputs that are unobservable and significant to the fair value measurement (including the Company’s own assumptions in determining fair value). The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Fair Value on a Non-Recurring Basis The Company used discounted cash flow techniques to determine the estimated fair value of its oil and gas properties as part of the Company's analysis for impairment. Accordingly, the Company estimated the present value of expected future net cash flows from the Oyo field, discounted using risk-adjusted cost of capital. Significant Level 3 assumptions used in the calculation include the Company's estimate of future crude oil prices, production costs, development costs, and anticipated production of proved reserves, as well as appropriate risk-adjusted probable and possible reserve |
Reclassification | Reclassification Certain reclassifications have been made to the 2014 and 2013 consolidated financial statements to conform to the 2015 presentation. These reclassifications were not material to the accompanying consolidated financial statement |
Recently Issued Accounting Standards | . 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 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. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 704): Balance Sheet Classification of Deferred Taxes. ASU No. 2015-17 eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and non-current in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as non-current. ASU No. 2015-17 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 Sig25
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Anti-dilutive Securities | The table below sets forth the number of stock options, warrants, non-vested restricted stock, and shares issuable upon conversion of Convertible Subordinated Note that were excluded from dilutive shares outstanding during the years ended December 31, 2015 , 2014 and 2013 , as these securities are anti-dilutive because the Company was in a loss position each year. |
Fair Value Measurements, Nonrecurring | The following table presents information about the Company’s oil and gas properties measured at fair value on a non-recurring basis: Level 3 As of December 31, (in thousands) 2015 2014 Value of oil and gas properties (1) $ 272,848 $ — |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Purchase Consideration Assets Acquired and Liabilities Assumed | The table below shows the carrying values of the net Allied Assets deemed contributed by our parent company at their respective periods ( in thousands ): Years ended December 31 2013 2012 Asset acquired and liabilities assumed: Property, plant and equipment, net $ 61,205 $ 214,710 Asset retirement obligations — (23,785 ) Net assets acquired $ 61,205 $ 190,925 |
Contractual Purchase Consideration | |
Schedule of Purchase Consideration Assets Acquired and Liabilities Assumed | The table below sets forth a summary of the contractual purchase consideration paid for the Allied Assets ( In thousands ): Cash consideration paid $ 170,000 Erin Energy Corporation common stock (1) — Long-term convertible subordinated note payable - related party 50,000 Total purchase price $ 220,000 Asset acquired and liabilities assumed as of February 21, 2014: Property, plant and equipment, net 248,736 Accounts payable (25,429 ) Asset retirement obligations (20,890 ) Net assets acquired 202,417 Excess of consideration paid over carrying value of assets acquired $ 17,583 (1) Since the cash and debt consideration exceeds the carrying value of the assets acquired, no value was assigned to the shares issued |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment were comprised of the following: As of December 31, (In thousands) 2015 2014 Wells and production facilities $ 329,133 $ 33,690 Proved properties 386,196 386,196 Work in progress and other 65,043 261,346 Oilfield assets 780,372 681,232 Accumulated depletion (442,481 ) (95,403 ) Oilfield assets, net 337,891 585,829 Unevaluated leaseholds 10,440 9,440 Oil and gas properties, net 348,331 595,269 Other property and equipment 2,963 2,324 Accumulated depreciation (1,789 ) (1,264 ) Other property and equipment, net 1,174 1,060 Total property, plant and equipment, net $ 349,505 $ 596,329 |
Accounts Payable and Accrued 28
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | The table below sets forth a summary of the Company’s accounts payable and accrued liabilities at December 31, 2015 and 2014 : As of December 31, (In thousands) 2015 2014 Accounts payable - vendors $ 153,085 $ 79,512 Amounts due to government entities 53,119 24,515 Accrued interest 2,510 394 Accrued payroll and benefits 629 1,792 Other liabilities 3,777 1,834 $ 213,120 $ 108,047 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Summary of Changes in Asset Retirement Obligations | The following table summarizes changes in the Company’s asset retirement obligations during the years ended December 31, 2015 and 2014 : (In thousands) 2015 2014 Asset retirement obligations at January 1 $ 26,533 $ 20,601 Accretion expense 1,931 2,166 Additions 9,416 — Revisions in estimated liabilities (4,284 ) 3,766 Loss on settlement of asset retirement obligations 3,653 — Payments to settle asset retirement obligations (16,640 ) — Asset retirement obligations at December 31 $ 20,609 $ 26,533 |
Summary of Current and Long-term Portions 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 December 31, 2015 and 2014 : As of December 31, (In thousands) 2015 2014 Asset retirement obligations, current portion $ — $ 12,703 Asset retirement obligations, long-term portion 20,609 13,830 $ 20,609 $ 26,533 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheets | |
Related Party Transaction [Line Items] | |
Summary of Related Party Transactions and Balances | The table below sets forth the related party assets and liabilities as of December 31, 2015 and 2014 : As of December 31, (In thousands) 2015 2014 Accounts receivable, CEHL $ 1,186 $ 624 Accounts payable and accrued liabilities, CEHL $ 30,133 $ 9,391 Long-term notes payable - related party, CEHL $ 120,006 $ 61,185 |
Income Statements | |
Related Party Transaction [Line Items] | |
Summary of Related Party Transactions and Balances | The table below sets forth the transactions incurred with affiliates during the years ended December 31, 2015 , 2014 and 2013 : Year Ended December 31, (In thousands) 2015 2014 2013 Total operating (income) and expenses, CEHL $ 15,106 $ 14,449 $ (1,167 ) Interest expense, CEHL $ 5,490 $ 2,414 $ 99 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Significant Future Commitments on Non-Cancellable Operating Leases and Estimated Obligations Arising from its Minimum Work Obligations | The following table summarizes the Company’s significant future commitments on non-cancellable operating leases and estimated obligations arising from its minimum work obligations at December 31, 2015 : Payments Due By Period (In thousands) Total 2016 2017 2018 2019 2020 Thereafter Operating lease obligations: FPSO and drilling rig leases - Nigeria $ 241,813 $ 48,362 $ 48,363 $ 48,362 $ 48,363 $ 48,363 $ — Office leases 2,034 664 553 425 378 14 — Minimum work obligations: Kenya 66,086 1,043 65,043 — — — — The Gambia 1,800 600 600 600 — — — Ghana 9,450 9,450 — — — — — Total $ 321,183 $ 60,119 $ 114,559 $ 49,387 $ 48,741 $ 48,377 $ — |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Restricted Stock Activity | The table below sets forth a summary of RSA activity for the year ended December 31, 2015 . Shares (In Thousands) Weighted-Average Grant Date Fair Value Restricted Stock Non-vested at December 31, 2014 1,007 $3.12 Granted 1,292 $3.27 Vested (965 ) $3.18 Forfeited (220 ) $3.24 Non-vested as of December 31, 2015 1,114 $3.21 |
Stock warrants | |
Summary of Stock Option Activity | The table below sets forth a summary of stock warrant activity for the year ended December 31, 2015 . Shares Underlying Warrants (In Thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Stock warrants Outstanding at December 31, 2014 2,416 $6.37 1.4 Granted 2,635 $3.64 4.3 Exercised (286 ) $6.46 — Forfeited (1,830 ) $6.85 — Expired — — — Outstanding at December 31, 2015 2,935 $3.61 4.2 Expected to vest — — — Exercisable at December 31, 2015 2,935 $3.61 4.2 |
Summary of Weighted-Average Amounts for Assumptions | The table below shows the weighted-average amounts and the assumptions used in the model for warrants issued during each year. 2015 2014 Expected price volatility 76.8% - 83.2% 82.7 % Risk free interest rate (U.S. treasury bonds) 0.8% - 1.1% 1.1 % Expected annual dividend yield — — Expected option term (years) 3.0 3.0 Weighted-average grant date fair value per share $ 1.86 $ 1.80 |
Stock Options | |
Summary of Stock Option Activity | The table below sets forth a summary of stock option activity for the year ended December 31, 2015 . Shares Underlying Options (In Thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Stock Options Outstanding at December 31, 2014 2,395 $2.10 3.0 Granted 400 $5.29 4.8 Exercised (5 ) $1.92 — Forfeited (258 ) $5.41 — Expired — — — Outstanding at December 31, 2015 2,532 $2.29 1.6 Expected to vest 622 $3.10 3.7 Exercisable at December 31, 2015 1,910 $2.02 1.0 |
Summary of Weighted-Average Amounts for Assumptions | The table below shows the weighted-average amounts and the assumptions used in the model for options awarded in each year under equity incentive plans. 2015 2014 2013 Expected price volatility 77.1% - 83.1% 87.7 % 77.9 % Risk free interest rate (U.S. treasury bonds) 1.0 to 1.2 % 1.1 % 0.5 % Expected annual dividend yield — — — Expected option term (years) 3.0 3.0 3.5 Weighted-average grant date fair value per share $ 2.73 $ 1.92 $ 1.38 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Expected Statutory U.S. Federal Income Tax Provision | Following is a reconciliation of the expected statutory U.S. Federal income tax provision to the actual income tax expense for the respective periods: Years Ended December 31, (In thousands) 2015 2014 2013 Net loss attributable to Erin Energy Corporation before income tax expense $ (451,497 ) $ (96,062 ) $ (43,525 ) Expected income tax provision at statutory rate of 35% (158,024 ) (33,622 ) (15,234 ) Increase (decrease) due to: Foreign rate differential (62,551 ) (10,083 ) (3,581 ) Change in valuation allowance 267,190 98,376 20,205 Investment tax credit - Nigeria (35,580 ) (40,765 ) (15,302 ) Non-deductible expenses and other (11,035 ) (13,906 ) 13,912 Total income tax expense $ — $ — $ — |
Significant Components of Deferred Tax Assets | Significant components of our deferred tax assets are as follows: As of December 31, (In thousands) 2015 2014 Basis difference in fixed assets $ 22,173 $ (100,798 ) Unused capital allowances 506,795 407,899 Net operating losses 88,391 54,673 Other 12,239 621 629,598 362,395 Valuation allowance (629,598 ) (362,395 ) Net deferred income tax assets $ — $ — |
Summary of Tax Years Remain Subject to Examination | The following table summarizes the tax years that remain subject to examination by major tax jurisdictions: United States: 2007 - 2015 Nigeria: 2010 - 2015 Kenya: 2012 - 2015 The Gambia: 2012 - 2015 |
Segment Information - Restated
Segment Information - Restated (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Activity | The table below sets forth segment activity for the years ended December 31, 2015 , 2014 , and 2013 . (In thousands) Nigeria Kenya The Gambia Ghana Corporate and Other Total For the Years Ended December 31, 2015 Revenues $ 68,429 $ — $ — $ — $ — $ 68,429 Operating loss $ (408,008 ) $ (8,038 ) $ (5,209 ) $ (1,931 ) $ (13,807 ) $ (436,993 ) 2014 Revenues $ 53,844 $ — $ — $ — $ — $ 53,844 Operating loss $ (64,716 ) $ (12,130 ) $ (1,347 ) $ (492 ) $ (14,640 ) $ (93,325 ) 2013 Revenues $ 63,736 $ — $ — $ — $ — $ 63,736 Operating loss $ (23,705 ) $ (3,404 ) $ (1,070 ) $ — $ (15,348 ) $ (43,527 ) The table below sets forth the total assets by segment as of December 31, 2015 and 2014 . (In thousands) Nigeria Kenya The Gambia Ghana Corporate and Other Total Total Assets December 31, 2015 $ 368,327 $ 1,399 $ 3,016 $ 2,447 $ 971 $ 376,160 December 31, 2014 $ 609,243 $ 8,527 $ 2,739 $ 1,413 $ 16,521 $ 638,443 |
Selected Unaudited Quarterly 35
Selected Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Unaudited Quarterly Financial Data | Three Months Ended, March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 Total revenues $ — $ — $ 28,667 $ 39,762 Operating loss $ (32,031 ) $ (5,821 ) $ (53,423 ) $ (345,718 ) Net loss attributable to Erin Energy Corporation $ (33,059 ) $ (9,162 ) $ (58,682 ) $ (350,594 ) Net loss per common share attributable to Erin Energy Corporation Basic $ (0.16 ) $ (0.04 ) $ (0.28 ) $ (1.66 ) Diluted $ (0.16 ) $ (0.04 ) $ (0.28 ) $ (1.66 ) Three Months Ended, March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 Total revenues $ 19,894 $ 14,940 $ 19,010 $ — Operating loss $ (14,683 ) $ (11,271 ) $ (41,546 ) $ (25,825 ) Net loss attributable to Erin Energy Corporation $ (14,858 ) $ (11,930 ) $ (42,223 ) $ (27,051 ) Net loss per common share attributable to Erin Energy Corporation Basic $ (0.13 ) $ (0.06 ) $ (0.20 ) $ (0.13 ) Diluted $ (0.13 ) $ (0.06 ) $ (0.20 ) $ (0.13 ) |
Company Description - Additiona
Company Description - Additional Information (Details) - 12 months ended Dec. 31, 2015 km² in Thousands, a in Millions | a | license | country | km² |
Related Party Transaction [Line Items] | ||||
Number of exploration and production licenses | license | 9 | |||
Number of countries company operates in Africa | country | 4 | |||
Area of land held for exploration activities | 10 | 40 | ||
Chief Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage by noncontrolling owners | 27.70% |
Basis of Presentation and Sig37
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) | Apr. 22, 2015 | Feb. 21, 2014 | Feb. 13, 2014shares | Dec. 31, 2015USD ($) | Feb. 28, 2014shares | Dec. 31, 2015USD ($)customer | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Common stock dividends (in shares) | shares | 1.4348 | |||||||
Payments of dividends exceeding percentage | 25.00% | |||||||
Reverse stock split, conversion ratio | 0.1667 | |||||||
Restricted cash | $ 8,700,000 | $ 8,700,000 | $ 10,400,000 | |||||
Allowance for doubtful accounts receivable | 0 | |||||||
Accounts receivable - partners | 287,000 | 287,000 | 496,000 | |||||
Crude oil inventory | 4,789,000 | 4,789,000 | 1,089,000 | |||||
Oilfield materials and supplies inventory | 30,000,000 | 30,000,000 | 30,500,000 | |||||
Deferred finance costs | 1,600,000 | 1,600,000 | 1,900,000 | |||||
Deferred finance costs, noncurrent | 0 | 0 | 1,307,000 | |||||
Capitalized interest cost | 2,200,000 | 300,000 | ||||||
Noncontrolling interest in joint ventures | 800,000 | 800,000 | 700,000 | |||||
Impairment of oil and gas properties | 249,200,000 | 281,768,000 | 0 | $ 0 | ||||
Long-term Debt | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Deferred finance costs, noncurrent | 0 | $ 0 | 1,300,000 | |||||
Minimum | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Productive oil and gas properties, estimated useful life (years) | 3 years | |||||||
Maximum | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Productive oil and gas properties, estimated useful life (years) | 5 years | |||||||
Ghana | Joint Venture partners | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Accounts receivable - partners | 300,000 | $ 300,000 | 500,000 | |||||
NIGERIA | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Number of crude oil customers | customer | 2 | |||||||
Allied | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Business acquisition, number of shares issued | shares | 82,900,000 | |||||||
Contingent additional payments under transfer agreement | 50,000,000 | $ 50,000,000 | ||||||
Trade Accounts Receivable | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Accounts receivable, current | 1,000,000 | 1,000,000 | 0 | |||||
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Nonrecurring | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Fair value, oil and gas properties | 272,848,000 | 272,848,000 | 0 | |||||
Prepaid Expenses and Other Current Assets | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Debt issuance costs, current | $ 1,600,000 | $ 1,600,000 | $ 600,000 |
Basis of Presentation and Sig38
Basis of Presentation and Significant Accounting Polices - Schedule of Anti-dilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive Securities | 15,296 | 12,973 | 359 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive Securities | 1,101 | 1,038 | 0 |
Stock warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive Securities | 541 | 6 | 0 |
Non-vested restricted stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive Securities | 1,275 | 997 | 359 |
Convertible note | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive Securities | 12,379 | 10,932 | 0 |
Liquidity Matters and Going C39
Liquidity Matters and Going Concern (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Current liabilities | $ 341,372 | $ 136,341 | |
Current assets | 26,588 | $ 31,831 | |
Working capital, accumulated deficit, current | $ (314,800) | ||
Scenario, Forecast | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Quarterly principal and interest payment | $ 9,000 |
Acquisitions - Additional infor
Acquisitions - Additional information (Details) $ in Thousands, shares in Millions | 1 Months Ended | ||
Apr. 30, 2014wellfield | Feb. 28, 2014USD ($)shares | Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | |||
Cash consideration | $ 170,000 | ||
Convertible subordinate note issued | $ 50,000 | ||
Share Purchase Agreement | Private Placement | |||
Business Acquisition [Line Items] | |||
Business acquisition, number of shares issued | shares | 62.8 | ||
Business acquisition, value of shares issued | $ 270,000 | ||
Allied Transaction | Convertible Subordinated Note | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 170,000 | ||
Business acquisition, number of shares issued | shares | 82.9 | ||
Convertible subordinate note issued | $ 50,000 | ||
Tano Block in Ghana | |||
Business Acquisition [Line Items] | |||
Additional on exploration (percent) | 10.00% | ||
Number of previously discovered fields | field | 3 | ||
Initial exploration period (years) | 2 years | ||
Tano Block in Ghana | Ghana | |||
Business Acquisition [Line Items] | |||
Production sharing contracts with governments or authorities (percent) | 50.00% | ||
Tano Block in Ghana | CAMAC Energy | |||
Business Acquisition [Line Items] | |||
Maximum participation (percent) | 90.00% | ||
Tano Block in Ghana | Ghana Limited | |||
Business Acquisition [Line Items] | |||
Maximum participation (percent) | 60.00% | ||
Tano Block in Ghana | GNPC Exploration and Production Company Limited | |||
Business Acquisition [Line Items] | |||
Maximum participation (percent) | 25.00% | ||
Tano Block in Ghana | Base Energy | |||
Business Acquisition [Line Items] | |||
Maximum participation (percent) | 15.00% | ||
First Extension Period | Tano Block in Ghana | |||
Business Acquisition [Line Items] | |||
Maximum number of additional exploration period (years) | 1 year 6 months | ||
Number of exploration wells | well | 1 | ||
Second Extension Period | Tano Block in Ghana | |||
Business Acquisition [Line Items] | |||
Maximum number of additional exploration period (years) | 2 years 6 months | ||
Minimum | Second Extension Period | Tano Block in Ghana | |||
Business Acquisition [Line Items] | |||
Number of exploration wells | well | 1 | ||
Maximum | Second Extension Period | Tano Block in Ghana | |||
Business Acquisition [Line Items] | |||
Number of exploration wells | well | 2 |
Acquisitions - Purchase Conside
Acquisitions - Purchase Consideration Paid and Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Feb. 28, 2014 | Feb. 21, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Combinations [Abstract] | ||||
Cash consideration paid | $ 170,000 | |||
Erin Energy Corporation common stock | 0 | |||
Long-term convertible subordinated note payable - related party | 50,000 | |||
Total purchase price | $ 220,000 | |||
Asset acquired and liabilities assumed: | ||||
Property, plant and equipment, net | $ 248,736 | $ 61,205 | $ 214,710 | |
Accounts payable | (25,429) | |||
Asset retirement obligations | (20,890) | |||
Net assets acquired | 202,417 | $ 61,205 | $ 190,925 | |
Excess of consideration paid over carrying value of assets acquired | $ 17,583 |
Acquisitions - Schedule of Carr
Acquisitions - Schedule of Carrying Value of Net Assets Contributed (Details) - USD ($) $ in Thousands | Feb. 21, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Asset acquired and liabilities assumed: | |||
Property, plant and equipment, net | $ 248,736 | $ 61,205 | $ 214,710 |
Asset retirement obligations | 0 | (23,785) | |
Net assets acquired | $ 202,417 | $ 61,205 | $ 190,925 |
Property, Plant and Equipment43
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Wells and production facilities | $ 329,133 | $ 33,690 |
Proved properties | 386,196 | 386,196 |
Work in progress and other | 65,043 | 261,346 |
Oilfield assets | 780,372 | 681,232 |
Accumulated depletion | (442,481) | (95,403) |
Oilfield assets, net | 337,891 | 585,829 |
Unevaluated leaseholds | 10,440 | 9,440 |
Oil and gas properties, net | 348,331 | 595,269 |
Other property and equipment | 2,963 | 2,324 |
Accumulated depreciation | (1,789) | (1,264) |
Other property and equipment, net | 1,174 | 1,060 |
Total property, plant and equipment, net | $ 349,505 | $ 596,329 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment [Line Items] | ||||
Unevaluated leaseholds | $ 10,440,000 | $ 10,440,000 | $ 9,440,000 | |
Impairment of oil and gas properties | $ 249,200,000 | 281,768,000 | 0 | $ 0 |
The Gambia | ||||
Property Plant And Equipment [Line Items] | ||||
Payments to acquire rights to the properties | 1,000,000 | |||
Ghana | ||||
Property Plant And Equipment [Line Items] | ||||
Payments to acquire rights to the properties | $ 1,200,000 | |||
Uncompleted Wells Equipment and Facilities | ||||
Property Plant And Equipment [Line Items] | ||||
Impairment of oil and gas properties | $ 32,600,000 |
Suspended Exploratory Well Co45
Suspended Exploratory Well Costs - Additional Information (Details) $ in Millions | 1 Months Ended | |||
Aug. 31, 2014reservoirmft | Nov. 30, 2013intervalft | Dec. 31, 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 | 65 | |||
Pliocene formation Eastern fault block vertical depth, feet | 6,059 | |||
Pliocene formation Eastern fault block vertical depth, meters | m | 1,847 | |||
Number of Pliocene formation Eastern fault block new oil and gas reservoirs | reservoir | 4 | |||
Hydrocarbons Pliocene formation Eastern fault block gross thickness | 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 |
Accounts Payable and Accrued 46
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accounts payable - vendors | $ 153,085 | $ 79,512 |
Amounts due to government entities | 53,119 | 24,515 |
Accrued interest | 2,510 | 394 |
Accrued payroll and benefits | 629 | 1,792 |
Other liabilities | 3,777 | 1,834 |
Total accounts payable and accrued liabilities | $ 213,120 | $ 108,047 |
Asset Retirement Obligations -
Asset Retirement Obligations - Summary of Change in Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning balance, asset retirement obligation | $ 26,533 | $ 20,601 | ||
Accretion expense | 1,931 | 2,166 | $ 2,235 | |
Additions | 9,416 | 0 | ||
Revisions in estimated liabilities | (4,284) | 3,766 | 0 | |
Loss on settlement of asset retirement obligations | $ 3,700 | 3,653 | 0 | 0 |
Payments to settle asset retirement obligations | (16,640) | 0 | ||
Ending balance, asset retirement obligation | $ 20,609 | $ 26,533 | $ 20,601 |
Asset Retirement Obligations 48
Asset Retirement Obligations - Summary of Current and Long-term Portions of Asset Retirement Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Asset Retirement Obligation [Abstract] | |||
Asset retirement obligations, current portion | $ 0 | $ 12,703 | |
Asset retirement obligations, long-term portion | 20,609 | 13,830 | |
Asset retirement obligations | $ 20,609 | $ 26,533 | $ 20,601 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2015 | Sep. 30, 2015 | Aug. 31, 2015 | Jul. 31, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Feb. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||||||||||
Payments of debt issuance costs | $ 0 | $ 2,082,000 | $ 0 | |||||||
Foreign currency transaction gain unrealized | 2,520,000 | 1,572,000 | $ 224,000 | |||||||
Promissory note | 120,000,000 | |||||||||
Notes payable - related party | $ 50,000,000 | |||||||||
Number of securities called by warrants (shares) | 2.6 | |||||||||
Warrants issued with debt | $ 4,911,000 | |||||||||
Long-term debt, excluding current maturities | $ 120,000,000 | |||||||||
Promissory Note To Allied | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term (years) | 30 days | |||||||||
Maximum borrowing capacity | $ 25,000,000 | |||||||||
Promissory note | $ 25,000,000 | $ 11,200,000 | ||||||||
Promissory note extended maturity period (years) | 1 year | |||||||||
Promissory note extended maturity date | Jul. 31, 2017 | |||||||||
Advance | Advance on Spot Sales Contract | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term (years) | 30 days | |||||||||
Debt instrument, face amount | $ 26,500,000 | $ 13,000,000 | ||||||||
Majority Shareholder | Line of Credit | Promissory Note to Majority Shareholder Related Party | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Short-term notes payable - related party | $ 2,000,000 | |||||||||
Debt instrument, term (years) | 30 days | |||||||||
1-Month LIBOR | Advance | Advance on Spot Sales Contract | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (percent) | 6.50% | 6.50% | ||||||||
1-Month LIBOR | Majority Shareholder | Line of Credit | Promissory Note to Majority Shareholder Related Party | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (percent) | 3.00% | |||||||||
London Interbank Offered Rate (LIBOR) | Promissory Note To Allied | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (percent) | 2.00% | |||||||||
Line of Credit | Promissory Note To Allied | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest payable | $ 900,000 | |||||||||
Convertible Subordinated Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term (years) | 5 years | |||||||||
Interest payable | $ 5,200,000 | |||||||||
Debt instrument, default, maximum time period (days) | 30 days | |||||||||
Unremedied material breach, maximum time period (days) | 10 days | |||||||||
Debt instrument, convertible, conversion price (dollars per share) | $ 4.2984 | |||||||||
Minimum threshold proceeds from capital market debt issuance for mandatory prepayment option | $ 250,000,000 | |||||||||
Convertible Subordinated Debt | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (percent) | 5.00% | |||||||||
Convertible Debt | 2015 Convertible Note | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 50,000,000 | |||||||||
Interest payable | $ 2,000,000 | |||||||||
Long-term debt, gross | 48,000,000 | |||||||||
Debt instrument, unamortized discount | 3,000,000 | |||||||||
Long-term debt, excluding current maturities | 45,000,000 | |||||||||
Convertible Debt | London Interbank Offered Rate (LIBOR) | 2015 Convertible Note | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (percent) | 5.00% | |||||||||
Term Loan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term (years) | 5 years | |||||||||
Maximum borrowing capacity | $ 100,000,000 | |||||||||
Line of credit facility, maximum borrowing capacity available in USD (percent) | 90.00% | |||||||||
Line of credit facility, maximum borrowing capacity available in Nigerian Naira (percent) | 10.00% | |||||||||
Line of credit facility, commitment fee amount | 2,600,000 | |||||||||
Payments of debt issuance costs | 500,000 | |||||||||
Unamortized debt issuance costs | 1,600,000 | |||||||||
Annual principal payment | 300,000 | |||||||||
Foreign currency transaction gain unrealized | 1,600,000 | |||||||||
Long-term debt | 98,100,000 | |||||||||
Interest payable | $ 2,500,000 | |||||||||
Debt instrument, default, maximum time period (days) | 30 days | |||||||||
Unremedied material breach, maximum time period (days) | 30 days | |||||||||
Term Loan Facility | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (percent) | 10.80% | |||||||||
Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Exercise price of warrants (dollars per share) | $ 2.46 | |||||||||
Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Exercise price of warrants (dollars per share) | $ 7.85 | |||||||||
Additional Paid-in Capital | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Warrants issued with debt | $ 4,911,000 |
Related Party Transactions Summ
Related Party Transactions Summary of Related Party Transactions and Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |||
Accounts receivable, CEHL | $ 1,186 | $ 624 | |
Accounts payable and accrued liabilities, CEHL | 30,133 | 9,391 | |
Long-term notes payable - related party, CEHL | 120,006 | 61,185 | |
Total operating (income) and expenses, CEHL | 15,106 | 14,449 | $ (1,167) |
Interest expense, CEHL | $ 5,490 | $ 2,414 | $ 99 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2014 | |
Related Party Transaction [Line Items] | |||||
Accounts payable and accrued expenses | $ 30,100 | $ 9,400 | |||
Related party, accrued interest on notes payable | 8,300 | 2,800 | |||
Long-term notes payable - related party | 120,006 | 61,185 | |||
Convertible subordinate note issued | 50,000 | ||||
Promissory note | 120,000 | ||||
Compensation incurred with affiliate | 15,106 | 14,449 | $ (1,167) | ||
Interest expense, related party | $ 5,490 | 2,414 | $ 99 | ||
Non-controlling interest, ownership percentage | 50.00% | ||||
Affiliate | |||||
Related Party Transaction [Line Items] | |||||
Non-controlling interest, ownership percentage | 50.00% | ||||
Promissory Note To Allied | |||||
Related Party Transaction [Line Items] | |||||
Debt instrument, term (years) | 30 days | ||||
Promissory note | $ 25,000 | 11,200 | |||
Majority Shareholder | Line of Credit | Promissory Note to Majority Shareholder Related Party | |||||
Related Party Transaction [Line Items] | |||||
Short-term notes payable - related party | $ 2,000 | ||||
Debt instrument, term (years) | 30 days | ||||
Convertible Debt | 2015 Convertible Note | |||||
Related Party Transaction [Line Items] | |||||
Long-term notes payable - related party | 45,000 | ||||
Line of Credit | Promissory Note To Allied | |||||
Related Party Transaction [Line Items] | |||||
Long-term notes payable - related party | $ 25,000 | ||||
Convertible Subordinated Debt | |||||
Related Party Transaction [Line Items] | |||||
Debt instrument, term (years) | 5 years | ||||
Long-term notes payable - related party | $ 50,000 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of the Company Significant Future Commitments on Non-cancellable Operating Leases and Estimated Obligations Arising from its Minimum Work Obligations (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments And Contingencies [Line Items] | |
Total | $ 321,183 |
2,016 | 60,119 |
2,017 | 114,559 |
2,018 | 49,387 |
2,019 | 48,741 |
2,020 | 48,377 |
Thereafter | 0 |
Operating lease obligation - FPSO and drilling rig leases - Nigeria | |
Commitments And Contingencies [Line Items] | |
Total | 241,813 |
2,016 | 48,362 |
2,017 | 48,363 |
2,018 | 48,362 |
2,019 | 48,363 |
2,020 | 48,363 |
Thereafter | 0 |
Operating lease obligation - Office leases | |
Commitments And Contingencies [Line Items] | |
Total | 2,034 |
2,016 | 664 |
2,017 | 553 |
2,018 | 425 |
2,019 | 378 |
2,020 | 14 |
Thereafter | 0 |
Minimum work obligations | Kenya | |
Commitments And Contingencies [Line Items] | |
Total | 66,086 |
2,016 | 1,043 |
2,017 | 65,043 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
Thereafter | 0 |
Minimum work obligations | The Gambia | |
Commitments And Contingencies [Line Items] | |
Total | 1,800 |
2,016 | 600 |
2,017 | 600 |
2,018 | 600 |
2,019 | 0 |
2,020 | 0 |
Thereafter | 0 |
Minimum work obligations | Ghana | |
Commitments And Contingencies [Line Items] | |
Total | 9,450 |
2,016 | 9,450 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
Thereafter | $ 0 |
Commitments and Contingencies53
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Mar. 15, 2016 | Feb. 05, 2016people | Jun. 28, 2015USD ($) | Jun. 30, 2015USD ($) | Feb. 28, 2014 | Dec. 31, 2015USD ($)contractbbl | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jan. 22, 2016USD ($) |
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Rent expense | $ 900 | $ 1,000 | $ 700 | ||||||
Operating leases, future minimum payments due | 2,000 | ||||||||
Reduction in accounts payable from settlement of Northern Offshore contingency | 24,307 | $ 0 | $ 0 | ||||||
Nigerian Department of Petroleum Resources | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Payment of cash or the equivalent in shares | $ 25,000 | ||||||||
Payment of cash or the equivalent of shares in period | 15 days | ||||||||
Number of shares to be issued in period | 30 days | ||||||||
Kenya | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Minimum work obligation in mineral property | contract | 4 | ||||||||
The Gambia | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Minimum work obligation in mineral property | contract | 2 | ||||||||
NIGERIA | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Estimate of possible loss | $ 8,200 | ||||||||
Long-term Floating Production Storage and Offloading System Contract | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Initial term of contract (years) | 7 years | ||||||||
Additional term of contract (years) | 2 years | ||||||||
Barrels processing capacity (bbl) | bbl | 40,000 | ||||||||
Maximum storage capacity for the FPSO (bbl) | bbl | 1,000,000 | ||||||||
Reduction of accrued production costs | $ 26,000 | ||||||||
Other minimum commitment, due in first year | $ 48,400 | ||||||||
Settlement Agreement with Northern | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Reduction in accounts payable from settlement of Northern Offshore contingency | $ 24,300 | ||||||||
TransOcean Offshore Gulf of Guinea VII Limited and Indigo Drilling Limited [Member] | Subsequent Event | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Estimate of possible loss | $ 20,200 | ||||||||
February 2014 Transactions | Subsequent Event | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Number of plaintiffs | people | 7 | ||||||||
Convertible Debt | 2015 Convertible Note | Subsequent Event | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Percent owed on debt fundraising event | 10.00% | ||||||||
Percent owed on equity fundraising event | 20.00% |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Granted (shares) | 400,000 | |||||
Number of securities called by warrants (shares) | 2,600,000 | |||||
Warrants exercisable from date of issuance, term period (years) | 5 years | |||||
Stock warrants | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options outstanding intrinsic value | $ 1,200 | |||||
Options exercisable intrinsic value | 1,200 | |||||
Allocated share-based compensation expense | $ 400 | $ 100 | ||||
Warrants exercisable from date of issuance, term period (years) | 5 years | |||||
Issued warrants to third parties | 300,000 | |||||
Issued warrants to third parties at exercise price | $ 3.36 | |||||
Granted (shares) | 2,635,000 | |||||
Minimum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Exercise price of warrants (dollars per share) | $ 2.46 | |||||
Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Exercise price of warrants (dollars per share) | $ 7.85 | |||||
2009 Equity Incentive Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares authorized | 16,700,000 | |||||
Options outstanding intrinsic value | $ 2,600 | |||||
Options exercisable intrinsic value | 2,300 | |||||
Options exercised in period intrinsic value | $ 0 | 900 | $ 0 | |||
Employee Stock Option | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Granted (shares) | 400,000 | |||||
Allocated share-based compensation expense | $ 1,300 | 1,300 | 1,100 | |||
Compensation cost not yet recognized | $ 800 | |||||
Employee Stock Option | Scenario, Forecast | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Compensation cost not yet recognized | $ 100 | $ 200 | $ 500 | |||
Employee Stock Option | 2009 Equity Incentive Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Expiration period (years) | 3 years | |||||
Employee Stock Option | 2009 Equity Incentive Plan | Minimum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Expiration period (years) | 5 years | |||||
Employee Stock Option | 2009 Equity Incentive Plan | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Expiration period (years) | 10 years | |||||
Non-vested restricted stock awards | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Allocated share-based compensation expense | $ 3,300 | 1,700 | $ 900 | |||
Compensation cost not yet recognized | $ 1,600 | |||||
Granted (shares) | 1,292,000 | |||||
Non-vested restricted stock awards | 2009 Equity Incentive Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Grant date fair value vested in period | $ 3,100 | $ 2,800 | ||||
Non-vested restricted stock awards | 2009 Equity Incentive Plan | Scenario, Forecast | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Compensation cost not yet recognized | $ 300 | $ 1,300 | ||||
Officer | Performance-Based Restricted Stock | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Award vesting period (years) | 3 years | |||||
Granted (shares) | 400,000 | |||||
Percentage of additional shares awarded | 50.00% | |||||
Compensation not yet recognized, shared-based awards other than options | $ 300 | |||||
Cost not yet recognized, period for recognition (years) | 3 years |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Stock Option Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Granted (shares) | 400,000 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options, Outstanding (shares) | 2,395,000 | |
Granted (shares) | 400,000 | |
Exercised (shares) | (5,000) | |
Forfeited (shares) | (258,000) | |
Expired (shares) | 0 | |
Options, Outstanding (shares) | 2,532,000 | 2,395,000 |
Expected to vest (shares) | 622,000 | |
Exercisable at December 31, 2015 (shares) | 1,910,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Options Outstanding, Weighted-Average Exercise Price (dollars per share) | $ 2.10 | |
Granted (dollars per share) | 5.29 | |
Exercised (dollars per share) | 1.92 | |
Forfeited (dollars per share) | 5.41 | |
Expired (dollars per share) | 0 | |
Options Outstanding, Weighted-Average Exercise Price (dollars per share) | 2.29 | $ 2.10 |
Expected to vest (dollars per share) | 3.10 | |
Exercisable at December 31, 2015 (dollars per share) | $ 2.02 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (Years) | 1 year 7 months 6 days | 3 years |
Granted, Weighted-Average Remaining Contractual Term (Years) | 4 years 9 months 18 days | |
Expected to vest, Weighted-Average Remaining Contractual Term (Years) | 3 years 8 months 12 days | |
Exercisable at December 31, 2015, Weighted-Average Remaining Contractual Term (Years) | 1 year |
Stock Based Compensation - Su56
Stock Based Compensation - Summary of Weighted-Average Amounts for Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock warrants | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected price volatility, minimum | 76.80% | ||
Expected price volatility, maximum | 83.20% | ||
Risk free interest rate (U.S. Treasury bonds), minimum | 0.80% | ||
Risk free interest rate (U.S. Treasury bonds), maximum | 1.10% | ||
Expected price volatility (percent) | 82.70% | ||
Risk free interest rate (U.S. Treasury bonds) (percent) | 1.10% | ||
Expected annual dividend yield (percent) | 0.00% | 0.00% | |
Expected option term (years) | 3 years | 3 years | |
Weighted-average grant date fair value per share (dollars per share) | $ 1.86 | $ 1.80 | |
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected price volatility, minimum | 77.10% | ||
Expected price volatility, maximum | 83.10% | ||
Risk free interest rate (U.S. Treasury bonds), minimum | 1.00% | ||
Risk free interest rate (U.S. Treasury bonds), maximum | 1.20% | ||
Expected price volatility (percent) | 87.70% | 77.90% | |
Risk free interest rate (U.S. Treasury bonds) (percent) | 1.10% | 0.50% | |
Expected annual dividend yield (percent) | 0.00% | 0.00% | 0.00% |
Expected option term (years) | 3 years | 3 years | 3 years 6 months |
Weighted-average grant date fair value per share (dollars per share) | $ 2.73 | $ 1.92 | $ 1.38 |
Stock Based Compensation - Su57
Stock Based Compensation - Summary of Stock Warrants Activity (Details) - Stock warrants - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding (shares) | 2,416,000 | |
Granted (shares) | 2,635,000 | |
Exercised (shares) | (286,000) | |
Forfeited (shares) | (1,830,000) | |
Expired (shares) | 0 | |
Outstanding (shares) | 2,935,000 | 2,416,000 |
Expected to vest (shares) | 0 | |
Exercisable at December 31, 2015 (shares) | 2,935,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding Weighted-Average Exercise Price (dollars per share) | $ 6.37 | |
Granted (dollars per share) | 3.64 | |
Exercised (dollars per share) | 6.46 | |
Forfeited (dollars per share) | 6.85 | |
Expired (dollars per share) | 0 | |
Outstanding Weighted-Average Exercise Price (dollars per share) | 3.61 | $ 6.37 |
Expected to vest (dollars per share) | 0 | |
Exercisable at December 31, 2015 (dollars per share) | $ 3.61 | |
Weighted-Average Remaining Contractual Term (Years) | 4 years 2 months 12 days | 1 year 4 months 24 days |
Granted, Weighted-Average Remaining Contractual Term (Years) | 4 years 3 months 18 days | |
Exercisable at December 31, 2015, Weighted-Average Remaining Contractual Term (Years) | 4 years 2 months 12 days |
Stock Based Compensation - Su58
Stock Based Compensation - Summary of Restricted Stock Activity (Details) - Non-vested restricted stock awards shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding (shares) | shares | 1,007 |
Granted (shares) | shares | 1,292 |
Vested (shares) | shares | (965) |
Forfeited (shares) | shares | (220) |
Outstanding (shares) | shares | 1,114 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding Weighted-Average Exercise Price (dollars per share) | $ / shares | $ 3.12 |
Granted (dollars per share) | $ / shares | 3.27 |
Vested (dollars per share) | $ / shares | 3.18 |
Forfeited (dollars per share) | $ / shares | 3.24 |
Outstanding Weighted-Average Exercise Price (dollars per share) | $ / shares | $ 3.21 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Expected Statutory U.S. Federal Income Tax Provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax [Line Items] | |||||||||||
Net loss attributable to Erin Energy Corporation before income tax expense | $ (350,594) | $ (58,682) | $ (9,162) | $ (33,059) | $ (27,051) | $ (42,223) | $ (11,930) | $ (14,858) | $ (451,497) | $ (96,062) | $ (43,525) |
Expected income tax provision at statutory rate of 35% | (158,024) | (33,622) | (15,234) | ||||||||
Increase (decrease) due to: | |||||||||||
Foreign rate differential | (62,551) | (10,083) | (3,581) | ||||||||
Change in valuation allowance | 267,190 | 98,376 | 20,205 | ||||||||
Non-deductible expenses and other | (11,035) | (13,906) | 13,912 | ||||||||
Total income tax expense | $ 0 | $ 0 | $ 0 | ||||||||
Expected income tax provision at statutory rate | 35.00% | 35.00% | 35.00% | ||||||||
NIGERIA | |||||||||||
Increase (decrease) due to: | |||||||||||
Investment tax credit - Nigeria | $ (35,580) | $ (40,765) | $ (15,302) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Basis difference in fixed assets | $ 22,173 | $ (100,798) |
Unused capital allowances | 506,795 | 407,899 |
Net operating losses | 88,391 | 54,673 |
Other | 12,239 | 621 |
Gross deferred income tax assets | 629,598 | 362,395 |
Valuation allowance | (629,598) | (362,395) |
Net deferred income tax assets | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Valuation allowance | $ 629,598 | $ 362,395 |
Income Taxes - Summary of Tax Y
Income Taxes - Summary of Tax Years Remain Subject to Examination (Details) | 12 Months Ended |
Dec. 31, 2015 | |
United States | Minimum | |
Income Tax Examination [Line Items] | |
Tax years subject to examination | 2,007 |
United States | Maximum | |
Income Tax Examination [Line Items] | |
Tax years subject to examination | 2,015 |
NIGERIA | Minimum | |
Income Tax Examination [Line Items] | |
Tax years subject to examination | 2,010 |
NIGERIA | Maximum | |
Income Tax Examination [Line Items] | |
Tax years subject to examination | 2,015 |
Kenya | Minimum | |
Income Tax Examination [Line Items] | |
Tax years subject to examination | 2,012 |
Kenya | Maximum | |
Income Tax Examination [Line Items] | |
Tax years subject to examination | 2,015 |
The Gambia | Minimum | |
Income Tax Examination [Line Items] | |
Tax years subject to examination | 2,012 |
The Gambia | Maximum | |
Income Tax Examination [Line Items] | |
Tax years subject to examination | 2,015 |
Segment Information - Segment A
Segment Information - Segment Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 39,762 | $ 28,667 | $ 0 | $ 0 | $ 0 | $ 19,010 | $ 14,940 | $ 19,894 | $ 68,429 | $ 53,844 | $ 63,736 |
Operating loss | (345,718) | $ (53,423) | $ (5,821) | $ (32,031) | (25,825) | $ (41,546) | $ (11,271) | $ (14,683) | (436,993) | (93,325) | (43,527) |
Total Assets | 376,160 | 638,443 | 376,160 | 638,443 | |||||||
Operating Segments | Nigeria Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 68,429 | 53,844 | 63,736 | ||||||||
Operating loss | (408,008) | (64,716) | (23,705) | ||||||||
Total Assets | 368,327 | 609,243 | 368,327 | 609,243 | |||||||
Operating Segments | Kenya Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating loss | (8,038) | (12,130) | (3,404) | ||||||||
Total Assets | 1,399 | 8,527 | 1,399 | 8,527 | |||||||
Operating Segments | The Gambia Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating loss | (5,209) | (1,347) | (1,070) | ||||||||
Total Assets | 3,016 | 2,739 | 3,016 | 2,739 | |||||||
Operating Segments | Ghana Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating loss | (1,931) | (492) | 0 | ||||||||
Total Assets | 2,447 | 1,413 | 2,447 | 1,413 | |||||||
Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating loss | (13,807) | (14,640) | $ (15,348) | ||||||||
Total Assets | $ 971 | $ 16,521 | $ 971 | $ 16,521 |
Selected Unaudited Quarterly 64
Selected Unaudited Quarterly Financial Data - Schedule of Selected Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 39,762 | $ 28,667 | $ 0 | $ 0 | $ 0 | $ 19,010 | $ 14,940 | $ 19,894 | $ 68,429 | $ 53,844 | $ 63,736 |
Operating loss | (345,718) | (53,423) | (5,821) | (32,031) | (25,825) | (41,546) | (11,271) | (14,683) | (436,993) | (93,325) | (43,527) |
Net loss attributable to Erin Energy Corporation | $ (350,594) | $ (58,682) | $ (9,162) | $ (33,059) | $ (27,051) | $ (42,223) | $ (11,930) | $ (14,858) | $ (451,497) | $ (96,062) | $ (43,525) |
Net loss per common share attributable to Erin Energy Corporation | |||||||||||
Basic (Dollars per share) | $ (1.66) | $ (0.28) | $ (0.04) | $ (0.16) | $ (0.13) | $ (0.20) | $ (0.06) | $ (0.13) | $ (2.13) | $ (0.49) | $ (0.30) |
Diluted (Dollars per share) | $ (1.66) | $ (0.28) | $ (0.04) | $ (0.16) | $ (0.13) | $ (0.20) | $ (0.06) | $ (0.13) | $ (2.13) | $ (0.49) | $ (0.30) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - shares | 1 Months Ended | 2 Months Ended | 12 Months Ended |
Feb. 29, 2016 | Mar. 15, 2016 | Dec. 31, 2015 | |
Non-vested restricted stock awards | |||
Subsequent Event [Line Items] | |||
Equity instrument other than options, grants in the period (shares) | 1,292,000 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock issued (in shares) | 200,000 | ||
Subsequent Event | Non-vested restricted stock awards | |||
Subsequent Event [Line Items] | |||
Equity instrument other than options, grants in the period (shares) | 700,000 | ||
Subsequent Event | Performance-based restricted stock | |||
Subsequent Event [Line Items] | |||
Equity instrument other than options, grants in the period (shares) | 500,000 |