Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 02, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Entity Registrant Name | CAMAC ENERGY INC. | ||
Entity Central Index Key | 1402281 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CAK | ||
Current Fiscal Year End Date | -19 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 1,263,289,143 | ||
Entity Public Float | $381,212,680 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $25,143 | $163 |
Restricted cash | 1,496 | |
Accounts receivable - partners | 496 | |
Accounts receivable - related party | 624 | 1,650 |
Accounts receivable - other | 54 | 86 |
Crude oil inventory | 1,089 | 16,254 |
Prepaids and other current assets | 2,929 | 232 |
Total current assets | 31,831 | 18,385 |
Property, plant and equipment: | ||
Oil and gas properties (successful efforts method of accounting), net | 595,269 | 435,035 |
Other property, plant and equipment, net | 1,060 | 752 |
Total property, plant and equipment, net | 596,329 | 435,787 |
Other non-current assets | ||
Restricted cash | 8,909 | |
Debt issuance costs | 1,307 | |
Other non-current assets | 67 | 52 |
Other assets, net | 10,283 | 52 |
Total assets | 638,443 | 454,224 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 108,047 | 12,886 |
Accounts payable and accrued liabilities - related party | 9,391 | 26,228 |
Asset retirement obligations | 12,703 | 12,479 |
Current portion of long-term debt | 6,200 | |
Short-term notes payable - related party | 6,496 | |
Total current liabilities | 136,341 | 58,089 |
Term loan facility | 93,000 | |
Long-term notes payable - related party | 61,185 | |
Asset retirement obligations | 13,830 | 8,122 |
Other long-term liabilities | 82 | 67 |
Total liabilities | 304,438 | 66,278 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock $0.001 par value - 50,000,000 shares authorized; none issued and outstanding as of December 31, 2014 and 2013, respectively | ||
Common stock $0.001 par value - 2,500,000,000 shares authorized; 1,261,845,103 and 879,817,093 shares outstanding as of December 31, 2014 and 2013, respectively | 1,262 | 879 |
Additional paid-in capital | 777,043 | 735,959 |
Accumulated deficit | -444,954 | -348,892 |
Total equity - CAMAC Energy Inc. | 333,351 | 387,946 |
Non-controlling interests | 654 | |
Total equity | 334,005 | 387,946 |
Total liabilities and equity | $638,443 | $454,224 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ||
Preferred stock par value (in Dollars per share) | $0.00 | $0.00 |
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) | $0.00 | $0.00 |
Common stock, authorized shares | 2,500,000,000 | 2,500,000,000 |
Common stock, outstanding shares | 1,261,845,103 | 879,817,093 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Crude oil sales, net of royalties | $53,844 | $63,736 | $74,667 |
Operating costs and expenses: | |||
Production costs | 94,808 | 70,427 | 41,555 |
Exploratory expenses | 14,283 | 5,501 | 3,236 |
Depreciation, depletion and amortization | 23,756 | 16,875 | 51,002 |
General and administrative expenses | 14,322 | 14,460 | 10,998 |
Total operating costs and expenses | 147,169 | 107,263 | 106,791 |
Operating loss | -93,325 | -43,527 | -32,124 |
Other income (expense): | |||
Currency transaction gain (loss) | 1,758 | 224 | -22 |
Interest expense | -4,383 | -99 | -117 |
Other, net | -358 | -87 | -443 |
Total other income (expense) | -2,983 | 38 | -582 |
Loss from continuing operations before income taxes | -96,308 | -43,489 | -32,706 |
Income tax expense | 0 | 0 | 0 |
Net loss from continuing operations | -96,308 | -43,489 | -32,706 |
Discontinued operations | |||
Net loss from discontinued operations, net of tax | -36 | -991 | |
Gain on divestiture, net | 4,160 | ||
Net (loss) income from discontinued operations | -36 | 3,169 | |
Net loss before non-controlling interests | -96,308 | -43,525 | -29,537 |
Non-controlling interests - discontinued operations | 8 | ||
Net loss before non-controlling interest from continuing operations | -96,308 | -43,525 | -29,529 |
Net loss attributable to non-controlling interest | 246 | ||
Net loss attributable to CAMAC Energy Inc. | ($96,062) | ($43,525) | ($29,529) |
Net (loss) income per common share attributable to CAMAC Energy Inc. - basic: | |||
Continuing operations | ($0.08) | ($0.05) | ($0.05) |
Discontinued operations | $0 | $0.01 | |
Total | ($0.08) | ($0.05) | ($0.05) |
Net (loss) income per common share attributable to CAMAC Energy Inc. - diluted: | |||
Continuing operations | ($0.08) | ($0.05) | ($0.05) |
Discontinued operations | $0 | $0.01 | |
Total | ($0.08) | ($0.05) | ($0.05) |
Weighted-average common shares outstanding: | |||
Basic | 1,168,468 | 878,710 | 628,101 |
Diluted | 1,168,468 | 878,710 | 628,101 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss, including non-controlling interest | ($96,308) | ($43,525) | ($29,537) |
Other comprehensive income (loss): | |||
Foreign currency transactions | -224 | 94 | |
Unrealized gain (loss) on investments, net of taxes | 395 | ||
Total other comprehensive (loss) income | -224 | 489 | |
Comprehensive loss | -96,308 | -43,749 | -29,048 |
Comprehensive loss attributable to non-controlling interests | 246 | 8 | |
Comprehensive loss attributable to CAMAC Energy, Inc. | ($96,062) | ($43,749) | ($29,040) |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
In Thousands, except Share data | ||||||
Balance at Dec. 31, 2011 | $185,211 | $378 | $460,934 | ($275,838) | ($265) | $2 |
Balance (Shares) (in shares) at Dec. 31, 2011 | 378,333,000 | |||||
Exercise of options | 3 | 3 | ||||
Exercise of options (Shares) (in shares) | 17,000 | |||||
Vesting of restricted stock | 1 | 1 | ||||
Vesting of restricted stock (Shares) (in shares) | 1,251,000 | |||||
Contingent consideration stock issued | 890 | 1 | 889 | |||
Contingent consideration stock issued (in shares) | 460,000 | |||||
Stock-based employee compensation | 739 | 739 | ||||
Net loss | -29,537 | -29,529 | -8 | |||
Net assets contributed by parent | 190,925 | 190,925 | ||||
Shares issued to affiliate | 497 | -497 | ||||
Shares Issued To Affiliates (Shares) (in shares) | 497,455,000 | |||||
Allied Transaction adjustments | -15,331 | -15,331 | ||||
Foreign currency gain | 106 | 12 | 94 | |||
Unrealized gain (loss) on investments, net of taxes | 395 | 395 | ||||
Balance at Dec. 31, 2012 | 333,402 | 877 | 637,674 | -305,367 | 224 | -6 |
Balance (Shares) (in shares) at Dec. 31, 2012 | 877,516,000 | |||||
Vesting of restricted stock | 2 | 2 | ||||
Vesting of restricted stock (Shares) (in shares) | 2,301,000 | |||||
Stock-based employee compensation | 2,013 | 2,013 | ||||
Net loss | -43,525 | -43,525 | ||||
Net assets contributed by parent | 61,205 | 61,205 | ||||
Allied Transaction adjustments | 35,067 | 35,067 | ||||
Foreign currency gain | -224 | -224 | ||||
Adjustments to non-controlling interest | 6 | 6 | ||||
Balance at Dec. 31, 2013 | 387,946 | 879 | 735,959 | -348,892 | ||
Balance (Shares) (in shares) at Dec. 31, 2013 | 879,817,093 | 879,817,000 | ||||
Stock-based employee compensation | 3,492 | 3,492 | ||||
Net loss | -96,308 | -96,062 | -246 | |||
Allied Transaction adjustments | -12,440 | -12,440 | ||||
Common stock issued | 270,415 | 383 | 270,032 | |||
Common stock issued (in shares) | 382,028,000 | |||||
Funding from non-controlling interest | 900 | 900 | ||||
Allied acquisition | -220,000 | -220,000 | ||||
Balance at Dec. 31, 2014 | $334,005 | $1,262 | $777,043 | ($444,954) | $654 | |
Balance (Shares) (in shares) at Dec. 31, 2014 | 1,261,845,103 | 1,261,845,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net loss, including non-controlling interest | ($96,308) | ($43,525) | ($29,537) |
Adjustments to reconcile net loss to cash (used in) provided by operating activities: | |||
Depreciation, depletion and amortization | 21,590 | 14,640 | 49,963 |
Asset retirement obligation accretion | 2,166 | 2,235 | 1,047 |
Amortization of debt issuance costs | 147 | ||
Related party liability offset | -32,880 | ||
Unrealized currency transaction (gain) loss | -1,572 | -224 | 22 |
Share-based compensation | 3,095 | 2,013 | 739 |
Dry hole costs | -37 | ||
Gain on divestiture, net | -4,160 | ||
Other | -17 | 16 | 55 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | 562 | -3,046 | 12,836 |
(Increase) decrease in inventories | 14,512 | -14,004 | -1,483 |
(Increase) decrease in prepaids and other current assets | -1,672 | 156 | 649 |
(Increase) decrease in other non-current assets | -15 | ||
Increase (decrease) in accounts payable and accrued liabilities | 56,845 | 5,114 | -20,660 |
Net cash (used in) provided by operating activities | -33,547 | -36,625 | 9,434 |
Cash flows from investing activities | |||
Capital expenditures | -128,510 | -602 | -3,576 |
Allied transaction | -170,000 | ||
Proceeds from divestiture, net | 2,364 | ||
Decrease in other assets | 465 | ||
Proceeds from the sale long-term investments | 1,966 | ||
Net cash (used in) provided by investing activities | -298,510 | -602 | 1,219 |
Cash flows from financing activities | |||
Proceeds from the issuance of common stock | 270,000 | ||
Proceeds from the exercise of stock options | 415 | 3 | |
Proceeds from term loan facility | 100,000 | ||
Debt issuance costs | -2,082 | ||
Proceeds (repayments) of note payable - related party, net | 10,649 | 4,350 | -5,128 |
Funds restricted for debt service | -10,405 | ||
Allied Transaction adjustments | -12,440 | 29,234 | -15,331 |
Funding from non-controlling interest | 900 | ||
Net cash provided by (used in) financing activities | 357,037 | 33,584 | -20,456 |
Effect of exchange rate on cash and cash equivalents | -17 | ||
Net increase (decrease) in cash and cash equivalents | 24,980 | -3,643 | -9,820 |
Cash and cash equivalents at beginning of year | 163 | 3,806 | 13,626 |
Cash and cash equivalents at end of year | 25,143 | 163 | 3,806 |
Cash paid for: | |||
Interest, net | 8 | 99 | 117 |
Contingent consideration stock | 890 | ||
Supplemental disclosure of non-cash investing and financing activities: | |||
Non-subsidiary common stock received as partial proceeds from divestiture, net | 1,877 | ||
Related party accounts payable, net, settled with related party notes payable | -32,880 | 1,274 | |
Non-cash gain from asset retirement obligation extinguishment | 5,833 | ||
Change in asset retirement obligation estimate | 3,766 | -6,466 | |
Net assets contributed by parent | $61,205 | $190,925 |
Company_Description
Company Description | 12 Months Ended |
Dec. 31, 2014 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Company Description | CAMAC ENERGY INC. |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
(In Thousands) | |
NOTE 1. — COMPANY DESCRIPTION | |
CAMAC Energy Inc. (NYSE MKT: CAK, JSE: CME) 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 43,000 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. | |
CAMAC Energy Inc. is headquartered in Houston, Texas and has offices in Lagos, Nigeria, Nairobi, Kenya, Banjul, The Gambia, Accra, Ghana and Johannesburg, South Africa. | |
The Company’s operating subsidiaries include CAMAC Petroleum Limited (“CPL”), CAMAC Energy Kenya Limited, CAMAC Energy Gambia Ltd, and CAMAC Energy Ghana Limited. The terms “we,” “us,” “our,” “the Company,” and “our Company” refer to CAMAC Energy Inc. 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 9 – 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_Sign
Basis of Presentation and Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Basis of Presentation and Significant Accounting Policies | NOTE 2. — 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”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). All significant intercompany transactions and balances have been eliminated in consolidation. The 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. 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 (“PSC”) 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 497.5 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. | ||||||||||||
In August 2012, the Company divested its wholly owned Hong Kong subsidiary, Pacific Asia Petroleum Limited, for cash and shares of stock. The Company has classified the current and historical results of its China operations, including other inactive operations not involved in this sale, as discontinued operations, net of tax, in the accompanying consolidated statements of operations. See Note 13 - Discontinued Operations, for further information. | ||||||||||||
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, depletion and amortization relating to oil and natural gas properties, asset retirement obligation assumptions, and income taxes. The accounting estimates used in the preparation of the 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, 2014 consists of $10.4 million held in a debt service reserve account to secure certain repayments pursuant to the Term Loan Facility in Nigeria. The Company had no restricted cash balance at December 31, 2013. | ||||||||||||
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 receivables 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, 2014 and 2013, no allowance for doubtful accounts was necessary. | ||||||||||||
Partner accounts receivables consist of balances owed from joint venture (“JV”) partners. As of December 31, 2014, the Company was owed $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 $1.1 million and $16.3 million as of December 31, 2014 and 2013, 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 $30.5 million and $25.4 million at December 31, 2014 and 2013, 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 current period losses combined with a history of losses, 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 ASC Topic 410 (Asset Retirement and Environmental Obligations), which requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred. ASC 410 requires the Company to record 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 ASC Topic 740 (Income Taxes). 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 carryforwards. 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 12 – 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, 2014, unamortized debt issuance costs were $1.9 million, of which $1.3 million was classified as long-term. There were no debt issuance costs as of December 31, 2013. | ||||||||||||
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 in accordance with ASC Topic 718-10 (Stock Compensation). 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 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, in accordance with ASC Topic 830 (Foreign Currency Matters). | ||||||||||||
Net Earnings (Loss) Per Common Share | ||||||||||||
The Company computes earnings or loss per share under ASC Topic 260 (Earnings per 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, unvested 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, 2014, 2013 and 2012, as these securities are anti-dilutive because the Company was in a loss position each year. | ||||||||||||
Years ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Stock options | 6,227 | - | 4 | |||||||||
Stock warrants | 39 | - | - | |||||||||
Non-vested restricted stock awards | 5,982 | 2,154 | 796 | |||||||||
Convertible note | 60,041 | - | - | |||||||||
72,289 | 2,154 | 800 | ||||||||||
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 10 – 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, 2014, the non-controlling interest recorded in equity was $0.7 million, attributable to the joint ownership of an affiliate in our CAMAC Energy Ghana Limited subsidiary. No non-controlling interests existed as of December 31, 2013. | ||||||||||||
Fair Value of Financial Instruments | ||||||||||||
Fair value is the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. | ||||||||||||
The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, accounts receivable, inventory, deposits, accounts payable and accrued liabilities, and debts at floating interest rates, approximate their fair values at December 31, 2014 and 2013, respectively, principally due to the short-term nature, maturities or nature of interest rates of the above listed items. | ||||||||||||
Reclassification | ||||||||||||
Certain reclassifications have been made to the 2013 and 2012 consolidated financial statements to conform to the 2014 presentation. These reclassifications were not material to the accompanying consolidated financial statements. | ||||||||||||
Recently Issued Accounting Standards | ||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU No. 2014-08 changes the criteria for reporting discontinued operations including enhanced disclosure requirements. Under the updated guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization´s operations and financial results. ASU No. 2014-08 is effective for fiscal years beginning after December 15, 2014, and the Company will adopt this standards update, as required, beginning with the first quarter of 2015. The adoption of this standards update affects presentation only and, as such, is not expected to have a material impact on the Company’s consolidated financial statements. | ||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which are guidance for recognizing revenue from contracts with customers. The objective of this guidance is to establish principles for reporting information about the nature, timing, and uncertainty of revenue and cash flows arising from an entity’s contracts with customers, including qualitative and quantitative disclosures around contracts with customers, significant judgments and change in judgments, and assets recognized from the costs to obtain or fulfill a contract, and will replace most existing revenue recognition guidance when it becomes effective. ASU No. 2014-09 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 Company is in the process of evaluating the impact, if any, of this guidance on its consolidated financial statements. | ||||||||||||
In June 2014, the FASB issued ASU No. 2014-09, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The guidance was issued to clarify the accounting treatment for performance-based stock awards. The update states that companies should not record compensation expense related to an award for which transfer to the employee is contingent on the company’s satisfaction of a performance target until it becomes probable that the performance target will be met. The update does not contain any new disclosure requirements, and is effective for interim and annual periods 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 its consolidated financial statements. | ||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU No 2014-15 contains updated guidance on determining when and how reporting entities must disclose going concern uncertainties in its financial statements. The objective of the update is to define management’s responsibility to evaluate, each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued and to provide related footnote disclosures. ASU No. 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter. The Company will adopt this standards update, as required, beginning with the first quarter of 2017. The Company is in the process of evaluating the impact this guidance will have on its footnote disclosures. | ||||||||||||
In November 2014, the FASB issued ASU No. 2014-17, Business Combinations: Pushdown Accounting. This ASU provides companies with the option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The election to apply pushdown accounting can be made either in the period in which the change of control occurred, or in a subsequent period. This ASU was effective on November 18, 2014. Implementation of this standard is not expected to have a material effect on the Company’s consolidated financial statements. | ||||||||||||
NOTE 3. - LIQUIDITY MATTERS | ||||||||||||
The Company’s primary cash requirements are for capital expenditures for the redevelopment of the Oyo field in the OMLs, operating expenditures, exploration activities in its unevaluated leaseholds, working capital needs, and interest and principal payments under current indebtedness. | ||||||||||||
The Company currently anticipates commencement of production from the Oyo-8 and Oyo-7 wells in March and May 2015, respectively, and expects combined initial production rates from the two wells of approximately 14,000 BOPD. If the Company experiences significant delays in bringing the Oyo-8 and Oyo-7 wells onto production, if actual production rates are substantially below anticipated rates, or if oil prices decline significantly from current levels, the Company will need to seek additional sources of capital. | ||||||||||||
The following discussion relates to the Company’s liquidity plans to finance the redevelopment of the Oyo field, as well as required operating and exploration expenditures. | ||||||||||||
The Company has a $25.0 million borrowing facility under a Promissory Note with Allied, with a maturity date now extended through August 2016. The current terms of the Promissory Note allow for the entire $25.0 million facility amount to be utilized for general corporate purposes. As of December 31, 2014, $11.2 million was outstanding under the Promissory Note. See Note 8 – Debt for further information. | ||||||||||||
In February 2015, the Company received a term sheet from a trading company for a commodity-based Full Recourse Prepayment Facility (the “Prepayment Facility”). The Prepayment Facility would allow the Company to borrow an initial sum, up to $65.0 million, towards the Oyo field redevelopment program. Additional funds, up to $100.0 million, would be available for borrowings post-production. The Company expects the Full Recourse Prepayment Facility to be finalized in the second quarter of 2015. | ||||||||||||
In March 2015, the Company entered into a borrowing facility with Allied for a Convertible Note (the “2015 Convertible Note”) separate from the existing $25.0 million Promissory Note and the $50.0 million Convertible Subordinate Note, allowing the Company to borrow up to $50.0 million for general corporate purposes. The 2015 Convertible Note matures in December 2016. Interest accrues at the rate of LIBOR plus 5.0%, 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 the conversion amount divided by the conversion price, defined as the volume weighted average of the closing sale prices on the NYSE MKT for a share of common stock for the five complete trading days immediately preceding the conversion date. | ||||||||||||
Upon execution of the 2015 Convertible Note, the Company drew $20.0 million under the note and issued to Allied warrants to purchase approximately 9.8 million shares of the Company’s common stock at a $0.41 strike price. Additional warrants will be issuable in connection with future draws, with the strike price for those warrants determined based on the market price of the Company’s common stock at the time of such future draws. | ||||||||||||
The Company’s majority shareholder has formally committed to provide the Company with additional funding, the form of which would be determined at the time of funding, sufficient to maintain the Company’s operations and to allow the Company to meet its current and future obligations as they become due for one year from March 12, 2015, the date of said commitment. | ||||||||||||
Although there are no assurances that the Company’s plans will be realized, management believes that the Company will have sufficient capital resources to meet projected cash flow requirements for the next twelve months from the date these financial statements are issued. | ||||||||||||
Liquidity_Matters
Liquidity Matters | 12 Months Ended |
Dec. 31, 2014 | |
Liquidity Matters [Abstract] | |
Liquidity Matters | NOTE 3. - LIQUIDITY MATTERS |
The Company’s primary cash requirements are for capital expenditures for the redevelopment of the Oyo field in the OMLs, operating expenditures, exploration activities in its unevaluated leaseholds, working capital needs, and interest and principal payments under current indebtedness. | |
The Company currently anticipates commencement of production from the Oyo-8 and Oyo-7 wells in March and May 2015, respectively, and expects combined initial production rates from the two wells of approximately 14,000 BOPD. If the Company experiences significant delays in bringing the Oyo-8 and Oyo-7 wells onto production, if actual production rates are substantially below anticipated rates, or if oil prices decline significantly from current levels, the Company will need to seek additional sources of capital. | |
The following discussion relates to the Company’s liquidity plans to finance the redevelopment of the Oyo field, as well as required operating and exploration expenditures. | |
The Company has a $25.0 million borrowing facility under a Promissory Note with Allied, with a maturity date now extended through August 2016. The current terms of the Promissory Note allow for the entire $25.0 million facility amount to be utilized for general corporate purposes. As of December 31, 2014, $11.2 million was outstanding under the Promissory Note. See Note 8 – Debt for further information. | |
In February 2015, the Company received a term sheet from a trading company for a commodity-based Full Recourse Prepayment Facility (the “Prepayment Facility”). The Prepayment Facility would allow the Company to borrow an initial sum, up to $65.0 million, towards the Oyo field redevelopment program. Additional funds, up to $100.0 million, would be available for borrowings post-production. The Company expects the Full Recourse Prepayment Facility to be finalized in the second quarter of 2015. | |
In March 2015, the Company entered into a borrowing facility with Allied for a Convertible Note (the “2015 Convertible Note”) separate from the existing $25.0 million Promissory Note and the $50.0 million Convertible Subordinate Note, allowing the Company to borrow up to $50.0 million for general corporate purposes. The 2015 Convertible Note matures in December 2016. Interest accrues at the rate of LIBOR plus 5.0%, 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 the conversion amount divided by the conversion price, defined as the volume weighted average of the closing sale prices on the NYSE MKT for a share of common stock for the five complete trading days immediately preceding the conversion date. | |
Upon execution of the 2015 Convertible Note, the Company drew $20.0 million under the note and issued to Allied warrants to purchase approximately 9.8 million shares of the Company’s common stock at a $0.41 strike price. Additional warrants will be issuable in connection with future draws, with the strike price for those warrants determined based on the market price of the Company’s common stock at the time of such future draws. | |
The Company’s majority shareholder has formally committed to provide the Company with additional funding, the form of which would be determined at the time of funding, sufficient to maintain the Company’s operations and to allow the Company to meet its current and future obligations as they become due for one year from March 12, 2015, the date of said commitment. | |
Although there are no assurances that the Company’s plans will be realized, management believes that the Company will have sufficient capital resources to meet projected cash flow requirements for the next twelve months from the date these financial statements are issued. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Business Combinations [Abstract] | ||||||||
Acquisitions | NOTE 4. — 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 497.5 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 376.9 million shares of common stock (the “Private Placement”). See Note 10 – Commitments and Contingencies for information regarding additional payments due to Allied upon the occurrence of certain future events. | ||||||||
The table below sets forth a summary of the contractual purchase consideration paid for the Allied Assets (In thousands): | ||||||||
Cash consideration paid | $ | 170,000 | ||||||
CAMAC Energy Inc. 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): | ||||||||
As of 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. The contracting parties, which hold 90% of the participating interest in the block, are CAMAC Energy Ghana Limited as the operator, GNPC Exploration and Production Company Limited, and Base Energy, holding 60%, 25%, and 15% share of the participating interest, respectively. Ghana National Petroleum Company initially has a 10% carried interest through the exploration phase, and will have the option to acquire an additional 10% paying interest following a declaration of commerciality. | ||||||||
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 reprocessing of existing 2-D and 3-D seismic data and drilling of one exploration well. 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 addition, within nine months of the effective date of the Petroleum Agreement, the Contracting Parties will review and evaluate three previously discovered and appraised fields, the North, South and West Tano Fields, and declare whether or not those discoveries are commercial discoveries. | ||||||||
In January 2015, the Petroleum Agreement became effective, following the signing of a Joint Operating Agreement between the contracting parties. Preliminary work has commenced on the evaluation of the discovered fields to determine economic viability. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property Plant And Equipment [Abstract] | ||||||||
Property, Plant and Equipment | NOTE 5. — PROPERTY, PLANT AND EQUIPMENT | |||||||
Property, plant and equipment were comprised of the following: | ||||||||
As of December 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Wells and production facilities | $ | 33,690 | $ | 28,874 | ||||
Proved properties | 386,196 | 386,196 | ||||||
Work in progress and other | 261,346 | 86,634 | ||||||
Oilfield assets | 681,232 | 501,704 | ||||||
Accumulated depletion | (95,403 | ) | (74,909 | ) | ||||
Oilfield assets, net | 585,829 | 426,795 | ||||||
Unevaluated leaseholds | 9,440 | 8,240 | ||||||
Oil and gas properties, net | 595,269 | 435,035 | ||||||
Other property and equipment | 2,324 | 1,590 | ||||||
Accumulated depreciation | (1,264 | ) | (838 | ) | ||||
Other property and equipment, net | 1,060 | 752 | ||||||
Total property, plant and equipment, net | $ | 596,329 | $ | 435,787 | ||||
All of the Company’s oilfield assets are located offshore Nigeria in the OMLs. “Work-in-progress and other” includes ongoing drilling costs, 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 expended to acquire the rights to the exploration acreage in its various oil and gas properties. The $9.4 million unevaluated leasehold cost in 2014 includes $1.2 million payment to acquire rights to the Ghana properties. | ||||||||
Suspended_Exploratory_Well_Cos
Suspended Exploratory Well Costs | 12 Months Ended |
Dec. 31, 2014 | |
Extractive Industries [Abstract] | |
Suspended Exploratory Well Costs | NOTE 6. — SUSPENDED EXPLORATORY WELL COSTS |
In November 2013, the Company achieved both its primary and secondary drilling objectives for the Oyo-7 well. The primary drilling objective was to establish production from the existing Pliocene reservoir. The secondary drilling objective was to confirm the presence of hydrocarbons in the deeper Miocene formation. Hydrocarbons were encountered in three Miocene intervals totaling approximately 65 feet, as interpreted by the logging-while-drilling (“LWD”) data. Management is making plans to further explore the Miocene formation in future wells. As of December 31, 2014 and 2013, 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 Oyo-8 well was drilled to a total vertical depth of approximately 6,059 feet (approximately 1,847 meters) and successfully encountered four new oil and gas reservoirs in the eastern fault block, with total gross hydrocarbon thickness of 112 feet, based on results from the LWD data, reservoir pressure measurement, and reservoir fluid sampling. Management has commenced a detailed evaluation of the results and plans to further explore the Pliocene formation in the eastern fault block and establish the size of the incremental additions. Suspended exploratory well costs were $6.5 million at December 31, 2014 for the costs related to the Pliocene exploration drilling activities in the eastern fault block. |
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Asset Retirement Obligations | NOTE 7. —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 are calculated based on historical data as well as current estimated costs. | ||||||||
The following summarizes changes in the Company’s asset retirement obligations during the years ended December 31, 2014 and 2013: | ||||||||
As of December 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Asset retirement obligations at January 1 | $ | 20,601 | $ | 24,832 | ||||
Property acquisition | - | - | ||||||
Revisions in estimated liabilities | 3,766 | (6,466 | ) | |||||
Accretion | 2,166 | 2,235 | ||||||
Asset retirement obligations at December 31 | $ | 26,533 | $ | 20,601 | ||||
The table below shows the current and long-term portions of the Company's asset retirement obligations as of the end of December 31, 2014 and 2013: | ||||||||
As of December 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Asset retirement obligations, current portion | $ | 12,703 | $ | 12,479 | ||||
Asset retirement obligations, long-term portion | 13,830 | 8,122 | ||||||
$ | 26,533 | $ | 20,601 | |||||
Accretion expense is recognized as a component of depreciation, depletion and amortization expense in the accompanying consolidated statements of operations. |
Debt
Debt | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Debt | NOTE 8. — DEBT | ||||||||||||
As of December 31, 2014, the Company’s long-term debt, excluding asset retirement obligations, was $154.2 million, consisting principally of $11.2 million owed under a related party Promissory Note, $50.0 million Convertible Note owed to a related party, and $93.0 million representing the long-term portion of debt owed under a Term Loan Facility. | |||||||||||||
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 London Interbank Offered Rate (“LIBOR”) plus 2% per annum, payable quarterly. The obligations under the Promissory Note have been guaranteed by the Company. In March 2015, the Promissory Note was amended to extend the maturity date by one year to July 2016. The entire $25.0 million facility amount can be utilized for general corporate purposes. As of December 31, 2014 and 2013, the Company owed $11.2 million and $6.5 million, respectively, under the Promissory Note. | |||||||||||||
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 $0.7164 per share, subject to anti-dilution adjustments. The Convertible Subordinated Note is subordinated to the Company’s existing and future senior indebtedness and is subject to acceleration upon an Event of Default (as defined in the Convertible Subordinated Note). The Company may, at its option, prepay the Convertible Subordinated Note in whole or in part, at any time, without premium or penalty, and is subject to mandatory prepayment upon (i) the Company’s issuance of capital stock or incurrence of indebtedness, the proceeds of which the Company does not apply to repayment of senior indebtedness or (ii) any capital markets debt issuance to the extent the net proceeds of such issuance exceed $250.0 million. Allied may assign all or any part of its rights and obligations under the Convertible Subordinated Note to any person upon written notice to the Company. As of December 31, 2014, the Company owed $50.0 million under the Convertible Subordinated Note. | |||||||||||||
Term Loan Facility | |||||||||||||
In September 2014, the Company, through its wholly owned subsidiary CPL, entered into a credit facility with a Nigerian bank for a five-year senior secured term loan providing initial borrowing capacity of up to $100.0 million (the “Term Loan Facility”). U.S. dollar borrowings under the Term Loan Facility bear interest at the rate of LIBOR plus 7.5%, subject to a floor of 9.5%. 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 CPL have been guaranteed by the Company and rank in priority with all its other obligations. Proceeds from the Term Loan Facility will be used for the further expansion and development of the OMLs offshore Nigeria, including the Oyo field. | |||||||||||||
Under the Term Loan Facility, the following events, among others, constitute events of default: CPL failing to pay any amounts due within thirty days of the due date; bankruptcy, insolvency, liquidation or dissolution of CPL; a material breach of the Loan Agreement by CPL that remains unremedied within thirty days of written notice by CPL; or a representation or warranty of CPL proves to have been incorrect or materially inaccurate when made. Upon any event of default, all outstanding principal and interest under any loans will become immediately due and payable. | |||||||||||||
The Term Loan Facility contains normal and customary covenants, including the delivery of the Company’s annual audited financial information each year, and a provision of priority of interest, in which the Company is to procure that its obligations under the Term Loan Facility do and will rank in priority with all its other current and future unsecured and unsubordinated obligations. The Company is also to provide a production and lifting schedule each month displaying the daily production totals and quantities lifted respectively from the OMLs. The Company was in compliance with all loan covenants as of December 31, 2014. | |||||||||||||
In 2014, the Company recognized an unrealized foreign currency gain of $0.8 million on the Naira portion of the loan, resulting in a net balance of $99.2 million owed as of December 31, 2014, under the Term Loan Facility. Of this amount, $93.0 million was classified as long-term and $6.2 million as short-term. Scheduled principal repayments on the outstanding balance on the Term Loan Facility are as follows (in thousands): | |||||||||||||
Scheduled payments by year | Principal | Interest | Total | ||||||||||
2015 | $ | 6,200 | $ | 9,917 | $ | 16,117 | |||||||
2016 | 24,800 | 9,596 | 34,396 | ||||||||||
2017 | 24,800 | 6,917 | 31,717 | ||||||||||
2018 | 24,800 | 4,266 | 29,066 | ||||||||||
2019 | 18,600 | 1,615 | 20,215 | ||||||||||
$ | 99,200 | $ | 32,311 | $ | 131,511 | ||||||||
Upon executing the Term Loan Facility, the Company paid a commitment fee of $2.1 million, which was recorded as debt issuance costs in the Company’s consolidated balance sheets. As of December 31, 2014, $1.9 million of the debt issuance costs remained unamortized, of which $1.3 million were classified as long-term. | |||||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Related Party Transactions [Abstract] | ||||||||||||
Related Party Transactions | NOTE 9. — 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, 2014 and 2013: | ||||||||||||
As of December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
CEHL, accounts receivable | $ | 624 | $ | 1,650 | ||||||||
CEHL, accounts payable and accrued expenses | $ | 9,391 | $ | 26,228 | ||||||||
CEHL, note payable-related party | $ | 61,185 | $ | 6,496 | ||||||||
As of December 31, 2014, the Company owed $9.4 million to certain affiliates, primarily for operational expenses incurred during the period. As of December 31, 2013, the Company owed $25.7 million to Allied primarily as reimbursement for costs incurred related to the drilling of development wells in the Oyo field. | ||||||||||||
As of December 31, 2014, the Company had a long-term note payable balance of $61.2 million owed to an affiliate, consisting of a $50.0 million Convertible Subordinated Note, and $11.2 million in borrowings under the Promissory Note. As of December 31, 2013, the balance under the Promissory Note was $6.5 million, which was classified as a short-term liability. | ||||||||||||
Results from Operations | ||||||||||||
The table below sets forth the transactions incurred with affiliates during the years ended December 31, 2014, 2013, and 2012: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
CEHL, total operating (income) and expenses | $ | 14,449 | $ | (1,167 | ) | $ | 81 | |||||
CEHL, other expense, net | $ | 2,414 | $ | 99 | $ | 122 | ||||||
An affiliate of CEHL, the Company’s majority shareholder, provides procurement and logistical support services to the Company’s Nigerian operations. In 2014, in connection therewith, the Company incurred approximately $20.4 million worth of operating and capital costs with the affiliate. | ||||||||||||
Non-controlling Interests | ||||||||||||
In April 2014, the Company, through its 50% ownership of its CAMAC 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 CAMAC Energy Ghana Limited subsidiary. See Note 4 – Acquisitions for further information on the acquisition of certain mineral interests in the Expanded Shallow Water Tano block in Ghana. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||
Commitments and Contingencies | NOTE 10. — 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, 2014: | ||||||||||||||||||||||||||||
Payments Due By Period | ||||||||||||||||||||||||||||
(In thousands) | Total | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||||||||||
Operating lease obligations: | ||||||||||||||||||||||||||||
FPSO and drilling rig | $ | 294,676 | $ | 52,863 | $ | 48,362 | $ | 48,363 | $ | 48,362 | $ | 48,363 | $ | 48,363 | ||||||||||||||
leases - Nigeria | ||||||||||||||||||||||||||||
Office leases | 2,368 | 472 | 506 | 516 | 450 | 405 | 19 | |||||||||||||||||||||
Minimum work obligations: | ||||||||||||||||||||||||||||
Kenya | 2,700 | 2,700 | - | - | - | - | - | |||||||||||||||||||||
The Gambia | 5,411 | 4,811 | 600 | - | - | - | - | |||||||||||||||||||||
Ghana | 21,907 | 3,157 | 18,750 | - | - | - | - | |||||||||||||||||||||
Total | $ | 327,062 | $ | 64,003 | $ | 68,218 | $ | 48,879 | $ | 48,812 | $ | 48,768 | $ | 48,382 | ||||||||||||||
In February 2014, a long-term contract was signed for the floating, production, storage, and offloading vessel (“FPSO”) Armada Perdana, which is the vessel currently connected to the Company’s producing wells Oyo-5 and Oyo-6. 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. At December 31, 2014, the annual minimum commitment per the terms of the agreement is approximately $48.4 million for each of the years 2015 through 2020. | ||||||||||||||||||||||||||||
In December 2014, the Company entered into a short-term drilling contract with the semi-submersible drilling rig Sedco Express to complete the horizontal drilling portion of wells Oyo-7 and Oyo-8. The minimum contract commitment is for a 45 day period, with a remaining obligation approximating $4.5 million. | ||||||||||||||||||||||||||||
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, 2014, 2013, and 2012 was $1.0 million, $0.7 million and $0.5 million, respectively. At December 31, 2014, minimum future rental commitments for operating leases were a total of $2.4 million. | ||||||||||||||||||||||||||||
The Company has minimum work obligation commitments related to its mineral property interests in four blocks in Kenya, two blocks in The Gambia, and one block in Ghana. The table above sets forth the Company’s future contractual obligations with regards to the minimum work obligations in each country. | ||||||||||||||||||||||||||||
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, 2014, 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. | ||||||||||||||||||||||||||||
In January 2014, an affiliate of CEHL, the Company’s majority shareholder, and Northern Offshore International Drilling Company Ltd. (“Northern”) entered into an International Daywork Drilling Contract pursuant to which Northern agreed to provide the drillship Energy Searcher for the provision of drilling services offshore Nigeria. Pursuant to further contractual arrangements entered into in March 2014, the affiliate provided the drillship to CPL, with CPL assuming payment obligations under the drilling contract and receiving the right to enforce Northern’s obligations under the drilling contract. The Company guaranteed the performance by CPL of its obligations under these contractual arrangements. The Company, CPL and the CEHL affiliate are referred to hereinafter as the “CAMAC Parties.” | ||||||||||||||||||||||||||||
On January 2, 2015, the CAMAC Parties received a notice from Northern purporting to terminate the drilling contract for failure to provide the required letter of credit thereunder and stating that the CAMAC Parties are required to pay Northern all outstanding unpaid invoices, the early termination fee, the demobilization fee and amounts due but not yet invoiced for work performed up to the date of termination. On January 7, 2015, the CAMAC Parties responded to Northern disputing the validity of the purported Northern termination, which under English law we believe constitutes a renunciation of the drilling contract and wrongful repudiatory breach thereof because of, among other things, the course of conduct by the parties. Specifically, the CAMAC Parties arranged for, and Northern agreed to and performed work in exchange for, issuing monthly prepayment invoices in lieu of the letter of credit. Because of Northern’s repudiatory breach, the CAMAC Parties elected to terminate the contract with immediate effect. In addition, the January 7, 2015 letter set out other grounds for termination and claims against Northern for numerous material breaches of the drilling contract. | ||||||||||||||||||||||||||||
On January 12, 2015, Northern issued a request for arbitration in the London Court of International Arbitration (“LCIA”). The request repeated the claims of Northern relating to the letter of credit as stated in the January 2, 2015 letter and asserted further breaches of contract, including for failure to pay invoices for work allegedly performed. The request seeks payment of outstanding unpaid invoices, the early termination fee and the demobilization fee. On February 10, 2015, the CAMAC Parties lodged their response to the request and outlined claims against Northern for breaches of the drilling contract for, among other things, wrongful termination of the contract, failure to maintain the well control equipment in good condition (including the blowout preventer), failure to maintain and repair the drilling unit, breach of warranty, failure to provide adequately skilled and competent personnel, failure to perform as a reasonable and prudent operator and failure to provide the drilling unit ready to commence operations by May 15, 2014. These breaches caused significant damages and loss to the CAMAC Parties, including wasted marine spread costs in excess of $50 million, i.e., the cost of other marine services that were accumulated while the rig incurred downtime, as recognized under English law, and delay damages in excess of $3 million due to delays in the commencement of operations. | ||||||||||||||||||||||||||||
Pursuant to the contract and LCIA rules, a tribunal of three arbitrators, one selected by each of Northern and the CAMAC Parties and the third appointed by the first two arbitrators, has been empaneled. Subsequently, Northern and the CAMAC Parties agreed to stay the arbitration pending mediation, which took place in Houston, Texas on March 6, 2015. | ||||||||||||||||||||||||||||
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 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 the Nigerian Department of Petroleum Resources or the date of the first hydrocarbon production in commercial quantities, where applicable. |
Stock_Based_Compensation
Stock Based Compensation | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||||||
Stock Based Compensation | NOTE 11. — 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 100.0 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 the amendment to the 2009 Plan, thereby increasing the number of shares that may be granted thereunder to 100.0 million shares. | ||||||||||||
Stock Options | ||||||||||||
During 2014, the Company granted approximately 2.4 million stock options with vesting periods from two to three years. The table below sets forth a summary of stock option activity for the year ended December 31, 2014. | ||||||||||||
Shares | Weighted-Average | |||||||||||
Underlying | Remaining | |||||||||||
Options | Weighted-Average | Contractual Term | ||||||||||
(In Thousands) | Exercise Price | (Years) | ||||||||||
Stock Options | ||||||||||||
Outstanding at December 31, 2013 | 13,776 | $ | 0.31 | 3.7 | ||||||||
Granted | 2,371 | $ | 0.56 | 4.2 | ||||||||
Exercised | (1,708 | ) | $ | 0.28 | 2.5 | |||||||
Forfeited | (73 | ) | $ | 0.79 | 1 | |||||||
Expired | - | - | - | |||||||||
Outstanding at December 31, 2014 | 14,366 | $ | 0.35 | 3 | ||||||||
Expected to vest | 7,915 | $ | 0.36 | 3.5 | ||||||||
Exercisable at December 31, 2014 | 6,451 | $ | 0.34 | 2.3 | ||||||||
The total intrinsic values of options outstanding and options exercisable were $0.8 million and $0.3 million, respectively, at December 31, 2014. The total intrinsic values realized by recipients on options exercised were $0.9 million in 2014, and nil in both 2013 and 2012. | ||||||||||||
The Company recorded compensation expense relative to stock options in 2014, 2013 and 2012 of $ 1.3 million, $1.1 million and $0.2 million, respectively. As of December 31, 2014, there were approximately $1.3 million of total unrecognized compensation cost related to stock options, with $0.9 million, and $0.4 million to be recognized during the years ended December 31, 2015 and 2016, 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. | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Expected price volatility | 87.7 | % | 77.9 | % | 120.5 | % | ||||||
Risk free interest rate (U.S. treasury bonds) | 1.1 | % | 0.5 | % | 0.5 | % | ||||||
Expected annual dividend yield | - | - | - | |||||||||
Expected option term (years) | 3 | 3.5 | 3.5 | |||||||||
Weighted-average grant date fair value per share | $ | 0.32 | $ | 0.23 | $ | 0.26 | ||||||
Stock Warrants | ||||||||||||
The table below sets forth a summary of stock warrant activity for the year ended December 31, 2014. | ||||||||||||
Shares | Weighted-Average | |||||||||||
Underlying | Remaining | |||||||||||
Warrants | Weighted-Average | Contractual Term | ||||||||||
(In Thousands) | Exercise Price | (Years) | ||||||||||
Stock warrants | ||||||||||||
Outstanding at December 31, 2013 | 12,694 | $ | 1.21 | 1.9 | ||||||||
Granted | 1,800 | $ | 0.56 | 4.7 | ||||||||
Exercised | - | - | - | |||||||||
Forfeited | - | - | - | |||||||||
Expired | - | - | - | |||||||||
Outstanding at December 31, 2014 | 14,494 | $ | 1.06 | 1.4 | ||||||||
Expected to vest | - | - | - | |||||||||
Exercisable at December 31, 2014 | 14,494 | $ | 1.06 | 1.4 | ||||||||
The total intrinsic values of warrants outstanding and exercisable was nil at December 31, 2014. | ||||||||||||
During the year ended December 31, 2014, as compensation for services received, the Company issued warrants to third parties to purchase 1.8 million shares of common stock at an exercise price of approximately $0.56. 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, the Company recognized stock-based compensation expense of $0.1 million 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 the year ended December 31, 2014. | ||||||||||||
Expected price volatility | 82.7 | % | ||||||||||
Risk free interest rate (U.S. treasury bonds) | 1.1 | % | ||||||||||
Expected annual dividend yield | - | |||||||||||
Expected option term (years) | 3 | |||||||||||
Weighted-average grant date fair value per share | $ | 0.3 | ||||||||||
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, 2014. | ||||||||||||
Weighted-Average | ||||||||||||
Shares | Grant Date Fair | |||||||||||
(In Thousands) | Value | |||||||||||
Restricted Stock | ||||||||||||
Non-vested at December 31, 2013 | 4,539 | $ | 0.27 | |||||||||
Granted | 5,014 | $ | 0.57 | |||||||||
Vested | (3,512 | ) | $ | 0.28 | ||||||||
Forfeited | - | - | ||||||||||
Non-vested as of December 31, 2014 | 6,041 | $ | 0.52 | |||||||||
The Company recorded compensation expense relative to RSAs in 2014, 2013 and 2012 of $1.7 million, $0.9 million and $0.6 million, respectively. | ||||||||||||
The total grant date fair value of RSA shares that vested during 2014 was approximately $2.8 million. As of December 31, 2014, there were approximately $1.7 million of total unrecognized compensation cost related to non-vested RSAs, with $1.5 million, and $0.2 million to be recognized during the years ended December 31, 2015 and 2016, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | NOTE 12. — 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) | 2014 | 2013 | 2012 | |||||||||
Net loss attributable to CAMAC Energy Inc. before income tax expense | $ | (96,062 | ) | $ | (43,525 | ) | $ | (29,529 | ) | |||
Expected income tax provision at statutory rate of 35% | (33,622 | ) | (15,234 | ) | (10,335 | ) | ||||||
Increase (decrease) due to: | ||||||||||||
Foreign rate differential | (10,083 | ) | (3,581 | ) | (3,103 | ) | ||||||
Change in valuation allowance | 98,376 | 20,205 | 67,117 | |||||||||
Investment tax credit - Nigeria | (40,765 | ) | (15,302 | ) | (53,679 | ) | ||||||
Non-deductible expenses and other | (13,906 | ) | 13,912 | - | ||||||||
Total income tax expense | $ | - | $ | - | $ | - | ||||||
Significant components of our deferred tax assets are as follows: | ||||||||||||
As of December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
Basis difference in fixed assets | $ | (100,798 | ) | $ | (105,007 | ) | ||||||
Unused capital allowances | 407,899 | 341,540 | ||||||||||
Net operating losses | 54,673 | 26,650 | ||||||||||
Other | 621 | 837 | ||||||||||
362,395 | 264,020 | |||||||||||
Valuation allowance | (362,395 | ) | (264,020 | ) | ||||||||
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 $362.4 million and $264.0 million were recorded as of December 31, 2014 and 2013, respectively. | ||||||||||||
At December 31, 2014 and 2013, 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 - 2014 | |||||||||||
Nigeria: | 2010 - 2014 | |||||||||||
Kenya: | 2012 - 2014 | |||||||||||
The Gambia: | 2012 - 2014 | |||||||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ||||||||||||
Discontinued Operations | NOTE 13. — DISCONTINUED OPERATIONS | |||||||||||
In August 2012, the Company divested its wholly owned Hong Kong subsidiary, Pacific Asia Petroleum Limited (“PAPL”), for net cash consideration of $2.4 million and 9.6 million fully paid ordinary shares, net of selling expenses, of Leyshon Resources Limited, a natural resources mining company based in Beijing, China. The Leyshon shares had a fair market value of $1.9 million, and have since been sold. | ||||||||||||
PAPL held the Company’s interest in the Zijinshan production sharing contract relating to the Zijinshan block in the Shanxi Province of China. Since 2008, the Company engaged in exploration activities on this block in search of coalbed methane and other gas. The Company made a strategic decision to monetize this asset and withdraw from activity in China in order to focus its efforts and capital resources on its core Africa activities. | ||||||||||||
The Company has reclassified all assets, liabilities and the results of operations for China to discontinued operations for all periods presented. | ||||||||||||
Results of operations from discontinued operations are as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Costs and expenses: | ||||||||||||
Exploratory expenses | $ | - | $ | - | $ | 204 | ||||||
Depreciation, depletion and amortization | - | - | 8 | |||||||||
General and administrative expenses | - | 36 | 779 | |||||||||
Other income | - | - | - | |||||||||
Total costs and expenses | - | 36 | 991 | |||||||||
Loss before income taxes | - | (36 | ) | (991 | ) | |||||||
Income tax expense | - | - | - | |||||||||
Net loss before non-controlling interests | - | (36 | ) | (991 | ) | |||||||
Non-controlling interests | - | - | 8 | |||||||||
Net loss | $ | - | $ | (36 | ) | $ | (983 | ) | ||||
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Segment Information | NOTE 14. — 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, 2014, 2013, and 2012. | ||||||||||||||||||||||||
(In thousands) | Nigeria | Kenya | The Gambia | Ghana | Corporate and Other | Total | ||||||||||||||||||
For the Years Ended | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
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 | ) | |||||||
2012 | ||||||||||||||||||||||||
Revenues | $ | 74,667 | $ | - | $ | - | $ | - | $ | - | $ | 74,667 | ||||||||||||
Operating loss | $ | (18,497 | ) | $ | (1,046 | ) | $ | (498 | ) | $ | - | $ | (12,083 | ) | $ | (32,124 | ) | |||||||
The table below sets forth the total assets by segment as of December 31, 2014 and 2013. | ||||||||||||||||||||||||
(In thousands) | Nigeria | Kenya | The Gambia | Ghana | Corporate and Other | Total | ||||||||||||||||||
Total Assets | ||||||||||||||||||||||||
As of December 31, 2014 | $ | 609,243 | $ | 8,527 | $ | 2,739 | $ | 1,413 | $ | 16,521 | $ | 638,443 | ||||||||||||
As of December 31, 2013 | $ | 449,856 | $ | 1,484 | $ | 2,025 | $ | - | $ | 859 | $ | 454,224 | ||||||||||||
Selected_Unaudited_Quarterly_F
Selected Unaudited Quarterly Financial Data | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Selected Unaudited Quarterly Financial Data | NOTE 15. — SELECTED UNAUDITED QUARTERLY FINANCIAL DATA (In Thousands, except for per share amounts) | |||||||||||||||
Three Months Ended, | ||||||||||||||||
31-Mar-14 | 30-Jun-14 | 30-Sep-14 | 31-Dec-14 | |||||||||||||
Total revenues | $ | 19,894 | $ | 14,940 | $ | 19,010 | $ | - | ||||||||
Operating loss | $ | (14,683 | ) | $ | (11,271 | ) | $ | (41,546 | ) | $ | (25,825 | ) | ||||
Net loss attributable to CAMAC Energy Inc. | $ | (14,858 | ) | $ | (11,930 | ) | $ | (42,223 | ) | $ | (27,051 | ) | ||||
Net loss per common share attributable to | ||||||||||||||||
CAMAC Energy Inc.: | ||||||||||||||||
Basic | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.02 | ) | ||||
Diluted | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.02 | ) | ||||
Three Months Ended, | ||||||||||||||||
31-Mar-13 | 30-Jun-13 | 30-Sep-13 | 31-Dec-13 | |||||||||||||
Total revenues | $ | 22,006 | $ | 20,007 | $ | 21,723 | $ | - | ||||||||
Operating loss | $ | (10,484 | ) | $ | (11,924 | ) | $ | (10,401 | ) | $ | (10,718 | ) | ||||
Net loss attributable to CAMAC Energy Inc. | $ | (10,488 | ) | $ | (11,930 | ) | $ | (10,417 | ) | $ | (10,690 | ) | ||||
Net loss per common share attributable to | ||||||||||||||||
CAMAC Energy Inc.: | ||||||||||||||||
Basic | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||
Diluted | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | |
NOTE 16. — SUBSEQUENT EVENTS | |
In February 2015, the Company granted to employees approximately 5.5 million shares of restricted stock, and issued approximately 0.3 million shares of its common stock to third party service providers. |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). All significant intercompany transactions and balances have been eliminated in consolidation. The 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. 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 (“PSC”) 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 497.5 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. | ||||||||||||
In August 2012, the Company divested its wholly owned Hong Kong subsidiary, Pacific Asia Petroleum Limited, for cash and shares of stock. The Company has classified the current and historical results of its China operations, including other inactive operations not involved in this sale, as discontinued operations, net of tax, in the accompanying consolidated statements of operations. See Note 13 - Discontinued Operations, for further information. | ||||||||||||
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, depletion and amortization relating to oil and natural gas properties, asset retirement obligation assumptions, and income taxes. The accounting estimates used in the preparation of the 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. | ||||||||||||
Restricted cash as of December 31, 2014 consists of $10.4 million held in a debt service reserve account to secure certain repayments pursuant to the Term Loan Facility in Nigeria. The Company had no restricted cash balance at December 31, 2013. | ||||||||||||
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 receivables 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, 2014 and 2013, no allowance for doubtful accounts was necessary. | ||||||||||||
Partner accounts receivables consist of balances owed from joint venture (“JV”) partners. As of December 31, 2014, the Company was owed $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 | 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 $1.1 million and $16.3 million as of December 31, 2014 and 2013, respectively. | ||||||||||||
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 $30.5 million and $25.4 million at December 31, 2014 and 2013, 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 current period losses combined with a history of losses, 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 ASC Topic 410 (Asset Retirement and Environmental Obligations), which requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred. ASC 410 requires the Company to record 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 ASC Topic 740 (Income Taxes). 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 carryforwards. 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 12 – 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. | ||||||||||||
As of December 31, 2014, unamortized debt issuance costs were $1.9 million, of which $1.3 million was classified as long-term. There were no debt issuance costs as of December 31, 2013. | ||||||||||||
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 in accordance with ASC Topic 718-10 (Stock Compensation). 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 at the applicable measurement date and charged to expense as services are rendered. | ||||||||||||
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 operations, in accordance with ASC Topic 830 (Foreign Currency Matters). | ||||||||||||
Net Earnings (Loss) Per Common Share | Net Earnings (Loss) Per Common Share | |||||||||||
The Company computes earnings or loss per share under ASC Topic 260 (Earnings per 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, unvested 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, 2014, 2013 and 2012, as these securities are anti-dilutive because the Company was in a loss position each year. | ||||||||||||
Years ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Stock options | 6,227 | - | 4 | |||||||||
Stock warrants | 39 | - | - | |||||||||
Non-vested restricted stock awards | 5,982 | 2,154 | 796 | |||||||||
Convertible note | 60,041 | - | - | |||||||||
72,289 | 2,154 | 800 | ||||||||||
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 10 – Commitments and Contingencies for further information. | ||||||||||||
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 basis. | ||||||||||||
As of December 31, 2014, the non-controlling interest recorded in equity was $0.7 million, attributable to the joint ownership of an affiliate in our CAMAC Energy Ghana Limited subsidiary. No non-controlling interests existed as of December 31, 2013. | ||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||
Fair value is the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. | ||||||||||||
The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, accounts receivable, inventory, deposits, accounts payable and accrued liabilities, and debts at floating interest rates, approximate their fair values at December 31, 2014 and 2013, respectively, principally due to the short-term nature, maturities or nature of interest rates of the above listed items. | ||||||||||||
Reclassification | Reclassification | |||||||||||
Certain reclassifications have been made to the 2013 and 2012 consolidated financial statements to conform to the 2014 presentation. These reclassifications were not material to the accompanying consolidated financial statements. | ||||||||||||
Recently Issued Accounting Standards | Recently Issued Accounting Standards | |||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU No. 2014-08 changes the criteria for reporting discontinued operations including enhanced disclosure requirements. Under the updated guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization´s operations and financial results. ASU No. 2014-08 is effective for fiscal years beginning after December 15, 2014, and the Company will adopt this standards update, as required, beginning with the first quarter of 2015. The adoption of this standards update affects presentation only and, as such, is not expected to have a material impact on the Company’s consolidated financial statements. | ||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which are guidance for recognizing revenue from contracts with customers. The objective of this guidance is to establish principles for reporting information about the nature, timing, and uncertainty of revenue and cash flows arising from an entity’s contracts with customers, including qualitative and quantitative disclosures around contracts with customers, significant judgments and change in judgments, and assets recognized from the costs to obtain or fulfill a contract, and will replace most existing revenue recognition guidance when it becomes effective. ASU No. 2014-09 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 Company is in the process of evaluating the impact, if any, of this guidance on its consolidated financial statements. | ||||||||||||
In June 2014, the FASB issued ASU No. 2014-09, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The guidance was issued to clarify the accounting treatment for performance-based stock awards. The update states that companies should not record compensation expense related to an award for which transfer to the employee is contingent on the company’s satisfaction of a performance target until it becomes probable that the performance target will be met. The update does not contain any new disclosure requirements, and is effective for interim and annual periods 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 its consolidated financial statements. | ||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU No 2014-15 contains updated guidance on determining when and how reporting entities must disclose going concern uncertainties in its financial statements. The objective of the update is to define management’s responsibility to evaluate, each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued and to provide related footnote disclosures. ASU No. 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter. The Company will adopt this standards update, as required, beginning with the first quarter of 2017. The Company is in the process of evaluating the impact this guidance will have on its footnote disclosures. | ||||||||||||
In November 2014, the FASB issued ASU No. 2014-17, Business Combinations: Pushdown Accounting. This ASU provides companies with the option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The election to apply pushdown accounting can be made either in the period in which the change of control occurred, or in a subsequent period. This ASU was effective on November 18, 2014. Implementation of this standard is not expected to have a material effect on the Company’s consolidated financial statements. | ||||||||||||
NOTE 3. - LIQUIDITY MATTERS | ||||||||||||
The Company’s primary cash requirements are for capital expenditures for the redevelopment of the Oyo field in the OMLs, operating expenditures, exploration activities in its unevaluated leaseholds, working capital needs, and interest and principal payments under current indebtedness. | ||||||||||||
The Company currently anticipates commencement of production from the Oyo-8 and Oyo-7 wells in March and May 2015, respectively, and expects combined initial production rates from the two wells of approximately 14,000 BOPD. If the Company experiences significant delays in bringing the Oyo-8 and Oyo-7 wells onto production, if actual production rates are substantially below anticipated rates, or if oil prices decline significantly from current levels, the Company will need to seek additional sources of capital. | ||||||||||||
The following discussion relates to the Company’s liquidity plans to finance the redevelopment of the Oyo field, as well as required operating and exploration expenditures. | ||||||||||||
The Company has a $25.0 million borrowing facility under a Promissory Note with Allied, with a maturity date now extended through August 2016. The current terms of the Promissory Note allow for the entire $25.0 million facility amount to be utilized for general corporate purposes. As of December 31, 2014, $11.2 million was outstanding under the Promissory Note. See Note 8 – Debt for further information. | ||||||||||||
In February 2015, the Company received a term sheet from a trading company for a commodity-based Full Recourse Prepayment Facility (the “Prepayment Facility”). The Prepayment Facility would allow the Company to borrow an initial sum, up to $65.0 million, towards the Oyo field redevelopment program. Additional funds, up to $100.0 million, would be available for borrowings post-production. The Company expects the Full Recourse Prepayment Facility to be finalized in the second quarter of 2015. | ||||||||||||
In March 2015, the Company entered into a borrowing facility with Allied for a Convertible Note (the “2015 Convertible Note”) separate from the existing $25.0 million Promissory Note and the $50.0 million Convertible Subordinate Note, allowing the Company to borrow up to $50.0 million for general corporate purposes. The 2015 Convertible Note matures in December 2016. Interest accrues at the rate of LIBOR plus 5.0%, 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 the conversion amount divided by the conversion price, defined as the volume weighted average of the closing sale prices on the NYSE MKT for a share of common stock for the five complete trading days immediately preceding the conversion date. | ||||||||||||
Upon execution of the 2015 Convertible Note, the Company drew $20.0 million under the note and issued to Allied warrants to purchase approximately 9.8 million shares of the Company’s common stock at a $0.41 strike price. Additional warrants will be issuable in connection with future draws, with the strike price for those warrants determined based on the market price of the Company’s common stock at the time of such future draws. | ||||||||||||
The Company’s majority shareholder has formally committed to provide the Company with additional funding, the form of which would be determined at the time of funding, sufficient to maintain the Company’s operations and to allow the Company to meet its current and future obligations as they become due for one year from March 12, 2015, the date of said commitment. | ||||||||||||
Although there are no assurances that the Company’s plans will be realized, management believes that the Company will have sufficient capital resources to meet projected cash flow requirements for the next twelve months from the date these financial statements are issued. | ||||||||||||
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Schedule of Anti-dilutive Securities Excluded from dilutive shares outstanding | 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, 2014, 2013 and 2012, as these securities are anti-dilutive because the Company was in a loss position each year. | |||||||||||
Years ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Stock options | 6,227 | - | 4 | |||||||||
Stock warrants | 39 | - | - | |||||||||
Non-vested restricted stock awards | 5,982 | 2,154 | 796 | |||||||||
Convertible note | 60,041 | - | - | |||||||||
72,289 | 2,154 | 800 | ||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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): | |||||||
As of 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 | ||||||
CAMAC Energy Inc. 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_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property Plant And Equipment [Abstract] | ||||||||
Property, Plant and Equipment | Property, plant and equipment were comprised of the following: | |||||||
As of December 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Wells and production facilities | $ | 33,690 | $ | 28,874 | ||||
Proved properties | 386,196 | 386,196 | ||||||
Work in progress and other | 261,346 | 86,634 | ||||||
Oilfield assets | 681,232 | 501,704 | ||||||
Accumulated depletion | (95,403 | ) | (74,909 | ) | ||||
Oilfield assets, net | 585,829 | 426,795 | ||||||
Unevaluated leaseholds | 9,440 | 8,240 | ||||||
Oil and gas properties, net | 595,269 | 435,035 | ||||||
Other property and equipment | 2,324 | 1,590 | ||||||
Accumulated depreciation | (1,264 | ) | (838 | ) | ||||
Other property and equipment, net | 1,060 | 752 | ||||||
Total property, plant and equipment, net | $ | 596,329 | $ | 435,787 | ||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Summary of Changes in Asset Retirement Obligations | The following summarizes changes in the Company’s asset retirement obligations during the years ended December 31, 2014 and 2013: | |||||||
As of December 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Asset retirement obligations at January 1 | $ | 20,601 | $ | 24,832 | ||||
Property acquisition | - | - | ||||||
Revisions in estimated liabilities | 3,766 | (6,466 | ) | |||||
Accretion | 2,166 | 2,235 | ||||||
Asset retirement obligations at December 31 | $ | 26,533 | $ | 20,601 | ||||
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, 2014 and 2013: | |||||||
As of December 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Asset retirement obligations, current portion | $ | 12,703 | $ | 12,479 | ||||
Asset retirement obligations, long-term portion | 13,830 | 8,122 | ||||||
$ | 26,533 | $ | 20,601 | |||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Schedule of Principal Repayments on Outstanding Balances | Scheduled principal repayments on the outstanding balance on the Term Loan Facility are as follows (in thousands): | ||||||||||||
Scheduled payments by year | Principal | Interest | Total | ||||||||||
2015 | $ | 6,200 | $ | 9,917 | $ | 16,117 | |||||||
2016 | 24,800 | 9,596 | 34,396 | ||||||||||
2017 | 24,800 | 6,917 | 31,717 | ||||||||||
2018 | 24,800 | 4,266 | 29,066 | ||||||||||
2019 | 18,600 | 1,615 | 20,215 | ||||||||||
$ | 99,200 | $ | 32,311 | $ | 131,511 | ||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Balance Sheets | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Summary of Related Party Transactions and Balances | 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, 2014 and 2013: | |||||||||||
As of December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
CEHL, accounts receivable | $ | 624 | $ | 1,650 | ||||||||
CEHL, accounts payable and accrued expenses | $ | 9,391 | $ | 26,228 | ||||||||
CEHL, note payable-related party | $ | 61,185 | $ | 6,496 | ||||||||
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, 2014, 2013, and 2012: | |||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
CEHL, total operating (income) and expenses | $ | 14,449 | $ | (1,167 | ) | $ | 81 | |||||
CEHL, other expense, net | $ | 2,414 | $ | 99 | $ | 122 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
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, 2014: | |||||||||||||||||||||||||||
Payments Due By Period | ||||||||||||||||||||||||||||
(In thousands) | Total | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||||||||||
Operating lease obligations: | ||||||||||||||||||||||||||||
FPSO and drilling rig | $ | 294,676 | $ | 52,863 | $ | 48,362 | $ | 48,363 | $ | 48,362 | $ | 48,363 | $ | 48,363 | ||||||||||||||
leases - Nigeria | ||||||||||||||||||||||||||||
Office leases | 2,368 | 472 | 506 | 516 | 450 | 405 | 19 | |||||||||||||||||||||
Minimum work obligations: | ||||||||||||||||||||||||||||
Kenya | 2,700 | 2,700 | - | - | - | - | - | |||||||||||||||||||||
The Gambia | 5,411 | 4,811 | 600 | - | - | - | - | |||||||||||||||||||||
Ghana | 21,907 | 3,157 | 18,750 | - | - | - | - | |||||||||||||||||||||
Total | $ | 327,062 | $ | 64,003 | $ | 68,218 | $ | 48,879 | $ | 48,812 | $ | 48,768 | $ | 48,382 | ||||||||||||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Summary of Restricted Stock Activity | ||||||||||||
Weighted-Average | ||||||||||||
Shares | Grant Date Fair | |||||||||||
(In Thousands) | Value | |||||||||||
Restricted Stock | ||||||||||||
Non-vested at December 31, 2013 | 4,539 | $ | 0.27 | |||||||||
Granted | 5,014 | $ | 0.57 | |||||||||
Vested | (3,512 | ) | $ | 0.28 | ||||||||
Forfeited | - | - | ||||||||||
Non-vested as of December 31, 2014 | 6,041 | $ | 0.52 | |||||||||
Stock Warrants | ||||||||||||
Summary of Stock Option Activity | Shares | Weighted-Average | ||||||||||
Underlying | Remaining | |||||||||||
Warrants | Weighted-Average | Contractual Term | ||||||||||
(In Thousands) | Exercise Price | (Years) | ||||||||||
Stock warrants | ||||||||||||
Outstanding at December 31, 2013 | 12,694 | $ | 1.21 | 1.9 | ||||||||
Granted | 1,800 | $ | 0.56 | 4.7 | ||||||||
Exercised | - | - | - | |||||||||
Forfeited | - | - | - | |||||||||
Expired | - | - | - | |||||||||
Outstanding at December 31, 2014 | 14,494 | $ | 1.06 | 1.4 | ||||||||
Expected to vest | - | - | - | |||||||||
Exercisable at December 31, 2014 | 14,494 | $ | 1.06 | 1.4 | ||||||||
Summary of Weighted-Average Amounts for Assumptions | ||||||||||||
Expected price volatility | 82.7 | % | ||||||||||
Risk free interest rate (U.S. treasury bonds) | 1.1 | % | ||||||||||
Expected annual dividend yield | - | |||||||||||
Expected option term (years) | 3 | |||||||||||
Weighted-average grant date fair value per share | $ | 0.3 | ||||||||||
Stock Options | ||||||||||||
Summary of Stock Option Activity | ||||||||||||
Shares | Weighted-Average | |||||||||||
Underlying | Remaining | |||||||||||
Options | Weighted-Average | Contractual Term | ||||||||||
(In Thousands) | Exercise Price | (Years) | ||||||||||
Stock Options | ||||||||||||
Outstanding at December 31, 2013 | 13,776 | $ | 0.31 | 3.7 | ||||||||
Granted | 2,371 | $ | 0.56 | 4.2 | ||||||||
Exercised | (1,708 | ) | $ | 0.28 | 2.5 | |||||||
Forfeited | (73 | ) | $ | 0.79 | 1 | |||||||
Expired | - | - | - | |||||||||
Outstanding at December 31, 2014 | 14,366 | $ | 0.35 | 3 | ||||||||
Expected to vest | 7,915 | $ | 0.36 | 3.5 | ||||||||
Exercisable at December 31, 2014 | 6,451 | $ | 0.34 | 2.3 | ||||||||
Summary of Weighted-Average Amounts for Assumptions | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Expected price volatility | 87.7 | % | 77.9 | % | 120.5 | % | ||||||
Risk free interest rate (U.S. treasury bonds) | 1.1 | % | 0.5 | % | 0.5 | % | ||||||
Expected annual dividend yield | - | - | - | |||||||||
Expected option term (years) | 3 | 3.5 | 3.5 | |||||||||
Weighted-average grant date fair value per share | $ | 0.32 | $ | 0.23 | $ | 0.26 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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) | 2014 | 2013 | 2012 | |||||||||
Net loss attributable to CAMAC Energy Inc. before income tax expense | $ | (96,062 | ) | $ | (43,525 | ) | $ | (29,529 | ) | |||
Expected income tax provision at statutory rate of 35% | (33,622 | ) | (15,234 | ) | (10,335 | ) | ||||||
Increase (decrease) due to: | ||||||||||||
Foreign rate differential | (10,083 | ) | (3,581 | ) | (3,103 | ) | ||||||
Change in valuation allowance | 98,376 | 20,205 | 67,117 | |||||||||
Investment tax credit - Nigeria | (40,765 | ) | (15,302 | ) | (53,679 | ) | ||||||
Non-deductible expenses and other | (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) | 2014 | 2013 | ||||||||||
Basis difference in fixed assets | $ | (100,798 | ) | $ | (105,007 | ) | ||||||
Unused capital allowances | 407,899 | 341,540 | ||||||||||
Net operating losses | 54,673 | 26,650 | ||||||||||
Other | 621 | 837 | ||||||||||
362,395 | 264,020 | |||||||||||
Valuation allowance | (362,395 | ) | (264,020 | ) | ||||||||
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 - 2014 | |||||||||||
Nigeria: | 2010 - 2014 | |||||||||||
Kenya: | 2012 - 2014 | |||||||||||
The Gambia: | 2012 - 2014 | |||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ||||||||||||
Summary of Discontinued Operations based on Results of Operations and Assets and Liabilities | Results of operations from discontinued operations are as follows: | |||||||||||
Years Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Costs and expenses: | ||||||||||||
Exploratory expenses | $ | - | $ | - | $ | 204 | ||||||
Depreciation, depletion and amortization | - | - | 8 | |||||||||
General and administrative expenses | - | 36 | 779 | |||||||||
Other income | - | - | - | |||||||||
Total costs and expenses | - | 36 | 991 | |||||||||
Loss before income taxes | - | (36 | ) | (991 | ) | |||||||
Income tax expense | - | - | - | |||||||||
Net loss before non-controlling interests | - | (36 | ) | (991 | ) | |||||||
Non-controlling interests | - | - | 8 | |||||||||
Net loss | $ | - | $ | (36 | ) | $ | (983 | ) | ||||
Segment_Information_Restated_T
Segment Information - Restated (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Schedule of Segment Activity | The table below sets forth segment activity for the years ended December 31, 2014, 2013, and 2012. | |||||||||||||||||||||||
(In thousands) | Nigeria | Kenya | The Gambia | Ghana | Corporate and Other | Total | ||||||||||||||||||
For the Years Ended | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
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 | ) | |||||||
2012 | ||||||||||||||||||||||||
Revenues | $ | 74,667 | $ | - | $ | - | $ | - | $ | - | $ | 74,667 | ||||||||||||
Operating loss | $ | (18,497 | ) | $ | (1,046 | ) | $ | (498 | ) | $ | - | $ | (12,083 | ) | $ | (32,124 | ) | |||||||
The table below sets forth the total assets by segment as of December 31, 2014 and 2013. | ||||||||||||||||||||||||
(In thousands) | Nigeria | Kenya | The Gambia | Ghana | Corporate and Other | Total | ||||||||||||||||||
Total Assets | ||||||||||||||||||||||||
As of December 31, 2014 | $ | 609,243 | $ | 8,527 | $ | 2,739 | $ | 1,413 | $ | 16,521 | $ | 638,443 | ||||||||||||
As of December 31, 2013 | $ | 449,856 | $ | 1,484 | $ | 2,025 | $ | - | $ | 859 | $ | 454,224 | ||||||||||||
Selected_Unaudited_Quarterly_F1
Selected Unaudited Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Selected Unaudited Quarterly Financial Data | ||||||||||||||||
Three Months Ended, | ||||||||||||||||
31-Mar-14 | 30-Jun-14 | 30-Sep-14 | 31-Dec-14 | |||||||||||||
Total revenues | $ | 19,894 | $ | 14,940 | $ | 19,010 | $ | - | ||||||||
Operating loss | $ | (14,683 | ) | $ | (11,271 | ) | $ | (41,546 | ) | $ | (25,825 | ) | ||||
Net loss attributable to CAMAC Energy Inc. | $ | (14,858 | ) | $ | (11,930 | ) | $ | (42,223 | ) | $ | (27,051 | ) | ||||
Net loss per common share attributable to | ||||||||||||||||
CAMAC Energy Inc.: | ||||||||||||||||
Basic | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.02 | ) | ||||
Diluted | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.02 | ) | ||||
Three Months Ended, | ||||||||||||||||
31-Mar-13 | 30-Jun-13 | 30-Sep-13 | 31-Dec-13 | |||||||||||||
Total revenues | $ | 22,006 | $ | 20,007 | $ | 21,723 | $ | - | ||||||||
Operating loss | $ | (10,484 | ) | $ | (11,924 | ) | $ | (10,401 | ) | $ | (10,718 | ) | ||||
Net loss attributable to CAMAC Energy Inc. | $ | (10,488 | ) | $ | (11,930 | ) | $ | (10,417 | ) | $ | (10,690 | ) | ||||
Net loss per common share attributable to | ||||||||||||||||
CAMAC Energy Inc.: | ||||||||||||||||
Basic | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||
Diluted | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||
Company_Description_Additional
Company Description - Additional Information (Details) | Dec. 31, 2014 |
Country | |
License | |
acre | |
Company description [Abstract] | |
Area of land held for exploration activities | 10,000,000 |
Number of countries company operates in Africa | 4 |
Number of exploration and production licenses | 9 |
CAMAC International Limited (CIL) | Chief Executive Officer | |
Company description [Abstract] | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 27.70% |
Basis_of_Presentation_and_Sign3
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | ||
Feb. 21, 2014 | Feb. 13, 2014 | Dec. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Common Stock Dividends, Shares (in Shares) | 1.4348 | ||||
Payments of dividends exceeding percentage | 25.00% | ||||
Payment of stock dividend effected date | 21-Feb-14 | ||||
Restricted cash | $10,400,000 | $0 | |||
Allowance for doubtful accounts receivable | 0 | 0 | |||
Accounts receivable | 496,000 | ||||
Crude oil inventory | 1,089,000 | 16,254,000 | |||
Oilfield materials and supplies inventory | 30,500,000 | 25,400,000 | |||
Unamortized debt issuance costs | 1,900,000 | 0 | |||
Non controlling Interest in Joint Ventures | 700,000 | 0 | |||
Long-term Debt | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Unamortized debt issuance costs | 1,300,000 | ||||
Minimum | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||
Maximum | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||
Ghana | Joint Venture partners | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Accounts receivable | 500,000 | ||||
Allied | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Business acquisition, number of shares issued | 497,500,000 | ||||
Contingent additional payments under transfer agreement | $50,000,000 |
Schedule_of_Antidilutive_Secur
Schedule of Anti-dilutive Securities Excluded from dilutive shares outstanding (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 72,289 | 2,154 | 800 |
Stock options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 6,227 | 4 | |
Stock Warrants | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 39 | ||
Non-vested restricted stock awards | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 5,982 | 2,154 | 796 |
Convertible note | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 60,041 |
Liquidity_Matters_Additional_I
Liquidity Matters - Additional Information (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Mar. 15, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2015 | |
Debt Instrument [Line Items] | ||||
Number of productive oil wells | 2 | |||
Combined initial production rates of oil per day | 14,000 | |||
Promissory Note | $61,185,000 | $6,496,000 | ||
Subsequent Event | Two Thousand Fifteen Convertible Note | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 50,000,000 | |||
LIBOR rate, description | LIBOR plus 5.0% | |||
Convertible notes drawn | 20,000,000 | |||
Common stock issued for warrant purchase | 9.8 | |||
Warrant strike price | $0.41 | |||
Subsequent Event | Prepayment Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 65,000,000 | |||
Additional borrowing capacity | 100,000,000 | |||
Promissory Note To Allied | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 25,000,000 | |||
Promissory Note | $11,200,000 | $6,500,000 | ||
Promissory note extended maturity date | 31-Aug-16 |
Acquisitions_Additional_inform
Acquisitions - Additional information (Details) (USD $) | 1 Months Ended | 0 Months Ended | 12 Months Ended |
Share data in Millions, unless otherwise specified | Feb. 28, 2014 | Apr. 30, 2014 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Cash consideration | $170,000,000 | ||
Convertible subordinate note issued | 50,000,000 | ||
Share Purchase Agreement | Private Placement | |||
Business Acquisition [Line Items] | |||
Business acquisition, number of shares issued | 376.9 | ||
Business acquisition, value of shares issued | 270,000,000 | ||
Allied Transaction | Convertible Subordinated Note | |||
Business Acquisition [Line Items] | |||
Cash consideration | 170,000,000 | ||
Business acquisition, number of shares issued | 497.5 | ||
Convertible subordinate note issued | $50,000,000 | ||
Tano Block in Ghana | |||
Business Acquisition [Line Items] | |||
Percentage of Additional Acquisition on Exploration | 10.00% | ||
Initial Exploration Period | 2 years | ||
Drilling and Exploration Well, Description | (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 addition, within nine months of the effective date of the Petroleum Agreement, the Contracting Parties will review and evaluate three previously discovered and appraised fields, the North, South and West Tano Fields, and declare whether or not those discoveries are commercial discoveries. | ||
Tano Block in Ghana | First Extension Period | |||
Business Acquisition [Line Items] | |||
Maximum Number of Additional Exploration Period | 1 year 6 months | ||
Tano Block in Ghana | Second Extension Period | |||
Business Acquisition [Line Items] | |||
Maximum Number of Additional Exploration Period | 2 years 6 months | ||
Tano Block in Ghana | Ghana | |||
Business Acquisition [Line Items] | |||
Percentage of Production Sharing Contracts with Governments or Authorities | 50.00% | ||
Tano Block in Ghana | CAMAC Energy | |||
Business Acquisition [Line Items] | |||
Maximum Participation Percentage | 90.00% | ||
Tano Block in Ghana | Ghana Limited | |||
Business Acquisition [Line Items] | |||
Maximum Participation Percentage | 60.00% | ||
Tano Block in Ghana | GNPC Exploration and Production Company Limited | |||
Business Acquisition [Line Items] | |||
Maximum Participation Percentage | 25.00% | ||
Tano Block in Ghana | Base Energy | |||
Business Acquisition [Line Items] | |||
Maximum Participation Percentage | 15.00% |
Purchase_Consideration_Paid_an
Purchase Consideration Paid and Assets Acquired and Liabilities Assumed (Details) (USD $) | 1 Months Ended | |||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 21, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Combinations [Abstract] | ||||
Cash consideration | $170,000 | |||
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 |
Schedule_of_Carrying_Value_of_
Schedule of Carrying Value of Net Assets Contributed (Details) (USD $) | Feb. 21, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Asset acquired and liabilities assumed: | |||
Property, plant and equipment, net | $248,736 | $61,205 | $214,710 |
Asset retirement obligations | -23,785 | ||
Net assets acquired | $202,417 | $61,205 | $190,925 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Abstract] | ||
Wells and production facilities | $33,690 | $28,874 |
Proved properties | 386,196 | 386,196 |
Work in progress and other | 261,346 | 86,634 |
Oilfield assets | 681,232 | 501,704 |
Accumulated depletion | -95,403 | -74,909 |
Oilfield assets, net | 585,829 | 426,795 |
Unevaluated leaseholds | 9,440 | 8,240 |
Oil and gas properties, net | 595,269 | 435,035 |
Other property and equipment | 2,324 | 1,590 |
Accumulated depreciation | -1,264 | -838 |
Other property and equipment, net | 1,060 | 752 |
Total property, plant and equipment, net | $596,329 | $435,787 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment [Line Items] | ||
Unevaluated leaseholds | $9,440,000 | $8,240,000 |
Ghana | ||
Property Plant And Equipment [Line Items] | ||
Payments to acquire rights to the properties | $1,200,000 |
Suspended_Exploratory_Well_Cos1
Suspended Exploratory Well Costs - Additional Information (Details) (USD $) | 1 Months Ended | |||
In Millions, unless otherwise specified | Aug. 31, 2014 | Nov. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
ft | ft | |||
m | Interval | |||
Reservoirs | ||||
Costs Incurred Oil And Gas Property Acquisition Exploration And Development Activities [Line Items] | ||||
Number of feet encountered by Hydrocarbons in three intervals, as interpreted by bLWDb data | 65 | |||
Number of hydrocarbons Miocene formation intervals | 3 | |||
Pliocene formation Eastern fault block vertical depth, feet | 6,059 | |||
Pliocene formation Eastern fault block vertical depth, meters | 1,847 | |||
Number of Pliocene formation Eastern fault block new oil and gas reservoirs | 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 | $26.50 | $26.50 | ||
Pliocene Exploratory Drilling Activity | ||||
Costs Incurred Oil And Gas Property Acquisition Exploration And Development Activities [Line Items] | ||||
Suspended exploratory well cost | $6.50 |
Asset_Retirement_Obligations_S
Asset Retirement Obligations - Summary of Change in Asset Retirement Obligations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Asset Retirement Obligation [Abstract] | |||
Asset retirement obligations | $20,601 | $24,832 | |
Change in asset retirement obligation estimate | 3,766 | -6,466 | |
Accretion | 2,166 | 2,235 | 1,047 |
Asset retirement obligations | $26,533 | $20,601 | $24,832 |
Asset_Retirement_Obligations_S1
Asset Retirement Obligations - Summary of Current and Long-term Portions of Asset Retirement Obligations (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Asset Retirement Obligation [Abstract] | |||
Asset retirement obligations, current portion | $12,703 | $12,479 | |
Asset retirement obligations, long-term portion | 13,830 | 8,122 | |
Asset retirement obligations | $26,533 | $20,601 | $24,832 |
Debt_Additional_Information_De
Debt - Additional Information (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Long-term debt, excluding asset retirement obligations | $154,200,000 | |
Promissory Note | 61,185,000 | 6,496,000 |
Notes payable - related party | 50,000,000 | |
Term loan facility | 93,000,000 | |
Promissory Note To Allied | ||
Debt Instrument [Line Items] | ||
Promissory Note | $11,200,000 | $6,500,000 |
Promissory_Note_LongTerm_Addit
Promissory Note - Long-Term - Additional Information (Details) (USD $) | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2014 | Mar. 10, 2015 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Promissory Note | $61,185,000 | $6,496,000 | |
Promissory Note To Allied | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 25,000,000 | ||
Promissory note extended maturity date, description | Promissory Note was amended to extend the maturity date by one year to July 2016 | ||
Promissory Note | $11,200,000 | $6,500,000 | |
Promissory Note To Allied | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Promissory note extended maturity date | 31-Jul-16 | ||
Promissory note extended maturity period | 1 year | ||
London Interbank Offered Rate (LIBOR) | Promissory Note To Allied | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 2.00% |
Convertible_Subordinated_Note_
Convertible Subordinated Note - Long-Term - Additional Information (Details) (USD $) | 1 Months Ended | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Feb. 28, 2014 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Convertible subordinate note issued | 50 | |
Convertible Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Convertible subordinated note maturity term | 5 years | |
Debt instrument, convertible, conversion price | $0.72 | |
Long-term debt, description | The Company may, at its option, prepay the Convertible Subordinated Note in whole or in part, at any time, without premium or penalty, and is subject to mandatory prepayment upon (i) the Companybs 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. | |
Minimum threshold proceeds from capital market debt issuance for mandatory prepayment option | $250 | |
Convertible Subordinated Debt | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 5.00% |
Term_Loan_Facility_Additional_
Term Loan Facility - Additional Information (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Foreign currency transaction gain unrealized | $1,572,000 | $224,000 | ($22,000) | |
Long-term debt value | 154,200,000 | |||
Current portion of long-term debt | 6,200,000 | |||
Unamortized debt issuance costs | 1,900,000 | 0 | ||
Long-term Debt | ||||
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs | 1,300,000 | |||
Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Convertible subordinated note maturity term | 5 years | |||
Maximum borrowing capacity | 100,000,000 | |||
LIBOR rate, description | LIBOR plus 7.5% | |||
Foreign currency transaction gain unrealized | 800,000 | |||
Long-term debt, net | 99,200,000 | |||
Long-term debt value | 93,000,000 | |||
Current portion of long-term debt | 6,200,000 | |||
Line of credit facility, commitment fee amount | 2,100,000 | |||
Unamortized debt issuance costs | 1,900,000 | |||
Term Loan Facility | Long-term Debt | ||||
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs | $1,300,000 | |||
London Interbank Offered Rate (LIBOR) | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 7.50% | |||
Interest Rate Floor | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, effective percentage | 9.50% |
Term_Loan_Facility_Schedule_of
Term Loan Facility - Schedule of Principal Repayments On Outstanding Balances (Details) (Term Loan Facility, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Instrument [Line Items] | |
2015 | $6,200,000 |
2016 | 24,800,000 |
2017 | 24,800,000 |
2018 | 24,800,000 |
2019 | 18,600,000 |
Long-term debt principal amount total | 99,200,000 |
Interest | 32,311,000 |
Total | 131,511,000 |
2015 | |
Debt Instrument [Line Items] | |
Interest | 9,917,000 |
Total | 16,117,000 |
2016 | |
Debt Instrument [Line Items] | |
Interest | 9,596,000 |
Total | 34,396,000 |
2017 | |
Debt Instrument [Line Items] | |
Interest | 6,917,000 |
Total | 31,717,000 |
2018 | |
Debt Instrument [Line Items] | |
Interest | 4,266,000 |
Total | 29,066,000 |
2019 | |
Debt Instrument [Line Items] | |
Interest | 1,615,000 |
Total | $20,215,000 |
Summary_of_Related_Party_Trans
Summary of Related Party Transactions and Balances (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transactions [Abstract] | |||
CEHL, accounts receivable | $624 | $1,650 | |
CEHL, accounts payable and accrued expenses | 9,391 | 26,228 | |
Promissory Note | 61,185 | 6,496 | |
CEHL, total operating (income) and expenses | 14,449 | -1,167 | 81 |
CEHL, other expense, net | $2,414 | $99 | $122 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Apr. 30, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Accounts payable and accrued expenses | $9,400,000 | $25,700,000 | |
Long-term notes payable - related party | 61,185,000 | ||
Convertible subordinate note issued | 50,000,000 | ||
Promissory Note | 61,185,000 | 6,496,000 | |
Short-term notes payable - related party | 6,496,000 | ||
Compensation incurred with affiliate | 20,400,000 | ||
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] | |||
Promissory Note | $11,200,000 | $6,500,000 |
Commitments_and_Contingencies_1
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) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies [Line Items] | |
Total | $327,062 |
2015 | 64,003 |
2016 | 68,218 |
2017 | 48,879 |
2018 | 48,812 |
2019 | 48,768 |
Thereafter | 48,382 |
Operating lease obligation - FPSO and drilling rig leases - Nigeria | |
Commitments And Contingencies [Line Items] | |
Total | 294,676 |
2015 | 52,863 |
2016 | 48,362 |
2017 | 48,363 |
2018 | 48,362 |
2019 | 48,363 |
Thereafter | 48,363 |
Operating lease obligation - Office leases | |
Commitments And Contingencies [Line Items] | |
Total | 2,368 |
2015 | 472 |
2016 | 506 |
2017 | 516 |
2018 | 450 |
2019 | 405 |
Thereafter | 19 |
Minimum work obligations | Kenya | |
Commitments And Contingencies [Line Items] | |
Total | 2,700 |
2015 | 2,700 |
Minimum work obligations | The Gambia | |
Commitments And Contingencies [Line Items] | |
Total | 5,411 |
2015 | 4,811 |
2016 | 600 |
Minimum work obligations | Ghana | |
Commitments And Contingencies [Line Items] | |
Total | 21,907 |
2015 | 3,157 |
2016 | $18,750 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 07, 2015 | |
Commitments And Contingencies Disclosure [Line Items] | ||||
Minimum contract commitment obligation | $64,003,000 | |||
Operating Leases, Rent Expense, Net | 1,000,000 | 700,000 | 500,000 | |
Operating Leases, Future Minimum Payments Due | 2,400,000 | |||
Nigerian Department of Petroleum Resources | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Payment of cash or the equivalent in shares | 25,000,000 | |||
Payment of cash or the equivalent of shares in period | 15 days | |||
Number of shares to be issued in period | 30 days | |||
Kenya | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Minimum work obligation in mineral property | 4 | |||
The Gambia | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Minimum work obligation in mineral property | 2 | |||
Ghana | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Minimum work obligation in mineral property | 1 | |||
Long-term Floating Production Storage and Offloading System Contract | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Barrels processing capacity | 40,000 | |||
Maximum storage capacity for the FPSO | 1,000,000 | |||
Other minimum commitment, due in first year | 48,400,000 | |||
Short-term Drilling Contract | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Commitment contract period | 45 days | |||
Minimum contract commitment obligation | 4,500,000 | |||
CAMAC | Subsequent Event | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Wasted marine spread costs | 50,000,000 | |||
Damages claimed due to delay in operations | $3,000,000 |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 2,400,000 | ||
Stock Warrants | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 0 | ||
Allocated Share-based Compensation Expense | 0.1 | ||
Issued warrants to third parties | 1,800,000 | ||
Issued warrants to third parties at exercise price | $0.56 | ||
Warrants exercisable from date of issuance, term period | 5 years | ||
2009 Equity Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 100,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 0.8 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 0.3 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 0.9 | 0 | 0 |
Employee Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 2,371,000 | ||
Allocated Share-based Compensation Expense | 1.3 | 1.1 | 0.2 |
Employee Service Share-based Compensation, No vested Awards, Compensation Cost Not yet Recognized | 1.3 | ||
Employee Stock Option | Expense To Be Recognized During 2015 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, No vested Awards, Compensation Cost Not yet Recognized | 0.9 | ||
Employee Stock Option | Expense To Be Recognized During 2016 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, No vested Awards, Compensation Cost Not yet Recognized | 0.4 | ||
Employee Stock Option | 2009 Equity Incentive Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Period | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Employee Stock Option | 2009 Equity Incentive Plan | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Period | 2 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 3 years | ||
Non-vested restricted stock awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 1.7 | 0.9 | 0.6 |
Employee Service Share-based Compensation, No vested Awards, Compensation Cost Not yet Recognized | 1.7 | ||
Non-vested restricted stock awards | 2009 Equity Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 2.8 | ||
Non-vested restricted stock awards | 2009 Equity Incentive Plan | Expense To Be Recognized During 2015 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, No vested Awards, Compensation Cost Not yet Recognized | 1.5 | ||
Non-vested restricted stock awards | 2009 Equity Incentive Plan | Expense To Be Recognized During 2016 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, No vested Awards, Compensation Cost Not yet Recognized | $0.20 |
Stock_Based_Compensation_Summa
Stock Based Compensation - Summary of Stock Option Activity (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted | 2,400,000 | |
Stock Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options, Outstanding | 13,776,000 | |
Granted | 2,371,000 | |
Exercised | -1,708,000 | |
Forfeited | -73,000 | |
Options, Outstanding | 14,366,000 | 13,776,000 |
Expected to vest | 7,915,000 | |
Exercisable at December 31, 2014 | 6,451,000 | |
Options Outstanding, Weighted-Average Exercise Price | $0.31 | |
Granted | $0.56 | |
Exercised | $0.28 | |
Forfeited | $0.79 | |
Options Outstanding, Weighted-Average Exercise Price | $0.35 | $0.31 |
Expected to vest | $0.36 | |
Exercisable at December 31, 2014 | $0.34 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (Years) | 3 years | 3 years 8 months 12 days |
Granted | 4 years 2 months 12 days | |
Exercised | 2 years 6 months | |
Forfeited | 1 year | |
Options Outstanding, Weighted-Average Remaining Contractual Term (Years) | 3 years | 3 years 8 months 12 days |
Expected to vest | 3 years 6 months | |
Exercisable at December 31, 2014 | 2 years 3 months 18 days |
Stock_Based_Compensation_Summa1
Stock Based Compensation - Summary of Weighted-Average Amounts for Assumptions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Warrants | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected price volatility | 82.70% | ||
Risk free interest rate (U.S. treasury bonds) | 1.10% | ||
Expected option term (years) | 3 years | ||
Weighted-average grant date fair value per share | $0.30 | ||
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected price volatility | 87.70% | 77.90% | 120.50% |
Risk free interest rate (U.S. treasury bonds) | 1.10% | 0.50% | 0.50% |
Expected option term (years) | 3 years | 3 years 6 months | 3 years 6 months |
Weighted-average grant date fair value per share | $0.32 | $0.23 | $0.26 |
Stock_Based_Compensation_Summa2
Stock Based Compensation - Summary of Stock Warrants Activity (Details) (Stock Warrants, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Warrants | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding | 12,694,000 | |
Granted | 1,800,000 | |
Outstanding | 14,494,000 | 12,694,000 |
Exercisable at December 31, 2014 | 14,494,000 | |
Outstanding Weighted-Average Exercise Price | $1.21 | |
Granted | $0.56 | |
Outstanding Weighted-Average Exercise Price | $1.06 | $1.21 |
Exercisable at December 31, 2014 | $1.06 | |
Weighted-Average Remaining Contractual Term (Years) | 1 year 4 months 24 days | 1 year 10 months 24 days |
Granted | 4 years 8 months 12 days | |
Exercisable at December 31, 2014 | 1 year 4 months 24 days |
Stock_Based_Compensation_Summa3
Stock Based Compensation - Summary of Restricted Stock Activity (Details) (Non-vested restricted stock awards, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Non-vested restricted stock awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding | 4,539,000 |
Granted | 5,014,000 |
Vested | -3,512,000 |
Outstanding | 6,041,000 |
Outstanding Weighted-Average Exercise Price | $0.27 |
Granted | $0.57 |
Vested | $0.28 |
Outstanding Weighted-Average Exercise Price | $0.52 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Expected Statutory U.S. Federal Income Tax Provision (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax [Line Items] | |||||||||||
Net loss attributable to CAMAC Energy Inc. before income tax expense | ($27,051) | ($42,223) | ($11,930) | ($14,858) | ($10,690) | ($10,417) | ($11,930) | ($10,488) | ($96,062) | ($43,525) | ($29,529) |
Expected income tax provision at statutory rate of 35% | -33,622 | -15,234 | -10,335 | ||||||||
Increase (decrease) due to: | |||||||||||
Foreign rate differential | -10,083 | -3,581 | -3,103 | ||||||||
Change in valuation allowance | 98,376 | 20,205 | 67,117 | ||||||||
Non-deductible expenses and other | -13,906 | 13,912 | |||||||||
Total income tax expense | 0 | 0 | 0 | ||||||||
NIGERIA | |||||||||||
Increase (decrease) due to: | |||||||||||
Investment tax credit - Nigeria | $40,765 | $15,302 | $53,679 |
Income_Taxes_Details_Reconcili
Income Taxes (Details) - Reconciliation of the Expected Statutory U.S. Federal Income Tax Provision (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Expected income tax provision at statutory rate | 35.00% | 35.00% | 35.00% |
Income_Taxes_Significant_Compo
Income Taxes - Significant Components of Deferred Tax Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Basis difference in fixed assets | ($100,798) | ($105,007) |
Unused capital allowances | 407,899 | 341,540 |
Net operating losses | 54,673 | 26,650 |
Other | 621 | 837 |
Gross deferred income tax assets | 362,395 | 264,020 |
Valuation allowance | -362,395 | -264,020 |
Net deferred income tax assets | $0 | $0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Valuation allowance | $362,395 | $264,020 |
Income_Taxes_Summary_of_Tax_Ye
Income Taxes - Summary of Tax Years Remain Subject to Examination (Details) | 12 Months Ended |
Dec. 31, 2014 | |
United States | Minimum | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2007 |
United States | Maximum | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2014 |
NIGERIA | Minimum | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2010 |
NIGERIA | Maximum | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2014 |
Kenya | Minimum | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2012 |
Kenya | Maximum | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2014 |
The Gambia | Minimum | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2012 |
The Gambia | Maximum | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2014 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Details) (USD $) | 1 Months Ended | 12 Months Ended |
In Thousands, except Share data in Millions, unless otherwise specified | Aug. 31, 2012 | Dec. 31, 2012 |
Discontinued Operations And Disposal Groups [Abstract] | ||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $2,400 | $2,364 |
Noncash or Part Noncash Divestiture, Shares Received (in Shares) | 9.6 | |
Noncash or Part Noncash Divestiture, Amount of Consideration Received | $1,900 | $1,877 |
Summary_of_Discontinued_Operat
Summary of Discontinued Operations based on Results of Operations (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Costs and expenses: | ||
Exploratory expenses | $204 | |
Depreciation, depletion and amortization | 8 | |
General and administrative expenses | 36 | 779 |
Total costs and expenses | 36 | 991 |
Loss before income taxes | -36 | -991 |
Net loss from discontinued operations, net of tax | -36 | -991 |
Non-controlling interests - discontinued operations | 8 | |
Net loss | ($36) | ($983) |
Segment_Activity_Details
Segment Activity (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Crude oil sales, net of royalties | $19,010 | $14,940 | $19,894 | $21,723 | $20,007 | $22,006 | $53,844 | $63,736 | $74,667 | ||
Operating loss | -25,825 | -41,546 | -11,271 | -14,683 | -10,718 | -10,401 | -11,924 | -10,484 | -93,325 | -43,527 | -32,124 |
Total Assets | 638,443 | 454,224 | 638,443 | 454,224 | |||||||
Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating loss | -14,640 | -15,348 | -12,083 | ||||||||
Total Assets | 16,521 | 859 | 16,521 | 859 | |||||||
NIGERIA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Crude oil sales, net of royalties | 53,844 | 63,736 | 74,667 | ||||||||
Operating loss | -64,716 | -23,705 | -18,497 | ||||||||
Total Assets | 609,243 | 449,856 | 609,243 | 449,856 | |||||||
Kenya | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating loss | -12,130 | -3,404 | -1,046 | ||||||||
Total Assets | 8,527 | 1,484 | 8,527 | 1,484 | |||||||
The Gambia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating loss | -1,347 | -1,070 | -498 | ||||||||
Total Assets | 2,739 | 2,025 | 2,739 | 2,025 | |||||||
Ghana | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating loss | -492 | ||||||||||
Total Assets | $1,413 | $1,413 |
Schedule_of_Selected_Unaudited
Schedule of Selected Unaudited Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $19,010 | $14,940 | $19,894 | $21,723 | $20,007 | $22,006 | $53,844 | $63,736 | $74,667 | ||
Operating loss | -25,825 | -41,546 | -11,271 | -14,683 | -10,718 | -10,401 | -11,924 | -10,484 | -93,325 | -43,527 | -32,124 |
Net loss attributable to CAMAC Energy Inc. | ($27,051) | ($42,223) | ($11,930) | ($14,858) | ($10,690) | ($10,417) | ($11,930) | ($10,488) | ($96,062) | ($43,525) | ($29,529) |
Net loss per common share attributable to CAMAC Energy Inc.: | |||||||||||
Basic | ($0.02) | ($0.03) | ($0.01) | ($0.02) | ($0.01) | ($0.01) | ($0.01) | ($0.01) | ($0.08) | ($0.05) | ($0.05) |
Diluted | ($0.02) | ($0.03) | ($0.01) | ($0.02) | ($0.01) | ($0.01) | ($0.01) | ($0.01) | ($0.08) | ($0.05) | ($0.05) |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Details) | 12 Months Ended | 1 Months Ended |
Dec. 31, 2014 | Feb. 28, 2015 | |
Non-vested restricted stock awards | ||
Subsequent Event [Line Items] | ||
Granted | 5,014,000 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Stock Issued During Period Shares Issued For Services | 300,000 | |
Subsequent Event | Non-vested restricted stock awards | ||
Subsequent Event [Line Items] | ||
Granted | 5,500,000 |