Erin Energy (ERINQ) 10-Q 10 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 03, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	Erin Energy Corp.
Entity Central Index Key	1,402,281
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		211,501,647

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 1,041	$ 25,143
Restricted cash	7,072	1,496
Accounts receivable - partners	76	496
Accounts receivable - related party	624	624
Accounts receivable - other	105	54
Crude oil inventory	25,223	1,089
Prepaids and other current assets	3,523	2,929
Total current assets	37,664	31,831
Property, plant and equipment:
Oil and gas properties (successful efforts method of accounting), net	705,838	595,269
Other property, plant and equipment, net	1,232	1,060
Total property, plant and equipment, net	707,070	596,329
Other non-current assets [Abstract]
Restricted cash	0	8,909
Debt issuance costs	1,207	1,307
Other non-current assets	67	67
Other assets, net	1,274	10,283
Total assets	746,008	638,443
Current Liabilities:
Accounts payable and accrued liabilities	180,696	108,047
Accounts payable and accrued liabilities - related party	26,523	9,391
Accounts payable - partners	101	0
Asset retirement obligations	0	12,703
Current portion of long-term debt	18,445	6,200
Total current liabilities	225,765	136,341
Long-term notes payable - related party	115,164	61,185
Term loan facility	79,928	93,000
Asset retirement obligations, long-term portion	23,838	13,830
Other long-term liabilities	0	82
Total liabilities	$ 444,695	$ 304,438
Commitments and contingencies
Equity:
Preferred stock $0.001 par value - 50,000,000 shares authorized; none issued and outstanding at June 30, 2015 and December 31, 2014	$ 0	$ 0
Common stock $0.001 par value - 416,666,667 shares authorized; 211,501,647 and 210,307,502 shares outstanding as of June 30, 2015 and December 31, 2014	212	210
Additional paid-in capital	787,722	778,095
Accumulated deficit	(487,175)	(444,954)
Total equity - Erin Energy Corporation	300,759	333,351
Non-controlling interests	554	654
Total equity	301,313	334,005
Total liabilities and equity	$ 746,008	$ 638,443

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized shares	50,000,000	50,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	416,666,667	416,666,667
Common stock, outstanding shares	211,501,647	210,307,502

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Crude oil sales, net of royalties	$ 0	$ 14,940	$ 0	$ 34,834
Operating costs and expenses:
Production costs	(5,616)	15,459	15,712	38,356
Workover expenses	618	0	618	0
Exploratory expenses	1,502	427	8,017	2,703
Depreciation, depletion and amortization	422	5,985	1,119	10,956
Loss on settlement of asset retirement obligations	3,454	0	3,454	0
General and administrative expenses	5,441	4,340	8,932	8,773
Total operating costs and expenses	5,821	26,211	37,852	60,788
Operating loss	(5,821)	(11,271)	(37,852)	(25,954)
Other income (expense):
Currency transaction gain	555	32	1,991	32
Interest expense	(4,224)	(681)	(6,835)	(866)
Other, net	0	(10)	0	0
Total other income (expense)	(3,669)	(659)	(4,844)	(834)
Loss before income taxes	(9,490)	(11,930)	(42,696)	(26,788)
Income tax expense	0	0	0	0
Net loss before non-controlling interest	(9,490)	(11,930)	(42,696)	(26,788)
Net loss attributable to non-controlling interest	328	0	475	0
Net loss attributable to Erin Energy Corporation	$ (9,162)	$ (11,930)	$ (42,221)	$ (26,788)
Net loss per common share:
Basic (dollars per share)	$ (0.04)	$ (0.06)	$ (0.20)	$ (0.17)
Diluted (dollars per share)	$ (0.04)	$ (0.06)	$ (0.20)	$ (0.17)
Weighted average common shares outstanding:
Basic (in shares)	211,108	198,035	210,791	155,428
Diluted (in shares)	211,108	198,035	210,791	155,428

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Non-controlling Interest
Balance at December 31, 2014 at Dec. 31, 2014	$ 334,005	$ 210	$ 778,095	$ (444,954)	$ 654
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued	1,980	2	1,978
Stock based compensation	3,165		3,165
Warrants issued with debt	4,484		4,484
Funding from non-controlling interest	375				375
Net loss	(42,696)			(42,221)	(475)
Balance at June 30, 2015 at Jun. 30, 2015	$ 301,313	$ 212	$ 787,722	$ (487,175)	$ 554

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities
Net loss	$ (42,696)	$ (26,788)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation, depletion and amortization	243	10,066
Accretion of asset retirement obligations	876	890
Amortization of debt discount and debt issuance costs	1,119	0
Loss on settlement of asset retirement obligations	3,454	0
Foreign currency transaction gain	(1,991)	0
Share-based compensation	3,434	1,394
Payments to settle asset retirement obligations	(16,441)	0
Change in operating assets and liabilities:
Decrease (increase) in accounts receivable	470	(13,161)
Decrease (increase) in inventories	(9,861)	4,144
Increase in prepaids and other current assets	(1,234)	(10,579)
Increase in accounts payable and accrued liabilities	34,653	8,648
Net cash used in operating activities	(27,974)	(25,386)
Cash flows from investing activities
Capital expenditures	(56,741)	(22,179)
Allied transaction	0	(170,000)
Net cash used in investing activities	(56,741)	(192,179)
Cash Flows from Financing Activities
Proceeds from the issuance of common stock	0	270,000
Proceeds from exercise of stock options and warrants	1,855	415
Proceeds from notes payable - related party, net	57,815	650
Allied transaction adjustments	0	(13,921)
Funding from non-controlling interest	375	0
Net cash provided by financing activities	60,045	257,144
Effect of exchange rate changes on cash and cash equivalents	568	0
Net increase (decrease) in cash and cash equivalents	(24,102)	39,579
Cash and cash equivalents at beginning of period	25,143	163
Cash and cash equivalents at end of period	1,041	39,742
Cash paid for:
Interest, net	4,927	8
Supplemental disclosure of non-cash investing and financing activities:
Issuance of common shares for settlement of liabilities	125	0
Discount on notes payable pursuant to issuance of warrants	4,484	0
Related party accounts payable, net, settled with related party accounts receivable	0	14,129
Reduction in accounts payable from settlement of Northern Offshore contingency	$ 24,307	$ 0

Company Description

Company Description	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Company Description	Company Description Erin Energy Corporation (NYSE MKT: ERN; JSE: ERN), formerly CAMAC Energy, Inc., is an independent oil and gas exploration and production company focused on energy resources in Africa. The Company’s asset portfolio consists of nine licenses across four countries covering an area of approximately 43,000 square kilometers (approximately 10 million acres). The Company owns producing properties offshore Nigeria and conducts exploration activities offshore Nigeria, onshore and offshore Kenya, offshore The Gambia, and offshore Ghana. In April 2015, the Company changed its name to Erin Energy Corporation from CAMAC Energy Inc. The Company is headquartered in Houston, Texas and has offices in Lagos, Nigeria, Nairobi, Kenya, Banjul, The Gambia, Accra, Ghana and Johannesburg, South Africa. The Company’s operating subsidiaries include CAMAC Petroleum Limited (“CPL”), CAMAC Energy Kenya Limited, CAMAC Energy Gambia Ltd., and CAMAC Energy Ghana Limited. The terms “we,” “us,” “our,” “the Company,” and “our Company” refer to Erin Energy Corporation and its subsidiaries. The Company also conducts certain business transactions with its majority shareholder, CAMAC Energy Holdings Limited (“CEHL”), and its affiliates, which include Allied Energy Plc. (“Allied”). See Note 8 - Related Party Transactions for further information. The Company’s Executive Chairman of the Board of Directors, and Chief Executive Officer, is a director of each of the above listed related parties. He indirectly owns 27.7% of CEHL, which is the majority shareholder of the Company. As a result, he may be deemed to have an indirect material interest in transactions contemplated with CEHL and any of its affiliates.

Basis of Presentation and Recen

Basis of Presentation and Recently Issued Accounting Standards	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation and Recently Issued Accounting Standards	Basis of Presentation and Recently Issued Accounting Standards The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly owned and majority-owned direct and indirect subsidiaries and have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). All significant intercompany transactions and balances have been eliminated in consolidation. The unaudited consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position and results of operations for the indicated periods. All such adjustments are of a normal recurring nature. This Form 10-Q should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014 , filed with the SEC on March 16, 2015. Reverse Stock Split Effective April 22, 2015, the Company implemented a reverse stock split, whereby each six shares of outstanding common stock pre-split was converted into one share of common stock post-split (the “reverse stock split”). All share and per share amounts for all periods presented herein have been adjusted to reflect the reverse stock split as if it had occurred at the beginning of the first period presented. Use of Estimates The preparation of the Company's consolidated financial statements in conformity with U.S. GAAP requires management to make estimates based on certain assumptions. Estimates affect the reported amounts of assets and liabilities, disclosure of contingent liabilities, and the reported amounts of revenues and expenses attributable to the reporting periods. Accordingly, accounting estimates in conformity with U.S. GAAP require the exercise of judgment. These estimates and assumptions used in the preparation of the Company’s consolidated financial statements are based on information available as of the date of the consolidated financial statements, and while management believes that the estimates and assumptions are appropriate, actual results could differ from management's estimates. Estimates that may have a significant effect on the Company’s financial position and results from operations include share-based compensation assumptions, oil and natural gas reserve quantities, depletion and amortization relating to oil and natural gas properties, asset retirement obligation assumptions, and income taxes. The accounting estimates used in the preparation of the Company's consolidated financial statements may change as new events occur, more experience is acquired, additional information is obtained and our operating environment changes. Capitalized Interest The Company capitalizes interest costs for qualifying oil and gas properties. The capitalization period begins when expenditures are incurred on qualified properties, activities begin which are necessary to prepare the property for production, and interest costs have been incurred. The capitalization period continues as long as these events occur. Capitalized interest is added to the cost of the underlying assets and is depleted using the unit-of-production method in the same manner as the underlying assets. During the six months ended June 30, 2015 and 2014 , the Company capitalized $2.2 million and $0.2 million , respectively, in interest cost as additions to property, plant and equipment related to the Oyo field redevelopment campaign. Net Earnings (Loss) Per Common Share Basic net earnings or loss per common share is computed by dividing net earnings or loss by the weighted average number of shares of common stock outstanding at the end of the reporting period. Diluted net earnings or loss per share is computed by dividing net earnings or loss by the fully diluted common stock equivalent, which consists of shares outstanding, augmented by potentially dilutive shares issuable upon the exercise of stock options, unvested restricted stock awards, warrants, and conversion of the Convertible Subordinated Note, calculated using the treasury stock method. The table below sets forth the number of shares issuable pursuant to stock options, unvested restricted stock awards, and shares issuable upon conversion of the Convertible Subordinated Note that were excluded from diluted shares outstanding during the three and six months ended June 30, 2015 and 2014 , as these securities are anti-dilutive because the Company was in a loss position for each period. Three Months Ended June 30, Six Months Ended June 30, ( In thousands ) 2015 2014 2015 2014 Stock options 1,476 1,189 1,119 1,216 Stock warrants 1,046 — 426 — Unvested restricted stock awards 1,348 1,076 1,324 977 Convertible note 11,632 11,632 11,632 8,355 15,502 13,897 14,501 10,548 Upon the occurrence of certain events, the Company is also contingently liable to make additional payments to Allied, under the Transfer Agreement, up to an additional amount totaling $50.0 million in cash, or the equivalent in shares of the Company’s common stock, at Allied’s option. See Note 9 - Commitments and Contingencies for further information. Fair Value of Financial Instruments The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements. Fair value is the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, inventory, deposits, accounts payable and accrued liabilities, and debts at floating interest rates, approximate their fair values at June 30, 2015 , and December 31, 2014 , respectively, principally due to the short-term nature, maturities or nature of interest rates of the above listed items. Recently Issued Accounting Standards In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU No. 2015-01 eliminates from US GAAP the concept of extraordinary items, and is effective for fiscal years beginning after December 15, 2015. The Company will adopt this standards update, as required, beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU No. 2015-02 is effective for interim and annual periods beginning after December 15, 2015, and the Company will adopt this standards update, as required, beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which is guidance for the reporting of debt issuance costs related to a recognized debt liability on an entity's balance sheet. Under the guidance, an entity must report debt issuance costs as a direct deduction from the carrying amount of that debt liability, consistent with the treatment for debt discounts. ASU No. 2015-03 is effective for interim and annual periods beginning after December 15, 2015; early adoption is permitted for financial statements that have not been previously issued. The Company will adopt this standards update beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in Cloud Computing Arrangement. ASU 2015-05 is new guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. ASU No. 2015-05 is effective for interim and annual periods beginning after December 15, 2015, and the Company will adopt this standards update, as required, beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-08, Business Combinations (Topic 805): Pushdown Accounting - Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115. The amendments in ASU 2015-08 amend various SEC paragraphs included in the FASB’s Accounting Standards Codification to reflect the issuance of Staff Accounting Bulletin No. 115 (“SAB 115”). SAB 115 rescinds portions of the interpretive guidance included in the SEC’s Staff Accounting Bulletins series and brings existing guidance into conformity with ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting,” which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The Company has adopted the amendments in ASU 2015-08, effective May 8, 2015, as the amendments in the update are effective upon issuance. The adoption did not have an impact on the Company's consolidated financial statements.

Liquidity Matters

Liquidity Matters	6 Months Ended
	Jun. 30, 2015
Liquidity Matters [Abstract]
Liquidity Matters	Liquidity Matters The Company’s primary cash requirements are for capital expenditures for the redevelopment of the Oyo field in Nigeria, operating expenditures for the Oyo field, exploration activities in its unevaluated leaseholds, working capital needs, and interest and principal payments under current indebtedness. Crude oil production is a primary source of operating cash for the Company. The Company commenced production from the Oyo-8 well in early May 2015 and from the Oyo-7 well in mid-June 2015. After a period of retooling and optimization, the current combined production rate from the two wells is approximately 13,100 barrels of oil per day ("BOPD") (approximately 11,500 BOPD net to the Company after royalty). In July 2015, the Company lifted and sold approximately 312,000 Bbls of crude oil ( 274,000 Bbls net to the Company) at a price of $55.78 /Bbls. Net proceeds to the Company were approximately $15.3 million . Further, the Company expects to sell approximately 650,000 Bbls of crude oil in August 2015 ( 572,000 Bbls net to the Company). If actual production rates decline substantially below anticipated rates, or if oil prices decline significantly from current levels, the Company may need to seek additional sources of capital. In March 2015, the Company entered into a borrowing facility with Allied for a Convertible Note (the "2015 Convertible Note"), separate from the existing $25.0 million Promissory Note and the $50.0 million Convertible Subordinated Note, allowing the Company to borrow up to $50.0 million for general corporate purposes. As of June 30, 2015, the outstanding principal under the 2015 Convertible Note was $44.0 million . Subsequent to June 30, 2015, the Company borrowed additional funds totaling $4.0 million under the note. See Note 7 - Debt for additional information. In May 2015, the Company executed a term sheet for a commodity-based Full Recourse Prepayment Facility (the “Prepayment Facility”) with Glencore Energy UK Ltd. The Prepayment Facility, which is subject to completion of legal documentation and certain conditions precedent, would provide proceeds in two tranches. The initial tranche, a term prepayment facility, would be available to the Company in drawdowns totaling up to $50.0 million towards the Oyo field redevelopment program, and would depend on the Company’s ability to meet certain production targets. The second tranche consists of an inventory revolving facility up to a total of $100.0 million . The Company expects the Prepayment Facility to be finalized during the third quarter of 2015. In July 2015, the Company received $13.0 million as an advance under a stand-alone spot sales contract with Glencore Energy UK Ltd. (the “July Advance”). Interest accrued on the July Advance at the rate of LIBOR plus 6.5% . Repayment of the July Advance was made from the July crude oil lifting. In August 2015, the Company received another advance amounting to $26.5 million under a stand-alone spot sales contract with Glencore Energy UK Ltd. (the “August Advance”). Interest accrues on the August Advance at the rate of LIBOR plus 6.5% . Repayment of the August Advance will be made from the August crude oil lifting. The Company’s majority shareholder has formally committed to provide the Company with additional funding, the form of which would be determined at the time of funding, sufficient to maintain the Company’s operations and to allow the Company to meet its current and future obligations as they become due for one year from March 12, 2015, the date of said commitment.

Property, Plant and Equipment

Property, Plant and Equipment	6 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment were comprised of the following: ( In thousands ) June 30, December 31, 2014 Wells and production facilities $ 319,884 $ 33,690 Proved properties 386,196 386,196 Work in progress and other 98,994 261,346 Oilfield assets 805,074 681,232 Accumulated depletion (109,676 ) (95,403 ) Oilfield assets, net 695,398 585,829 Unevaluated leaseholds 10,440 9,440 Oil and gas properties, net 705,838 595,269 Other property and equipment 2,739 2,324 Accumulated depreciation (1,507 ) (1,264 ) Other property and equipment, net 1,232 1,060 Total property, plant and equipment, net $ 707,070 $ 596,329 All of the Company’s Oilfield assets are located in Nigeria. “Work-in-progress and other” includes ongoing costs for wells that are not yet completed, suspended exploratory well costs, as well as warehouse inventory items purchased as part of the redevelopment plan of the Oyo field .

Suspended Exploratory Well Cost

Suspended Exploratory Well Costs	6 Months Ended
	Jun. 30, 2015
Extractive Industries [Abstract]
Suspended Exploratory Well Costs	Suspended Exploratory Well Costs In November 2013, the Company achieved both its primary and secondary drilling objectives for the Oyo-7 well. The primary drilling objective was to establish production from the existing Pliocene reservoir. The secondary drilling objective was to confirm the presence of hydrocarbons in the deeper Miocene formation. Hydrocarbons were encountered in three intervals totaling approximately 65 feet, as interpreted by logging-while-drilling (“LWD”) data. Management is making plans to further explore the Miocene formation in future wells. Suspended exploratory well costs were $26.5 million at both June 30, 2015 , and December 31, 2014 , for the costs related to the Miocene exploratory drilling activities. In August 2014, the Oyo-8 well was drilled to a total vertical depth of approximately 6,059 feet (approximately 1,847 meters) and successfully encountered four new oil and gas reservoirs in the eastern fault block, with total gross hydrocarbon thickness of 112 feet, based on results from the LWD data, reservoir pressure measurement, and reservoir fluid sampling. Management has commenced a detailed evaluation of the results and plans to further explore the Pliocene formation in the eastern fault block and establish the size of the incremental additions. Suspended exploratory well costs were $6.5 million at both June 30, 2015 , and December 31, 2014 , for the costs related to the Pliocene exploration drilling activities in the eastern fault block.

Asset Retirement Obligations

Asset Retirement Obligations	6 Months Ended
	Jun. 30, 2015
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Asset Retirement Obligations The Company’s asset retirement obligations primarily represent the estimated fair value of the amounts that will be incurred to plug, abandon and remediate certain oil and gas properties at the end of their productive lives. Significant inputs used in determining such obligations include, but are not limited to, estimates of plugging and abandonment costs, estimated future inflation rates and changes in property lives. The inputs are calculated based on historical data as well as current estimated costs. On a quarterly basis, the Company reviews the assumptions used to estimate the expected cash flows required to settle the asset retirement obligations, including changes in estimated probabilities, amounts and timing of the settlement of the asset retirement obligations, as well as changes in the legal obligation for each of its properties. Changes in any one or more of these assumptions may cause revisions in the estimated liabilities for the corresponding assets. The following summarizes changes in the Company’s asset retirement obligations during the six months ended June 30, 2015 ( in thousands ): Balance at January 1 $ 26,533 Accretion expense 876 Additions 9,416 Loss on settlement of asset retirement obligations 3,454 Cost incurred to settle asset retirement obligations (16,441 ) Balance at June 30 $ 23,838 In April 2015, the Company completed plug and abandonment ("P&A") activities for well Oyo-6 that was previously shut-in. Actual P&A expenditures exceeded estimated P&A liabilities by $3.5 million . Accordingly, the Company recorded a $3.5 million loss on settlement of asset retirement obligations. The table below shows the current and long-term portions of the Company's asset retirement obligations as of the end of each period: ( In thousands ) June 30, December 31, 2014 Asset retirement obligations, current portion — 12,703 Asset retirement obligations, long-term portion 23,838 13,830 $ 23,838 $ 26,533 Accretion expense is recognized as a component of depreciation, depletion and amortization expense in the accompanying consolidated statements of operations.

Debt

Debt	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Debt	Debt Promissory Note – Long-Term (Related Party) The Company has a $25.0 million borrowing facility under a Promissory Note (the “Promissory Note”) with Allied. Interest accrues on the outstanding principal under the Promissory Note at a rate of the 30-day London Interbank Offered Rate (“LIBOR”) plus 2% per annum, payable quarterly. 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 June 30, 2015 , the outstanding principal and interest under the Promissory Note was $25.0 million and $0.6 million , respectively. Convertible Subordinated Note – Long-Term (Related Party) As partial consideration in connection with the February 2014 closing of the Allied Transaction, the Company issued a $50.0 million Convertible Subordinated Note in favor of Allied (the “Convertible Subordinated Note”). Interest on the Convertible Subordinated Note accrues at a rate per annum of one-month LIBOR plus 5% , payable quarterly in cash until the maturity of the Convertible Subordinated Note five years from the closing of the Allied Transaction. At the election of the holder, the Convertible Subordinated Note is convertible into shares of the Company’s common stock at an initial conversion price of $4.2984 per share, subject to anti-dilution adjustments. The Convertible Subordinated Note is subordinated to the Company’s existing and future senior indebtedness and is subject to acceleration upon an Event of Default (as defined in the Convertible Subordinated Note). The Company may, at its option, prepay the Convertible Subordinated Note in whole or in part, at any time, without premium or penalty, and is subject to mandatory prepayment upon (i) the Company’s issuance of capital stock or incurrence of indebtedness, the proceeds of which the Company does not apply to repayment of senior indebtedness or (ii) any capital markets debt issuance to the extent the net proceeds of such issuance exceed $250.0 million . Allied may assign all or any part of its rights and obligations under the Convertible Subordinated Note to any person upon written notice to the Company. As of June 30, 2015 , the outstanding principal and accrued interest under the Convertible Subordinated Note was $50.0 million and $3.7 million , respectively. Term Loan Facility In September 2014, the Company, through its wholly owned subsidiary CPL, entered into a credit facility with a Nigerian bank for a five -year senior secured term loan providing initial borrowing capacity of up to $100.0 million (the “Term Loan Facility”). 90% of the Term Loan Facility is available in U.S. dollar, while the remaining 10% is available in Nigerian Naira. U.S. dollar borrowings under the Term Loan Facility currently bear interest at the rate of LIBOR plus 10.5% . The obligations under the Term Loan Facility include a legal charge over OMLs 120 and 121 and an assignment of proceeds from oil sales. The obligations of CPL have been guaranteed by the Company and rank in priority with all its other obligations. Proceeds from the Term Loan Facility were used for the further expansion and development of the Oyo field offshore Nigeria. Under the Term Loan Facility, the following events, among others, constitute events of default: CPL failing to pay any amounts due within thirty days of the due date; bankruptcy, insolvency, liquidation or dissolution of CPL; a material breach of the Loan Agreement by CPL that remains unremedied within thirty days of written notice by CPL; or a representation or warranty of CPL proves to have been incorrect or materially inaccurate when made. Upon any event of default, all outstanding principal and interest under any loans will become immediately due and payable. The Term Loan Facility contains normal and customary covenants including the delivery of the Company’s annual audited financial information each year, and a provision of priority of interest, in which the Company is to procure that its obligations under the Term Loan Facility do and will rank in priority with all its other current and future unsecured and unsubordinated obligations. The Company is also to provide a production and lifting schedule each month displaying the daily production totals and quantities lifted respectively from OMLs 120 and 121. The Company was in compliance with all loan covenants as of June 30, 2015 . Upon executing the Term Loan Facility, the Company paid a $2.1 million commitment fee, which was recorded as debt issuance cost and is being amortized over the life of the Term Loan Facility using the effective interest method. As of June 30, 2015 , $1.9 million of the debt issuance cost remain unamortized. For the six months ended June 30, 2015 , the Company recognized an unrealized foreign currency gain of $1.6 million on the Naira portion of the loan, reducing the net balance under the Term Loan Facility to $98.4 million . Of this amount, $79.9 million was classified as long-term and $18.5 million as short-term. Accrued interest for the Term Loan Facility was $2.5 million as of June 30, 2015 . 2015 Convertible Note (Related Party) In March 2015, the Company entered into a new borrowing facility with Allied for a Convertible Note (the “2015 Convertible Note”) allowing the Company to borrow up to $50.0 million for general corporate purposes. The 2015 Convertible Note will mature in December 2016. Interest accrues at the rate of LIBOR plus 5% , and is payable quarterly. The 2015 Convertible Note is convertible into shares of the Company’s common stock upon the occurrence and continuation of an event of default, at the sole option of the holder. The number of shares issuable upon conversion is equal to the sum of the principal amount and the accrued and unpaid interest divided by the conversion price, defined as the volume weighted average of the closing sales prices on the NYSE MKT for a share of common stock for the five complete trading days immediately preceding the conversion date. As of June 30, 2015 , the Company had borrowed $44.0 million under the note and issued to Allied warrants to purchase approximately 2.4 million shares of the Company’s common stock at prices ranging from $2.46 to $7.85 per share. The total fair market value of the warrants amounting to $4.5 million based on the Black-Scholes option pricing model was recorded as a discount from the note, and is being amortized using the effective interest method over the life of the note. As of June 30, 2015 , the unamortized balance of the note discount was $3.8 million . Additional warrants are issuable in connection with future borrowings, with the per share price for those warrants determined based on the market price of the Company’s common stock at the time of such future borrowings. As of June 30, 2015 , the Company owed $40.2 million under the 2015 Convertible Note, net of discount. Accrued interest on the 2015 Convertible Note was $0.5 million as of June 30, 2015 . Subsequent to June 30, 2015 , the Company borrowed an additional $4.0 million under the 2015 Convertible Note and issued to Allied warrants to purchase approximately 0.2 million shares of the Company's common stock with exercise prices ranging from $3.71 to $3.93 per share.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Assets and Liabilities The Company has transactions in the normal course of business with its shareholders, CEHL and their affiliates. The following table sets forth the related party assets and liabilities as of June 30, 2015 and December 31, 2014: ( In thousands ) June 30, December 31, 2014 Accounts receivable, CEHL $ 624 $ 624 Accounts payable and accrued expenses, CEHL $ 26,523 $ 9,391 Notes payable - related party, CEHL $ 115,164 $ 61,185 As of June 30, 2015 and December 31, 2014 , the Company owed $26.5 million and $9.4 million , respectively, to an affiliate primarily for logistical and support services in relation to the Company's oilfield operations in Nigeria, as well as accrued interest on the various notes payable. As of June 30, 2015 , the Company had a long-term note payable balance of $115.2 million owed to an affiliate, consisting of a $50.0 million Convertible Subordinated Note, $25.0 million in borrowings under the Promissory Note, and $40.2 million in borrowings under the 2015 Convertible Note, net of discount. As of December 31, 2014 , the Company had a long-term note payable balance of $61.2 million owed to an affiliate, consisting of a $50.0 million Convertible Subordinated Note and $11.2 million in borrowings under the Promissory Note. See Note 7 – Debt for further information relating to the notes payable transactions. Results from Operations The table below sets forth a summary of transactions included in the Company's results of operations that were incurred with affiliates during the three and six months ended June 30, 2015 and 2014 : Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Total operating expenses, CEHL $ 2,967 $ 3,503 $ 4,923 $ 4,246 Interest expense, CEHL $ 1,389 $ 679 $ 2,421 $ 856 An affiliate of the Company provides procurement and logistical support services to the Company’s Nigerian operations. In connection therewith, during the three months ended June 30, 2015 and 2014 , the Company incurred operating costs amounting to approximately $3.0 million and $3.5 million , respectively, and during the six months ended June 30, 2015 and 2014 , the Company incurred operating costs amounting to approximately $4.9 million and $4.2 million , respectively. During the three months ended June 30, 2015 and 2014 , the Company incurred interest expense totaling approximately $1.4 million and $0.7 million , respectively, in relation to related party note payables. During the six months ended June 30, 2015 and 2014 , the Company and incurred interest expense totaling approximately $2.4 million and $0.9 million , respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Commitments In February 2014, a long-term contract was signed for the floating, production, storage, and offloading vessel (“FPSO”) Armada Perdana, which is the vessel currently connected to the Company’s producing wells Oyo-8 and Oyo-7 in Nigeria. The contract provides for an initial term of seven years beginning January 1, 2014, with an automatic extension for an additional term of two years unless terminated by the Company with prior notice. The FPSO can process up to 40,000 barrels of liquid per day, with a storage capacity of approximately one million barrels. In June 2015, the operator of the FPSO agreed to a price reduction for the operating day rates incurred by the Company for the period from July 2014 to April 2015. This resulted in a $26.0 million reduction in previously accrued production costs. The remaining annual minimum commitment per the terms of the agreement is approximately $48.4 million through 2020. In December 2014, the Company entered into a short-term drilling contract for the semi-submersible drilling rig Sedco Express to complete the horizontal drilling portion of wells Oyo-7 and Oyo-8. The Company finished completion operations for well Oyo-8 in March 2015, and the drilling rig was released in June 2015 upon successful completion of the Oyo-7 well. The Company also has commitments related to four production sharing contracts with the Government of the Republic of Kenya (the “Kenya PSCs”), two Petroleum Exploration, Development & Production Licenses with the Republic of The Gambia (the “Gambia Licenses”), and one Petroleum Agreement with the Republic of Ghana. In all cases, the Company entered into these commitments through a subsidiary. To maintain compliance and ownership, the Company is required to fulfill certain minimum work obligations and to make certain payments as stated in each of the Kenya PSCs, the Gambia Licenses, and the Ghana Petroleum Agreement. 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 June 30, 2015 , and through the filing date of this report, the Company does not believe the ultimate resolution of such actions or potential actions of which the Company is currently aware will have a material effect on its consolidated financial position or results of operations. On June 28, 2015, the Company, CPL and an affiliate of CEHL, the Company's majority shareholder (collectively, the "Erin Parties") entered into a Settlement Agreement with Northern Offshore International Drilling Company Ltd. ("Northern"), pursuant to which the parties agreed (i) to settle all disputes and release all claims relating to the daywork drilling contract for Northern’s drillship Energy Searcher and (ii) to terminate the arbitration proceedings in London. Under the terms of the Settlement Agreement, neither the Erin Parties nor Northern paid any amounts to the other to settle the disputes, and each party agreed to bear its own legal fees and to share equally the arbitration costs. As a result of the settlement, the Company recorded a reduction in accounts payable and accrued liabilities of approximately $24.3 million . Contingency under the Allied Transfer Agreement As provided for under the Transfer Agreement with Allied, the Company is required to make the following additional payments upon the occurrence of certain future events: (i) $25.0 million cash or the equivalent in shares of the Company’s common stock within fifteen days following the approval of a development plan by the Nigerian Department of Petroleum Resources 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, as applicable.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock Options During the six months ended June 30, 2015 , the Company granted to certain employees options to purchase a total of 133,334 shares of common stock with a three -year vesting period. During the same period, options to purchase 19,510 shares of common stock were forfeited. During the six months ended June 30, 2015 , the Company issued 5,000 shares of common stock as a result of the exercise of stock options. Stock Warrants During the six months ended June 30, 2015 , in connection with the execution of the 2015 Convertible Note, the Company issued to Allied warrants to purchase approximately 2.4 million shares of the Company’s common stock at exercise prices ranging from $2.46 to $7.85 per share. The warrants are exercisable at any time starting from the date of issuance and have a five -year term. During the six months ended June 30, 2015 , 0.2 million previously issued warrants were forfeited. During the six months ended June 30, 2015 , the Company issued 0.3 million shares of common stock as a result of the exercise of stock warrants for cash proceeds totaling approximately $1.8 million . Restricted Stock Awards During the six months ended June 30, 2015 , the Company granted officers, directors, and employees a total of approximately 1.1 million shares of restricted common stock with vesting periods varying from immediate vesting to 36 months . In February 2015, the Company granted performance-based restricted stock awards (PBRSA) to certain officers totaling 0.4 million shares. Each grant will vest if the individuals remain employed three years from the date of grant and the Company achieves specific performance objectives at the end of the designated performance period. Up to 50% additional shares may be awarded if performance objectives are exceeded. None of the PBRSAs will vest if certain minimum performance goals are not met. The performance conditions are based on the Company’s total shareholder return over the performance period compared to an industry peer group of companies. Total estimated compensation expense is $0.4 million over three years.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Segment Information	Segment Information The Company’s current operations are based in Nigeria, Kenya, The Gambia, and Ghana. Management reviews and evaluates the operations of each geographic segment separately. Operations include exploration for and production of hydrocarbons where commercial reserves have been found and developed. Revenues and expenditures are recognized at the relevant geographical location. The Company evaluates each segment based on operating income (loss). Segment activity for the three and six months ended June 30, 2015 and 2014 , are as follows: ( In thousands ) Nigeria Kenya The Gambia Ghana Corporate and Other Total Three months ended June 30, 2015 Revenues $ — $ — $ — $ — $ — $ — Operating income (loss) $ 1,211 $ (555 ) $ (291 ) $ (655 ) $ (5,531 ) $ (5,821 ) 2014 Revenues $ 14,940 $ — $ — $ — $ — $ 14,940 Operating income (loss) $ (6,403 ) $ (83 ) $ (374 ) $ 10 $ (4,421 ) $ (11,271 ) Six months ended June 30, 2015 Revenues $ — $ — $ — $ — $ — $ — Operating loss $ (21,025 ) $ (6,106 ) $ (662 ) $ (949 ) $ (9,110 ) $ (37,852 ) 2014 Revenues $ 34,834 $ — $ — $ — $ — $ 34,834 Operating loss $ (14,309 ) $ (2,075 ) $ (642 ) $ (6 ) $ (8,922 ) $ (25,954 ) Total assets by segment as of June 30, 2015 , and December 31, 2014 , are as follows: ( In thousands ) Nigeria Kenya The Gambia Ghana Corporate and Other Total Total Assets As of June 30, 2015 $ 736,498 $ 1,422 $ 4,291 $ 999 $ 2,798 $ 746,008 As of December 31, 2014 $ 609,243 $ 8,527 $ 2,739 $ 1,413 $ 16,521 $ 638,443

Basis of Presentation and Rec18

Basis of Presentation and Recently Issued Accounting Standards (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly owned and majority-owned direct and indirect subsidiaries and have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). All significant intercompany transactions and balances have been eliminated in consolidation. The unaudited consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position and results of operations for the indicated periods. All such adjustments are of a normal recurring nature. This Form 10-Q should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014 , filed with the SEC on March 16, 2015.
Use of Estimates	The preparation of the Company's consolidated financial statements in conformity with U.S. GAAP requires management to make estimates based on certain assumptions. Estimates affect the reported amounts of assets and liabilities, disclosure of contingent liabilities, and the reported amounts of revenues and expenses attributable to the reporting periods. Accordingly, accounting estimates in conformity with U.S. GAAP require the exercise of judgment. These estimates and assumptions used in the preparation of the Company’s consolidated financial statements are based on information available as of the date of the consolidated financial statements, and while management believes that the estimates and assumptions are appropriate, actual results could differ from management's estimates. Estimates that may have a significant effect on the Company’s financial position and results from operations include share-based compensation assumptions, oil and natural gas reserve quantities, depletion and amortization relating to oil and natural gas properties, asset retirement obligation assumptions, and income taxes. The accounting estimates used in the preparation of the Company's consolidated financial statements may change as new events occur, more experience is acquired, additional information is obtained and our operating environment changes.
Interest Capitalization	The Company capitalizes interest costs for qualifying oil and gas properties. The capitalization period begins when expenditures are incurred on qualified properties, activities begin which are necessary to prepare the property for production, and interest costs have been incurred. The capitalization period continues as long as these events occur. Capitalized interest is added to the cost of the underlying assets and is depleted using the unit-of-production method in the same manner as the underlying assets.
Net Earnings (Loss) Per Common Share	Basic net earnings or loss per common share is computed by dividing net earnings or loss by the weighted average number of shares of common stock outstanding at the end of the reporting period. Diluted net earnings or loss per share is computed by dividing net earnings or loss by the fully diluted common stock equivalent, which consists of shares outstanding, augmented by potentially dilutive shares issuable upon the exercise of stock options, unvested restricted stock awards, warrants, and conversion of the Convertible Subordinated Note, calculated using the treasury stock method.
Fair Value of Financial Instruments	The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, inventory, deposits, accounts payable and accrued liabilities, and debts at floating interest rates, approximate their fair values at June 30, 2015 , and December 31, 2014 , respectively, principally due to the short-term nature, maturities or nature of interest rates of the above listed items.
Recently Issued Accounting Standards	In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU No. 2015-01 eliminates from US GAAP the concept of extraordinary items, and is effective for fiscal years beginning after December 15, 2015. The Company will adopt this standards update, as required, beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU No. 2015-02 is effective for interim and annual periods beginning after December 15, 2015, and the Company will adopt this standards update, as required, beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which is guidance for the reporting of debt issuance costs related to a recognized debt liability on an entity's balance sheet. Under the guidance, an entity must report debt issuance costs as a direct deduction from the carrying amount of that debt liability, consistent with the treatment for debt discounts. ASU No. 2015-03 is effective for interim and annual periods beginning after December 15, 2015; early adoption is permitted for financial statements that have not been previously issued. The Company will adopt this standards update beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in Cloud Computing Arrangement. ASU 2015-05 is new guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. ASU No. 2015-05 is effective for interim and annual periods beginning after December 15, 2015, and the Company will adopt this standards update, as required, beginning with the first quarter of 2016. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-08, Business Combinations (Topic 805): Pushdown Accounting - Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115. The amendments in ASU 2015-08 amend various SEC paragraphs included in the FASB’s Accounting Standards Codification to reflect the issuance of Staff Accounting Bulletin No. 115 (“SAB 115”). SAB 115 rescinds portions of the interpretive guidance included in the SEC’s Staff Accounting Bulletins series and brings existing guidance into conformity with ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting,” which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The Company has adopted the amendments in ASU 2015-08, effective May 8, 2015, as the amendments in the update are effective upon issuance. The adoption did not have an impact on the Company's consolidated financial statements.

Basis of Presentation and Rec19

Basis of Presentation and Recently Issued Accounting Standards (Tables)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share	The table below sets forth the number of shares issuable pursuant to stock options, unvested restricted stock awards, and shares issuable upon conversion of the Convertible Subordinated Note that were excluded from diluted shares outstanding during the three and six months ended June 30, 2015 and 2014 , as these securities are anti-dilutive because the Company was in a loss position for each period. Three Months Ended June 30, Six Months Ended June 30, ( In thousands ) 2015 2014 2015 2014 Stock options 1,476 1,189 1,119 1,216 Stock warrants 1,046 — 426 — Unvested restricted stock awards 1,348 1,076 1,324 977 Convertible note 11,632 11,632 11,632 8,355 15,502 13,897 14,501 10,548

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	6 Months Ended
	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	( In thousands ) June 30, December 31, 2014 Wells and production facilities $ 319,884 $ 33,690 Proved properties 386,196 386,196 Work in progress and other 98,994 261,346 Oilfield assets 805,074 681,232 Accumulated depletion (109,676 ) (95,403 ) Oilfield assets, net 695,398 585,829 Unevaluated leaseholds 10,440 9,440 Oil and gas properties, net 705,838 595,269 Other property and equipment 2,739 2,324 Accumulated depreciation (1,507 ) (1,264 ) Other property and equipment, net 1,232 1,060 Total property, plant and equipment, net $ 707,070 $ 596,329 All of the Company’s Oilfield assets are located in Nigeria. “Work-in-progress and other” includes ongoing costs for wells that are not yet completed, suspended exploratory well costs, as well as warehouse inventory items purchased as part of the redevelopment plan of the Oyo field .

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	6 Months Ended
	Jun. 30, 2015
Asset Retirement Obligation Disclosure [Abstract]
Summary of Changes in Asset Retirement Obligations	The following summarizes changes in the Company’s asset retirement obligations during the six months ended June 30, 2015 ( in thousands ): Balance at January 1 $ 26,533 Accretion expense 876 Additions 9,416 Loss on settlement of asset retirement obligations 3,454 Cost incurred to settle asset retirement obligations (16,441 ) Balance at June 30 $ 23,838
Schedule of Asset Retirement Obligations	The table below shows the current and long-term portions of the Company's asset retirement obligations as of the end of each period: ( In thousands ) June 30, December 31, 2014 Asset retirement obligations, current portion — 12,703 Asset retirement obligations, long-term portion 23,838 13,830 $ 23,838 $ 26,533

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Summary of Related Party Transactions and Balances	The table below sets forth a summary of transactions included in the Company's results of operations that were incurred with affiliates during the three and six months ended June 30, 2015 and 2014 : Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Total operating expenses, CEHL $ 2,967 $ 3,503 $ 4,923 $ 4,246 Interest expense, CEHL $ 1,389 $ 679 $ 2,421 $ 856 The following table sets forth the related party assets and liabilities as of June 30, 2015 and December 31, 2014: ( In thousands ) June 30, December 31, 2014 Accounts receivable, CEHL $ 624 $ 624 Accounts payable and accrued expenses, CEHL $ 26,523 $ 9,391 Notes payable - related party, CEHL $ 115,164 $ 61,185

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Schedule of Segment Activity	Segment activity for the three and six months ended June 30, 2015 and 2014 , are as follows: ( In thousands ) Nigeria Kenya The Gambia Ghana Corporate and Other Total Three months ended June 30, 2015 Revenues $ — $ — $ — $ — $ — $ — Operating income (loss) $ 1,211 $ (555 ) $ (291 ) $ (655 ) $ (5,531 ) $ (5,821 ) 2014 Revenues $ 14,940 $ — $ — $ — $ — $ 14,940 Operating income (loss) $ (6,403 ) $ (83 ) $ (374 ) $ 10 $ (4,421 ) $ (11,271 ) Six months ended June 30, 2015 Revenues $ — $ — $ — $ — $ — $ — Operating loss $ (21,025 ) $ (6,106 ) $ (662 ) $ (949 ) $ (9,110 ) $ (37,852 ) 2014 Revenues $ 34,834 $ — $ — $ — $ — $ 34,834 Operating loss $ (14,309 ) $ (2,075 ) $ (642 ) $ (6 ) $ (8,922 ) $ (25,954 ) Total assets by segment as of June 30, 2015 , and December 31, 2014 , are as follows: ( In thousands ) Nigeria Kenya The Gambia Ghana Corporate and Other Total Total Assets As of June 30, 2015 $ 736,498 $ 1,422 $ 4,291 $ 999 $ 2,798 $ 746,008 As of December 31, 2014 $ 609,243 $ 8,527 $ 2,739 $ 1,413 $ 16,521 $ 638,443

Company Description (Details)

Company Description (Details) - Jun. 30, 2015 km² in Thousands, a in Millions	akm²countrylicense
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of exploration and production licenses	9
Number of countries company operates in Africa | country	4
Area of land held for exploration activities	10

Company Description - Related P

Company Description - Related Party (Details)	6 Months Ended
	Jun. 30, 2015
Chief Executive Officer
Related Party Transaction [Line Items]
Director ownership interest of majority shareholder of the company	27.70%

Basis of Presentation and Rec26

Basis of Presentation and Recently Issued Accounting Standards - Narrative (Details)	Apr. 22, 2015	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock issued during period, shares, reverse stock split	0.1667
Interest costs capitalized		$ 2,200,000	$ 200,000
Allied
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contingent additional payment under transfer agreement		$ 50,000,000

Basis of Presentation and Rec27

Basis of Presentation and Recently Issued Accounting Standards - Antidilutive Shares (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	15,502	13,897	14,501	10,548
Stock options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	1,476	1,189	1,119	1,216
Warrant
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	1,046	0	426	0
Nonvested restricted stock awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	1,348	1,076	1,324	977
Convertible notes
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	11,632	11,632	11,632	8,355

Liquidity Matters - Production

Liquidity Matters - Production (Details) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Aug. 31, 2015bbl	Jul. 31, 2015USD ($)$ / bblbbl	Jun. 30, 2015USD ($)wellbbl	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)wellbbl	Jun. 30, 2014USD ($)
Average Sales Price and Production Costs Per Unit of Production [Line Items]
Crude oil sales, net of royalties | $			$ 0	$ 14,940	$ 0	$ 34,834
Crude Oil
Average Sales Price and Production Costs Per Unit of Production [Line Items]
Number of oil wells (in wells) | well			2		2
Production rates of oil per day (in bbl per day)			13,100		13,100
Production rates of oil per day, net of royalty (in bbl per day)			11,500		11,500
Crude Oil | Forecast
Average Sales Price and Production Costs Per Unit of Production [Line Items]
Barrels of oil sold (in bbl)	650,000
Barrels of oil sold, net of royalty (in bbl)	572,000
Crude Oil | Subsequent Event
Average Sales Price and Production Costs Per Unit of Production [Line Items]
Barrels of oil sold (in bbl)		312,000
Barrels of oil sold, net of royalty (in bbl)		274,000
Average sales price (in usd per bbl) | $ / bbl		55.78
Crude oil sales, net of royalties | $		$ 15,300

Liquidity Matters - Debt (Detai

Liquidity Matters - Debt (Details)	Aug. 14, 2015USD ($)	Mar. 12, 2015	Aug. 07, 2015USD ($)	Jul. 31, 2015USD ($)	Jun. 30, 2015USD ($)	May. 31, 2015USD ($)tranche	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Line of Credit Facility [Line Items]
Long-term notes payable - related party					$ 115,164,000			$ 61,185,000
Majority Shareholder
Line of Credit Facility [Line Items]
Commitment to additional funding, time period		1 year
Prepayment Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity						$ 50,000,000
Line of credit, number of tranches | tranche						2
Additional borrowing capacity, post-production						$ 100,000,000
Line of Credit | Promissory Note To Allied
Line of Credit Facility [Line Items]
Long-term notes payable - related party					25,000,000			11,200,000
Maximum borrowing capacity					25,000,000
Convertible Subordinated Debt
Line of Credit Facility [Line Items]
Long-term notes payable - related party					50,000,000			$ 50,000,000
Convertible Debt | 2015 Convertible Note
Line of Credit Facility [Line Items]
Long-term notes payable - related party					40,200,000
Maximum borrowing capacity					50,000,000		$ 50,000,000
Long term debt, gross					$ 44,000,000
Subsequent Event
Line of Credit Facility [Line Items]
Deferred revenue, additions	$ 26,500,000			$ 13,000,000
Subsequent Event | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Deferred revenue, basis spread on variable rate	6.50%			6.50%
Subsequent Event | Convertible Debt | 2015 Convertible Note
Line of Credit Facility [Line Items]
Proceeds from additional amount borrowed			$ 4,000,000

Property, Plant and Equipment -

Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Wells and production facilities	$ 319,884	$ 33,690
Proved properties	386,196	386,196
Work in progress and other	98,994	261,346
Oilfield assets	805,074	681,232
Accumulated depletion	(109,676)	(95,403)
Oilfield assets, net	695,398	585,829
Unevaluated leaseholds	10,440	9,440
Oil and gas properties, net	705,838	595,269
Other property and equipment	2,739	2,324
Accumulated depreciation	(1,507)	(1,264)
Other property and equipment, net	1,232	1,060
Total property, plant and equipment, net	$ 707,070	$ 596,329

Suspended Exploratory Well Co31

Suspended Exploratory Well Costs - Narrative (Details) $ in Millions	1 Months Ended
	Aug. 31, 2014reservoirmft	Nov. 30, 2013intervalft	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)
Costs Incurred Oil And Gas Property Acquisition Exploration And Development Activities [Line Items]
Number of hydrocarbons miocene formation intervals | interval		3
Number of feet encountered by hydrocarbons in three intervals, as interpreted by “LWD” data		65
Pliocene formation eastern fault block vertical depth	6,059
Number of pliocene formation eastern fault block new oil and gas reservoirs | reservoir	4
Hydrocarbons pliocene formation eastern fault block gross thickness	112
Miocene Exploratory Drilling Activities
Costs Incurred Oil And Gas Property Acquisition Exploration And Development Activities [Line Items]
Suspended exploratory well cost | $			$ 26.5	$ 26.5
Pliocene Exploratory Drilling Activity
Costs Incurred Oil And Gas Property Acquisition Exploration And Development Activities [Line Items]
Suspended exploratory well cost | $			$ 6.5	$ 6.5

Asset Retirement Obligations -

Asset Retirement Obligations - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Asset Retirement Obligation Disclosure [Abstract]
Loss on settlement of asset retirement obligations	$ 3,500	$ 3,454	$ 0	$ 3,454	$ 0

Asset Retirement Obligations 33

Asset Retirement Obligations - Summary of Change in Asset Retirement Obligations (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Asset retirement obligations beginning balance				$ 26,533
Accretion expense				876	$ 890
Additions				9,416
Loss on settlement of asset retirement obligations	$ 3,500	$ 3,454	$ 0	3,454	$ 0
Cost incurred to settle asset retirement obligations				(16,441)
Asset retirement obligations ending balance		$ 23,838		$ 23,838

Asset Retirement Obligations 34

Asset Retirement Obligations - Current and Long-term Balance (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations, current portion	$ 0	$ 12,703
Asset retirement obligations, long-term portion	23,838	13,830
Asset retirement obligation	$ 23,838	$ 26,533

Debt - Promissory Note (Details

Debt - Promissory Note (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term notes payable - related party	$ 115,164,000	$ 61,185,000
Line of Credit | Promissory Note To Allied
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 25,000,000
Promissory note extended maturity period	1 year
Long-term notes payable - related party	$ 25,000,000	$ 11,200,000
Interest payable	$ 600,000
Line of Credit | Promissory Note To Allied | 30-Day London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%

Debt - Convertible Subordinated

Debt - Convertible Subordinated Note (Details) - USD ($)	1 Months Ended
	Feb. 28, 2014	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term notes payable - related party		$ 115,164,000	$ 61,185,000
Convertible Subordinated Debt
Debt Instrument [Line Items]
Convertible subordinate note issued	$ 50,000,000
Debt term	5 years
Convertible debt conversion price	$ 4.2984
Minimum proceeds from capital market debt issuance for mandatory prepayment option	$ 250,000,000
Long-term notes payable - related party		50,000,000	$ 50,000,000
Interest payable		$ 3,700,000
Convertible Subordinated Debt | One Month London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	5.00%

Debt - Term Loan Facility (Deta

Debt - Term Loan Facility (Details) - USD ($)	1 Months Ended		6 Months Ended
	Mar. 31, 2015	Sep. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Line of Credit Facility [Line Items]
Foreign currency transaction gain			$ 1,991,000	$ 0
Long-term debt, current			18,445,000		$ 6,200,000
Term Loan Facility
Line of Credit Facility [Line Items]
Debt term		5 years
Maximum borrowing capacity		$ 100,000,000
Percent of maximum borrowing capacity available in USD		90.00%
Percent of maximum borrowing capacity available in Naira		10.00%
Line of credit facility, commitment fee amount		$ 2,100,000
Debt issuance, unamortized discount			1,900,000
Foreign currency transaction gain			1,600,000
Long-term debt			98,400,000
Long-term debt, non-current			79,900,000
Long-term debt, current			18,500,000
Interest payable			$ 2,500,000
Term Loan Facility | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread on variable rate	10.50%

Debt - Convertible Note (Detail

Debt - Convertible Note (Details) - USD ($) $ / shares in Units, shares in Millions	1 Months Ended	6 Months Ended
	Aug. 07, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Line of Credit Facility [Line Items]
Warrants issued with debt		$ 4,484,000
Long-term notes payable - related party		$ 115,164,000		$ 61,185,000
Number of shares called by warrants issued (in shares)		2.4
Convertible Debt | 2015 Convertible Note
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 50,000,000	$ 50,000,000
Long term debt, gross		44,000,000
Debt issuance, unamortized discount		3,800,000
Long-term notes payable - related party		40,200,000
Interest payable		$ 500,000
Convertible Debt | London Interbank Offered Rate (LIBOR) | 2015 Convertible Note
Line of Credit Facility [Line Items]
Basis spread on variable rate		5.00%
Subsequent Event
Line of Credit Facility [Line Items]
Number of shares called by warrants issued (in shares)	0.2
Subsequent Event | Convertible Debt | 2015 Convertible Note
Line of Credit Facility [Line Items]
Proceeds from convertible debt	$ 4,000,000
Minimum
Line of Credit Facility [Line Items]
Warrants exercise price (in dollars per share)		$ 2.46
Minimum | Subsequent Event
Line of Credit Facility [Line Items]
Warrants exercise price (in dollars per share)	$ 3.71
Maximum
Line of Credit Facility [Line Items]
Warrants exercise price (in dollars per share)		$ 7.85
Maximum | Subsequent Event
Line of Credit Facility [Line Items]
Warrants exercise price (in dollars per share)	$ 3.93
Additional Paid-in Capital
Line of Credit Facility [Line Items]
Warrants issued with debt		$ 4,484,000

Related Party Transactions - Su

Related Party Transactions - Summary of Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Related Party Transactions [Abstract]
Accounts receivable, CEHL	$ 624	$ 624
Accounts payable and accrued expenses, CEHL	26,523	9,391
Long-term notes payable - related party	$ 115,164	$ 61,185

Related Party Transactions - 40

Related Party Transactions - Summary of Results of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Related Party Transactions [Abstract]
Total operating expenses, CEHL	$ 2,967	$ 3,503	$ 4,923	$ 4,246
Interest expense, CEHL	$ 1,389	$ 679	$ 2,421	$ 856

Related Party Transactions - Na

Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Accounts payable and accrued expenses	$ 26,523		$ 26,523		$ 9,391
Long-term notes payable - related party	115,164		115,164		61,185
Total operating expenses, CEHL	2,967	$ 3,503	4,923	$ 4,246
Interest expense, CEHL	1,389	$ 679	2,421	$ 856
Convertible Subordinated Debt
Related Party Transaction [Line Items]
Long-term notes payable - related party	50,000		50,000		50,000
Line of Credit | Promissory Note To Allied
Related Party Transaction [Line Items]
Long-term notes payable - related party	25,000		25,000		$ 11,200
Convertible Debt | 2015 Convertible Note
Related Party Transaction [Line Items]
Long-term notes payable - related party	$ 40,200		$ 40,200

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) $ in Thousands	Jun. 28, 2015USD ($)	Jun. 30, 2015USD ($)	Feb. 28, 2014bbl	Jun. 30, 2015USD ($)contractlicense	Jun. 30, 2014USD ($)
Other Commitments [Line Items]
Decrease in accounts payable and accrued liabilities				$ (24,307)	$ 0
Kenya PSCs
Other Commitments [Line Items]
Production sharing contracts | contract				4
The Gambia
Other Commitments [Line Items]
Development and production licenses | license				2
Approval by Nigerian Department of Petroleum Resources
Other Commitments [Line Items]
Payment of cash or the equivalent in shares		$ 25,000		$ 25,000
Payment of cash or the equivalent of shares in period				15 days
Number of shares to be issued in period				30 days
Long-term Floating Production Storage and Offloading System Contract
Other Commitments [Line Items]
Initial contract term			7 years
Additional contract term			2 years
Barrels processing capacity | bbl			40,000
Maximum storage capacity for the FPSO | bbl			1,000,000
Reduction of accrued production costs		26,000
Minimum commitment, due thereafter		$ 48,400		$ 48,400
Settlement Agreement with Northern
Other Commitments [Line Items]
Decrease in accounts payable and accrued liabilities	$ (24,300)

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	6 Months Ended
	Feb. 28, 2015	Jun. 30, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted		133,334
Options forfeited		19,510
Common stock exercised on issuance of warrant		2,400,000
Weighted-average remaining contractual term		5 years
Proceeds from the exercise of warrants		$ 1.8
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Warrants exercise price (in dollars per share)		$ 2.46
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Warrants exercise price (in dollars per share)		$ 7.85
Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period		3 years
Shares of common stock issued during period		5,000
Warrants exercised in period		300,000
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of grants in period		1,100,000
Restricted Stock | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period		36 months
Warrant
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number forfeited in period		200,000
Senior Officer | Performance-Based Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period	3 years
Number of grants in period	400,000
Maximum percentage of additional shares awarded	50.00%
Estimated compensation expense		$ 0.4
Estimated compensation cost not yet recognized, period of recognition		3 years

Segment Information - Segment A

Segment Information - Segment Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Revenues	$ 0	$ 14,940	$ 0	$ 34,834
Operating Income (loss)	(5,821)	(11,271)	(37,852)	(25,954)
Operating Segments | Nigeria
Segment Reporting Information [Line Items]
Revenues	0	14,940	0	34,834
Operating Income (loss)	1,211	(6,403)	(21,025)	(14,309)
Operating Segments | Kenya
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Operating Income (loss)	(555)	(83)	(6,106)	(2,075)
Operating Segments | The Gambia
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Operating Income (loss)	(291)	(374)	(662)	(642)
Operating Segments | Ghana
Segment Reporting Information [Line Items]
Revenues			0	0
Operating Income (loss)	(655)	10	(949)	(6)
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Operating Income (loss)	$ (5,531)	$ (4,421)	$ (9,110)	$ (8,922)

Segment Information - Segment45

Segment Information - Segment Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Assets	$ 746,008	$ 638,443
Operating Segments | Nigeria
Segment Reporting Information [Line Items]
Assets	736,498	609,243
Operating Segments | Kenya
Segment Reporting Information [Line Items]
Assets	1,422	8,527
Operating Segments | The Gambia
Segment Reporting Information [Line Items]
Assets	4,291	2,739
Operating Segments | Ghana
Segment Reporting Information [Line Items]
Assets	999	1,413
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Assets	$ 2,798	$ 16,521