Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | egy | ||
Entity Registrant Name | VAALCO ENERGY INC /DE/ | ||
Entity Central Index Key | 894,627 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 54.2 | ||
Entity Common Stock, Shares Outstanding | 58,862,876 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 19,669 | $ 20,474 |
Restricted cash | 842 | 741 |
Receivables: | ||
Trade | 3,556 | 6,751 |
Accounts with partners, net of allowance of $0.5 million at December 31, 2017 and December 31, 2016 | 3,395 | 3,297 |
Other | 100 | 120 |
Crude oil inventory | 3,263 | 913 |
Prepayments and other | 2,791 | 4,040 |
Current assets - discontinued operations | 2,836 | 2,139 |
Total current assets | 36,452 | 38,475 |
Property and equipment - successful efforts method: | ||
Wells, platforms and other production facilities | 389,935 | 389,231 |
Undeveloped acreage | 10,000 | 10,000 |
Equipment and other | 9,432 | 9,779 |
Property, plant and equipment, gross, Total | 409,367 | 409,010 |
Accumulated depreciation, depletion, amortization and impairment | (386,146) | (380,991) |
Net property and equipment | 23,221 | 28,019 |
Other noncurrent assets: | ||
Restricted cash | 967 | 918 |
Value added tax and other receivables, net of allowance of $6.5 million and $4.7 million at December 31, 2017 and December 31, 2016, respectively | 6,925 | 5,110 |
Deferred tax asset | 1,260 | |
Abandonment funding | 10,808 | 8,510 |
Total assets | 79,633 | 81,032 |
Current liabilities: | ||
Accounts payable | 11,584 | 19,096 |
Accrued liabilities and other | 12,991 | 10,506 |
Current portion of long term debt | 6,666 | 7,500 |
Current liabilities - discontinued operations | 15,347 | 18,452 |
Total current liabilities | 46,588 | 55,554 |
Asset retirement obligations | 20,163 | 18,612 |
Other long term liabilities | 284 | 284 |
Long term debt, excluding current portion, net | 2,309 | 6,940 |
Total liabilities | 69,344 | 81,390 |
Commitments and contingencies (Note 6) | ||
Shareholders’ equity (deficit): | ||
Preferred stock, none issued, 500,000 shares authorized, $25 par value | ||
Common stock, $0.10 par value; 100,000,000 shares authorized, 66,443,971 and 66,109,565 shares issued, 58,862,876 and 58,544,470 shares outstanding | 6,644 | 6,611 |
Additional paid-in capital | 71,251 | 70,268 |
Less treasury stock, 7,581,095 and 7,555,095 shares at cost | (37,953) | (37,933) |
Accumulated deficit | (29,653) | (39,304) |
Total shareholders' equity (deficit) | 10,289 | (358) |
Total liabilities and shareholders' equity (deficit) | $ 79,633 | $ 81,032 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Consolidated Balance Sheets [Abstract] | ||
Allowance for accounts with partners | $ 0.5 | $ 0.5 |
Allowance for value added tax receivable | $ 6.5 | $ 4.7 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, par value | $ 25 | $ 25 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 66,443,971 | 66,109,565 |
Common stock, shares outstanding | 58,862,876 | 58,554,470 |
Treasury Stock Shares | 7,581,095 | 7,555,095 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Oil and natural gas sales | $ 77,025 | $ 59,784 | $ 80,445 |
Operating costs and expenses: | |||
Production expense | 39,697 | 37,586 | 40,096 |
Exploration expense | 7 | 5 | 10,409 |
Depreciation, depletion and amortization | 6,457 | 6,926 | 32,998 |
General and administrative expense | 10,377 | 9,561 | 12,294 |
Impairment of proved properties | 88 | 81,322 | |
Other operating expense | 8,853 | ||
General and administrative related to shareholder matters | (332) | 2,372 | |
Bad debt expense and other | 452 | 1,222 | 2,968 |
Total operating costs and expenses | 56,990 | 63,909 | 182,459 |
Other operating income (expense), net | (84) | (266) | (1,092) |
Operating income (loss) | 19,951 | (4,391) | (103,106) |
Other income (expense): | |||
Interest expense, net | (1,414) | (2,613) | (1,325) |
Other, net | 2,113 | (2,015) | (1,536) |
Total other income (expense) | 699 | (4,628) | (2,861) |
Income (loss) from continuing operations before income taxes | 20,650 | (9,019) | (105,967) |
Income tax expense | 10,378 | 9,248 | 14,587 |
Income (loss) from continuing operations | 10,272 | (18,267) | (120,554) |
Loss from discontinued operations | (621) | (8,283) | (38,102) |
Net income (loss) | $ 9,651 | $ (26,550) | $ (158,656) |
Basic net income (loss) per share: | |||
Income (loss) from continuing operations | $ 0.17 | $ (0.31) | $ (2.07) |
Loss from discontinued operations | (0.01) | (0.14) | (0.65) |
Net income (loss) per share | $ 0.16 | $ (0.45) | $ (2.72) |
Basic weighted average shares outstanding | 58,717 | 58,384 | 58,289 |
Diluted net income (loss) per share: | |||
Income (loss) from continuing operations | $ 0.17 | $ (0.31) | $ (2.07) |
Loss from discontinued operations | (0.01) | (0.14) | (0.65) |
Net income (loss) per share | $ 0.16 | $ (0.45) | $ (2.72) |
Diluted weighted average shares outstanding | 58,720 | 58,384 | 58,289 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Common Stock Issued [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings (Deficit) [Member] | Total |
Stockholders Equity, Beginning Balance at Dec. 31, 2014 | $ 6,519 | $ 64,351 | $ (37,299) | $ 146,892 | $ 180,463 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2014 | 65,195 | (7,394) | |||
Shares issued - stock-based compensation | $ 85 | 957 | 1,042 | ||
Shares issued - stock-based compensation, Shares | 846 | ||||
Stock-based compensation expense | 3,810 | 3,810 | |||
Treasury stock acquired | $ (583) | (583) | |||
Treasury stock acquired, Shares | (120) | ||||
Net income (loss) | (158,656) | (158,656) | |||
Stockholders Equity, Ending Balance (Cumulative-Effect Adjustment, Accounting Standards Update 2016-09 [Member]) at Dec. 31, 2015 | $ 6,562 | 70,150 | $ (37,882) | (12,754) | 26,076 |
Stockholders Equity, Ending Balance at Dec. 31, 2015 | $ 6,604 | 69,118 | $ (37,882) | (11,764) | 26,076 |
Shares, Outstanding, Ending Balance (Cumulative-Effect Adjustment, Accounting Standards Update 2016-09 [Member]) at Dec. 31, 2015 | 65,621 | (7,514) | |||
Shares, Outstanding, Ending Balance at Dec. 31, 2015 | 66,041 | (7,514) | |||
Cumulative effect adjustment for adoption of ASU 2016-09 | Cumulative-Effect Adjustment, Accounting Standards Update 2016-09 [Member] | $ (42) | 1,032 | (990) | ||
Cumulative effect adjustment for adoption of ASU 2016-09, Shares | Cumulative-Effect Adjustment, Accounting Standards Update 2016-09 [Member] | (420) | ||||
Shares issued - stock-based compensation | $ 49 | (49) | |||
Shares issued - stock-based compensation, Shares | 489 | ||||
Stock-based compensation expense | 167 | 167 | |||
Treasury stock acquired | $ (51) | (51) | |||
Treasury stock acquired, Shares | (41) | ||||
Net income (loss) | (26,550) | (26,550) | |||
Stockholders Equity, Ending Balance at Dec. 31, 2016 | $ 6,611 | 70,268 | $ (37,933) | (39,304) | (358) |
Shares, Outstanding, Ending Balance at Dec. 31, 2016 | 66,110 | (7,555) | |||
Shares issued - stock-based compensation | $ 33 | 6 | 39 | ||
Shares issued - stock-based compensation, Shares | 334 | ||||
Stock-based compensation expense | 977 | 977 | |||
Treasury stock acquired | $ (20) | (20) | |||
Treasury stock acquired, Shares | (26) | ||||
Net income (loss) | 9,651 | 9,651 | |||
Stockholders Equity, Ending Balance at Dec. 31, 2017 | $ 6,644 | $ 71,251 | $ (37,953) | $ (29,653) | $ 10,289 |
Shares, Outstanding, Ending Balance at Dec. 31, 2017 | 66,444 | (7,581) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 9,651 | $ (26,550) | $ (158,656) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Loss from discontinued operations | 621 | 8,283 | 38,102 |
Depreciation, depletion and amortization | 6,457 | 6,926 | 32,998 |
Other amortization | 369 | 1,424 | 304 |
Deferred taxes | (1,260) | 1,349 | |
Unrealized foreign exchange gain | (576) | (32) | (5,243) |
Dry hole costs and impairment of unproved leasehold | 10,244 | ||
Stock-based compensation | 1,098 | 192 | 3,810 |
Commodity derivatives loss | 1,032 | 1,711 | |
Cash settlements received on matured derivative contracts | 195 | ||
Bad debt provision | 452 | 1,222 | 2,699 |
Other operating (income) loss, net | 84 | 266 | 1,092 |
Operational expenses associated with equipment and other | 1,189 | ||
Impairment of proved properties | 88 | 81,322 | |
Change in operating assets and liabilities: | |||
Trade receivables | 3,195 | (1,050) | 14,174 |
Accounts with partners | (108) | 16,284 | (13,816) |
Other receivables | (43) | (18) | (609) |
Crude oil inventory | (2,350) | (192) | 1,266 |
Value added tax and other receivables | (3,025) | (1,937) | (2,286) |
Other long term assets | (2,298) | (2,827) | (1,566) |
Prepayments and other | 1,646 | 517 | 3,129 |
Accounts payable | (7,297) | (15,459) | 30,187 |
Accrued liabilities and other | 2,050 | (4,586) | 3,034 |
Net cash provided by (used in) continuing operating activities | 11,082 | (15,738) | 41,534 |
Net cash provided by (used in) discontinued operating activities | (4,423) | 12,286 | (2,659) |
Net cash provided by (used in) operating activities | 6,659 | (3,452) | 38,875 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
(Increase) decrease in restricted cash | (150) | 15,219 | 5,536 |
Acquisitions | 64 | (5,692) | |
Property and equipment expenditures | (1,813) | (8,705) | (68,067) |
Proceeds from the sale of oil and gas properties | 250 | 830 | 398 |
Premiums paid for put options | (2,939) | ||
Net cash used in continuing investing activities | (1,649) | (1,287) | (62,133) |
Net cash used in discontinued investing activities | (20,877) | ||
Net cash used in investing activities | (1,649) | (1,287) | (83,010) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from the issuances of common stock | 39 | 441 | |
Treasury shares | (20) | (51) | |
Debt issuance costs | (93) | ||
Debt repayment | (10,001) | ||
Borrowings | 4,167 | ||
Net cash provided by (used in) continuing financing activities | (5,815) | (144) | 441 |
Net cash provided by discontinued financing activities | |||
Net cash provided by (used in) financing activities | (5,815) | (144) | 441 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (805) | (4,883) | (43,694) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 20,474 | 25,357 | 69,051 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 19,669 | 20,474 | 25,357 |
Supplemental disclosure of cash flow information: | |||
Interest paid, net of capitalized interest | 997 | 1,326 | 1,337 |
Income taxes paid | 15,153 | 9,210 | 15,163 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Property and equipment additions incurred but not paid at period end | 455 | 2,282 | 15,132 |
Asset retirement obligations | $ 600 | $ 1,543 | $ 542 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
Organization [Abstract] | |
Organization | 1. ORGANIZATION VAALCO Energy, Inc. and its consolidated subsidiaries (“VAALCO” or the “Company”) is a Houston , Texas based independent energy company engaged in the acquisition, exploration, development and production of crude oil. As operator, we have production operations and conduct exploration activities in Gabon, West Africa. As non-operator, we have opportunities to participate in development and exploration activities in Equatorial Guinea, West Africa. As discussed further in Note 5 below, we have discontinued operations associated with our activities in Angola, West Africa. Our consolidated subsidiaries are VAALCO Gabon (Etame), Inc., VAALCO Production (Gabon), Inc., VAALCO Gabon S.A., VAALCO Angola (Kwanza), Inc., VAALCO UK (North Sea), Ltd., VAALCO International, Inc., VAALCO Energy (EG), Inc., VAALCO Energy Mauritius (EG) Limited and VAALCO Energy (USA), Inc. |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2017 | |
Liquidity [Abstract] | |
Liquidity | 2. LIQUIDITY Our revenues, cash flow, profitability, oil and natural gas reserve values and future rates of growth are substantially dependent upon prevailing prices for oil and natural gas. Our ability to borrow funds and to obtain additional capital on attractive terms is also substantially dependent on oil and natural gas prices. After a period of low commodity prices, oil and gas prices have stabilized at levels which are currently adequate to generate cash from operating activities for our continuing operations. In addition to the impact of oil and gas prices on our access to capital markets, the availability of capital resources on attractive terms may be limited due to the geographic location of our primary producing assets. W e may drill two or three development wells in 2018. Any drilling program we enter into would require approval of our partners and the government of Gabon. We expect any capital expenditures made during 2018 will be funded by cash on hand, cash flow from operations and cash raised from debt and/or equity issuances. We believe that at current prices, cash generated from continuing operations together with cash on hand at December 31, 2017 are adequate to support our operations and cash requirements during 2018 and through March 31, 2019 . |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation – The accompanying consolidated financial statements (“Financial Statements”) include the accounts of VAALCO and its wholly owned subsidiaries. Investments in unincorporated joint ventures and undivided interests in certain operating assets are consolidated on a pro rata basis. All intercompany transactions within the consolidated group have been eliminated in consolidation. Reclassifications – Certain reclassifications have been made to prior period amounts to conform to the current period presentation related to reclassifying material and supplies to prepayments and other. These reclassifications did not affect our consolidated financial results. Use of estimates – The preparation of the Financial Statements in conformity with generally accepted accounting principles in the United States (“GAAP”) requires estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the Financial Statements and the reported amounts of revenues and expenses during the respective reporting periods. Our Financial Statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. Estimates of oil and natural gas reserves used to estimate depletion expense and impairment charges require extensive judgments and are generally less precise than other estimates made in connection with financial disclosures. D ue to inherent uncertainties and the limited nature of data, estimates are imprecise and subject to change over time as additional information become available. Cash and cash equivalents – Cash and cash equivalent s include s deposits and funds invested in highly liquid instruments with original maturities of three months or less at the date of purchase. Restricted cash and abandonment fun ding – Restricted cash includes cash that is contractually restricted. Restricted cash is classified as a current or non-current asset based on its designated purpose and time duration. Current amounts in restricted cash at December 31, 2017 and 2016 each include an escrow amount representing bank guarantees for customs clearance in Gabon. Long term amounts at December 31, 2017 and 2016 include a charter payment escrow for the floating, production, storage and offloading vessel (“ FPSO ”) offshore Gabon as discussed in Note 9. We invest restricted and excess cash in certificates of deposit and commercial paper issued by banks with maturities typically not exceeding 90 days. Accounts with partners – Accounts with partners represent the excess of charges billed over cash calls paid by the partners for exploration, development and production expenditures mad e by us as an operator . B ad debts – Quarterly, we evaluate our accounts receivable bala nces to confirm collectability. When collectability is in doubt, we record an allowance against the accounts receivable and a corresponding income charge for bad debts which appears in the “Bad debt expense and other” line item of the consolidated statement s of operations. The majority of our accounts receivable balances are with our joint venture partners, purchasers of our production and the government of Gabon for reimbursable Value-Added Tax (“VAT”). Collection efforts, including remedies provided for in the contracts, are pursued to collect overdue amounts owed us. Portions of our costs in Gabon (including our VAT receivable) are denominated in the local currency of Gabon, the Central African CFA Franc (“XAF”). As of December 31, 2017 , the outstanding VAT receivable balance, excluding the allowance for bad debt, was approximately XAF 21.2 billion (XAF 7.1 billion, net to VAALCO). As of December 31, 2017 , the exchange rate was XAF 547.5 = $1.00. In June 2016, we entered into an agreement with the government of Gabon to receive payments related to the outstanding VAT receivable balance of XAF 16.3 billion (XAF 4.9 billion, net to VAALCO), representing the outstanding balance as of December 31, 2015, in thirty-six monthly installments of $0. 3 million net to VAALCO. We received one monthly installment payment in July 2016; however, no further payments have been received as of December 31, 2017 . We are in discussions with t he Gabonese government regarding the timing of the resumption of payments . In 2017 , 2016 and 2015 , we recorded allowances of $ 0.4 million, $ 0.7 million and $ 2.7 million, respectively, related to VAT which the government of Gabon has not reimbursed. The receivable amount, net of allowances, is reported as a non-current asset in the “ Value added tax and other receivable s” line item in the consolidated balance sheet s . Because both the VAT receivable and the related allowance are denominated in XAF , the exchange rate revaluation of these balances into U.S. dollars at the end of each reporting period also has an impact on profit/loss. Such foreign currency gains/(losses) are reported separately in the “ Other, net ” line item of the consolidated statement s of operations. The following table provides a n analysis of the change in the allowance : Year Ended December 31, 2017 2016 2015 (in thousands) Allowance for bad debt Balance at beginning of year $ (5,211) $ (4,221) $ (2,400) Charge to cost and expenses (452) (1,222) (2,699) Reclassification related to Sojitz acquisition (694) — — Foreign currency gain (loss) (676) 232 878 Balance at end of period $ (7,033) $ (5,211) $ (4,221) Crude oil inventory – Crude oil inventories are carried at the lower of cost or market and represent our share of crude oil produced and stored on the FPSO, but unsold at the end of the period. Materials and supplies – Materials and supplies, which are included in the “Prepayments and other” line item of the consolidated balance sheet, are primarily used for production related activities . These assets are valued at the lower of cost, determined by the weighted-average method, or market. Property and equipment – We use the successful efforts method of accounting for oil and natural gas producing activities. Capitalizati on – Leasehold acquisition costs are initially capitalized. Costs to drill exploratory wells are initially capitalized until a determination as to whether proved reserves have been discovered. If an exploratory well is deemed to not have found proved reserves, the associated costs are charged to exp loration expense at that time. Exploration costs, other than the cost of drilling exploratory wells, which can include geological and geophysical expenses applicable to undeveloped leasehold, leasehold expiration costs and delay rentals are charged to exploration expense as incurred. All development costs, including developmental dry hole costs, are capitalized. Impairment – We review our oil and natural gas producing properties for impairment on a field-by-field basis quarterly or whenever events or changes in circumstances indicate that the carrying amount of such properties may not be recoverable. If the sum of the expected undiscounted future cash flows from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment charge is recorded based on the fair value of the asset. We evaluate our undeveloped oil and natural gas leases for impairment periodically by considering numerous factors that could include nearby drilling results, seismic interpretations, market values of similar assets, existing contracts , lease expiration terms and future plans for exploration or development. When undeveloped oil and natural gas leases are deemed to be impaired, exploration expense is charged. Capitalized equipment inventory is reviewed regularly for obsolescence. We identified equipment inventory in Gabon that we do not expect to use an d charged $0.3 million, $0.3 million and $1.5 million to the “ Other operating loss, net ” line item of the consolidated statement of operations in the years ended December 31, 2017, 2016 and 2015 , respectively. Depreciation, depletion and amortization – Depletion of wells, platforms, and other production facilities are calculated on a field basis under the unit-of-production method based upon estimates of proved developed reserves. Depletion of developed leasehold acquisition costs are provided on a field basis under the unit-of-production method based upon estimates of proved reserves. Support equipment and leasehold improvements related to oil and natural gas producing activities, as well as property, plant and equipment unrelated to oil and natural gas producing activities, are recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, which are typically five years for office and miscellaneous equipment and five to seven years for leasehold improvements. Capitalized interest – Interest costs and commitment fees from external borrowings are capitalized on exploration and development projects that are not subject to current depletion . Interest and commitment fees are capitalized only for the period that activities are in progress to bring these projects to their intended use . Capitalized interest is added to the cost of the underlying asset and is depleted on the unit-of-production method in the same manner as the underlying asset s . We capitalized no interest costs for the years ended December 31, 2017 or 2016 . We capitalized $0.8 million in interest costs during the year ended December 31, 2015. Asset retirement obligations (“ARO”) – We have significant obligations to remove tangible equipment and restore land or seabed at the end of oil and natural gas production operations. Our removal and restoration obligations are primarily associated with plugging and abandoning wells, removing and disposing of all or a portion of offshore oil and natural gas platforms, and capping pipelines. Estimating the future restoration and removal costs is difficult and requires management to make estimates and judgments. Asset removal technologies and costs are constantly changing, as are regulatory, political, environmental, safety, and public relations considerations. A liability for ARO is recognized in the period in which the legal obligations are incurred if a reasonable estimate of fair value can be made. The ARO liability reflects the estimated present value of the amount of dismantlement, removal, site reclamation, and similar activities associated with our oil and natural gas properties. We use current retirement costs to estimate the expected cash outflows for retirement obligations. Inherent in the present value calculation are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit-adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental, and political environments. Initial recording of the ARO liability is offset by the corresponding capitalization of asset retirement cost recorded to oil and natural gas properties. To the extent these or other assumptions change after initial recognition of the liability, the fair value estimate is revised and the recognized liability adjusted, with a corresponding adjustment made to the related asset balance or income statement, as appropriate. Depreciation of capitalized asset retirement costs and accretion of asset retirement obligations are recorded over time. Depreciation is generally determined on a units-of-production basis for oil and natural gas production facilities, while accretion escalates over the lives of the assets to reach the expected settlement value. See Note 7 for disclosures regarding our asset retirement obligations. Revenue recognition – We recognize oil and natural gas revenues when production is sold to a purchaser at a fixed or determinable price, when delivery has occurred and title has transferred and collectability of the revenue is reasonably assured. We follow the sales method of accounting for crude oil and natural gas production imbalances. W e recognize revenues on the volumes sold based on the provisional sales prices. The volumes sold may be more or less than the volumes to which we are entitled based on our ownership interest in the property, and we would recognize a liability if our existing proved reserves were not adequate to cover an imbalance. As of December 31, 2017 and 2016 , we had no recorded oil and natural gas imbalances. Major maintenance activities – Costs for major maintenance are expensed in the period incurred and can include the costs of workovers of existing wells, contractor repair services, materials and supplies, equipment rentals and our labor costs. Stock based compensation - We measure the cost of employee services received in exchange for an award of equity instruments based on the fair value of the award on the date of the grant. Grant date fair value for options is estimated using the Black-Scholes option pricing model. The model employs various assumptions, based on management’s best estimates at the time of grant, which impact the calculation of fair value and ultimately, the amount of expense that is recognized over the life of the stock option award . For restricted stock, grant date fair value is determined using the market value of our common stock on the date of grant. The fair value of stock appreciation rights (“SARs”) is based on a Monte Carlo simulation at grant date and at each subsequent reporting date. The Monte Carlo simulation to value our SARs uses the following inputs: (i) the quoted market price of our common stock on the valuation date, (ii) the maximum stock price appreciation that an employee may receive, (iii) the expected term which is based on the contractual term, (iv) the expected volatility which is based on the historical volatility of the our stock for the length of time corresponding to the expected term of the SARs, (v) the expected dividend yield is based on our anticipated dividend payments, (vi) the risk-free interest rate which is based on the U.S. treasury yield curve in effect as of the reporting date for the length of time corresponding to the expected term of the SARs. Our stock-based compensation expense is recognized based on the awards as they vest, using the straight-line attribution method over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards. When awards are forfeited before they vest, previously recognized expense related to such forfeitures is reversed in the period in which the forfeiture occurs. Foreign currency transactions – The U .S. dollar is the functional currency of our foreign operating subsidiaries . Gains and losses on foreign currency transactions are included in income. Within the consolidated statements of operations line item “ Other income (expense)—Other, net, ” we recognized gains on foreign currency transactions of $ 0.5 million in 2017 , while we recognized losses on foreign currency transactions of $ 30 thousand and $0.8 million in 2016 and 2015 , respectively. Income taxes – We account for income taxes under an asset and liability approach that recognizes deferred income tax assets and liabilities for the estimated future tax consequences of differences between the Financial Statements and tax bases of assets and liabilities. Valuation allowances are provided against deferred tax assets that are not likely to be realized. We report interest related to income tax liabilities in the “ Interest expense ” line item on the consolidated statements of operations , and we report penalties in the “ Other, net ” line item on the consolidated statements of operations. Derivative Instruments and Hedging Activities – We use derivative financial instruments to achieve a more predictable cash flow from oil production by reducing our exposure to price fluctuations. Our derivative instruments at December 31 , 2016 consisted of fixed price oil puts, which give us the option to sell a contracted volume of oil at a contracted price on a contracted date in the future. All of our oil put contracts, which provided for settlement based upon reported the Brent price, had expired as of December 31, 2017. We record balances resulting from commodity risk management activities in the consolidated balance sheets as either assets or liabilities measured at fair value. Gains and losses from the change in fair value of derivative instruments and cash settlements on commodity derivatives are presented in the “Other, net” line item located within the “Other income (expense)” section of the consolidated statements of operations. We received cash settlements of $0.2 million during the year ended December 31, 2017 related to matured derivative contracts. Fair Value – Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs used in determining fair value are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable. The three input levels of the fair-value hierarchy are as follows: Level 1 – Inputs represent quoted prices in active markets for identical assets or liabilities (for example, exchange-traded commodity derivatives). Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (for example, quoted market prices for similar assets or liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated inputs). Level 3 – Inputs that are not observable from objective sources, such as internally developed assumptions used in pricing an asset or liability (for example, an estimate of future cash flows used in our internally developed present value of future cash flows model that underlies the fair-value measurement). Fair value of financial instruments – Our current assets and liabilities include financial instruments such as cash and cash equivalents, restricted cash, accounts receivable , derivative assets, accounts payable and guarantee . As discussed further in Note 10, derivative assets and liabilities are measured and reported at fair value each period with changes in fair value recognized in net income. With respect to our other financial instruments included in current assets and liabilities, t he carrying value of each financial instrument approximates fair value primarily due to the short-term maturity of these instruments. The carrying value of our long-term debt approximates fair value, as the interest rates are adjusted based on market rates currently in effect. General and administrative related to shareholder matters – Amounts related to shareholder matters for the years ended December 31, 2016 and 2015 relate to costs incurred related to shareholder litigation that was settled in 2016. For 2016, the amounts also include the offsetting insurance proceeds related to these matters. Other, net – “Other, net” in non-operating income and expenses includes gains and losses from derivatives and foreign currency transactions as discussed above. In addition, “Other, net” for the year ended December 31, 2017 includes $2.6 million related to the reversal of accruals for liabilities we are no longer obligated to pay. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2017 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | 4 . NEW ACCOUNTING STANDARDS Not Yet Adopted In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting (ASU 2017-09) to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under ASU 2017-09, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The amendments in ASU 2017-09 are effective for all entities for interim and annual reporting periods beginning after December 15, 2017. The amendments in this update are to be applied prospectively to an award modified on or after the adoption date . It has not been the Company’s practice to make modifications to share-based payment awards which would have been impacted by this standard, and while there can be no assurance that this will not occur in future periods, we do not expect adoption of this standard to have a material impact on our financial position, results of operations, cash flows and related disclosures. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01”). The purpose of the amendment is to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. For public entities, the amendments in ASU 2017-01 are effective for interim and annual reporting periods beginning after December 15, 2017. The amendments in this update are to be applied prospectively to acquisitions and disposals completed on or after the effective date, with no disclosures required at transition. The adoption of ASU 2017-01 is not expected to have a material impact on our financial position, results of operations, cash flows and related disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal y ears. Early adoption is permitted. We do not plan to early adopt this standard. Restricted cash will be included as a component of Cash, cash equivalents and restricted cash on our Consolidated Statement of Cash Flows for all periods presented. Due to the nature of this accounting standards update, this will have an impact on items reported in our statements of cash flows, but no impact is expected on our financial position, results of operations or related disclosures as a result of implementation. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”) related to how certain cash receipts and payments are presented and classified in the statement of cash flows. These cash flow issues include debt prepayment or extinguishment costs, settlement of zero-coupon debt, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years . Due to the nature of this accounting standards update, this may have an impact on items reported in our statements of cash flows, but no impact is expected on our financial position, results of operations or related disclosures as a result of implementation. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) related to the calculation of credit losses on financial instruments. All financial instruments not accounted for at fair value will be impacted, including our trade and partner receivables. Allowances are to be measured using a current expected credit loss model as of the reporting date which is based on historical experience, current conditions and reasonable and supportable forecasts. This is significantly different from the current model which increases the allowance when losses are probable. This change is effective for all public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years and will be applied with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the provisions of ASU 2016-13 and are assessing its potential impact on our financial position, results of operations, cash flows and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases ( Topic 842) (“ASU 2016-02”), which amends the accounting standards for leases. ASU 2016-02 retains a distinction between finance leases and operating leases. The primary change is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases on the balance sheet. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous guidance. Certain aspects of lease accounting have been simplified and additional qualitative and quantitative disclosures are required along with specific quantitative disclosures required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, wi th early application permitted. We are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period presente d in the financial statements. Assuming adoption January 1, 2019, we expect that leases in effect on January 1, 2017 and leases entered into after such date will be reflected in accordance with the new standard in the audited consolidated financial statements included in our Annual Report on Form 10-K for 2019, including comparative financial state ments presented in such report. We are in the early stages of our gap assessment, but we expect that leases with terms greater than 12 months which are currently treated as operating leases will be capitalized. We expect adoption of this standard to result in the recording of a right of use asset related to certain of our operating leases with a corresponding lease liability. This is expected to result in a material increase in total assets and liabilities as certain of our operating leases are significant as disclosed in Note 9. We do not expect there will be a material overall impact on results of operations or cash flows . We have developed an implementation plan related to this new standard. In connection with our implementation plan, w e will be reviewing our lease contracts and evaluating other contracts to identify embedded leases and determining the appropriate accounting treatment, and we will be evaluating the impact on processes and procedures as well as the internal controls related to the proper accounting for leases under the new standard. I n May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). The new standard will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of ASU 2014-09 requires companies to reevaluate when revenue is recorded on a transaction based upon newly defined criteria, either at a point in time or over time as goods or services are delivered. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and estimates, and changes in those estimates. In early 2016, the FASB issued additional guidance: ASU No. 2016-10, 2016-11 and 2016-12 (and together with ASU 2014-09, “Revenue Recognition ASU”) . These updates provide further guidance and clarification on specific items within the previously issued ASU 2014-09 . The Revenue Recognition ASU becomes effective for the Company as of January 1, 2018, with the option to early adopt the standard for annual periods beginning on or after December 15, 2016, and allows for both retrospective and modified-retrospective methods of adoption. The Company d id not early adopt the standard. We adopt ed the Revenue Recognition ASU via the modified retrospective transition method. We have complete d our gap assessment and have determined that we qualify for point in time recognition for essentially all of our sales. As such, the Company ’s adoption of this standard did not result in a change in the timing of revenue recognition compared to current practices , and therefore we do not expect adoption of this standard to have a material impact on our financial position, results of operations, debt covenants or business practices . As required by the new standard, we will have expanded disclosures related to the nature of our sales contracts and other matters related to revenues and the accounting for revenues. In addition, for the periods beginning January 1, 2018, we have implemented new internal controls and procedures associated with revenue recognition. Adopted In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (ASU 2015-11) to simplify the measurement of inventory. This simplification applies to all inventory other than that measured using last-in, first out (“LIFO”) or the retail inventory method and requires measurement of inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal and transportation. This guidance is to be applied prospectively effective for annual periods beginning after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. We adopted ASU 2015-11 in the first quarter of 2017, and the application of this guidance did not have a significant impact on our financial position, results of operations or cash flows. |
Acquisitions And Dispositions
Acquisitions And Dispositions | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitions And Dispositions [Abstract] | |
Acquisitions And Dispositions | 5. ACQUISITIONS AND DISPOSITIONS Sojitz Acquisition On November 2 2 , 2016, we closed on the purchase of an additional 2.98% working interest ( 3.23% p articipating interest) in the Etame Marin block located offshore the Republic of Gabon from Sojitz Etame Limited (“Sojitz”), which represents all interest owned by Sojitz in the concession. The acquisition ha d an effective date of August 1, 2016 and was funded with cash on hand . The following amounts represent the fair value of identifiable assets acquired and liabilities assumed in the Sojitz acquisition . November 22, 2016 (in thousands) Assets acquired: Wells, platforms and other production facilities $ 5,754 Equipment and other 684 Value added tax and other receivables 297 Abandonment funding 546 Accounts receivable - trade 888 Prepayments and other 220 Liabilities assumed: Asset retirement obligations (1,731) Accrued liabilities and other (747) Total identifiable net assets and consideration transferred $ 5,911 All assets and liabilities associated with Sojitz ’s interest in Et ame Marin b lock , including oil and gas properties, asset retirement obligations and working capital items were recorded at their fair value. In determining the fair value of the oil and gas properties, we prepared estimates of oil and natural gas reserves. We used estimated future prices to apply to the estimated reserve quantities acquired and the estimated future operating and development costs to arrive at the estimates of future net revenues. The valuations to derive the purchase price included the use of both proved and unproved categories of reserves, expectation for timing and amount of future development and operating costs, projections of future rates of production, expected recovery rates, and risk adjusted discount rates. Other significant estimates were used by management to calculate fair value of assets acquired and liabilities assumed. These assumptions represent Level 3 inputs, as further discussed in Note 3. The actual impact of the Sojitz Acquisition was an increase to “Total revenues” in the consolidated statement of operations of $0.2 million for the year ended December 31, 2016 and a minimal decrease to “Net loss” in the consolidated statement of operations for the year ended December 31, 2016. The unaudited pro forma results presented below have been prepared to give the effect of the acquisition discussed above on our results of operations for the years ended December 31, 2016 and 2015 as if it had been consummated on January 1, 2015. The unaudited pro forma results do not purport to represent what our actual results of operations would have been if the acquisition had been completed on such date or to project our results of operations for any future date or period. Year Ended December 31, 2016 2015 (in thousands) Pro forma (unaudited) Oil and natural gas sales $ 65,427 $ 88,940 Operating loss (4,295) (101,494) Loss from continuing operations (19,232) (120,546) Basic and diluted net loss per share: Loss from continuing operations $ (0.33) $ (2.07) Net loss $ (0.47) $ (2.72) Sale of Certain U.S. Properties During 2015, we completed the sale of our interests in various wells in Texas and Alabama for $0.4 million resulting in a minimal loss. In December 2016, we completed the sale of our interests in two wells in the Hefley field in North Texas for $0.8 million resulting in a minimal loss. In April 2017, we completed the sale of our interests in the East Poplar Dome field in Montana for $0.3 million, resulting in a gain of approximately $0.3 million reported on the line “Other operating income (expense), net” in our results of operations for the year ended December 31, 2017. Discontinued Operations - Angola In November 2006, we signed a production sharing contract for Block 5 offshore Angola (“PSA”). The four year primary term, referred to as the Initial Exploration Phase (“IEP”), with an optional three year extension, awarded us exploration rights to 1.4 million acres offshore central Angola, with a commitment to drill two exploratory wells. The IEP was extended on two occasions to run until December 1, 2014. In October 2014, we entered into the Subsequent Exploration Phase (“SEP”) which extended the exploration period to November 30, 2017 and required us and the co-participating interest owner, the Angolan national oil company, Sonangol P&P, to drill two additional exploration wells. Our working interest is 40% , and it carries Sonangol P&P, for 10% of the work program. On September 30, 2016, we notified Sonangol P&P that we were withdrawing from the joint operating agreement effective October 31, 2016. On November 30, 2016, we notified the national concessionaire, Sonangol E.P., that we were withdrawing from the PSA. Further to the decision to withdraw from Angola, we have taken actions to close our office in Angola and reduce future activities in Angola. As a result of this strategic shift, we classified all the related assets and liabilities as those of discontinued operations in the condensed consolidated balance sheets. The operating results of the Angola segment have been classified as discontinued operations for all periods presented in our condensed consolidated statements of operations. We segregated the cash flows attributable to the Angola segment from the cash flows from continuing operations for all periods presented in our condensed consolidated statements of cash flows. The following tables summarize selected financial information related to the Angola segment assets and liabilities as of December 31, 2017 and 2016 and its results of operations for the years ended December 31, 2017, 2016 and 2015. Summarized Results of Discontinued Operations Year Ended December 31, 2017 2016 2015 (in thousands) Operating costs and expenses: Exploration expense $ — $ 15,137 $ 36,044 Depreciation, depletion and amortization — 9 12 General and administrative expense 615 1,269 2,535 Bad debt recovery and other — (7,629) — Total operating costs, expenses and (recovery) 615 8,786 38,591 Other operating loss, net — (172) (1,856) Operating loss (615) (8,958) (40,447) Other income (expense): Interest income — 3,201 — Other, net (3) 552 2,345 Total other income (expense) (3) 3,753 2,345 Loss from discontinued operations before income taxes (618) (5,205) (38,102) Income tax expense 3 3,078 — Loss from discontinued operations $ (621) $ (8,283) $ (38,102) Assets and Liabilities Attributable to Discontinued Operations December 31, 2017 2016 (in thousands) ASSETS Accounts with partners $ 2,836 $ 2,139 Total current assets 2,836 2,139 Total assets $ 2,836 $ 2,139 LIABILITIES Current liabilities: Accounts payable $ 158 $ 77 Foreign taxes payable — 3,078 Accrued liabilities and other 15,189 15,297 Total current liabilities 15,347 18,452 Total liabilities $ 15,347 $ 18,452 Drilling Obligation Under the PSA, we and the other participating interest owner, Sonangol P&P, were obligated to perform exploration activities that included specified seismic activities and drilling a specified number of wells during each of the exploration phases identified in the PSA. The specified seismic activities were completed, and one well, the Kindele #1 well, was drilled in 2015. The PSA provides a stipulated payment of $10.0 million for each exploration well for which a drilling obligation remains under the terms of the PSA, of which our participating interest share would be $5.0 million per well. We have reflected an accrual of $15.0 million for a potential payment as of December 31, 2017 and 2016, respectively, which represents what we believe to be the maximum potential amount attributable to VAALCO Angola’s interest under the PSA. Other Matters – Partner Receivable The government-assigned working interest partner was delinquent in paying their share of the costs several times in 2009 and was removed from the production sharing contract in 2010 by a governmental decree. Efforts to collect from the defa ulted partner were abandoned in 2012. The available 40% working interest in Block 5, offshore Angola was assigned to Sonangol P&P e ffective on January 1, 2014. We invoiced Sonangol P&P for the unpaid delinquent amounts from the defaulted partner plus the amounts incu rred during the period prior to assignment of the working interest totaling $7.6 million plus interest in April 2014. Because this amoun t was not paid and Sonangol P&P was slow in paying monthly cash call invoices since their assignment, we placed Sonangol P&P in default in the first quarter of 2015. On March 14, 2016, we received a $19.0 million payment from Sonangol P&P for the full amount o wed us as of December 31, 2015, including the $7.6 million of pre-assignment costs and default interest of $3.2 million. The $7.6 million re covery is reflected in the “Bad debt expense and other” line item in our summarized results of discontinued operations. Default interest of $3.2 million is shown in the “Interest income” line item in our summarized results of discontinued operations. |
Oil And Natural Gas Properties
Oil And Natural Gas Properties And Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Oil And Natural Gas Properties And Equipment [Abstract] | |
Oil And Natural Gas Properties And Equipment | 6 . OIL AND NATURAL GAS PROPERTIES AND EQUIPMENT Proved Properties We review our oil and natural gas producing properties for impairment quarterly or whenever events or changes in circumstances indicate that the carrying amount of such properties may not be recoverable. When an oil and natural gas property’s undiscounted estimated future net cash flows are not sufficient to recover its carrying amount, an impairment charge is recorded to reduce the carrying amount of the asset to its fair value. The fair value of the asset is measured using a discounted cash flow model relying primarily on Level 3 inputs into the undiscounted future net cash flows. The undiscounted estimated future net cash flows used in our impairment evaluations at each quarter end are based upon the most recently prepared independent reserve engineers’ report adjusted to use forecasted prices from the forward strip price curves near each quarter end and adjusted as necessary for drilling and production results. Declining forecasted oil prices in 2015 caused us to perform impairment reviews of our proved properties in each quarter of 2015 for all fields in the Etame Marin block offshore Gabon and the Hefley field in North Texas. For the Etame Marin fields, we recorded an aggregate impairment charge of $78.1 million for 2015, reducing the aggregate carrying value of these fields to an aggregate fair value of $12.7 million. For the U.S. fields, we recorded an impairment charge of $3.2 million for 2015 reducing the aggregate carrying value of the field to $1.2 million. During 2016 , our negative price differential to Brent narrowed and we incurred no significant capital spending. We considered these and other factors and determined that there were no events or circumstances triggering an impairment evaluation for most of our fields, with the exception of the Avouma field in the Etame Marine block offshore Gabon. A t the Avouma field, the electrical submersible pumps (“ESPs”) in the South Tchibala 2-H well and the Avouma 2-H well failed, and these wells were temporarily shut in. After utilizing a hydraulic workover unit to replace the failed ESP systems, the South Tchibala 2-H and the Avouma 2-H wells resumed production in December 2016 and January 2017, respectively. The reserves used in our impairment evaluation of the Avouma field prior to the fourth quarter of 2016 were revised to reflect the impact of this lost production for several months and the impact of the forward price curve. The undiscounted future net cash flows for the Avouma field were in excess of the field’s carrying value at December 31, 2016 . As a result, no impairment was required for the Avouma field, or any of our other fields in Gabon, for 2016. There was no triggering event in the year ended December 31, 2017 that would cause us to believe the value of oil and natural gas producing properties should be impaired. Undeveloped Leasehold Costs We have a 31% working interest in an undeveloped portion of Block P offshore Equatorial Guinea that we acquired in 2012 for which we have $10.0 million capitalized in undeveloped acreage. It is currently unlikely that we will be making any near-term expenditures with respect to any development of this property. We and our partners will need to evaluate the timing and budgeting for exploration and development activities under a development and production area in the block, including the approval of a development and production plan to develop the Venus discovery on the block. Our production sharing contract covering this development and production area provides for a development and production period of 25 years from the date of approval of a development and production plan. In September 2011, we acquired an interest in the Middle Bakken and deeper formations in the East Poplar unit and the Northwest Poplar field in Roosevelt County, Montana. Exploratory drilling required by terms of the acquisition was unsuccessful. Due to the sustained low oil prices and forward oil prices, we charged the full $1.2 million undeveloped leasehold to exploration expense in 2015. Capitalized Exploratory Well Costs At December 31, 2014, the drilling costs of the N’Gongui No. 2 discovery that was drilled in the third and fourth quarters of 2012 in the Mutamba Iroru block onshore Gabon were capitalized pending the determination of proved reserves. Since th is discovery, we have performed quarterly evaluations of the capitalized exploratory well costs for the N’Gongui No. 2 discovery to determine whether sufficient progress had been made towards development, as well as the economic and operational viability of the project. The evaluation of economic viability takes into account a number of factors, including alternative development scenarios, estimated reserves, projected drilling and development costs and projected oil price data. As a result of lower projected oil price data at September 30, 2015, the results from the economic modeling indicated that the costs for this well did not continue to meet the criteria for suspended well costs. Accordingly, all capitalized costs related to the project, including capitalized exploratory well costs were charged to exploration expense in the third quarter of 2015. Capitalized Equipment Inventory Capitalized e quipment inventory in Gabon related to Mutamba was written off in 2015 because further drilling in the prospect is uneconomic, while equipment inventory related to the Etame Marin block was reduced in value due to obsolescence of some items. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligations [Abstract] | |
Asset Retirement Obligations | 7 . ASSET RETIREMENT OBLIGATIONS The following table summarizes the changes in our asset retirement obligations: (in thousands) 2017 2016 2015 Balance at January 1 $ 18,612 $ 16,166 $ 14,846 Accretion 951 903 778 Additions — — 1,085 Acquisitions and dispositions (103) 1,544 — Revisions 703 (1) (543) Balance at December 31 $ 20,163 $ 18,612 $ 16,166 Accretion is recorded in the line item “Depreciation, depletion and amortization” of our consolidated statements of operations. We are required under the Etame PSC to conduct regular abandonment studies to update the estimated costs to abandon the offshore wells, platforms and facilities on the Etame Marin block. The most recently completed abandonment study was in January 2016 . The final results of the abandonment study resulted in an increase in the costs necessary to fund future abandonment obligations. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt [Abstract] | |
Debt | 8 . DEBT In January 2014, we executed a loan agreement with the International Finance Corporation (“IFC credit facility”) for a $65.0 million revolving credit facility, which wa s secured by the assets of our Gabon subsidiary . O n June 29, 2016, we executed a supplemental a greement with the IFC which, among other things, amended and restated our existing loan agreement to convert the $20.0 million revolving portion of the credit facility, to a term loan with $15.0 million outstanding (“Amended Term Loan Agreement”) . The Amended Loan A greement is secured by the assets of our Gabon subsidiary, VAALCO Gabon S.A., and is guaranteed by VAALCO as the parent company . The A mended Term L oan A greement provides for quarterly principal and interest payments on the amounts currently outstanding through June 30, 2019, with interest accruing at a rate of LIBOR plus 5.75% . The Amended Term Loan Agreement also provided for an additional $5.0 million, which could be requested in a single draw, subject to the IFC’s approval , through March 15, 2017. On March 14, 2017, we borrowed $4.2 million under this provision of the Amended Term Loan Agreement. The additional borrowings will be repaid in five quarterly principal installments commencing June 30, 2017, together with interest which will accrue at LIBOR plus 5.75% . T he estimated fair value of the borrowings under the Amended Term Loan Agreement is $ 9.2 million when measured using a discounted cash flow model over the life of the current borrowings at forecasted interest rates. The inputs to this model are Level 3 in the fair value hierarchy. Covenants Under the Amended Term Loan Agreement, the ratio of quarter-end net debt to EBITDAX (as defined in the Amended Term Loan Agreement) must be no more than 3.0 to 1.0. Additionally, our debt service coverage ratio must be greater than 1.2 to 1.0 at each semi-annual review period. Certain of VAALCO’s subsidiaries are contractually prohibited from making payments, loans or transferring assets to VAALCO or other affiliated entities. Specifically, under the Amended Term Loan Agreement, VAALCO Gabon S.A. could be restricted from transferring assets or making dividends, if the positive and negative covenants are not in compliance with the Amended Term Loan Agreement. We were in compliance with all financial covenants as of December 31, 2017 . Interest Until June 29, 2016, u nder the terms of the original IFC credit facility, we paid commitment fees on t he undrawn portion of the total commitment. Commitment fees had been equal to 1.5% of the unused balance of the senior tranche of $50.0 million and 2.3% of the unused balance of the subordinated tranche of $15.0 million when a commitment was available for utilization. With the execution of the Amended Term Loan Agreement with the IFC in June 2016, beginning on June 29, 2016, and continuing through March 14, 2017, commitment fees wer e equal to 2.3% of the undrawn term l oan amount of $5.0 million. There are no further commitment fees owing after March 14, 2017. The table below shows the components of the “ Interest expense ” line item of our consolidated statement s of operations and the average effective interest rate, excluding commitment fees, on our borrowings: Year Ended December 31, 2017 2016 2015 (in thousands) Interest incurred, including commitment fees $ 997 $ 1,353 $ 1,496 Deferred finance cost amortization 369 319 304 Deferred finance cost write-off due to loan modification — 869 — Capitalized interest — — (771) Other interest not related to debt (a) 48 72 296 Interest expense, net $ 1,414 $ 2,613 $ 1,325 Average effective interest rate, excluding commitment fees 6.72% 5.52% 4.09% (a) The “Other interest not related to debt” line item i ncludes interest income . |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 9 . COMMITMENTS AND CONTINGENCIES Litigation Butcher settlement On October 3, 2016, the Court approved a Stipulation and Order of Dismissal entered into by the parties in a stockholder class action lawsuit against the Company and all of its directors alleging that a previously terminated shareholder rights agreement, no longer in effect, and certain provisions of the former Chief Executive Officer’s and former Chief Financial Officer’s employment agreements securing change-in-control severance benefits were invalid under Delaware law, case number C.A. No. 12277-VCL, filed on April 29, 2016, in the Court. After the Company and its directors moved to dismiss the lawsuit, the Plaintiff Daniel Butcher agreed to dismiss the lawsuit as moot, and the Company agreed to settle Plaintiff’s application for an award of attorneys’ fees, all of which were covered by our directors and officers insurance as a covered claim. McDonough litigation On December 7, 2016, a lawsuit was filed against the Company alleging that a former worker on the Company’s oil and gas platforms off the coast of Gabon was terminated because of his age in violation of the Age Discrimination in Employment Act and the Texas Commission on Human Rights Act. The Plaintiff sought damages for lost wages and benef its as well as attorneys’ fees. The case wa s pending in the U.S. District Court for the Southern District of Texas styled as McDonough v. VAALCO Energy, Inc. , No. 4:17-cv-00361 . In a February 2017 demand letter, the plaintiff made a demand for $361,000 to settle this claim. On June 22, 2017, the court entered a final order of dismissal, pursuant to the plaintiff’s motion for voluntary dismissal, and entered final judgment in favor of the Company. This matter is now resolved, and ha d no material effect on our financial condition, results of operations or liquidity. FPSO charter In connection with the charter of the FPSO, we, as operator of the Etame Marin block, guaranteed all of the lease payments under the charter through its contract term, which expires in September 2020. At our election, the charter may be extended for two one -year periods beyond September 2020. We obtained guarantees from each of our partners for their respective shares of the payments. Our net share of the charter payment is 31.1% , or approximately $9.7 million per year. Although we believe the need for performance under the charter guarantee is remote, we recorded a liability of $0.5 million and $0.7 million as of December 31, 2017 and December 31, 2016 , respectively, representing the guarantee’s estimated fair value. The guarantee of the offshore Gabon FPSO lease has $85.2 million in remaining gross minimum obligations as of December 31, 2017 . Estimated future minimum obligations through the end of the FPSO charter are as follows: Full Charter VAALCO (in thousands) Payment Net Year 2018 31,294 9,719 2019 31,294 9,719 2020 22,634 7,029 Total $ 85,222 $ 26,467 The charter payment includes a $0.93 per barrel charter fee for production up to 20,000 barrels of oil per day and a $2.50 per barrel charter fee for those barrels produced in excess of 20,000 barrels of oil per day. VAALCO’s net share of payments was $12.8 million, $11.2 million and $10.9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Other lease obligations In addition to the FPSO, we have operating lease obligations, as follows: Gross VAALCO (in thousands) Obligation Net Year 2018 6,101 2,176 2019 407 407 2020 340 340 2021 — — 2022 — — Thereafter — — Total $ 6,848 $ 2,923 We incurred rent expense of $2.4 million , $4.5 million and $4.3 million under operating leases for the years ended December 31, 2017 , 2016 and 2015 . Rig commitment In 2014, we entered into a long-term contract for the Constellation II drilling rig that was under a long-term contract for the multi-well development drilling campaign offshore Gabon. The campaign included the drilling of development wells and workovers of existing wells in the Etame Marin block. We began demobilization in January 2016 and released the drilling rig in February 2016, prior to the original July 2016 contract termination date, because we no longer intended to drill any wells in 2016 on our Etame Marin block offshore Gabon. In June 2016, we reached an agreement with the drilling contractor for us to pay $5.1 million net to VAALCO’s interest for unused rig days under the contract. We paid this amount, plus the demobilization charges, in seven equal monthly installments, which began in July 2016 and ended in January 2017. The related expense was reported in the “Other operating expense” line item in our con solidated statement of operations for the year ended December 31, 2016. Gabon domestic market obligation and other investment obligations Under the terms of the Etame PSC, effective in April 2016, the consortium is required to provide to the local government refinery a volume of crude at a 15% discount to market price (the “Gabon DMO”). Prior to April 2016, the discount was 25% . The volume required to be furnished is the amount of the Etame Marin block production divided by total Gabon production times the volume of oil refined by the refinery per year . In 201 7 , we paid $ 1.2 million for our share of the 201 6 obligation. In 2016, we paid $ 1.7 million for our share of the 2015 obligation. In 2015, we paid $ 2.3 million for our share of the 2014 obligation. We accrue an amount for the Gabon DMO based on management’s best estimate of the volume of crude required, because the refinery does not publish throughput figures. The amount accrued at December 31, 2017 , for our share of the 2017 obligation was $1.3 million. The amount accrued at December 31, 2016 , for our share of the 2016 obligation was $1.1 million. These costs are cost recoverable under the terms of the Etame PSC. Also, beginning in April 2016, the consortium is required to pay an additional 1% of revenues for provisions for diversified investments (“PID”) and for investments in hydrocarbons (“PIH”). The amount accrued at December 31, 2017 , for our share of the 2017 obligation was $1.4 million. The amount accrued at December 31, 2016 , for our share of the 2016 obligation was $0.4 million. 75% of PID and PIH costs are cost recoverable under the terms of the Etame PSC . Abandonment funding As part of securing the first of two five -year extensions to the Etame field production license to which we are entitled from the government of Gabon, we agreed to a cash funding arrangement for the eventual abandonment of all offshore wells, platforms and facilities on the Etame Marin block. The agreement was finalized in the first quarter of 2014 (effective 2011) providing for annual funding over a period of ten years at 12.14% of the total abandonment estimate for the first seven years , with annual payments for the remaining unfunded estimated costs spread over the last three years of the production license. The amounts paid will be reimbursed through the cost account and are non-refundable. The abandonment estimate used for this purpose is approximately $61.1 million ( $19.0 million net to VAALCO) on an undiscounted basis. Through December 31, 2017 , $34.8 million ( $10.8 million net to VAALCO) on an undiscounted basis has been funded. This cash funding is reflected under “Other noncurrent assets” in the “Abandonment funding” line item of our consolidated balance sheet. Future changes to the anticipated abandonment cost estimate could change our asset retirement obligation and the amount of future abandonment funding payments. Regulatory and Joint Interest A udits We are subject to periodic routine audits by various government agencies in Gabon, including audits of our petroleum cost account, customs, taxes and other operational matters, as well as audits by other members of the contractor group under our joint operating agreements. As of December 31, 2016, we had accrued $1.0 million net to VAALCO in the “Accrued liabilities and other” line item of our consolidated balance sheet for certain payroll taxes in Gabon which were not paid pertaining to labor provided to us over a number of years by a third-party contractor. While the payroll taxes were for individuals who were not our employees, we could be deemed liable for these expenses as the end user of the services provided. These liabilities were substantially resolved at the accrued amount in January 2017. In 2016, the government of Gabon conducted an audit of our operations in Gabon, covering the years 2013 through 2014. We received the findings from this audit and responded to the audit findings in January 2017. Since providing our response, there have been changes in the Gabonese officials responsible for the audit. We are currently working with the newly appointed representatives to resolve the audit findings. We do not anticipate that the ultimate outcome of this audit will have a material effect on our financial condition, results of operations or liquidity. In 2017, the government of Gabon conducted a tax audit of our Gabon subsidiary covering the years 2013 through 2016, an d in December 2017, we received a report on their findings. We have evaluated the results of this audit, and have made an accrual of $0.5 million, net to VAALCO, for the estimated additional taxes along with penalties in the “Accrued liabilities and other” line item of our consolidated balance sheet. At December 31, 2017 , we had accrued $1.3 million net to VAALCO in the “Accrued liabilities and other” line item of our c onsolidated balance sheet for potential fees which may result from a customs audit. Employment agreements Our Chief Executive Officer and Chief Financial Officer have employment agreements which provide for payments of annual salary, incentive compensation and certain other benefits if their employme nt is terminated without cause. |
Derivatives And Fair Value
Derivatives And Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Derivatives And Fair Value [Abstract] | |
Derivatives And Fair Value | 10. DERIVATIVES AND FAIR VALUE As of Dec ember 31, 2017, we had no derivative instruments outstanding. During the year ended December 31, 2017 and 2016, we had o il puts outstanding for anticipated sales volumes for the period from April 22, 2016 through December 31, 2017 . Our put contracts are subject to agreements similar to a master netting agreement under which we have the legal right to offset assets and liabilities. At December 31, 2016, the fair value of all of the put contracts were an asset of $1.2 million . The following table sets forth, by level within the fair value hierarchy and location on our consolidated balance sheets, the reported fair values of derivative instruments accounted for at fair value on a recurring basis: Carrying Fair Value Measurements Using Derivative Item Balance Sheet Line Value Level 1 Level 2 Level 3 (in thousands) Crude oil puts Prepayments and other Balance at December 31, 2017 $ — $ — $ — $ — Balance at December 31, 2016 $ 1,227 $ — $ 1,227 $ — The crude oil put contracts are measured at fair value using the Black’s option pricing model. Level 2 observable inputs used in the valuation model include market information as of the reporting date, such as prevailing Brent crude futures prices, Brent crude futures commodity price volatility and interest rates. The determination of the put contract fair value includes the impact of the counterparty’s non-performance risk. To mitigate counterparty risk, we enter into such derivative contracts with creditworthy financial institutions deemed by management as competent and competitive market makers. The following table sets forth the gain (loss) on derivative instruments on our consolidated statements of operations: Year Ended December 31, Derivative Item Statement of Operations Line 2017 2016 2015 (in thousands) Crude oil puts Other, net $ (1,032) $ (1,711) $ — |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) | 12 Months Ended |
Dec. 31, 2017 | |
Shareholders' Equity (Deficit) [Abstract] | |
Shareholders' Equity (Deficit) | 11. SHAREHOLDERS’ EQUITY (DEFICIT) Preferred stock – Authorized preferred stock consists of 500,000 shares with a par value of $25 per share. No shares of preferred stock were issued and outstanding as of December 31, 2017 or 2016 . Treasury stock – In the years ended December 31, 2017 , 2016 and 2015 , we withheld 26,000 , 40,926 and 120,455 shares, respectively, in connection with cashless stock option exercises and restricted stock vestings to satisfy tax withholding obligations related to stock option exercises. |
Stock-Based Compensation And Ot
Stock-Based Compensation And Other Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation And Other Benefit Plans [Abstract] | |
Stock-Based Compensation And Other Benefit Plans | 12 . STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS Our stock-based compensation has been granted under several stock incentive and long-term incentive plans. The plans authorize the Compensation Committee of our Board of Directors to issue various typ es of incentive compensation. Currently, we have issued stock options, restricted shares and SARs from the 2014 Long-Term Incentive Plan (“2014 Plan”). At December 31, 2017 , 2,404,442 shares were authorized for future grants under this plan. For each stock option granted, the number of authorized shares under the 2014 Plan will be reduced on a one -for-one basis. For each restricted share granted, the number of shares authorized under the 2014 Plan will be reduced by twice the number of restricted shares. We have no set policy for sourcing shares for option grants. Historically the shares issued under option grants have been new shares. We record non-cash compensation expense related to stock-based compensation as general and administrative expense. For the years ended December 31, 2017 , 2016 and 2015 , non-cash compensation expense was $1.1 million, $0.2 million and $3.8 million, respectively, related to the issuance of stock options and restricted stock. Because we do not pay significant United States federal income taxes, no amounts were recorded for tax benefits. Stock options Stock options have an exercise price that may not be less than the fair market value of the underlying shares on the date of grant. In general, stock options granted to participants will become exercisable over a period determined by the Compensation Committee of our Board of Directors, which in the past has been a five year life, with the options vesting over a service period of up to five years. In addition, stock options will become exercisable upon a change in control, unless provided otherwise by the Compensation Committee. There were $39 thousand in cash proceeds received from the exercise of stock options in 2017. For 2016 and 2015 there were no cash proceeds received from the exercise of stock options. During 2017 , o ptions for 1,162,930 shares were granted to employees; these options vest over a three -year period, vesting in three equal parts on the first, second and third anniver saries after the date of grant. Options for 465,950 shares also were granted in 2017 to our non-employee directors, which were fully vested upon their grant. We use the Black-Scholes model to calculate the grant date fair value of stock option awards. This fair value is then amortized to expense over the vesting period of the option. During 2017, 2016 and 2015, the weighted average assumptions shown below were used to calculate the weighted average grant date fair value of option grants. Because we have not paid cash dividends and do not anticipate paying cash dividends on the common stock in the foreseeable future, no expected dividend yield was input to the Black-Scholes model. Year Ended December 31, 2017 2016 2015 Weighted average exercise price - ($/share) $ 0.99 $ 1.14 $ 4.41 Expected life in years 3.2 3.0 2.5 Average expected volatility 73 % 71 % 61 % Risk-free interest rate 1.51 % 1.10 % 0.88 % Weighted average grant date fair value - ($/share) $ 0.49 $ 0.49 $ 1.65 Stock option activity for the year ended December 31, 2017 is provided below: Number of Shares Underlying Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding at January 1, 2017 2,644 $ 3.92 Granted 1,629 0.99 Exercised (37) 1.04 Forfeited/expired (1,639) 4.48 Outstanding at December 31, 2017 2,597 1.77 3.53 $ — Exercisable at December 31, 2017 1,506 2.30 3.28 $ — The intrinsic value of a stock option is the amount by which the current market value of the underlying stock exceeds the exercise price of the option. T he intrinsic value of stock options exercised in 2017 and 2015 was $0.0 million and $ 0.3 million , respectively. There were no exercises of stock options in 2016 . On February 28, 2018, the Company granted stock options for 494,941 shares with an exercise price of $0.86 per share. As of December 31, 2017 , unrecognized compensation cost related to outstanding stock options was $0.3 million which is expected to be recognized over a weighted average period of 1.5 years. Restricted shares Restricted stock granted to employees will vest over a period determined by the Compensation Committee which is generally a three - year period, vesting in three equal parts on the first three anniversaries following the date of the grant. Share grants to directors vest immediately and are not restricted. The following is a summary of activity in unvested restricted stock in 2017 . Restricted Stock Weighted Average Grant Price (in thousands) Non-vested shares outstanding at January 1, 2017 252 $ 1.31 Awards granted 426 0.98 Awards vested (297) 1.12 Awards forfeited (41) 1.00 Non-vested shares outstanding at December 31, 2017 340 1.10 The total vest-date fair value of restricted stock awards which vested during 2017 , 2016 and 2015 was $0.3 million, $0.6 million and $0.7 million, respectively. The weighted average grant date fair value per share of restricted stock awards was $0.98 , $1.11 and $3.34 for the years ended December 31, 2017 , 2016 and 2015 , respectively. On February 28, 2018, the Company issued 323,474 shares of service based restricted stock with a grant date fair value of $0.86 per share. The vesting of these shares is dependent upon the employee’s continued service with the Company. The shares will vest in three equal parts over three years. As of December 31, 2017 , unrecognized compensation cost related to restricted stock totaled $0.2 million and is expected to be recognized over a weighted average period of 1.6 years. Stock appreciation rights (“SARs”) SARs are granted under the VAALCO Energy, Inc. 2016 Stock Appreciation Rights Plan. A SAR is the right to receive a cash amount equal to the spread with respect to a share of common stock upon the exercise of the SAR. The spread is the difference between the SAR price per share specified in a SAR award on the date of grant (which may not be less than the fair market value of our common stock on the date of grant) and the fair market value per share on the date of exercise of the SAR. SARs granted to participants will become exercisable over a period determined by the Compensation Committee of our Board of Directors. In addition, SARs will become exercisable upon a change in control, unless provided otherwise by the Compensation Committee of our Board of Directors. The 815,355 SARs granted in the three months ended March 31, 2016 vest over a three -year period with a life of 5 years and have a maximum spread of 300% of the $1.04 SAR price per share specified in a SAR award on the date of grant. The compensation expense related to these awards through December 31, 2016 was $25 thousand. On February 28, 2018, 2,373,411 SARs were granted which vest over a three -year period with a life of 5 years and have a $0.86 SAR price per share specified in a SAR award on the date of grant . For the year ended December 31, 2017 , 1,049,528 SARs were granted, all having an exercise price of $1.20 per share. One-third of the SARs are to vest on or after the first anniversary of the grant date at such time when the market price per share of our common stock exceeds $1.30 ; one-third of the SARs are to vest on or after the second anniversary of the grant date at such time when the share price exceeds $1.50 ; and one-third of the SARs are to vest on or after the third anniversary of the grant date at such time when the share price exceeds $1.75 . SARs granted in 201 7 vest over a three year period with a life of 5 years; these SARs have a maximum spread equal to 300% of the $1.04 SAR price per share specified in a SAR award on the date of grant. The compensation expense related to these awards through December 31, 2017 was $0.1 million. SAR activity for the year ended December 31, 2017 is provided below: Number of Shares Underlying SARs Weighted Average Exercise Price Per Share Term Value (in thousands) (in years) (in thousands) Outstanding at January 1, 2017 180 $ 1.04 Granted 1,049 1.20 Exercised — — Forfeited/expired (153) 1.20 Outstanding at December 31, 2017 1,076 1.17 3.21 $ — Exercisable at December 31, 2017 60 1.04 3.21 $ — Other benefit plans We sponsor a 401(k) plan, with a company match feature, for our employees. Costs incurred in the years ended December 31, 2017 , 2016 and 2015 for administering the plan, including the company match feature, were approximately $0.2 million , $0.3 million and $0.4 million , respectively . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 13 . INCOME TAXES VAALCO and its domestic subsidiaries file a consolidated United States income tax return. Certain subsidiaries’ operations are also subject to foreign income taxes. On December 22, 2017, the United States government enacted the Tax Cuts and Jobs Act, commonly referred to as the Tax Reform Act. The Tax Reform Act includes significant changes to the U.S. income tax system including but not limited to: a federal corporate rate reduction from 35% to 21%; limitations on the deductibility of interest expense and executive compensation; repeal of the Alternative Minimum Tax (“AMT”); full expensing provisions related to business assets; creation of new minimum taxes such as the base erosion anti-abuse tax (“BEAT”) and Global Intangible Low Taxed Income (“GILTI”) tax; and the transition of U.S. international taxation from a worldwide tax system to a modified territorial tax system, which will result in a one time U.S. tax liability on those earnings which have not previously been repatriated to the U.S. (the “Transition Tax”). The provisional impacts of this legislation are outlined below: · Beginning January 1, 2018, the U.S. corporate income tax rate will be 21% . The Company is required to recognize the impacts of this rate change on its deferred tax assets and liabilities in the period enacted. However, as the Company has a full valuation allowance on its net deferred tax asset, any deferred tax recognized due to the change in rate will be offset with a change in the valuation allowance. Therefore, there was no overall impact to the Financial Statements in 2017 due to this change in rate. · The Tax Reform Act also repealed the corporate AMT for tax years beginning on or after January 1, 2018 and provides for existing alternative minimum tax credit carryovers to be refunded beginning in 2018. The Company has approximately $1.4 million in refundable credits, and it expects that a substantial portion will be refunded between 2018 and 2021. As such, most of the valuation allowance in place at the end of 2017 related to these credits has been released and a deferred tax asset of $1.3 million is reflected related to the expected benefit in future years. · The Transition Tax on unrepatriated foreign earnings is a tax on previously untaxed accumulated and current earnings and profits ("E&P") of the Company's foreign subsidiaries. To determine the amount of the Transition Tax, the Company must determine, among other factors, the amount of post-1986 E&P of its foreign subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. Based on the Company’s reasonable estimate of the Transition Tax, there is no provisional Transition Tax expense. The Company has not completed our accounting for the income tax effects of the transition tax and is continuing to evaluate this provision of the Tax Act. · The Tax Reform Act creates a new requirement that GILTI income earned by foreign subsidiaries must be included currently in the gross income of the U.S. shareholder. Due to the complexity of the new GILTI tax rules, the Company is continuing to evaluate this provision of the Tax Act. Under U.S. GAAP, the Company is permitted to make an accounting policy election to either treat taxes due on future inclusions in U.S. taxable income related to GILTI as a current period expense when incurred or to factor such amounts into the Company's measurement of its deferred taxes. The Company has not yet completed its analysis of the GILTI tax rules and is not yet able to reasonably estimate the effect of this provision of the Tax Act or make an accounting policy election for the accounting treatment whether to record deferred taxes attributable to the GILTI tax. The Company has not recorded any amounts related to potential GILTI tax in the Company’s Financial Statements. Other provisions in the legislation, such as interest deductibility and changes to executive compensation plans are not expected to have material implications to the Company’s Financial Statements. The income tax effects recorded in the Company’s Financial Statements as a result of the Tax Reform Act are provisional in accordance with the Securities and Exchange Commission’s Staff Accounting Bulletin number 118 “(SAB 118”) as the Company has not yet completed its evaluation of the impact of the new law. SAB 118 allows for a measurement period of up to one year after the enactment date of the Tax Reform Act to finalize the recording of the related tax impacts. The Company does not believe potential adjustments in future periods would materially impact the Company’s financial condition or results of operations. Additionally, the Tax Reform Act may further limit the Company’s ability to utilize foreign tax credits in the future. The Tax Reform Act introduces a new credit limitation basket for foreign branch income. Income from foreign branches would now be allocated to this specific tax credit limitation basket which cannot offset income in other baskets of foreign income. Under the Tax Reform Act, foreign taxes imposed on the foreign branch profits will not offset U.S. non-branch related foreign source income. Additional guidance is needed to determine how this will impact the Company and any future utilization of foreign tax credit carryforwards. In April 2017, the Company w as notified by the U.S. Internal Revenue Service (“IRS”) that they would be conducting an audit of its 2014 U.S. federal tax return. The audit was concluded in 2018, and there were no significant findings as a result . Provision for income taxes related to income (loss) from continuing operations consists of the following: Year Ended December 31, (in thousands) 2017 2016 2015 U.S. Federal: Current $ — $ — $ — Deferred (1,260) — 1,349 Foreign: Current 11,638 9,248 13,238 Deferred — — — Total $ 10,378 $ 9,248 $ 14,587 The primary differences between the financial statement and tax bases of assets and liabilities resulted in deferred tax assets associated with continuing operations at December 31, 2017 and 2016 are as follows: As of December 31, (in thousands) 2017 2016 Deferred tax assets: Basis difference in fixed assets $ 46,929 $ 89,016 Foreign tax credit carryforward 48,071 50,339 Alternative minimum tax credit carryover 1,349 1,349 U.S. federal net operating losses 22,490 30,230 Foreign net operating losses 26,371 25,543 Asset retirement obligations 4,234 6,514 Basis difference in receivables 1,331 1,824 Other 3,690 6,952 Total deferred tax assets 154,465 211,767 Valuation allowance (153,205) (211,767) Net deferred tax assets $ 1,260 $ — Foreign tax credits will expire between the years 2018 and 2024. The alternative minimum tax credits do not expire, and foreign net operating losses (“NOLs”) are not subject to expiry dates. The NOL for our United Kingdom subsidiary can be carried forward indefinitely, while the NOLs for our Gabon subsidiaries are included in the respective subsidiaries’ cost oil accounts, which will be offset against future taxable revenues . The U.S federal NOL will expire between 203 5 and 2037 . The ability to utilize NOLs and other tax attributes could be subject to a limitation if the Company were to undergo an ownership change as defined in Section 382 of the Tax Code. Management assesses the available positive and negative evidence to estimate if existing deferred tax assets will be utilized. We do not anticipate utilization of the foreign tax credits prior to expiration nor do we expect to generate sufficient taxable income to utilize other deferred tax assets. On the basis of this evaluation, valuation allowances of $153.2 million, $211.8 million and $210.7 million have been recorded as of December 31, 2017 , 2016 and 2015 , respectively. Valuation allowances reduce the deferred tax asset s to the amount that is more likely than not to be realized. As a result of the 2017 tax legislation enacted in the U.S., we expect to realize the benefit from our AMT credit carryforwards. The valuation allowance recorded related to AMT credits in previous periods was reversed in 2017 with the exception for a reserve for the possible sequestration of the credits . The $1.3 million reversal was recorded as a deferred income tax benefit during the fourth quarter of 2017. The Company recognizes the financial statement benefit of a tax position only after determining that they are more likely than not to sustain the position following an audit. The Company believes that its income tax positions and deductions will be sustained on audit and therefore no reserves for uncertain tax positions have been established. Accordingly, no interest or penalties have been accrued as of December 31, 2017 and 2016 . The Company’s policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. Income (loss) from continuing operations before income taxes is attributable as follows: Year Ended December 31, (in thousands) 2017 2016 2015 United States $ (9,453) $ (9,893) $ (15,177) Foreign 30,103 874 (90,790) $ 20,650 $ (9,019) $ (105,967) The reconciliation of income tax expense attributable to income (loss) from continuing operations to income tax on income (loss) from continuing operations at the U.S. statutory rate is as follows: Year Ended December 31, (in thousands) 2017 2016 2015 Tax provision computed at U.S. statutory rate $ 7,228 $ (3,156) $ (37,089) Foreign taxes not offset in U.S. by foreign tax credits 6,775 6,319 (394) Impact of Tax Reform Act 52,449 — — Effect of change in foreign statutory rates — 2,394 3,014 Permanent differences 309 4,505 1,803 Foreign tax credit adjustments 2,394 — — Increase/(decrease) in valuation allowance (58,777) (802) 47,253 Other — (12) — Total income tax expense $ 10,378 $ 9,248 $ 14,587 At December 31, 2017 , 2016 and 2015 , we were subject to foreign and U.S. 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: Jurisdiction Years United States 2008 -2017 Gabon 2013 -2017 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 14 . EARNINGS PER SHARE Basic earnings per share (“EPS”) is calculated using the average number of shares of common stock outstanding during each period. For the calculation of diluted shares, we assume that restricted stock is outstanding on the date of vesting, and we assume the issuance of shares from the exercise of stock options using the treasury stock method. A reconciliation from basic to diluted shares follows: Year Ended December 31, 2017 2016 2015 (in thousands) Basic weighted average shares outstanding 58,717 58,384 58,289 Effect of dilutive securities 3 — — Diluted weighted average shares outstanding 58,720 58,384 58,289 Stock options and unvested restricted stock grants excluded from dilutive calculation because they would be anti-dilutive 2,823 4,363 5,586 Because we recognized net losses for the years ended December 31, 2016 and 2015, there were no dilutive securities for these years. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Information [Abstract] | |
Segment Information | 15 . SEGMENT INFORMATION Our operations are based in Gabon, Equatorial Guinea and the U.S. Each of our three reportable operating segments is organized and managed based upon geographic location. Our Chief Executive Officer, who is the chief operating decision maker, and m anagement review and evaluate the operation of each geographic segment separately primarily based on Operating income (loss). The operations of all segments include exploration for and production of hydrocarbons where commercial reserves have been found and developed. Revenues are based on the loca tion of hydrocarbon production. Corporate and other is primarily corporate and operations support costs which are not allocated to the reportable operating segments. Segment activity of continuing operations for the years ended Dec ember 31, 2017 , 2016 and 2015 and long-lived assets and segment assets at December 31, 2017 and 2016 are as follow s: Year Ended December 31, 2017 (in thousands) Gabon Equatorial Guinea U.S. Corporate and Other Total Revenues-oil and natural gas sales $ 76,978 $ — $ 47 $ — $ 77,025 Depreciation, depletion and amortization 6,196 — 1 260 6,457 Bad debt expense and other 452 — — — 452 Operating income (loss) 28,488 (122) 352 (8,767) 19,951 Other, net 3,142 15 — (1,044) 2,113 Interest expense, net (1,414) — — — (1,414) Income tax expense (benefit) 11,638 — — (1,260) 10,378 Additions to property and equipment - accrual 1,576 — — 126 1,702 Year Ended December 31, 2016 (in thousands) Gabon Equatorial Guinea U.S. Corporate and Other Total Revenues-oil and natural gas sales $ 59,460 $ — $ 324 $ — $ 59,784 Depreciation, depletion and amortization 6,531 — 151 244 6,926 Impairment of proved properties — — 88 — 88 Bad debt expense and other 1,222 — — — 1,222 Other operating expense 8,853 — — — 8,853 Operating income (loss) 3,901 (384) (72) (7,836) (4,391) Other, net (22) (8) — (1,985) (2,015) Interest expense, net (2,614) — — 1 (2,613) Income tax expense 9,248 — — — 9,248 Additions to property and equipment - accrual (4,242) — — 181 (4,061) Year Ended December 31, 2015 (in thousands) Gabon Equatorial Guinea U.S. Corporate and Other Total Revenues-oil and natural gas sales $ 79,947 $ — $ 498 $ — $ 80,445 Depreciation, depletion and amortization 32,125 — 633 240 32,998 Impairment of proved properties 78,080 — 3,242 — 81,322 Bad debt expense and other 2,968 — — — 2,968 Operating income (loss) (87,243) (1,342) (4,366) (10,155) (103,106) Other, net (1,034) (33) — (469) (1,536) Interest expense, net (1,144) — — (181) (1,325) Income tax expense 13,238 — — 1,349 14,587 Additions to property and equipment - accrual 66,269 — — 150 66,419 (in thousands) Gabon Equatorial Guinea U.S. Corporate and Other Total Long-lived assets from continuing operations: As of December 31, 2017 $ 12,638 $ 10,000 $ — $ 583 $ 23,221 As of December 31, 2016 17,291 10,000 — 728 28,019 Information about our most significant customers For the period from the second quarter of 2014 and through April 2015, our crude oil from Gabon was sold under a contract with The Vitol Group at the spot market for a fixed per barrel fee. Beginning in May 2015, we sold our crude oil production from Gabon under a term contract with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. The contracted purchasers were TOTSA Total Oil Trading SA (“Total”) for May through July of 2015 and Glencore Energy UK Ltd. (“Glencore”) for August of 2015 through December of 201 7 . The contract with Glencore U.K. ends in January 2019. Sales of oil to Glencore were approximately 100 % of total revenues for 201 7 . |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. SUBSEQUENT EVENTS The last lifting in 2017 was not completed until January 1, 2018 due to unsafe weather conditions. Net revenues of $6.5 million associated with net volumes delivered to the buyer on January 1, 2018 of 95,525 barrels will be reported as revenue in 2018. The 7.1% increase in the January 2018 lifting price over the December 2017 lifting price positively impacted January’s revenue by $0.5 million. |
Selected Quarterly Financial In
Selected Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Information | 17. SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Our unaudited quarterly results for years ended December 31, 2017 and 2016 were prepared in accordance with GAAP , and reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results. These adjustments are of a normal recurring nature. Quarterly income per share is based on the weighted average number of shares outstanding during the quarter. Because of changes in the number of shares outstanding during the quarters due to the exercise of stock options and issuance of common stock, the sum of quarterly earnings per share may not equal earnings per share for the year. Three Months Ended March 31, June 30, September 30, December 31, (in thousands of dollars except per share information) 2017: Total revenues $ 21,266 $ 20,425 $ 18,178 $ 17,156 Total operating costs and expenses 13,055 15,068 14,454 14,413 Operating income (loss) 8,148 5,587 3,721 2,495 Income (loss) from continuing operations 4,435 2,451 (148) 3,534 Loss from discontinued operations (176) (168) (174) (103) Net income (loss) 4,259 2,283 (322) 3,431 Basis net income (loss) per share $ 0.07 $ 0.04 $ (0.01) $ 0.06 Diluted net income (loss) per share $ 0.07 $ 0.04 $ (0.01) $ 0.06 Three Months Ended March 31, June 30, September 30, December 31, (in thousands of dollars except per share information) 2016: Total revenues $ 10,976 $ 18,847 $ 14,635 $ 15,326 Total operating costs and expenses 24,509 14,232 10,919 14,249 Operating income (loss) (13,515) 4,615 3,690 819 Income (loss) from continuing operations (15,430) (498) 1,016 (3,355) Loss from discontinued operations 7,806 (20) (15,783) (286) Net income (loss) (7,624) (518) (14,767) (3,641) Basis net income (loss) per share $ (0.13) $ (0.01) $ (0.25) $ (0.06) Diluted net income (loss) per share $ (0.13) $ (0.01) $ (0.25) $ (0.06) |
Schedule I - Parent Company Fin
Schedule I - Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Schedule I - Parent Company Financial Statements [Abstract] | |
Schedule I - Parent Company Financial Statements | SCH EDULE I — PARENT COMPANY FINANCIAL STATEMENTS VAALCO ENERGY, INC. CONDENSED UNCONSOLIDATED BALANCE SHEETS (in thousands, except number of shares and par value amounts) December 31, 2017 2016 ASSETS Current assets: Cash and cash equivalents $ 576 $ 1,038 Receivables: Other 101 21 Prepayments and other 599 1,696 Total current assets 1,276 2,755 Equipment and other 1,304 1,225 1,304 1,225 Accumulated depreciation, depletion and amortization (721) (497) Net property and equipment 583 728 Other noncurrent assets: Restricted cash 50 — Deferred tax asset 1,260 — Investment in subsidiaries 8,091 — Total assets $ 11,260 $ 3,483 LIABILITIES AND EQUITY (DEFICIT) Current liabilities: Accounts payable $ 98 $ 310 Accrued liabilities and other 873 1,024 Total current liabilities 971 1,334 Losses in excess of investment in subsidiaries — 2,507 Total liabilities 971 3,841 Commitments and contingencies VAALCO Energy Inc. shareholders’ equity (deficit): Common stock, $0.10 par value; 100,000,000 shares authorized, 66,443,971 and 66,109,565 shares issued, 58,862,876 and 58,554,470 shares outstanding 6,644 6,611 Additional paid-in capital 71,251 70,268 Less treasury stock, 7,581,095 and 7,555,095 shares at cost (37,953) (37,933) Accumulated deficit (29,653) (39,304) Total equity (deficit) 10,289 (358) Total liabilities and equity (deficit) $ 11,260 $ 3,483 See accompanying notes to the condensed unconsolidated financial statements. VAALCO ENERGY, INC. STATEMENTS OF CONDENSED UNCONSOLIDATED OPERATIONS (in thousands) Year Ended December 31, 2017 2016 2015 Operating costs and expenses: Depreciation, depletion and amortization $ 260 $ 244 $ 240 General and administrative expense 8,489 7,935 7,550 Shareholder matters — (332) 2,372 Total operating costs and expenses 8,749 7,847 10,162 Other operating income (expense), net (12) 16 — Operating loss (8,761) (7,831) (10,162) Other income (expense): Interest expense, net — (2) (181) Other, net (1,044) (1,985) (469) Equity in subsidiary earnings (losses) 18,196 (16,732) (146,495) Total other income (expense) 17,152 (18,719) (147,145) Income before income taxes 8,391 (26,550) (157,307) Income tax (benefit) expense (1,260) — 1,349 Net income (loss) $ 9,651 $ (26,550) $ (158,656) See accompanying notes to the condensed unconsolidated financial statements. VAALCO ENERGY, INC. STATEMENTS OF CONDENSED UNCONSOLIDATED CASH FLOWS (in thousands of dollars) Year Ended December 31, 2017 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 9,651 $ (26,550) $ (158,656) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, depletion and amortization 260 244 240 Other operating loss, net 12 — — Deferred tax asset (1,260) — 1,349 Stock-based compensation 1,098 192 3,810 Equity in (earnings) losses from subsidiaries (18,196) 16,732 146,495 Commodity derivatives net (gain) loss 1,032 — — Cash settlements received on matured commodity derivative contracts 195 — — Change in operating assets and liabilities: Other receivables (80) (21) 293 Prepayments and other (130) (955) (236) Accounts payable (212) (658) 753 Accrued liabilities and other (272) (1,855) 517 Net cash used in operating activities (7,902) (12,871) (5,435) CASH FLOWS FROM INVESTING ACTIVITIES Investment in subsidiaries — — (7,044) Return of investment in subsidiaries 7,598 12,556 — Decrease in restricted cash (50) 1,582 8,418 Property and equipment expenditures (127) (178) (160) Net cash provided by investing activities 7,421 13,960 1,214 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the issuances of common stock 39 — 441 Treasury shares (20) (51) — Net cash provided by (used in) financing activities 19 (51) 441 NET CHANGE IN CASH AND CASH EQUIVALENTS (462) 1,038 (3,780) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,038 — 3,780 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 576 $ 1,038 $ — See accompanying notes to the condensed unconsolidated financial statements . Notes to Condensed Unconsolidated Financial Statements Note 1 - The condensed financial statements of VAALCO Energy, Inc. (the “Parent Company”) have been prepared pursuant to Rule 5-04 of Regulation S-X of the Securities Exchange Act of 1934, as amended, because certain of VAALCO’s subsidiaries are contractually prohibited from making payments, loans or transferring assets to the Parent Company or other affiliated entities. Specifically, under the terms of our IFC Term Loan, VAALCO Gabon S.A. could be restricted from transferring assets or making dividends, if the positive and negative covenants are not in compliance with the Term Loan. The restricted net assets associated with each of these entities exceed 25% of the consolidated net assets of VAALCO Energy, Inc. as of December 31, 2017 and 2016 . For purposes of these financial statements, the Parent Company’s investments in wholly owned subsidiaries are accounted for under the equity method. Under this method, the accounts of the subsidiaries are not consolidated. The investments in and advances to subsidiaries are recorded in the unconsolidated balance sheets. The Parent Company’s share of income (loss) from operations of the subsidiaries is reported as equity in subsidiary earnings, net of tax, in its unconsolidated statements of operations. These statements should be read in conjunction with the consolidated financial statements and notes thereto, included in Part II, Item 8 of in this Annual Report on Form 10-K. The Parent Company and certain of its subsidiaries file a consolidated tax return for U.S. federal income taxes. The amount of income tax expense for the Parent Company financial statements represents the amount attributable to the U.S. federal and state tax jurisdictions. Income tax expense for foreign jurisdictions has been included in the applicable subsidiary’s results. |
Summary Of Significant Accoun25
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of consolidation – The accompanying consolidated financial statements (“Financial Statements”) include the accounts of VAALCO and its wholly owned subsidiaries. Investments in unincorporated joint ventures and undivided interests in certain operating assets are consolidated on a pro rata basis. All intercompany transactions within the consolidated group have been eliminated in consolidation. |
Reclassifications | Reclassifications – Certain reclassifications have been made to prior period amounts to conform to the current period presentation related to reclassifying material and supplies to prepayments and other. These reclassifications did not affect our consolidated financial results. |
Use of Estimates | Use of estimates – The preparation of the Financial Statements in conformity with generally accepted accounting principles in the United States (“GAAP”) requires estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the Financial Statements and the reported amounts of revenues and expenses during the respective reporting periods. Our Financial Statements include amounts that are based on management’s best estimates and judgments. Actual results could differ from those estimates. Estimates of oil and natural gas reserves used to estimate depletion expense and impairment charges require extensive judgments and are generally less precise than other estimates made in connection with financial disclosures. D ue to inherent uncertainties and the limited nature of data, estimates are imprecise and subject to change over time as additional information become available. |
Cash and Cash Equivalents | Cash and cash equivalents – Cash and cash equivalent s include s deposits and funds invested in highly liquid instruments with original maturities of three months or less at the date of purchase. |
Restricted Cash and Abandonment funding | Restricted cash and abandonment fun ding – Restricted cash includes cash that is contractually restricted. Restricted cash is classified as a current or non-current asset based on its designated purpose and time duration. Current amounts in restricted cash at December 31, 2017 and 2016 each include an escrow amount representing bank guarantees for customs clearance in Gabon. Long term amounts at December 31, 2017 and 2016 include a charter payment escrow for the floating, production, storage and offloading vessel (“ FPSO ”) offshore Gabon as discussed in Note 9. We invest restricted and excess cash in certificates of deposit and commercial paper issued by banks with maturities typically not exceeding 90 days. |
Accounts with Partners | Accounts with partners – Accounts with partners represent the excess of charges billed over cash calls paid by the partners for exploration, development and production expenditures mad e by us as an operator . |
Bad Debts | B ad debts – Quarterly, we evaluate our accounts receivable bala nces to confirm collectability. When collectability is in doubt, we record an allowance against the accounts receivable and a corresponding income charge for bad debts which appears in the “Bad debt expense and other” line item of the consolidated statement s of operations. The majority of our accounts receivable balances are with our joint venture partners, purchasers of our production and the government of Gabon for reimbursable Value-Added Tax (“VAT”). Collection efforts, including remedies provided for in the contracts, are pursued to collect overdue amounts owed us. Portions of our costs in Gabon (including our VAT receivable) are denominated in the local currency of Gabon, the Central African CFA Franc (“XAF”). As of December 31, 2017 , the outstanding VAT receivable balance, excluding the allowance for bad debt, was approximately XAF 21.2 billion (XAF 7.1 billion, net to VAALCO). As of December 31, 2017 , the exchange rate was XAF 547.5 = $1.00. In June 2016, we entered into an agreement with the government of Gabon to receive payments related to the outstanding VAT receivable balance of XAF 16.3 billion (XAF 4.9 billion, net to VAALCO), representing the outstanding balance as of December 31, 2015, in thirty-six monthly installments of $0. 3 million net to VAALCO. We received one monthly installment payment in July 2016; however, no further payments have been received as of December 31, 2017 . We are in discussions with t he Gabonese government regarding the timing of the resumption of payments . In 2017 , 2016 and 2015 , we recorded allowances of $ 0.4 million, $ 0.7 million and $ 2.7 million, respectively, related to VAT which the government of Gabon has not reimbursed. The receivable amount, net of allowances, is reported as a non-current asset in the “ Value added tax and other receivable s” line item in the consolidated balance sheet s . Because both the VAT receivable and the related allowance are denominated in XAF , the exchange rate revaluation of these balances into U.S. dollars at the end of each reporting period also has an impact on profit/loss. Such foreign currency gains/(losses) are reported separately in the “ Other, net ” line item of the consolidated statement s of operations. The following table provides a n analysis of the change in the allowance : Year Ended December 31, 2017 2016 2015 (in thousands) Allowance for bad debt Balance at beginning of year $ (5,211) $ (4,221) $ (2,400) Charge to cost and expenses (452) (1,222) (2,699) Reclassification related to Sojitz acquisition (694) — — Foreign currency gain (loss) (676) 232 878 Balance at end of period $ (7,033) $ (5,211) $ (4,221) |
Crude Oil Inventory | Crude oil inventory – Crude oil inventories are carried at the lower of cost or market and represent our share of crude oil produced and stored on the FPSO, but unsold at the end of the period. |
Materials and Supplies | Materials and supplies – Materials and supplies, which are included in the “Prepayments and other” line item of the consolidated balance sheet, are primarily used for production related activities . These assets are valued at the lower of cost, determined by the weighted-average method, or market. |
Property and Equipment | Property and equipment – We use the successful efforts method of accounting for oil and natural gas producing activities. Capitalizati on – Leasehold acquisition costs are initially capitalized. Costs to drill exploratory wells are initially capitalized until a determination as to whether proved reserves have been discovered. If an exploratory well is deemed to not have found proved reserves, the associated costs are charged to exp loration expense at that time. Exploration costs, other than the cost of drilling exploratory wells, which can include geological and geophysical expenses applicable to undeveloped leasehold, leasehold expiration costs and delay rentals are charged to exploration expense as incurred. All development costs, including developmental dry hole costs, are capitalized. Impairment – We review our oil and natural gas producing properties for impairment on a field-by-field basis quarterly or whenever events or changes in circumstances indicate that the carrying amount of such properties may not be recoverable. If the sum of the expected undiscounted future cash flows from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment charge is recorded based on the fair value of the asset. We evaluate our undeveloped oil and natural gas leases for impairment periodically by considering numerous factors that could include nearby drilling results, seismic interpretations, market values of similar assets, existing contracts , lease expiration terms and future plans for exploration or development. When undeveloped oil and natural gas leases are deemed to be impaired, exploration expense is charged. Capitalized equipment inventory is reviewed regularly for obsolescence. We identified equipment inventory in Gabon that we do not expect to use an d charged $0.3 million, $0.3 million and $1.5 million to the “ Other operating loss, net ” line item of the consolidated statement of operations in the years ended December 31, 2017, 2016 and 2015 , respectively. Depreciation, depletion and amortization – Depletion of wells, platforms, and other production facilities are calculated on a field basis under the unit-of-production method based upon estimates of proved developed reserves. Depletion of developed leasehold acquisition costs are provided on a field basis under the unit-of-production method based upon estimates of proved reserves. Support equipment and leasehold improvements related to oil and natural gas producing activities, as well as property, plant and equipment unrelated to oil and natural gas producing activities, are recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, which are typically five years for office and miscellaneous equipment and five to seven years for leasehold improvements. |
Capitalized Interest | Capitalized interest – Interest costs and commitment fees from external borrowings are capitalized on exploration and development projects that are not subject to current depletion . Interest and commitment fees are capitalized only for the period that activities are in progress to bring these projects to their intended use . Capitalized interest is added to the cost of the underlying asset and is depleted on the unit-of-production method in the same manner as the underlying asset s . We capitalized no interest costs for the years ended December 31, 2017 or 2016 . We capitalized $0.8 million in interest costs during the year ended December 31, 2015. |
Asset Retirement Obligations ("ARO") | Asset retirement obligations (“ARO”) – We have significant obligations to remove tangible equipment and restore land or seabed at the end of oil and natural gas production operations. Our removal and restoration obligations are primarily associated with plugging and abandoning wells, removing and disposing of all or a portion of offshore oil and natural gas platforms, and capping pipelines. Estimating the future restoration and removal costs is difficult and requires management to make estimates and judgments. Asset removal technologies and costs are constantly changing, as are regulatory, political, environmental, safety, and public relations considerations. A liability for ARO is recognized in the period in which the legal obligations are incurred if a reasonable estimate of fair value can be made. The ARO liability reflects the estimated present value of the amount of dismantlement, removal, site reclamation, and similar activities associated with our oil and natural gas properties. We use current retirement costs to estimate the expected cash outflows for retirement obligations. Inherent in the present value calculation are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit-adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental, and political environments. Initial recording of the ARO liability is offset by the corresponding capitalization of asset retirement cost recorded to oil and natural gas properties. To the extent these or other assumptions change after initial recognition of the liability, the fair value estimate is revised and the recognized liability adjusted, with a corresponding adjustment made to the related asset balance or income statement, as appropriate. Depreciation of capitalized asset retirement costs and accretion of asset retirement obligations are recorded over time. Depreciation is generally determined on a units-of-production basis for oil and natural gas production facilities, while accretion escalates over the lives of the assets to reach the expected settlement value. See Note 7 for disclosures regarding our asset retirement obligations. |
Revenue Recognition | Revenue recognition – We recognize oil and natural gas revenues when production is sold to a purchaser at a fixed or determinable price, when delivery has occurred and title has transferred and collectability of the revenue is reasonably assured. We follow the sales method of accounting for crude oil and natural gas production imbalances. W e recognize revenues on the volumes sold based on the provisional sales prices. The volumes sold may be more or less than the volumes to which we are entitled based on our ownership interest in the property, and we would recognize a liability if our existing proved reserves were not adequate to cover an imbalance. As of December 31, 2017 and 2016 , we had no recorded oil and natural gas imbalances. |
Major Maintenance Activities | Major maintenance activities – Costs for major maintenance are expensed in the period incurred and can include the costs of workovers of existing wells, contractor repair services, materials and supplies, equipment rentals and our labor costs. |
Stock Based Compensation | Stock based compensation - We measure the cost of employee services received in exchange for an award of equity instruments based on the fair value of the award on the date of the grant. Grant date fair value for options is estimated using the Black-Scholes option pricing model. The model employs various assumptions, based on management’s best estimates at the time of grant, which impact the calculation of fair value and ultimately, the amount of expense that is recognized over the life of the stock option award . For restricted stock, grant date fair value is determined using the market value of our common stock on the date of grant. The fair value of stock appreciation rights (“SARs”) is based on a Monte Carlo simulation at grant date and at each subsequent reporting date. The Monte Carlo simulation to value our SARs uses the following inputs: (i) the quoted market price of our common stock on the valuation date, (ii) the maximum stock price appreciation that an employee may receive, (iii) the expected term which is based on the contractual term, (iv) the expected volatility which is based on the historical volatility of the our stock for the length of time corresponding to the expected term of the SARs, (v) the expected dividend yield is based on our anticipated dividend payments, (vi) the risk-free interest rate which is based on the U.S. treasury yield curve in effect as of the reporting date for the length of time corresponding to the expected term of the SARs. Our stock-based compensation expense is recognized based on the awards as they vest, using the straight-line attribution method over the requisite service period for each separately vesting portion of the award as if the award was, in-substance, multiple awards. When awards are forfeited before they vest, previously recognized expense related to such forfeitures is reversed in the period in which the forfeiture occurs. |
Foreign Currency Transactions | Foreign currency transactions – The U .S. dollar is the functional currency of our foreign operating subsidiaries . Gains and losses on foreign currency transactions are included in income. Within the consolidated statements of operations line item “ Other income (expense)—Other, net, ” we recognized gains on foreign currency transactions of $ 0.5 million in 2017 , while we recognized losses on foreign currency transactions of $ 30 thousand and $0.8 million in 2016 and 2015 , respectively. |
Income Taxes | Income taxes – We account for income taxes under an asset and liability approach that recognizes deferred income tax assets and liabilities for the estimated future tax consequences of differences between the Financial Statements and tax bases of assets and liabilities. Valuation allowances are provided against deferred tax assets that are not likely to be realized. We report interest related to income tax liabilities in the “ Interest expense ” line item on the consolidated statements of operations , and we report penalties in the “ Other, net ” line item on the consolidated statements of operations. |
Derivative Instruments and Hedging Activites | Derivative Instruments and Hedging Activities – We use derivative financial instruments to achieve a more predictable cash flow from oil production by reducing our exposure to price fluctuations. Our derivative instruments at December 31 , 2016 consisted of fixed price oil puts, which give us the option to sell a contracted volume of oil at a contracted price on a contracted date in the future. All of our oil put contracts, which provided for settlement based upon reported the Brent price, had expired as of December 31, 2017. We record balances resulting from commodity risk management activities in the consolidated balance sheets as either assets or liabilities measured at fair value. Gains and losses from the change in fair value of derivative instruments and cash settlements on commodity derivatives are presented in the “Other, net” line item located within the “Other income (expense)” section of the consolidated statements of operations. We received cash settlements of $0.2 million during the year ended December 31, 2017 related to matured derivative contracts. |
Fair Value | Fair Value – Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs used in determining fair value are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable. The three input levels of the fair-value hierarchy are as follows: Level 1 – Inputs represent quoted prices in active markets for identical assets or liabilities (for example, exchange-traded commodity derivatives). Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (for example, quoted market prices for similar assets or liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated inputs). Level 3 – Inputs that are not observable from objective sources, such as internally developed assumptions used in pricing an asset or liability (for example, an estimate of future cash flows used in our internally developed present value of future cash flows model that underlies the fair-value measurement). |
Fair Value of Financial Instruments | Fair value of financial instruments – Our current assets and liabilities include financial instruments such as cash and cash equivalents, restricted cash, accounts receivable , derivative assets, accounts payable and guarantee . As discussed further in Note 10, derivative assets and liabilities are measured and reported at fair value each period with changes in fair value recognized in net income. With respect to our other financial instruments included in current assets and liabilities, t he carrying value of each financial instrument approximates fair value primarily due to the short-term maturity of these instruments. The carrying value of our long-term debt approximates fair value, as the interest rates are adjusted based on market rates currently in effect. |
General And Administrative Related To Shareholder Matters | General and administrative related to shareholder matters – Amounts related to shareholder matters for the years ended December 31, 2016 and 2015 relate to costs incurred related to shareholder litigation that was settled in 2016. For 2016, the amounts also include the offsetting insurance proceeds related to these matters. |
Other, net | Other, net – “Other, net” in non-operating income and expenses includes gains and losses from derivatives and foreign currency transactions as discussed above. In addition, “Other, net” for the year ended December 31, 2017 includes $2.6 million related to the reversal of accruals for liabilities we are no longer obligated to pay. |
Summary Of Significant Accoun26
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Rollforward Analysis of the Allowance Against Accounts Receivable Balance | Year Ended December 31, 2017 2016 2015 (in thousands) Allowance for bad debt Balance at beginning of year $ (5,211) $ (4,221) $ (2,400) Charge to cost and expenses (452) (1,222) (2,699) Reclassification related to Sojitz acquisition (694) — — Foreign currency gain (loss) (676) 232 878 Balance at end of period $ (7,033) $ (5,211) $ (4,221) |
Acquisitions And Dispositions (
Acquisitions And Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitions And Dispositions [Abstract] | |
Preliminary Estimates Of Fair Value Of Identifiable Assets Acquired And Liabilities Assumed | November 22, 2016 (in thousands) Assets acquired: Wells, platforms and other production facilities $ 5,754 Equipment and other 684 Value added tax and other receivables 297 Abandonment funding 546 Accounts receivable - trade 888 Prepayments and other 220 Liabilities assumed: Asset retirement obligations (1,731) Accrued liabilities and other (747) Total identifiable net assets and consideration transferred $ 5,911 |
Pro Forma Results | Year Ended December 31, 2016 2015 (in thousands) Pro forma (unaudited) Oil and natural gas sales $ 65,427 $ 88,940 Operating loss (4,295) (101,494) Loss from continuing operations (19,232) (120,546) Basic and diluted net loss per share: Loss from continuing operations $ (0.33) $ (2.07) Net loss $ (0.47) $ (2.72) |
Summarized Results Of, And Assets And Liabilities Attributable To, Discontinued Operations | Summarized Results of Discontinued Operations Year Ended December 31, 2017 2016 2015 (in thousands) Operating costs and expenses: Exploration expense $ — $ 15,137 $ 36,044 Depreciation, depletion and amortization — 9 12 General and administrative expense 615 1,269 2,535 Bad debt recovery and other — (7,629) — Total operating costs, expenses and (recovery) 615 8,786 38,591 Other operating loss, net — (172) (1,856) Operating loss (615) (8,958) (40,447) Other income (expense): Interest income — 3,201 — Other, net (3) 552 2,345 Total other income (expense) (3) 3,753 2,345 Loss from discontinued operations before income taxes (618) (5,205) (38,102) Income tax expense 3 3,078 — Loss from discontinued operations $ (621) $ (8,283) $ (38,102) Assets and Liabilities Attributable to Discontinued Operations December 31, 2017 2016 (in thousands) ASSETS Accounts with partners $ 2,836 $ 2,139 Total current assets 2,836 2,139 Total assets $ 2,836 $ 2,139 LIABILITIES Current liabilities: Accounts payable $ 158 $ 77 Foreign taxes payable — 3,078 Accrued liabilities and other 15,189 15,297 Total current liabilities 15,347 18,452 Total liabilities $ 15,347 $ 18,452 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligations [Abstract] | |
Summary of Changes In Asset Retirement Obligations | (in thousands) 2017 2016 2015 Balance at January 1 $ 18,612 $ 16,166 $ 14,846 Accretion 951 903 778 Additions — — 1,085 Acquisitions and dispositions (103) 1,544 — Revisions 703 (1) (543) Balance at December 31 $ 20,163 $ 18,612 $ 16,166 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt [Abstract] | |
Schedule Of Interest Information | Year Ended December 31, 2017 2016 2015 (in thousands) Interest incurred, including commitment fees $ 997 $ 1,353 $ 1,496 Deferred finance cost amortization 369 319 304 Deferred finance cost write-off due to loan modification — 869 — Capitalized interest — — (771) Other interest not related to debt (a) 48 72 296 Interest expense, net $ 1,414 $ 2,613 $ 1,325 Average effective interest rate, excluding commitment fees 6.72% 5.52% 4.09% (a) The “Other interest not related to debt” line item i ncludes interest income . |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Estimated Obligations and Companies Share for the Annual Charter Payment | Full Charter VAALCO (in thousands) Payment Net Year 2018 31,294 9,719 2019 31,294 9,719 2020 22,634 7,029 Total $ 85,222 $ 26,467 |
Operating Lease Obligations for Rentals | Gross VAALCO (in thousands) Obligation Net Year 2018 6,101 2,176 2019 407 407 2020 340 340 2021 — — 2022 — — Thereafter — — Total $ 6,848 $ 2,923 |
Derivatives And Fair Value (Tab
Derivatives And Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivatives And Fair Value [Abstract] | |
Derivative Instruments Accounted For At Fair Value On A Recurring Basis | Carrying Fair Value Measurements Using Derivative Item Balance Sheet Line Value Level 1 Level 2 Level 3 (in thousands) Crude oil puts Prepayments and other Balance at December 31, 2017 $ — $ — $ — $ — Balance at December 31, 2016 $ 1,227 $ — $ 1,227 $ — |
Effect Of Derivative Instruments On The Condensed Consolidated Statements Of Operations | Year Ended December 31, Derivative Item Statement of Operations Line 2017 2016 2015 (in thousands) Crude oil puts Other, net $ (1,032) $ (1,711) $ — |
Stock-Based Compensation And 32
Stock-Based Compensation And Other Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation And Other Benefit Plans [Abstract] | |
Stock Option Valuation Assumptions | Year Ended December 31, 2017 2016 2015 Weighted average exercise price - ($/share) $ 0.99 $ 1.14 $ 4.41 Expected life in years 3.2 3.0 2.5 Average expected volatility 73 % 71 % 61 % Risk-free interest rate 1.51 % 1.10 % 0.88 % Weighted average grant date fair value - ($/share) $ 0.49 $ 0.49 $ 1.65 |
Stock Option Activity | Number of Shares Underlying Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding at January 1, 2017 2,644 $ 3.92 Granted 1,629 0.99 Exercised (37) 1.04 Forfeited/expired (1,639) 4.48 Outstanding at December 31, 2017 2,597 1.77 3.53 $ — Exercisable at December 31, 2017 1,506 2.30 3.28 $ — |
Summary of Non Vested Awards | Restricted Stock Weighted Average Grant Price (in thousands) Non-vested shares outstanding at January 1, 2017 252 $ 1.31 Awards granted 426 0.98 Awards vested (297) 1.12 Awards forfeited (41) 1.00 Non-vested shares outstanding at December 31, 2017 340 1.10 |
SAR Activity | Number of Shares Underlying SARs Weighted Average Exercise Price Per Share Term Value (in thousands) (in years) (in thousands) Outstanding at January 1, 2017 180 $ 1.04 Granted 1,049 1.20 Exercised — — Forfeited/expired (153) 1.20 Outstanding at December 31, 2017 1,076 1.17 3.21 $ — Exercisable at December 31, 2017 60 1.04 3.21 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Provision for Income Taxes | Year Ended December 31, (in thousands) 2017 2016 2015 U.S. Federal: Current $ — $ — $ — Deferred (1,260) — 1,349 Foreign: Current 11,638 9,248 13,238 Deferred — — — Total $ 10,378 $ 9,248 $ 14,587 |
Summary of Differences between the Financial Statement and Tax Bases of Assets and Liabilities | As of December 31, (in thousands) 2017 2016 Deferred tax assets: Basis difference in fixed assets $ 46,929 $ 89,016 Foreign tax credit carryforward 48,071 50,339 Alternative minimum tax credit carryover 1,349 1,349 U.S. federal net operating losses 22,490 30,230 Foreign net operating losses 26,371 25,543 Asset retirement obligations 4,234 6,514 Basis difference in receivables 1,331 1,824 Other 3,690 6,952 Total deferred tax assets 154,465 211,767 Valuation allowance (153,205) (211,767) Net deferred tax assets $ 1,260 $ — |
Pretax Income | Year Ended December 31, (in thousands) 2017 2016 2015 United States $ (9,453) $ (9,893) $ (15,177) Foreign 30,103 874 (90,790) $ 20,650 $ (9,019) $ (105,967) |
Statutory Rate Reconciliation | Year Ended December 31, (in thousands) 2017 2016 2015 Tax provision computed at U.S. statutory rate $ 7,228 $ (3,156) $ (37,089) Foreign taxes not offset in U.S. by foreign tax credits 6,775 6,319 (394) Impact of Tax Reform Act 52,449 — — Effect of change in foreign statutory rates — 2,394 3,014 Permanent differences 309 4,505 1,803 Foreign tax credit adjustments 2,394 — — Increase/(decrease) in valuation allowance (58,777) (802) 47,253 Other — (12) — Total income tax expense $ 10,378 $ 9,248 $ 14,587 |
Income Tax Years Subject to Examination by Major Tax Jurisdictions | Jurisdiction Years United States 2008 -2017 Gabon 2013 -2017 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Diluted Shares | Year Ended December 31, 2017 2016 2015 (in thousands) Basic weighted average shares outstanding 58,717 58,384 58,289 Effect of dilutive securities 3 — — Diluted weighted average shares outstanding 58,720 58,384 58,289 Stock options and unvested restricted stock grants excluded from dilutive calculation because they would be anti-dilutive 2,823 4,363 5,586 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Information [Abstract] | |
Segment Activity | Year Ended December 31, 2017 (in thousands) Gabon Equatorial Guinea U.S. Corporate and Other Total Revenues-oil and natural gas sales $ 76,978 $ — $ 47 $ — $ 77,025 Depreciation, depletion and amortization 6,196 — 1 260 6,457 Bad debt expense and other 452 — — — 452 Operating income (loss) 28,488 (122) 352 (8,767) 19,951 Other, net 3,142 15 — (1,044) 2,113 Interest expense, net (1,414) — — — (1,414) Income tax expense (benefit) 11,638 — — (1,260) 10,378 Additions to property and equipment - accrual 1,576 — — 126 1,702 Year Ended December 31, 2016 (in thousands) Gabon Equatorial Guinea U.S. Corporate and Other Total Revenues-oil and natural gas sales $ 59,460 $ — $ 324 $ — $ 59,784 Depreciation, depletion and amortization 6,531 — 151 244 6,926 Impairment of proved properties — — 88 — 88 Bad debt expense and other 1,222 — — — 1,222 Other operating expense 8,853 — — — 8,853 Operating income (loss) 3,901 (384) (72) (7,836) (4,391) Other, net (22) (8) — (1,985) (2,015) Interest expense, net (2,614) — — 1 (2,613) Income tax expense 9,248 — — — 9,248 Additions to property and equipment - accrual (4,242) — — 181 (4,061) Year Ended December 31, 2015 (in thousands) Gabon Equatorial Guinea U.S. Corporate and Other Total Revenues-oil and natural gas sales $ 79,947 $ — $ 498 $ — $ 80,445 Depreciation, depletion and amortization 32,125 — 633 240 32,998 Impairment of proved properties 78,080 — 3,242 — 81,322 Bad debt expense and other 2,968 — — — 2,968 Operating income (loss) (87,243) (1,342) (4,366) (10,155) (103,106) Other, net (1,034) (33) — (469) (1,536) Interest expense, net (1,144) — — (181) (1,325) Income tax expense 13,238 — — 1,349 14,587 Additions to property and equipment - accrual 66,269 — — 150 66,419 |
Long-lived Assets From Continuing Operations | (in thousands) Gabon Equatorial Guinea U.S. Corporate and Other Total Long-lived assets from continuing operations: As of December 31, 2017 $ 12,638 $ 10,000 $ — $ 583 $ 23,221 As of December 31, 2016 17,291 10,000 — 728 28,019 |
Selected Quarterly Financial 36
Selected Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |
Summary of Quarterly Financial Information | Three Months Ended March 31, June 30, September 30, December 31, (in thousands of dollars except per share information) 2017: Total revenues $ 21,266 $ 20,425 $ 18,178 $ 17,156 Total operating costs and expenses 13,055 15,068 14,454 14,413 Operating income (loss) 8,148 5,587 3,721 2,495 Income (loss) from continuing operations 4,435 2,451 (148) 3,534 Loss from discontinued operations (176) (168) (174) (103) Net income (loss) 4,259 2,283 (322) 3,431 Basis net income (loss) per share $ 0.07 $ 0.04 $ (0.01) $ 0.06 Diluted net income (loss) per share $ 0.07 $ 0.04 $ (0.01) $ 0.06 Three Months Ended March 31, June 30, September 30, December 31, (in thousands of dollars except per share information) 2016: Total revenues $ 10,976 $ 18,847 $ 14,635 $ 15,326 Total operating costs and expenses 24,509 14,232 10,919 14,249 Operating income (loss) (13,515) 4,615 3,690 819 Income (loss) from continuing operations (15,430) (498) 1,016 (3,355) Loss from discontinued operations 7,806 (20) (15,783) (286) Net income (loss) (7,624) (518) (14,767) (3,641) Basis net income (loss) per share $ (0.13) $ (0.01) $ (0.25) $ (0.06) Diluted net income (loss) per share $ (0.13) $ (0.01) $ (0.25) $ (0.06) |
Liquidity (Details)
Liquidity (Details) | 12 Months Ended |
Dec. 31, 2017item | |
Minimum [Member] | |
Liquidity And Going Concern [Line Items] | |
Number of planned wells to be drilled in the next twelve months | 2 |
Maximum [Member] | |
Liquidity And Going Concern [Line Items] | |
Number of planned wells to be drilled in the next twelve months | 3 |
Summary Of Significant Accoun38
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Thousands, XAF in Billions | 12 Months Ended | ||||||
Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017XAFXAF / $ | Dec. 31, 2017USD ($)XAF / $ | Dec. 31, 2016XAF | Dec. 31, 2016USD ($) | |
Organization And Accounting Policies [Line Items] | |||||||
Exchange rate | XAF / $ | 547.500 | 547.500 | |||||
Recorded allowance | $ 452 | $ 1,222 | $ 2,699 | ||||
Other operating income (expense), net | $ (84) | (266) | (1,092) | ||||
Receivable balance, net | $ 3,556 | $ 6,751 | |||||
Value added tax reimbursement monthly payment | 300 | ||||||
Value added tax and other receivables, net of allowance of $6.5 million and $4.7 million at December 31, 2017 and December 31, 2016, respectively | 6,925 | 5,110 | |||||
Number of VAT reimbursement payments | item | 36 | ||||||
Gas imbalance receivable | 0 | 0 | |||||
Gains (Loss) on foreign currency transactions | $ 500 | 30 | 800 | ||||
Interest expense capitalized | 0 | 0 | 800 | ||||
Settlement of derivatives | 200 | ||||||
Scenario, Adjustment [Member] | |||||||
Organization And Accounting Policies [Line Items] | |||||||
Accrued liabilities | (2,600) | ||||||
Gabon [Member] | |||||||
Organization And Accounting Policies [Line Items] | |||||||
Recorded allowance | 452 | 1,222 | 2,699 | ||||
Receivable balance, gross | XAF | XAF 21.2 | XAF 16.3 | |||||
Receivable balance, net | XAF | XAF 7.1 | XAF 4.9 | |||||
Value added tax and other receivables, net of allowance of $6.5 million and $4.7 million at December 31, 2017 and December 31, 2016, respectively | 2,700 | $ 400 | $ 700 | ||||
Gabon And Angola [Member] | |||||||
Organization And Accounting Policies [Line Items] | |||||||
Other operating income (expense), net | $ 300 | $ (300) | $ (1,500) | ||||
Office And Miscellaneoud Equipment [Member] | |||||||
Organization And Accounting Policies [Line Items] | |||||||
Estimated useful life | 5 years | ||||||
Leasehold Improvements [Member] | Minimum [Member] | |||||||
Organization And Accounting Policies [Line Items] | |||||||
Estimated useful life | 5 years | ||||||
Leasehold Improvements [Member] | Maximum [Member] | |||||||
Organization And Accounting Policies [Line Items] | |||||||
Estimated useful life | 7 years |
Summary Of Significant Accoun39
Summary Of Significant Accounting Policies (Rollforward Analysis Of The Allowance Against Accounts Receivable Balance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Charged to costs and expenses | $ (452) | $ (1,222) | $ (2,699) |
Gabon [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at beginning of year | (5,211) | (4,221) | (2,400) |
Charged to costs and expenses | (452) | (1,222) | (2,699) |
Reclassification related to Sojitz acquisition | (694) | ||
Foreign currency gain (loss) | (676) | 232 | 878 |
Balance at end of period | $ (7,033) | $ (5,211) | $ (4,221) |
Acquisitions And Dispositions40
Acquisitions And Dispositions (Narrative) (Details) $ in Thousands, a in Millions | Nov. 22, 2016 | Mar. 14, 2016USD ($) | Jan. 01, 2014 | Apr. 30, 2017USD ($) | Dec. 31, 2016USD ($)item | Oct. 31, 2014item | Nov. 30, 2006aitem | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Apr. 30, 2014USD ($) |
Business Acquisition [Line Items] | |||||||||||
Proceeds from the sale of oil and gas properties | $ 250 | $ 830 | $ 398 | ||||||||
Gain from sale of property | 300 | ||||||||||
Allowance for accounts with partners | $ 500 | $ 500 | 500 | ||||||||
Offshore Gabon [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Production license agreement term extended by government | 5 years | ||||||||||
Hefley Field [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Proceeds received from sale of property | $ 800 | ||||||||||
Number of wells, interest for sale | item | 2 | ||||||||||
East Poplar Dome Field [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Proceeds from the sale of oil and gas properties | $ 300 | ||||||||||
Joint Operating With Republic Of Angola [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Primary term of the production sharing contract | 4 years | ||||||||||
Optional term of extension of production sharing contract | 3 years | ||||||||||
Area under acquire property exploration rights agreement term (acres) | a | 1.4 | ||||||||||
Number of exploration wells | item | 2 | ||||||||||
Number Of Additional Exploration Wells | item | 2 | ||||||||||
Joint operation agreement related to third party in working interest percentage | 40.00% | ||||||||||
Additional joint operation agreement related to third party in working interest percentage | 10.00% | ||||||||||
Stipulated payment for each exploration well, under PSA terms | $ 10,000 | ||||||||||
Drilling commitment, net | 5,000 | ||||||||||
Liability for the penalty | $ 15,000 | $ 15,000 | 15,000 | ||||||||
Allowance for accounts with partners | $ 7,600 | ||||||||||
Working interest ownership other, percentage | 40.00% | ||||||||||
Sojitz [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of working interest | 2.98% | ||||||||||
Percentage of participating interest | 3.23% | ||||||||||
Actual impact on revenue from acquisition | $ 200 | ||||||||||
Sonangol P&P [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payment from joint venture partners | $ 19,000 | ||||||||||
Reversal of allowance | 7,600 | ||||||||||
Interest income | $ 3,200 |
Acquisitions And Dispositions41
Acquisitions And Dispositions (Preliminary Estimates Of Fair Value Of Identifiable Assets Acquired And Liabilities Assumed) (Details) - Sojitz [Member] $ in Thousands | Nov. 22, 2016USD ($) |
Business Acquisition [Line Items] | |
Wells, platforms and other production facilities | $ 5,754 |
Equipment and other | 684 |
Value added tax and other receivables | 297 |
Abandonment funding | 546 |
Accounts receivable - trade | 888 |
Prepayments and other | 220 |
Asset retirement obligations | (1,731) |
Accounts liabilities and other | (747) |
Total identifiable net assets and consideration transferred | $ 5,911 |
Acquisitions And Dispositions42
Acquisitions And Dispositions (Pro Forma Results) (Details) - Sojitz [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||
Oil and natural gas sales | $ 65,427 | $ 88,940 |
Operating loss | (4,295) | (101,494) |
Loss from continuing operations | $ (19,232) | $ (120,546) |
Loss from continuing operations (per share) | $ (0.33) | $ (2.07) |
Net loss (per share) | $ (0.47) | $ (2.72) |
Acquisitions And Dispositions43
Acquisitions And Dispositions (Summarized Results Of Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Loss from discontinued operations | $ (103) | $ (174) | $ (168) | $ (176) | $ (286) | $ (15,783) | $ (20) | $ 7,806 | $ (621) | $ (8,283) | $ (38,102) |
Discontinued Operations [Member] | Joint Operating With Republic Of Angola [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Exploration expense | 15,137 | 36,044 | |||||||||
Depreciation, depletion and amortization | 9 | 12 | |||||||||
General and administrative expense | 615 | 1,269 | 2,535 | ||||||||
Bad debt recovery and other | (7,629) | ||||||||||
Total operating costs, expenses and (recovery) | 615 | 8,786 | 38,591 | ||||||||
Other operating loss, net | (172) | (1,856) | |||||||||
Operating loss | (615) | (8,958) | (40,447) | ||||||||
Interest income | 3,201 | ||||||||||
Other, net | (3) | 552 | 2,345 | ||||||||
Total other income (expense) | (3) | 3,753 | 2,345 | ||||||||
Loss from discontinued operations before income taxes | (618) | (5,205) | (38,102) | ||||||||
Income tax expense | 3 | 3,078 | |||||||||
Loss from discontinued operations | $ (621) | $ (8,283) | $ (38,102) |
Acquisitions And Dispositions44
Acquisitions And Dispositions (Assets And Liabilities Attributable To Discontinued Operations) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total current assets | $ 2,836 | $ 2,139 |
Total current liabilities | 15,347 | 18,452 |
Joint Operating With Republic Of Angola [Member] | Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts with partners | 2,836 | 2,139 |
Total current assets | 2,836 | 2,139 |
Total assets | 2,836 | 2,139 |
Accounts payable | 158 | 77 |
Foreign taxes payable | 3,078 | |
Accrued liabilities and other | 15,189 | 15,297 |
Total current liabilities | 15,347 | 18,452 |
Total liabilities | $ 15,347 | $ 18,452 |
Oil And Natural Gas Propertie45
Oil And Natural Gas Properties And Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Undeveloped Acreage | $ 10,000 | $ 10,000 | |
U.S. Fields [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of fields | $ 1,200 | ||
Impairment of oil and gas properties | 3,200 | ||
Block P Offshore Equatorial Guinea [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Undeveloped Acreage | $ 10,000 | ||
Working interest ownership, percentage | 31.00% | ||
Period of development | 25 years | ||
Etame Field [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of fields | 12,700 | ||
Impairment of oil and gas properties | 78,100 | ||
Roosevelt County, Montana [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of Leasehold | $ 1,200 |
Asset Retirement Obligations (S
Asset Retirement Obligations (Summary of Changes In Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Asset Retirement Obligations [Abstract] | |||
Balance at January 1 | $ 18,612 | $ 16,166 | $ 14,846 |
Accretion | 951 | 903 | 778 |
Additions | 1,085 | ||
Acquisitions and dispositions | (103) | 1,544 | |
Revisions | 703 | (1) | (543) |
Balance at December 31 | $ 20,163 | $ 18,612 | $ 16,166 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) $ in Millions | Mar. 14, 2017USD ($) | Jun. 29, 2016USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2019 | Jun. 28, 2016 | Jan. 31, 2014USD ($) |
Debt Instrument [Line Items] | ||||||
Credit facility borrowing base | $ 20 | |||||
Maximum borrowing capacity under loan agreement | $ 65 | |||||
Debt service coverage ratio minimum at each quarter | 1.2 | |||||
Maximum [Member] | Scenario, Forecast [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Ratio of net debt to EBITDAX | 3 | |||||
Senior Tranche [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, commitment fee | 1.50% | |||||
Maximum borrowing capacity under loan agreement | 50 | |||||
Subordinated Tranche [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, commitment fee | 2.30% | |||||
Maximum borrowing capacity under loan agreement | 15 | |||||
Additional Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility borrowing base | 5 | |||||
Borrowings | $ 4.2 | |||||
Additional Term Loan [Member] | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate spread | 5.75% | |||||
Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loans Payable | $ 15 | $ 9.2 | ||||
Term Loan [Member] | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate spread | 5.75% |
Debt (Schedule Of Interest Info
Debt (Schedule Of Interest Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | ||||
Interest incurred, including commitment fees | $ 997 | $ 1,353 | $ 1,496 | |
Deferred finance cost amortization | 369 | 1,424 | 304 | |
Deferred finance cost write-off due to loan modification | 869 | |||
Capitalized interest | (771) | |||
Other interest not related to debt | [1] | 48 | 72 | 296 |
Interest expense, net | 1,414 | 2,613 | 1,325 | |
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Deferred finance cost amortization | $ 369 | $ 319 | $ 304 | |
Various Debt Instruments [Member] | ||||
Debt Instrument [Line Items] | ||||
Average effective interest rate, excluding commitment fees | 6.72% | 5.52% | 4.09% | |
[1] | The "Other interest not related to debt" line item includes interest income. |
Commitments And Contingencies49
Commitments And Contingencies (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Apr. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($)item$ / Boe | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Feb. 28, 2017USD ($) | Jun. 30, 2016USD ($) | |
Commitments And Contingencies [Line Items] | ||||||||
Abandonment Funding | $ 8,510,000 | $ 10,808,000 | $ 8,510,000 | |||||
Number of extensions | item | 2 | |||||||
Term of charter extension periods | 1 year | |||||||
Percentage of share in charter payment | 31.10% | |||||||
Share in charter payment, approximate annual amount | $ 9,700,000 | |||||||
Liabilities, guarantees' fair value | $ 700,000 | $ 500,000 | 700,000 | |||||
Contractual obligation | $ 5,100,000 | |||||||
Charter fee for production up to 20,000 BOPD | $ / Boe | 0.93 | |||||||
Charter fee for those bbls produced in excess of 20,000 BOPD | $ / Boe | 2.50 | |||||||
Company's share of charter expense | $ 12,800,000 | 11,200,000 | $ 10,900,000 | |||||
Rent expense, operating leases | 2,400,000 | 4,500,000 | 4,300,000 | |||||
Accrued estimated settlement | 500,000 | |||||||
McDonough V. VAALCO Energy, Inc. [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Plaintiff demand to settle case | $ 361,000 | |||||||
Gabon [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Discount | 25.00% | 15.00% | ||||||
Contractual obligation | $ 1,700,000 | $ 1,200,000 | 1,700,000 | $ 2,300,000 | ||||
Additional percent of revenue for provisions | 1.00% | |||||||
Percent of investment cost which are cost recoverable | 75.00% | |||||||
Accrued Payroll Taxes | 1,000,000 | $ 1,300,000 | 1,000,000 | |||||
Gabon [Member] | Gabon DMO [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Contractual obligation | 1,100,000 | 1,300,000 | 1,100,000 | |||||
Gabon [Member] | PID And PIH [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Contractual obligation | $ 400,000 | $ 1,400,000 | $ 400,000 | |||||
Offshore Gabon [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Production License Agreement Term Extended By Government | 5 years | |||||||
Percentage of annual funding over seven years | 12.14% | |||||||
Funding period for initial rate | 7 years | |||||||
Second funding period of production license | 3 years | |||||||
Funding period abandonment funding | 10 years | |||||||
Number of contract extension periods | item | 2 | |||||||
Full Charter Payment [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Contractual obligation | $ 85,222,000 | |||||||
Full Charter Payment [Member] | Offshore Gabon [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Abandonment cost related to annual funding | 61,100,000 | |||||||
Abandonment funding | 34,800,000 | |||||||
VAALCO ENERGY, INC. [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Contractual obligation | 26,467,000 | |||||||
VAALCO ENERGY, INC. [Member] | Offshore Gabon [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Abandonment cost related to annual funding | 19,000,000 | |||||||
Abandonment funding | $ 10,800,000 |
Commitments And Contingencies50
Commitments And Contingencies (Estimated Obligations And Companies Share For The Annual Charter Payment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2016 |
Estimated obligation and company share for annual charter payment | ||
Annual charter payment, Total | $ 5,100 | |
VAALCO ENERGY, INC. [Member] | ||
Estimated obligation and company share for annual charter payment | ||
Annual charter payment, 2018 | $ 9,719 | |
Annual charter payment, 2019 | 9,719 | |
Annual charter payment, 2020 | 7,029 | |
Annual charter payment, Total | 26,467 | |
Full Charter Payment [Member] | ||
Estimated obligation and company share for annual charter payment | ||
Annual charter payment, 2018 | 31,294 | |
Annual charter payment, 2019 | 31,294 | |
Annual charter payment, 2020 | 22,634 | |
Annual charter payment, Total | $ 85,222 |
Commitments And Contingencies51
Commitments And Contingencies (Operating Lease Obligations For Rentals) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Gross Obligation [Member] | |
Other Lease Obligations for rentals | |
Gross Obligation, 2018 | $ 6,101 |
Gross Obligation, 2019 | 407 |
Gross Obligation, 2020 | 340 |
Gross Obligation, Total | 6,848 |
VAALCO ENERGY, INC. [Member] | |
Other Lease Obligations for rentals | |
Gross Obligation, 2018 | 2,176 |
Gross Obligation, 2019 | 407 |
Gross Obligation, 2020 | 340 |
Gross Obligation, Total | $ 2,923 |
Derivatives And Fair Value (Der
Derivatives And Fair Value (Derivative Instruments Accounted For At Fair Value On A Recurring Basis) (Details) - Commodity Contract [Member] - Not Designated as Hedging Instrument [Member] - Prepayments and other [Member] $ in Thousands | Dec. 31, 2016USD ($) |
Derivatives, Fair Value [Line Items] | |
Derivative instruments | $ 1,227 |
Fair Value, Inputs, Level 2 [Member] | |
Derivatives, Fair Value [Line Items] | |
Derivative instruments | $ 1,227 |
Derivatives And Fair Value (Eff
Derivatives And Fair Value (Effect Of Derivative Instruments On The Condensed Consolidated Statements Of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other, net [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ (1,032) | $ (1,711) |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shareholders' Equity (Deficit) [Abstract] | |||
Preferred Stock, Shares Authorized | 500,000 | 500,000 | |
Preferred Stock, Shares Issued | 0 | 0 | |
Preferred Stock, Par or Stated Value Per Share | $ 25 | $ 25 | |
Preferred Stock, Value, Outstanding | $ 0 | $ 0 | |
Shares withheld to satisfy tax withholding obligations | 26,000 | 40,926 | 120,455 |
Stock-Based Compensation And 55
Stock-Based Compensation And Other Benefit Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 28, 2018 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock options, authorized | 2,404,442 | ||||
Stock option granted, reduction ratio for numbers authorized | 1 | ||||
Stock-based compensation | $ 1,098 | $ 192 | $ 3,810 | ||
Tax benefits related to stock based compensation | $ 0 | ||||
Options exercised | 37,000 | ||||
Number of Shares Underlying Options, Granted | 1,629,000 | ||||
Weighted Average Exercise Price Per Share, Granted | $ 0.99 | $ 1.14 | $ 4.41 | ||
Weighted Average Grant Price, Awards granted | $ 0.49 | $ 0.49 | $ 1.65 | ||
Other benefit plans, cost | $ 200 | $ 300 | $ 400 | ||
Cash proceeds from stock options exercised | $ 39 | $ 0 | 0 | ||
Non-Employee Grants [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of Shares Underlying Options, Granted | 465,950 | ||||
Stock Option [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards, vesting period | 5 years | ||||
Options exercised | 0 | ||||
Total intrinsic value of options exercised | $ 0 | 300 | |||
Number of Shares Underlying Options, Granted | 1,162,930 | ||||
Unrecognized compensation costs | $ 300 | ||||
Compensation costs expected to be recognized | 1 year 6 months | ||||
Stock Option [Member] | Subsequent Event [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of Shares Underlying Options, Granted | 494,941 | ||||
Weighted Average Exercise Price Per Share, Granted | $ 0.86 | ||||
Stock Option [Member] | Employee Grants Of 1,162,930 [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards, vesting period | 3 years | ||||
Restricted Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards, vesting period | 3 years | ||||
Unrecognized compensation costs | $ 200 | ||||
Compensation costs expected to be recognized | 1 year 7 months 6 days | ||||
Vest-date fair value | $ 300 | $ 600 | $ 700 | ||
Awards granted | 426,000 | ||||
Weighted Average Grant Price, Awards granted | $ 0.98 | ||||
Weighted Average Grant Price, Awards granted | $ 0.98 | $ 1.11 | $ 3.34 | ||
Restricted Stock [Member] | Subsequent Event [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards granted | 323,474 | ||||
Weighted Average Grant Price, Awards granted | $ 0.86 | ||||
Stock Appreciation Rights (SARs) [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-Based Compensation Arrangement By Share-Based Payment Award Life | 5 years | ||||
Share-Based Compensation Arrangement By Share-Based Payment Award Spread | 300.00% | ||||
Share-Based Compensation Arrangement By Share-Based Payment Award Grant Date Share Price | $ 1.04 | $ 1.04 | |||
Stock-based compensation | $ 100 | $ 25 | |||
Awards, vesting period | 3 years | ||||
Award granted life | 5 years | ||||
Awards granted | 815,355 | 1,049,528 | |||
Weighted Average Grant Price, Awards granted | $ 1.20 | ||||
Stock Appreciation Rights (SARs) [Member] | Subsequent Event [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards granted | 2,373,411 | ||||
Weighted Average Grant Price, Awards granted | $ 0.86 | ||||
Stock Appreciation Rights (SARs) [Member] | First Vesting Milestone [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation, vesting hurdle share price | 1.30 | ||||
Stock Appreciation Rights (SARs) [Member] | Second Vesting Milestone [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation, vesting hurdle share price | 1.50 | ||||
Stock Appreciation Rights (SARs) [Member] | Third Vesting Milestone [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation, vesting hurdle share price | $ 1.75 | ||||
Maximum [Member] | Stock Appreciation Rights (SARs) [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-Based Compensation Arrangement By Share-Based Payment Award Spread | 300.00% |
Stock-Based Compensation And 56
Stock-Based Compensation And Other Benefit Plans (Stock Option Valuation Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation of the options granted | |||
Weighted average exercise price - ($/share) | $ 0.99 | $ 1.14 | $ 4.41 |
Expected life in years | 3 years 2 months 12 days | 3 years | 2 years 6 months |
Average expected volatility | 73.00% | 71.00% | 61.00% |
Risk-free interest rate | 1.51% | 1.10% | 0.88% |
Weighted average grant date fair value - ($/share) | $ 0.49 | $ 0.49 | $ 1.65 |
Stock-Based Compensation And 57
Stock-Based Compensation And Other Benefit Plans (Stock Option Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-Based Compensation And Other Benefit Plans [Abstract] | |||
Number of Shares Underlying Options, Outstanding at January 1, 2017 | 2,644 | ||
Number of Shares Underlying Options, Granted | 1,629 | ||
Number of Shares Underlying Options, Exercised | (37) | ||
Number of Shares Underlying Options, Forfeited/expired | (1,639) | ||
Number of Shares Underlying Options, Outstanding at December 31, 2017 | 2,597 | 2,644 | |
Number of Shares Underlying Options, Exercisable at December 31, 2017 | 1,506 | ||
Weighted Average Exercise Price Per Share, Outstanding at January 1, 2017 | $ 3.92 | ||
Weighted Average Exercise Price Per Share, Granted | 0.99 | $ 1.14 | $ 4.41 |
Weighted Average Exercise Price Per Share, Exercised | 1.04 | ||
Weighted Average Exercise Price Per Share, Forfeited/expired | 4.48 | ||
Weighted Average Exercise Price Per Share, Outstanding at December 31, 2017 | 1.77 | $ 3.92 | |
Weighted Average Exercise Price Per Share, Exercisable at December 31, 2017 | $ 2.30 | ||
Weighted Average Remaining Contractual Term, Outstanding balance | 3 years 6 months 11 days | ||
Weighted Average Remaining Contractual Term, Exercisable at end of period | 3 years 3 months 11 days |
Stock-Based Compensation And 58
Stock-Based Compensation And Other Benefit Plans (Summary of Non Vested Awards) (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2017 | |
Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding at January 1, 2017 | 252,000 | |
Awards granted | 426,000 | |
Awards vested | (297,000) | |
Awards forfeited/expired | (41,000) | |
Outstanding at December 31, 2017 | 340,000 | |
Weighted Average Grant Price at January 1, 2017 | $ 1.31 | |
Weighted Average Grant Price, Awards granted | 0.98 | |
Weighted Average Grant Price, Awards vested | 1.12 | |
Weighted Average Grant Price, Awards forfeited | 1 | |
Weighted Average Grant Price at December 31, 2017 | $ 1.10 | |
Stock Appreciation Rights (SARs) [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding at January 1, 2017 | 180,000 | |
Awards granted | 815,355 | 1,049,528 |
Awards forfeited/expired | (153,000) | |
Outstanding at December 31, 2017 | 1,076,000 | |
Exercisable at December 31, 2017 | 60,000 | |
Weighted Average Grant Price, Awards granted | $ 1.20 | |
Weighted Average Exercise Price Per Share, Outstanding at January 1, 2017 | 1.04 | |
Weighted Average Exercise Price Per Share, Granted | 1.20 | |
Weighted Average Exercise Price Per Share, Forfeited/expired | 1.20 | |
Weighted Average Exercise Price Per Share, Outstanding at December 31, 2017 | 1.17 | |
Weighted Average Exercise Price Per Share, Exercisable at December 31, 2017 | $ 1.04 | |
Contractual Term (in years) | 3 years 2 months 16 days | |
Exercisable, Weighted Average Remaining Contractual Term | 3 years 2 months 16 days |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||||
Interest or penalties accrued | $ 0 | $ 0 | ||
Net deferred tax assets | 1,260 | |||
Alternative minimum tax credit | 1,349 | 1,349 | ||
Valuation allowance | $ 153,205 | $ 211,767 | $ 210,700 | |
U.S. corporate income tax rate | 35.00% | |||
Scenario, Plan [Member] | ||||
Income Taxes [Line Items] | ||||
U.S. corporate income tax rate | 21.00% |
Income Taxes (Provision For Inc
Income Taxes (Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
U. S. Federal: Deferred | $ (1,260) | $ 1,349 | |
Foreign: Current | 11,638 | $ 9,248 | 13,238 |
Total income tax expense | $ 10,378 | $ 9,248 | $ 14,587 |
Income Taxes (Summary Of Differ
Income Taxes (Summary Of Differences Between The Financial Statement And Tax Bases Of Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Assets: | |||
Basis difference in fixed assets | $ 46,929 | $ 89,016 | |
Foreign tax credit carryforward | 48,071 | 50,339 | |
Alternative minimum tax credit carryover | 1,349 | 1,349 | |
U.S. federal net operating losses | 22,490 | 30,230 | |
Foreign net operating losses | 26,371 | 25,543 | |
Asset retirement obligations | 4,234 | 6,514 | |
Basis difference in receivables | 1,331 | 1,824 | |
Other | 3,690 | 6,952 | |
Total deferred tax assets | 154,465 | 211,767 | |
Valuation allowance | (153,205) | $ (211,767) | $ (210,700) |
Net deferred tax assets | $ 1,260 |
Income Taxes (Pretax Income) (D
Income Taxes (Pretax Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pretax income | |||
United States | $ (9,453) | $ (9,893) | $ (15,177) |
Foreign | 30,103 | 874 | (90,790) |
Income (loss) from continuing operations before income taxes | $ 20,650 | $ (9,019) | $ (105,967) |
Income Taxes (Statutory Rate Re
Income Taxes (Statutory Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory rate reconciliation | |||
Tax provision computed at U.S. statutory rate | $ 7,228 | $ (3,156) | $ (37,089) |
Foreign taxes not offset in U.S. by foreign tax credits | 6,775 | 6,319 | (394) |
Impact of Tax Reform Act | 52,449 | ||
Effect of change in foreign statutory rates | 2,394 | 3,014 | |
Permanent differences | 309 | 4,505 | 1,803 |
Foreign tax credit adjustments | 2,394 | ||
Increase/(decrease) in valuation allowance | (58,777) | (802) | 47,253 |
Other | (12) | ||
Total income tax expense | $ 10,378 | $ 9,248 | $ 14,587 |
Income Taxes (Income Tax Years
Income Taxes (Income Tax Years Subject To Examination By Major Tax Jurisdictions) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
U.S. [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income tax examination year under examination | 2,008 |
U.S. [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income tax examination year under examination | 2,017 |
Gabon [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income tax examination year under examination | 2,013 |
Gabon [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income tax examination year under examination | 2,017 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Diluted shares | |||
Basic weighted average shares outstanding | 58,717 | 58,384 | 58,289 |
Effect of dilutive securities | 3 | ||
Diluted weighted average shares outstanding | 58,720 | 58,384 | 58,289 |
Stock options and unvested restricted stock grants excluded from dilutive calculation because they would be anti-dilutive | 2,823 | 4,363 | 5,586 |
Dilutive securities | 0 | 0 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Concentration Risk [Line Items] | |
Number of reportable operating segments | 3 |
Sales Revenue, Net [Member] | Glencore U.K. [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 100.00% |
Segment Information (Segment Ac
Segment Information (Segment Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues-oil and natural gas sales | $ 17,156 | $ 18,178 | $ 20,425 | $ 21,266 | $ 15,326 | $ 14,635 | $ 18,847 | $ 10,976 | $ 77,025 | $ 59,784 | $ 80,445 |
Depreciation, depletion and amortization | 6,457 | 6,926 | 32,998 | ||||||||
Impairment of proved properties | 88 | 81,322 | |||||||||
Bad debt expense and other | 452 | 1,222 | 2,968 | ||||||||
Other operating expense | 8,853 | ||||||||||
Operating income (loss) | 2,495 | $ 3,721 | $ 5,587 | $ 8,148 | 819 | $ 3,690 | $ 4,615 | $ (13,515) | 19,951 | (4,391) | (103,106) |
Other, net | 2,113 | (2,015) | (1,536) | ||||||||
Interest expense, net | (1,414) | (2,613) | (1,325) | ||||||||
Income tax expense | 10,378 | 9,248 | 14,587 | ||||||||
Additions to properties and equipment - accrual | 1,702 | (4,061) | 66,419 | ||||||||
Total assets | 79,633 | 81,032 | 79,633 | 81,032 | |||||||
Continuing Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | 23,221 | 28,019 | 23,221 | 28,019 | |||||||
Operating Segments [Member] | Gabon Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues-oil and natural gas sales | 76,978 | 59,460 | 79,947 | ||||||||
Depreciation, depletion and amortization | 6,196 | 6,531 | 32,125 | ||||||||
Impairment of proved properties | 78,080 | ||||||||||
Bad debt expense and other | 452 | 1,222 | 2,968 | ||||||||
Other operating expense | 8,853 | ||||||||||
Operating income (loss) | 28,488 | 3,901 | (87,243) | ||||||||
Other, net | 3,142 | (22) | (1,034) | ||||||||
Interest expense, net | (1,414) | (2,614) | (1,144) | ||||||||
Income tax expense | 11,638 | 9,248 | 13,238 | ||||||||
Additions to properties and equipment - accrual | 1,576 | (4,242) | 66,269 | ||||||||
Operating Segments [Member] | Equatorial Guinea Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | (122) | (384) | (1,342) | ||||||||
Other, net | 15 | (8) | (33) | ||||||||
Operating Segments [Member] | U. S. Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues-oil and natural gas sales | 47 | 324 | 498 | ||||||||
Depreciation, depletion and amortization | 1 | 151 | 633 | ||||||||
Impairment of proved properties | 88 | 3,242 | |||||||||
Operating income (loss) | 352 | (72) | (4,366) | ||||||||
Operating Segments [Member] | Continuing Operations [Member] | Gabon Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | 12,638 | 17,291 | 12,638 | 17,291 | |||||||
Operating Segments [Member] | Continuing Operations [Member] | Equatorial Guinea Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | 10,000 | 10,000 | 10,000 | 10,000 | |||||||
Corporate And Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation, depletion and amortization | 260 | 244 | 240 | ||||||||
Operating income (loss) | (8,767) | (7,836) | (10,155) | ||||||||
Other, net | (1,044) | (1,985) | (469) | ||||||||
Interest expense, net | 1 | (181) | |||||||||
Income tax expense | (1,260) | 1,349 | |||||||||
Additions to properties and equipment - accrual | 126 | 181 | $ 150 | ||||||||
Corporate And Other [Member] | Continuing Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | $ 583 | $ 728 | $ 583 | $ 728 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | Jan. 01, 2018USD ($)bbl | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Subsequent Event [Line Items] | ||||||||||||
Oil and natural gas sales | $ 17,156 | $ 18,178 | $ 20,425 | $ 21,266 | $ 15,326 | $ 14,635 | $ 18,847 | $ 10,976 | $ 77,025 | $ 59,784 | $ 80,445 | |
Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Oil and natural gas sales | $ 6,500 | |||||||||||
Net volume delivered (barrels) | bbl | 95,525 | |||||||||||
Lifting price increase | 7.10% | |||||||||||
Impact on revenue from lifting price increase | $ 500 |
Selected Quarterly Financial 69
Selected Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenues-oil and natural gas sales | $ 17,156 | $ 18,178 | $ 20,425 | $ 21,266 | $ 15,326 | $ 14,635 | $ 18,847 | $ 10,976 | $ 77,025 | $ 59,784 | $ 80,445 |
Total operating costs and expenses | 14,413 | 14,454 | 15,068 | 13,055 | 14,249 | 10,919 | 14,232 | 24,509 | 56,990 | 63,909 | 182,459 |
Operating income (loss) | 2,495 | 3,721 | 5,587 | 8,148 | 819 | 3,690 | 4,615 | (13,515) | 19,951 | (4,391) | (103,106) |
Income (loss) from continuing operations | 3,534 | (148) | 2,451 | 4,435 | (3,355) | 1,016 | (498) | (15,430) | 10,272 | (18,267) | (120,554) |
Loss from discontinued operations | (103) | (174) | (168) | (176) | (286) | (15,783) | (20) | 7,806 | (621) | (8,283) | (38,102) |
Net income (loss) | $ 3,431 | $ (322) | $ 2,283 | $ 4,259 | $ (3,641) | $ (14,767) | $ (518) | $ (7,624) | $ 9,651 | $ (26,550) | $ (158,656) |
Basic net income (loss) per share | $ 0.060 | $ (0.010) | $ 0.040 | $ 0.070 | $ (0.060) | $ (0.250) | $ (0.010) | $ (0.130) | $ 0.16 | $ (0.45) | $ (2.72) |
Diluted net income (loss) per share | $ 0.060 | $ (0.010) | $ 0.040 | $ 0.070 | $ (0.060) | $ (0.250) | $ (0.010) | $ (0.130) | $ 0.16 | $ (0.45) | $ (2.72) |
Schedule I - Parent Company F70
Schedule I - Parent Company Financial Statement (Condensed Unconsolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 19,669 | $ 20,474 | $ 25,357 | $ 69,051 |
Receivables: | ||||
Other | 100 | 120 | ||
Prepayments and other | 2,791 | 4,040 | ||
Total current assets | 36,452 | 38,475 | ||
Equipment and other | 9,432 | 9,779 | ||
Property, plant and equipment, gross, Total | 409,367 | 409,010 | ||
Accumulated depreciation, depletion, and amortization | (386,146) | (380,991) | ||
Net property and equipment | 23,221 | 28,019 | ||
Other noncurrent assets: | ||||
Restricted cash | 967 | 918 | ||
Deferred tax asset | 1,260 | |||
Total assets | 79,633 | 81,032 | ||
Current liabilities: | ||||
Accounts payable | 11,584 | 19,096 | ||
Accrued liabilities and other | 12,991 | 10,506 | ||
Total current liabilities | 46,588 | 55,554 | ||
Long term debt | 2,309 | 6,940 | ||
Total liabilities | 69,344 | 81,390 | ||
Commitments and contingencies | ||||
VAALCO Energy Inc. shareholders’ equity (deficit): | ||||
Preferred stock, none issued, 500,000 shares authorized, $25 par value | ||||
Common stock, $0.10 par value; 100,000,000 shares authorized, 66,443,971 and 66,109,565 shares issued, 58,862,876 and 58,544,470 shares outstanding | 6,644 | 6,611 | ||
Additional paid-in capital | 71,251 | 70,268 | ||
Less treasury stock, 7,581,095 and 7,555,095 shares at cost | (37,953) | (37,933) | ||
Accumulated deficit | (29,653) | (39,304) | ||
Total shareholders' equity (deficit) | 10,289 | (358) | $ 26,076 | 180,463 |
Total liabilities and shareholders' equity (deficit) | 79,633 | 81,032 | ||
VAALCO ENERGY, INC. [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 576 | 1,038 | $ 3,780 | |
Receivables: | ||||
Other | 101 | 21 | ||
Prepayments and other | 599 | 1,696 | ||
Total current assets | 1,276 | 2,755 | ||
Equipment and other | 1,304 | 1,225 | ||
Property, plant and equipment, gross, Total | 1,304 | 1,225 | ||
Accumulated depreciation, depletion, and amortization | (721) | (497) | ||
Net property and equipment | 583 | 728 | ||
Other noncurrent assets: | ||||
Restricted cash | 50 | |||
Deferred tax asset | 1,260 | |||
Investment in subsidiaries | 8,091 | |||
Total assets | 11,260 | 3,483 | ||
Current liabilities: | ||||
Accounts payable | 98 | 310 | ||
Accrued liabilities and other | 873 | 1,024 | ||
Total current liabilities | 971 | 1,334 | ||
Losses in excess of investment in subsidiaries | 2,507 | |||
Total liabilities | 971 | 3,841 | ||
VAALCO Energy Inc. shareholders’ equity (deficit): | ||||
Common stock, $0.10 par value; 100,000,000 shares authorized, 66,443,971 and 66,109,565 shares issued, 58,862,876 and 58,544,470 shares outstanding | 6,644 | 6,611 | ||
Additional paid-in capital | 71,251 | 70,268 | ||
Less treasury stock, 7,581,095 and 7,555,095 shares at cost | (37,953) | (37,933) | ||
Accumulated deficit | (29,653) | (39,304) | ||
Total shareholders' equity (deficit) | 10,289 | (358) | ||
Total liabilities and shareholders' equity (deficit) | $ 11,260 | $ 3,483 |
Schedule I - Parent Company F71
Schedule I - Parent Company Financial Statement (Condensed Unconsolidated Balance Sheet - Additional Information) (Details) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 66,443,971 | 66,109,565 |
Common Stock, Shares, Outstanding | 58,862,876 | 58,554,470 |
Treasury stock, shares | 7,581,095 | 7,555,095 |
VAALCO ENERGY, INC. [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 66,443,971 | 66,109,565 |
Common Stock, Shares, Outstanding | 58,862,876 | 58,554,470 |
Treasury stock, shares | 7,581,095 | 7,555,095 |
Schedule I - Parent Company F72
Schedule I - Parent Company Financial Statement (Statements Of Condensed Unconsolidated Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating costs and expenses: | |||||||||||
Depreciation, depletion and amortization | $ 6,457 | $ 6,926 | $ 32,998 | ||||||||
General and administrative expense | 10,377 | 9,561 | 12,294 | ||||||||
Shareholder matters | (332) | 2,372 | |||||||||
Total operating costs and expenses | $ 14,413 | $ 14,454 | $ 15,068 | $ 13,055 | $ 14,249 | $ 10,919 | $ 14,232 | $ 24,509 | 56,990 | 63,909 | 182,459 |
Operating income (loss) | 2,495 | 3,721 | 5,587 | 8,148 | 819 | 3,690 | 4,615 | (13,515) | 19,951 | (4,391) | (103,106) |
Other income (expense): | |||||||||||
Other, net | 2,113 | (2,015) | (1,536) | ||||||||
Total other income (expense) | 699 | (4,628) | (2,861) | ||||||||
Income (loss) from continuing operations before income taxes | 20,650 | (9,019) | (105,967) | ||||||||
Income taxes (benefit) expense | 10,378 | 9,248 | 14,587 | ||||||||
Net income (loss) | $ 3,431 | $ (322) | $ 2,283 | $ 4,259 | $ (3,641) | $ (14,767) | $ (518) | $ (7,624) | 9,651 | (26,550) | (158,656) |
VAALCO ENERGY, INC. [Member] | |||||||||||
Operating costs and expenses: | |||||||||||
Depreciation, depletion and amortization | 260 | 244 | 240 | ||||||||
General and administrative expense | 8,489 | 7,935 | 7,550 | ||||||||
Shareholder matters | (332) | 2,372 | |||||||||
Total operating costs and expenses | 8,749 | 7,847 | 10,162 | ||||||||
Other operating income, net | (12) | 16 | |||||||||
Operating income (loss) | (8,761) | (7,831) | (10,162) | ||||||||
Other income (expense): | |||||||||||
Interest exense, net | (2) | (181) | |||||||||
Other, net | (1,044) | (1,985) | (469) | ||||||||
Equity in subsidiary earnings (losses) | 18,196 | (16,732) | (146,495) | ||||||||
Total other income (expense) | 17,152 | (18,719) | (147,145) | ||||||||
Income (loss) from continuing operations before income taxes | 8,391 | (26,550) | (157,307) | ||||||||
Income taxes (benefit) expense | (1,260) | 1,349 | |||||||||
Net income (loss) | $ 9,651 | $ (26,550) | $ (158,656) |
Schedule I - Parent Company F73
Schedule I - Parent Company Financial Statement (Statements Of Condensed Unconsolidated Cash Flows) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income (loss) | $ 3,431 | $ (322) | $ 2,283 | $ 4,259 | $ (3,641) | $ (14,767) | $ (518) | $ (7,624) | $ 9,651 | $ (26,550) | $ (158,656) |
Adjustments to reconcile net income (loss) to net cash provided by | |||||||||||
Depreciation, depletion and amortization | 6,457 | 6,926 | 32,998 | ||||||||
Deferred tax asset | (1,260) | 1,349 | |||||||||
Stock-based compensation | 1,098 | 192 | 3,810 | ||||||||
Commodity derivatives net (gain) loss | (1,032) | (1,711) | |||||||||
Cash settlements received on matured derivative contracts | 195 | ||||||||||
Change in operating assets and liabilities: | |||||||||||
Other receivables | (43) | (18) | (609) | ||||||||
Prepayments and other | 1,646 | 517 | 3,129 | ||||||||
Accounts payable | (7,297) | (15,459) | 30,187 | ||||||||
Accrued liabilities and other | 2,050 | (4,586) | 3,034 | ||||||||
Net cash provided by (used in) operating activities | 6,659 | (3,452) | 38,875 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Decrease in restricted cash | (150) | 15,219 | 5,536 | ||||||||
Net cash used in investing activities | (1,649) | (1,287) | (83,010) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from the issuances of common stock | 39 | 441 | |||||||||
Treasury shares | (20) | (51) | |||||||||
Net cash provided by (used in) financing activities | (5,815) | (144) | 441 | ||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (805) | (4,883) | (43,694) | ||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 20,474 | $ 25,357 | 20,474 | 25,357 | 69,051 | ||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | 19,669 | 20,474 | 19,669 | 20,474 | 25,357 | ||||||
VAALCO ENERGY, INC. [Member] | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income (loss) | 9,651 | (26,550) | (158,656) | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by | |||||||||||
Depreciation, depletion and amortization | 260 | 244 | 240 | ||||||||
Other operating loss, net | 12 | ||||||||||
Deferred tax asset | (1,260) | 1,349 | |||||||||
Stock-based compensation | 1,098 | 192 | 3,810 | ||||||||
Equity in (earnings) loss from subsidiaries | (18,196) | 16,732 | 146,495 | ||||||||
Commodity derivatives net (gain) loss | 1,032 | ||||||||||
Cash settlements received on matured derivative contracts | 195 | ||||||||||
Change in operating assets and liabilities: | |||||||||||
Other receivables | (80) | (21) | 293 | ||||||||
Prepayments and other | (130) | (955) | (236) | ||||||||
Accounts payable | (212) | (658) | 753 | ||||||||
Accrued liabilities and other | (272) | (1,855) | 517 | ||||||||
Net cash provided by (used in) operating activities | (7,902) | (12,871) | (5,435) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Investment in subsidiaries | (7,044) | ||||||||||
Return of investment in subsidiaries | 7,598 | 12,556 | |||||||||
Decrease in restricted cash | (50) | 1,582 | 8,418 | ||||||||
Property and equipment expenditures | (127) | (178) | (160) | ||||||||
Net cash used in investing activities | 7,421 | 13,960 | 1,214 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from the issuances of common stock | 39 | 441 | |||||||||
Treasury shares | (20) | (51) | |||||||||
Net cash provided by (used in) financing activities | 19 | (51) | 441 | ||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (462) | 1,038 | (3,780) | ||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | $ 1,038 | 1,038 | $ 3,780 | ||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 576 | $ 1,038 | $ 576 | $ 1,038 |
Schedule I - Parent Company F74
Schedule I - Parent Company Financial Statement (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
VAALCO ENERGY, INC. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Minimum percent of restricted net assets | 25.00% | 25.00% |