Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.6.0.2
Segment Information
 12 Months Ended
Dec. 31, 2016
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 management 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 location 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 December 31, 2016, 2015 and 2014 and long-lived assets and segment assets at December 31, 2016 and 2015 are as follows:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Year Ended December 31, 2016



 

 

 

 

Equatorial

 

 

 

 

Corporate

 

 

 

(in thousands)

 

Gabon

 

Guinea

 

U.S.

 

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 

Operating income (loss)

 

 

 3,901 

 

 

 (384)

 

 

 (72)

 

 

 (7,836)

 

 

 (4,391)

Interest income (expense), net

 

 

 (2,614)

 

 

 -

 

 

 -

 

 

 1 

 

 

 (2,613)

Income tax expense

 

 

 9,248 

 

 

 -

 

 

 -

 

 

 -

 

 

 9,248 

Additions to property and equipment

 

 

 (4,242)

 

 

 -

 

 

 -

 

 

 181 

 

 

 (4,061)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Year Ended December 31, 2015



 

 

 

 

Equatorial

 

 

 

 

Corporate

 

 

 

(in thousands)

 

Gabon

 

Guinea

 

U.S.

 

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)

Interest income (expense), net

 

 

 (1,144)

 

 

 -

 

 

 -

 

 

 (181)

 

 

 (1,325)

Income tax expense

 

 

 13,238 

 

 

 -

 

 

 -

 

 

 1,349 

 

 

 14,587 

Additions to property and equipment

 

 

 66,269 

 

 

 -

 

 

 -

 

 

 150 

 

 

 66,419 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Year Ended December 31, 2014



 

 

 

 

Equatorial

 

 

 

 

Corporate

 

 

 

(in thousands)

 

Gabon

 

Guinea

 

U.S.

 

and Other

 

Total

Revenues-oil and natural gas sales

 

$

 126,322 

 

$

 -

 

$

 1,369 

 

$

 -

 

$

 127,691 

Depreciation, depletion and amortization

 

 

 19,079 

 

 

 -

 

 

 901 

 

 

 94 

 

 

 20,074 

Impairment of proved properties

 

 

 98,341 

 

 

 -

 

 

 -

 

 

 -

 

 

 98,341 

Bad debt expense and other

 

 

 2,400 

 

 

 -

 

 

 -

 

 

 -

 

 

 2,400 

Operating income (loss)

 

 

 (42,105)

 

 

 (1,525)

 

 

 (119)

 

 

 (6,856)

 

 

 (50,605)

Interest income (expense), net

 

 

 42 

 

 

 -

 

 

 -

 

 

 33 

 

 

 75 

Income tax expense

 

 

 22,486 

 

 

 -

 

 

 -

 

 

 -

 

 

 22,486 

Additions to property and equipment

 

 

 83,170 

 

 

 -

 

 

 8 

 

 

 816 

 

 

 83,994 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

Equatorial

 

 

 

 

Corporate

 

 

 

(in thousands)

 

Gabon

 

Guinea

 

U.S.

 

and Other

 

Total

Long lived assets from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

as of December 31, 2016

 

$

 17,291 

 

$

 10,000 

 

$

 -

 

$

 728 

 

$

 28,019 

as of December 31, 2015

 

 

 21,329 

 

 

 10,000 

 

 

 1,234 

 

 

 794 

 

 

 33,357 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

as of December 31, 2016

 

$

 64,478 

 

$

 10,122 

 

$

 382 

 

$

 3,911 

 

$

 78,893 

as of December 31, 2015

 

 

 98,858 

 

 

 10,200 

 

 

 1,470 

 

 

 5,045 

 

 

 115,573 

Information about our most significant customers

Prior to the second quarter in 2014, we sold oil from Gabon under contracts with Mercuria Trading NV (“Mercuria”) beginning with the calendar year 2011. Beginning in the second quarter of 2014 and through April 2015, we switched to an agency model by contracting with a third party, The Vitol Group, to sell our crude oil on 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 2016. The contract with Glencore U.K. ends in January 2018. Sales of oil to Glencore were 99.9% of total revenues for 2016, with less than 1% related to U.S. production.