Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.3.1.900
Segment Information
 12 Months Ended
Dec. 31, 2015
Segment Information [Abstract]  
Segment Information

13. SEGMENT INFORMATION

Our operations are based in Gabon, Angola, Equatorial Guinea and the U.S.  Each of our four 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 not allocated to the reportable operating segments. 

Segment activity for the years 2015, 2014 and 2013 and long-lived assets and segment assets at December 31, 2015 and 2014 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2015

 

 

 

 

 

 

 

 

Equatorial

 

 

 

 

Corporate

 

 

 

(in thousands)

 

Gabon

 

Angola

 

Guinea

 

U.S.

 

and Other

 

Total

Revenues-oil and natural gas sales

 

$

 79,947 

 

$

 -

 

$

 -

 

$

 498 

 

$

 -

 

$

 80,445 

Depreciation, depletion and amortization

 

 

 32,125 

 

 

 12 

 

 

 -

 

 

 633 

 

 

 240 

 

 

 33,010 

Impairment of proved properties

 

 

 78,080 

 

 

 -

 

 

 -

 

 

 3,242 

 

 

 -

 

 

 81,322 

Bad debt expense and other

 

 

 2,968 

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

 2,968 

Operating loss

 

 

 (87,243)

 

 

 (40,447)

 

 

 (1,342)

 

 

 (4,366)

 

 

 (10,155)

 

 

 (143,553)

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

 

Angola

 

Guinea

 

U.S.

 

and Other

 

Total

Revenues-oil and natural gas sales

 

$

 126,322 

 

$

 -

 

$

 -

 

$

 1,369 

 

$

 -

 

$

 127,691 

Depreciation, depletion and amortization

 

 

 19,079 

 

 

 12 

 

 

 -

 

 

 901 

 

 

 94 

 

 

 20,086 

Impairment of proved properties

 

 

 98,341 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 98,341 

Bad debt expense and other

 

 

 2,400 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 2,400 

Operating income (loss)

 

 

 (42,105)

 

 

 (3,798)

 

 

 (1,525)

 

 

 (119)

 

 

 (6,859)

 

 

 (54,406)

Interest income (expense), net

 

 

 42 

 

 

 -

 

 

 -

 

 

 -

 

 

 33 

 

 

 75 

Income tax expense

 

 

 22,486 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 22,486 

Additions to property and equipment

 

 

 83,170 

 

 

 3,117 

 

 

 -

 

 

 8 

 

 

 816 

 

 

 87,111 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2013

 

 

 

 

 

 

 

 

Equatorial

 

 

 

 

Corporate

 

 

 

(in thousands)

 

Gabon

 

Angola

 

Guinea

 

U.S.

 

and Other

 

Total

Revenues-oil and natural gas sales

 

$

 167,386 

 

$

 -

 

$

 -

 

$

 1,891 

 

$

 -

 

$

 169,277 

Depreciation, depletion and amortization

 

 

 15,310 

 

 

 28 

 

 

 -

 

 

 1,528 

 

 

 63 

 

 

 16,929 

Bad debt expense and other

 

 

 -

 

 

 3,326 

 

 

 -

 

 

 -

 

 

 -

 

 

 3,326 

Operating income (loss)

 

 

 98,795 

 

 

 (3,018)

 

 

 (768)

 

 

 (11,869)

 

 

 (5,915)

 

 

 77,225 

Interest income (expense), net

 

 

 40 

 

 

 -

 

 

 -

 

 

 -

 

 

 33 

 

 

 73 

Income tax expense

 

 

 34,115 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 34,115 

Additions to property and equipment

 

 

 53,015 

 

 

 629 

 

 

 -

 

 

 -

 

 

 47 

 

 

 53,691 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equatorial

 

 

 

 

Corporate

 

 

 

(in thousands)

 

Gabon

 

Angola

 

Guinea

 

U.S.

 

and Other

 

Total

Long-lived assets as of December 31, 2015

 

$

 21,329 

 

$

 16 

 

$

 10,000 

 

$

 1,234 

 

$

 794 

 

$

 33,373 

Long-lived assets as of December 31, 2014

 

 

 76,247 

 

 

 14,645 

 

 

 10,000 

 

 

 6,359 

 

 

 873 

 

 

 108,124 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets as of December 31, 2015

 

$

 98,858 

 

$

 10,304 

 

$

 10,200 

 

$

 1,470 

 

$

 3,126 

 

$

 123,958 

Total assets as of December 31, 2014

 

 

 192,957 

 

 

 22,305 

 

 

 10,197 

 

 

 6,611 

 

 

 16,779 

 

 

 248,849 

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 have 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 through December of 2015. The contract with Glencore U.K. ends in July 2016. Sales of oil to Glencore U.K. and Total were 38% and 27% of total revenues for 2015, respectively, with less than 1% related to U.S. production.