Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Revenue

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Note 6 - Revenue
 3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

6. REVENUE

 

Gabon

 

The Company currently sells crude oil production from Gabon under term crude oil sales and purchase agreements (“COSPAs”) or crude oil sales and marketing agreements ("COSMA or COSMAs"). The following table presents revenues from contracts with customers as well as revenues associated with the obligations under the Etame PSC.

 

   

Three Months Ended March 31,

  
   

2024

    

2023

  

Revenues from customer contracts:

  

(in thousands)

  

Sales under the COSPA or COSMA

   $ 64,788     $ 42,601  

Other items reported in revenue not associated with customer contracts:

                

Carried interest recoupment

     1,174       —  

Royalties

     (8,458 )     (5,864 )

Net revenues

   $ 57,504     $ 36,737  

 

With respect to the government’s share of Profit Oil, the Etame PSC provides that corporate income tax is satisfied through the payment of Profit Oil. In the consolidated statements of operations and comprehensive income, the government’s share of revenues from Profit Oil is reported in revenues with a corresponding amount reflected in the current provision for income tax expense. Payments of the income tax expense are reported in the period that the government takes its Profit Oil in-kind, i.e. the period in which it lifts the crude oil. As of March 31, 2024, the Company has a $37.5 million foreign income tax payable related to Gabon. The Company had an $18.9 million foreign income tax payable as of  December 31, 2023.  

 

Egypt

 

The following table presents revenues in Egypt from contracts with customers: 

 

   

Three Months Ended March 31,

  
   

2024

    

2023

  

Revenues from customer contracts:

  

(in thousands)

  

Gross sales

   $ 63,192     $ 54,621  

Royalties

     (26,120 )     (19,340 )

Selling costs

     (111 )     (497 )

Net revenues

   $ 36,961     $ 34,784  

 

Canada

 

The following table presents revenues in Canada from contracts with customers:

 

   

Three Months Ended March 31,

  
   

2024

    

2023

  

Revenues from customer contracts:

  

(in thousands)

  

Oil revenue

   $ 4,153     $ 6,654  

Gas revenue

     820       958  

NGL revenue

     1,976       2,463  

Royalties

     (1,117 )     (1,193 )

Selling costs

     (143 )     —  

Net revenues

   $ 5,689     $ 8,882  

 

 

Information about the Company’s most significant customers

 

For the three months ended March 31, 2024 the Company had one customer that comprised 100% of its sales for Gabon. In Egypt, one customer made up 100% of revenue.  In Canada, three separate customers made up approximately  40%,  30% and  19% of revenue, respectively.