10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2016

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 01-34525

ERIN ENERGY CORPORATION

Delaware	30-0349798
(State or Other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1330 Post Oak Blvd., Suite 2250, Houston, Texas	77056
(Address of principal executive offices)	(Zip Code)

(713) 797-2940

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	ý
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

At August 1, 2016, there were 212,543,801 shares of common stock, par value $0.001 per share, outstanding.

PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements:	3
	Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015 (unaudited)	3
	Consolidated Statements of Operations for the three and six months ended June 30, 2016 and 2015 (unaudited)	4
	Consolidated Statement of Capital Deficiency for the six months ended June 30, 2016 (unaudited)	5
	Consolidated Statements of Cash Flows for the six months ended June 30, 2016 and 2015 (unaudited)	6
	Notes to Unaudited Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	26
Item 4.	Controls and Procedures	27
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 6.	Exhibits	31
Signatures		32

2

PART I. – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ERIN ENERGY CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except for share and per share amounts)

	June 30,   2016			December 31, 2015
ASSETS
Current assets:
Cash and cash equivalents	$	8,759		$	8,363
Restricted cash	—			8,661
Accounts receivable - trade	3			1,029
Accounts receivable - partners	667			287
Accounts receivable - related party	1,732			1,186
Accounts receivable - other	71			28
Crude oil inventory	5,895			4,789
Prepaids and other current assets	1,363			684
Total current assets	18,490			25,027
Property, plant and equipment:
Oil and gas properties (successful efforts method of accounting), net	329,371			348,331
Other property, plant and equipment, net	1,023			1,174
Total property, plant and equipment, net	330,394			349,505
Other non-current assets	76			67
Total assets	$	348,960		$	374,599
LIABILITIES AND CAPITAL DEFICIENCY
Current liabilities:
Accounts payable and accrued liabilities	$	242,033		$	213,120
Accounts payable and accrued liabilities - related party	29,465			30,133
Short-term note payable	357			—
Current portion of long-term debt, net	3,802			96,558
Total current liabilities	275,657			339,811
Long-term notes payable - related party, net	127,517			120,006
Term loan facility, net	83,441			—
Asset retirement obligations	21,522			20,609
Total liabilities	508,137			480,426
Commitments and contingencies (Note 10)
Capital deficiency:
Preferred stock $0.001 par value - 50,000,000 shares authorized; none issued and outstanding as of June 30, 2016 and December 31, 2015, respectively	—			—
Common stock $0.001 par value - 416,666,667 shares authorized; 212,517,199 and 211,615,773 shares issued as of June 30, 2016 and December 31, 2015, respectively	213			212
Additional paid-in capital	791,453			789,615
Accumulated deficit	(951,434		)	(896,451		)
Treasury stock at cost, 84,185 and -0- shares as of June 30, 2016 and December 31, 2015, respectively	(192		)	—
Total deficit - Erin Energy Corporation	(159,960		)	(106,624		)
Non-controlling interests	783			797
Total capital deficiency	(159,177		)	(105,827		)
Total liabilities and capital deficiency	$	348,960		$	374,599

See accompanying notes to unaudited consolidated financial statements.

3

ERIN ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Revenues:
Crude oil sales, net of royalties	$	23,151		$	—		$	28,080		$	—
Operating costs and expenses:
Production costs	22,123			4,258			44,687			25,573
Crude oil inventory (increase) decrease	729			(9,874		)	(102		)	(9,861		)
Workover expenses	7,585			618			7,585			618
Exploratory expenses	1,200			1,502			3,262			8,017
Depreciation, depletion and amortization	14,856			123			19,668			243
Accretion of asset retirement obligations	461			299			913			876
Loss on settlement of asset retirement obligations	—			3,454			205			3,454
General and administrative expenses	3,396			5,441			7,354			8,932
Total operating costs and expenses	50,350			5,821			83,572			37,852
Operating loss	(27,199		)	(5,821		)	(55,492		)	(37,852		)
Other income (expense):
Currency transaction gain	10,465			555			11,328			1,991
Interest expense	(5,954		)	(4,224		)	(11,379		)	(6,835		)
Total other income (expense), net	4,511			(3,669		)	(51		)	(4,844		)
Loss before income taxes	(22,688		)	(9,490		)	(55,543		)	(42,696		)
Income tax expense	—			—			—			—
Net loss before non-controlling interest	(22,688		)	(9,490		)	(55,543		)	(42,696		)
Net loss attributable to non-controlling interest	116			328			560			475
Net loss attributable to Erin Energy Corporation	$	(22,572	)	$	(9,162	)	$	(54,983	)	$	(42,221	)
Net loss attributable to Erin Energy Corporation per common share:
Basic	$	(0.11	)	$	(0.04	)	$	(0.26	)	$	(0.20	)
Diluted	$	(0.11	)	$	(0.04	)	$	(0.26	)	$	(0.20	)
Weighted average common shares outstanding:
Basic	212,290			211,108			212,067			210,791
Diluted	212,290			211,108			212,067			210,791

See accompanying notes to unaudited consolidated financial statements.

4

ERIN ENERGY CORPORATION

CONSOLIDATED STATEMENT OF CAPITAL DEFICIENCY

For the Six Months Ended June 30, 2016

(Unaudited)

(In thousands)

	Common Stock		Additional Paid-in Capital		Accumulated Deficit			Treasury Stock			Non-controlling Interest			Total Equity
Balance at December 31, 2015	$	212	$	789,615	$	(896,451	)	$	—		$	797		$	(105,827	)
Common stock issued	1		166		—			—			—			167
Stock-based compensation	—		1,619		—			—			—			1,619
Warrants issued with debt	—		53		—			—			—			53
Transfer to treasury upon vesting of restricted stock	—		—		—			(192		)	—			(192		)
Non-controlling interest	—		—		—			—			546			546
Net loss	—		—		(54,983		)	—			(560		)	(55,543		)
Balance at June 30, 2016	$	213	$	791,453	$	(951,434	)	$	(192	)	$	783		$	(159,177	)

See accompanying notes to unaudited consolidated financial statements.

5

ERIN ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	Six Months Ended June 30,
	2016			2015
Cash flows from operating activities
Net loss, including non-controlling interest	$	(55,543	)	$	(42,696	)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation, depletion and amortization	19,668			243
Accretion of asset retirement obligations	913			876
Amortization of debt discount and debt issuance costs	1,789			1,119
Loss on settlement of asset retirement obligations	—			3,454
Foreign currency transaction gain	(11,328		)	(1,991		)
Share-based compensation	1,619			3,434
Payments to settle asset retirement obligations	—			(16,441		)
Change in operating assets and liabilities:
Decrease in accounts receivable	603			470
Increase in crude oil inventory	(102		)	(9,861		)
Increase in prepaids and other current assets	(688		)	(1,234		)
Increase in accounts payable and accrued liabilities	41,895			34,653
Net cash used in operating activities	(1,174		)	(27,974		)
Cash flows from investing activities
Capital expenditures	(9,667		)	(56,741		)
Net cash used in investing activities	(9,667		)	(56,741		)
Cash flows from financing activities
Proceeds from exercise of stock options and warrants	167			1,855
Payments for treasury stock arising from withholding taxes upon restricted stock vesting	(192		)	—
Repayments of term loan facility	(5,981		)	—
Proceeds from short-term notes payable	504			—
Proceeds from notes payable - related party, net	6,129			57,815
Debt issuance costs	(693		)	—
Funds released from restricted cash	8,661			—
Funding from non-controlling interest	—			375
Net cash provided by financing activities	8,595			60,045
Effect of exchange rate changes on cash and cash equivalents	2,642			568
Net decrease in cash and cash equivalents	396			(24,102		)
Cash and cash equivalents at beginning of period	8,363			25,143
Cash and cash equivalents at end of period	$	8,759		$	1,041
Supplemental disclosure of cash flow information
Cash paid for:
Interest, net	$	5,680		$	4,927
Supplemental disclosure of non-cash investing and financing activities:
Issuance of common shares for settlement of liabilities	$	—		$	125
Discount on notes payable pursuant to issuance of warrants	$	53		$	4,484
Reduction in accounts payable from settlement of Northern Offshore contingency	$	—		$	24,307

See accompanying notes to unaudited consolidated financial statements.

6

ERIN ENERGY CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Company Description

Erin Energy Corporation (NYSE MKT: ERN; JSE: ERN) is an independent oil and gas exploration and production company engaged in the acquisition and development of energy resources in Africa. The Company’s asset portfolio consists of nine licenses across four countries covering an area of approximately 10 million acres (approximately 40,000 square kilometers ). The Company owns producing properties and conducts exploration activities offshore Nigeria, conducts exploration activities offshore Ghana and The Gambia, and both onshore and offshore Kenya.

The Company is headquartered in Houston, Texas and has offices in Lagos, Nigeria, Nairobi, Kenya, Banjul, The Gambia, Accra, Ghana and Johannesburg, South Africa.

The Company’s operating subsidiaries include Erin Petroleum Nigeria Limited (“EPNL”), Erin Energy Kenya Limited, Erin Energy Gambia Ltd., and Erin Energy Ghana Limited. The terms “we,” “us,” “our,” “the Company,” and “our Company” refer to Erin Energy Corporation and its subsidiaries.

The Company also conducts certain business transactions with its majority shareholder, CAMAC Energy Holdings Limited (“CEHL”), and its affiliates, which include Allied Energy Plc. (“Allied”). See Note 9 - Related Party Transactions for further information.

In May 2016, Dr. Kase L. Lawal retired from service as a member and Executive Chairman of the Board of Directors and Chief Executive Officer. John Hofmeister, a then current member of our Board of Directors, succeeded Dr. Lawal as the Chairman of the Board of Directors, and Segun Omidele, the Company's then Chief Operating Officer, succeeded Dr. Lawal as the Chief Executive Officer.

2. Basis of Presentation and Recently Issued Accounting Standards

The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned direct and indirect subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). All significant intercompany transactions and balances have been eliminated in consolidation. The unaudited consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the consolidated financial position and results of operations for the indicated periods. All such adjustments are of a normal recurring nature. This Form 10-Q should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 24, 2016.

Use of Estimates

The preparation of the Company's consolidated financial statements in conformity with U.S. GAAP requires management to make estimates based on certain assumptions. Estimates affect the reported amounts of assets and liabilities, disclosure of contingent liabilities, and the reported amounts of revenues and expenses attributable to the reporting periods. Accordingly, accounting estimates in conformity with U.S. GAAP require the exercise of judgment. These estimates and assumptions used in the preparation of the Company’s consolidated financial statements are based on information available as of the date of the consolidated financial statements, and while management believes that the estimates and assumptions are appropriate, actual results could differ from management's estimates.

Estimates that may have a significant effect on the Company’s financial position and results from operations include share-based compensation assumptions, oil and natural gas reserve quantities, impairments, depletion and amortization relating to oil and natural gas properties, asset retirement obligation assumptions, and income taxes. The accounting estimates used in the preparation of the Company's consolidated financial statements may change as new events occur, more experience is acquired, additional information is obtained and our operating environment changes.

Capitalized Interest

The Company capitalizes interest costs for qualifying oil and gas properties. The capitalization period begins when expenditures are incurred on qualified properties, activities begin which are necessary to prepare the property for production, and interest costs have been incurred. The capitalization period continues as long as these events occur. Capitalized interest is added to the cost of

7

ERIN ENERGY CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

the underlying assets and is depleted using the unit-of-production method in the same manner as the underlying assets.

During the six months ended June 30, 2016 and 2015, the Company capitalized nil and $2.2 million, respectively, in interest cost as additions to property, plant and equipment related to the Oyo field redevelopment campaign.

Treasury Stock

Treasury stock is reported at cost and is included in the accompanying consolidated balance sheets. Pursuant to the Company’s withholding tax policy with respect to vested restricted stock awards, the Company may withhold, on a cashless basis, a number of shares needed to settle statutory withholding tax requirements. During the six months ended June 30, 2016, 84,185 shares were withheld for taxes at a total cost of $0.2 million. The Company had no treasury stock withheld for taxes during the six months ended June 30, 2015.

The following table sets forth certain information with respect to the withholding and related repurchases of our common stock during the quarter ended June 30, 2016.

	Total Number of Shares Purchased (1)	Average Price Paid Per Share
January 1 - January 31, 2016	3,643	$	4.02
February 1 - February 29, 2016	62,152	2.16
March 1 - March 31, 2016	17,318	2.31
May 1 - May 31, 2016	1,072	$	2.48
Total	84,185	$	2.28

(1) All shares repurchased were surrendered by employees to settle tax withholding obligations upon the vesting of restricted stock awards.

Net Earnings (Loss) Per Common Share

Basic net earnings or loss per common share is computed by dividing net earnings or loss by the weighted average number of shares of common stock outstanding at the end of the reporting period. Diluted net earnings or loss per share is computed by dividing net earnings or loss by the fully dilutive common stock equivalent, which consists of shares outstanding, augmented by potentially dilutive shares issuable upon the exercise of the Company's stock options, stock warrants, non-vested restricted stock awards, and conversion of the Convertible Subordinated Note, calculated using the treasury stock method.

The table below sets forth the number of stock options, stock warrants, non-vested restricted stock, and shares issuable upon conversion of the Convertible Subordinated Note that were excluded from dilutive shares outstanding during the three and six months ended June 30, 2016 and 2015, as these securities are anti-dilutive because the Company was in a loss position during each period.

	Three Months Ended June 30,		Six Months Ended June 30,
(In thousands)	2016	2015	2016	2015
Stock options	183	1,476	250	1,119
Stock warrants	1	1,046	—	426
Unvested restricted stock awards	1,993	1,348	1,769	1,324
Convertible note	—	11,632	—	—
	2,177	15,502	2,019	2,869

Upon the occurrence of certain events, the Company is also contingently liable to make additional payments to Allied, under a Transfer Agreement entered into in November 2013 by the Company, its affiliates and Allied (the “Transfer Agreement”), up to an additional amount totaling $50.0 million in cash, or the equivalent in shares of the Company’s common stock, at Allied’s option. See Note 10 - Commitments and Contingencies for further information.

8

ERIN ENERGY CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Fair Value Measurements

Fair value is defined as the amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in an orderly transaction between market participants at the measurement date. The established framework for measuring fair value establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and includes certain disclosure requirements. Fair value estimates are based on either (i) actual market data or (ii) assumptions that other market participants would use in pricing an asset or liability, including estimates of risk.

There are three levels of valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows:

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an on-going basis.

Level 2 - Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Substantially all of these inputs are observable in the marketplace throughout the term, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace.

Level 3 - Inputs that are unobservable and significant to the fair value measurement (including the Company’s own assumptions in determining fair value).

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, inventory, deposits, accounts payable and accrued liabilities, and debt at floating interest rates, approximate their fair values at June 30, 2016 and December 31, 2015, respectively, principally due to the short-term nature, maturities or nature of interest rates of the above listed items.

Reclassification

Certain reclassifications have been made to the 2015 consolidated financial statements to conform to the 2016 presentation. These reclassifications were not material to the accompanying consolidated financial statements.

Recently Issued Accounting Standards

In February 2016, the FASB issued ASU No. 2016-2, Leases (Topic 842). ASU 2016-2 is aimed at making leasing activities more transparent and comparable, and requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. ASU 2016-2 is effective for the Company in the fiscal year beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted. The Company is still evaluating the impact of the adoption of this standard on its financial statements.

In March 2016, the FASB issued ASU No. 2016-07, Investments-Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. ASU No. 2016-07 eliminates the requirement to retroactively adopt the equity method of accounting. ASU No. 2016-07 is effective for interim and annual periods beginning after December 15, 2016, and the Company will adopt this standards update, as required, beginning with the first quarter of 2017. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Consideration (Reporting Revenue Gross versus Net). ASU No. 2015-08 requires that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2016-08 is effective for interim and annual periods beginning after

9

ERIN ENERGY CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

December 15, 2017, and the Company will adopt this standards update, as required, beginning with the first quarter of 2018. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The areas of simplification in ASU No. 2016-09 involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU No. 2016-09 is effective for interim and annual periods beginning after December 15, 2016, and the Company will adopt this standards update, as required, beginning with the first quarter of 2017. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU No. 2016-10 clarifies two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. ASU No. 2016-10 is effective for interim and annual periods beginning after December 15, 2017, and the Company will adopt this standards update, as required, beginning with the first quarter of 2018. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2016, the FASB issued ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. ASU No. 2016-11 rescinds SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extractive Activities - Oil and Gas, effective upon adoption of Topic 606. ASU No. 2016-11 is effective for interim and annual periods beginning after December 15, 2017, and the Company will adopt this standards update, as required, beginning with the first quarter of 2018. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The core principle of ASU No. 2016-12 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2016-12 is effective for interim and annual periods beginning after December 15, 2017, and the Company will adopt this standards update, as required, beginning with the first quarter of 2018. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

Adoption of Previously Issued ASUs

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs be presented as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. Prior to the issuance of ASU 2015-03, the Company recorded and presented debt issuance costs as part of prepaids and other current assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirement for debt issuance costs. The adoption of ASU 2015-03 resulted in the reclassification of approximately $1.6 million unamortized debt issuance costs related to the Company's Term Loan Facility (see Note 8 - Debt) from prepaids and other current assets to current portion of long-term debt within its consolidated balance sheets as of December 31, 2015. Other than this reclassification, the adoption of ASU 2015-03 did not have an impact on the Company's consolidated financial statements.

3. Liquidity Matters and Going Concern

The Company incurred losses from operations for the three and six months ended June 30, 2016. As of June 30, 2016, the Company's total current liabilities of $275.7 million exceeded its total current assets of $18.5 million, resulting in a working capital deficit of $257.2 million. As a result of the current low commodity prices and the Company’s low oil production volumes due to the recent mechanical problem which was resolved earlier in the year associated with well Oyo-8, the Company has not been able to generate sufficient cash from operations to satisfy certain obligations as they became due.

Well Oyo-7 is currently shut-in as a result of an emergency shut-in of the Oyo field production that occurred in early July of this year. This has resulted in a loss of approximately 1,400 BOPD. The Company is currently evaluating various technical options to optimize economic results from the Oyo field, including but not limited to, attempting a nitrogen lifting exercise to bring back production on well Oyo-7. 

10

ERIN ENERGY CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The Company is currently pursuing a number of actions, including (i) obtaining additional funds through public or private financing sources, (ii) restructuring existing debts from lenders, (iii) obtaining forbearance of debt from trade creditors, (iv) reducing ongoing operating costs, (v) minimizing projected capital costs for the 2016 exploration and development campaign and (vi) farming-out a portion of our rights to certain of our oil and gas properties. There can be no assurances that sufficient liquidity can be raised from one or more of these actions or that these actions can be consummated within the period needed to meet certain obligations.

The Company's consolidated financial statements have been prepared under the assumption that it will continue as a going concern, which assumes the continuity of operations, the realization of assets and the satisfaction of liabilities as they come due in the normal course of business. Although the Company believes that it will be able to generate sufficient liquidity from the measures described above, its current circumstances raise substantial doubt about its ability to continue to operate as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

4. Property, Plant and Equipment

Property, plant and equipment were comprised of the following:

(In thousands)	June 30,   2016			December 31, 2015
Wells and production facilities	$	328,787		$	329,133
Proved properties	386,196			386,196
Work in progress and exploration inventory	66,822			65,043
Oilfield assets	781,805			780,372
Accumulated depletion	(462,874		)	(442,481		)
Oilfield assets, net	318,931			337,891
Unevaluated leaseholds	10,440			10,440
Oil and gas properties, net	329,371			348,331
Other property and equipment	3,092			2,963
Accumulated depreciation	(2,069		)	(1,789		)
Other property and equipment, net	1,023			1,174
Total property, plant and equipment, net	$	330,394		$	349,505

All of the Company’s oilfield assets are located offshore Nigeria in the Oil Mining Leases 120 and 121 (the "OMLs"). “Work-in-progress and exploration inventory” includes suspended costs for wells that are not yet completed, as well as warehouse inventory items purchased as part of the redevelopment plan of the Oyo field.

The Company’s unevaluated leasehold costs include costs to acquire the rights to the exploration acreage in its various oil and gas properties.

5. Suspended Exploratory Well Costs - Work in Progress

In November 2013, the Company achieved both its primary and secondary drilling objectives for the well Oyo-7. The primary drilling objective was to establish production from the existing Pliocene reservoir. The secondary drilling objective was to confirm the presence of hydrocarbons in the deeper Miocene formation. Hydrocarbons were encountered in three Miocene intervals totaling approximately 65 feet, as interpreted by the logging-while-drilling (“LWD”) data. Plans are underway to secure a rig to drill at least one exploration well in the nearby G-Prospect. The primary objective of the G-Prospect is to target the same Miocene-age sediments as the ones found in the Oyo-7 exploratory drilling objective. Suspended exploratory well costs were $26.5 million at both June 30, 2016 and December 31, 2015 for the costs related to the Miocene exploratory drilling activities.

In August 2014, the Company drilled well Oyo-8 to a total vertical depth of approximately 6,059 feet (approximately 1,847 meters) and successfully encountered four new oil and gas reservoirs in the eastern fault block, with total gross hydrocarbon thickness of 112 feet, based on results from the LWD data, reservoir pressure measurement, and reservoir fluid sampling. Management has completed a detailed evaluation of the results and has future development plans in the area. Suspended exploratory well costs were $6.5 million at both June 30, 2016 and December 31, 2015 for the costs related to the Pliocene exploration drilling activities in the eastern fault block.

11

ERIN ENERGY CORPORATION

(formerly CAMAC ENERGY INC.)

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

6. Accounts Payable and Accrued Liabilities

The table below sets forth a summary of the Company’s accounts payable and accrued liabilities at June 30, 2016 and December 31, 2015:

(In thousands)	June 30, 2016		December 31, 2015
Accounts payable - vendors	$	175,417	$	153,085
Amounts due to government entities	62,059		53,119
Accrued interest	2,497		2,510
Accrued payroll and benefits	1,078		629
Other liabilities	982		3,777
	$	242,033	$	213,120

7. Asset Retirement Obligations

The Company’s asset retirement obligations primarily represent the estimated fair value of the amounts that will be incurred to plug, abandon and remediate its producing properties at the end of their productive lives. Significant inputs used in determining such obligations include, but are not limited to, estimates of plugging and abandonment costs, estimated future inflation rates and changes in property lives. The inputs used in the fair value determination were based on Level 3 inputs, which were essentially management's assumptions.

On a quarterly basis, the Company reviews the assumptions used to estimate the expected cash flows required to settle the asset retirement obligations, including changes in estimated probabilities, amounts and timing of the settlement of the asset retirement obligations, as well as changes in the legal obligation for each of its properties. Changes in any one or more of these assumptions may cause revisions in the estimated liabilities for the corresponding assets. The following summarizes changes in the Company’s asset retirement obligations during the six months ended June 30, 2016 (in thousands):

Balance at January 1, 2016	$	20,609
Accretion expense	913
Balance at June 30, 2016	$	21,522

8. Debt

Short-Term Debt:

Short-Term Borrowing - TOTSA Advance

In May 2016, the Company received $4.7 million as an advance under a prepayment agreement with TOTSA Total Oil Trading SA ("TOTSA")(the “May Advance”). Interest accrued on the May Advance at the rate of the 60-day LIBOR plus 5% per annum. Repayment of the May Advance was made from proceeds received from the June crude oil lifting.

Short-Term Note Payable

In June 2016, the Company borrowed approximately $0.5 million under a 30-day Promissory Note agreement entered into with a Nigerian bank (the “2016 Short-Term Note”), and had a facility flat fee of 2.5%. As of June 30, 2016, the Company recognized an unrealized foreign currency gain of $0.1 million, reducing the balance under the 2016 Short-Term Note to $0.4 million. The 2016 Short-Term Note was renewed for another 30 days in July 2016 at a flat fee facility rate of 2.5%, and was fully repaid in July 2016.

Long-Term Debt- Term Loan Facility:

In September 2014, the Company, through its wholly owned subsidiary EPNL, entered into the Term Loan Facility with Zenith Bank PLC ("Zenith"). 90.0% of the Term Loan Facility was available in U.S. dollars, while the remaining 10% was available in

12

ERIN ENERGY CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Nigerian Naira. U.S. dollar borrowings under the Term Loan Facility currently bear interest at the rate of 11.1%. The obligations under the Term Loan Facility include a legal charge over the OMLs and an assignment of proceeds from oil sales. The obligations of EPNL have been guaranteed by the Company and rank in priority with all its other obligations. Proceeds from the Term Loan Facility were used for the further expansion and development of the Oyo field offshore Nigeria.

In June 2016, the Term Loan Facility was modified contingent upon the signing of a loan agreement, which was signed in August 2016. The modification put in place a twelve month moratorium on principal payments and extended the term of the Term Loan Facility until February 2021. Additionally, it reduced the funding requirement of the debt service reserve account (“DSRA”) to an amount equal to one quarter of interest until the price of oil exceeds $55 per barrel, at which time an amount equal to two quarters of interest will then be required.

Upon executing the Term Loan Facility, the Company paid fees totaling $2.6 million. Upon modification of the Term Loan Facility, additional fees of $1.4 million were incurred. These fees were recorded as debt issuance cost and are being amortized over the life of the Term Loan Facility using the effective interest method. As of June 30, 2016, $2.6 million of the debt issuance costs remained unamortized.

Under the Term Loan Facility, the following events, among others, constitute events of default: EPNL failing to pay any amounts due within thirty days of the due date; bankruptcy, insolvency, liquidation or dissolution of EPNL; a material breach of the Loan Agreement by EPNL that remains unremedied within thirty days of written notice by EPNL; or a representation or warranty of EPNL proves to have been incorrect or materially inaccurate when made. Upon any event of default, all outstanding principal and interest under any loans will become immediately due and payable.

As of June 30, 2016, the Company was out of compliance with the DSRA funding requirement. This was brought into compliance in July 2016 with the Company making the required deposit.

Further, Zenith has the right to review the terms and conditions of the Term Loan Facility.

During the six months ended June 30, 2016, the Company made payments of $0.4 million and $5.6 million for the principal repayment of the Naira portion of the loan due on March 31, 2016 and for the U.S. dollar principal that was due as of December 31, 2015, respectively.

As of June 30, 2016, the Company recognized an unrealized foreign currency gain of $3.9 million on the Naira portion of the loan, reducing the balance under the Term Loan Facility to $87.2 million, net of debt discount. Of this amount, $83.4 million was classified as long-term and $3.8 million as short-term. Accrued interest for the Term Loan Facility was $2.5 million as of June 30, 2016. Scheduled principal repayments on the outstanding balance on the Term Loan Facility are as follows (in thousands):

Scheduled payments by year	Principal
2016	$	—
2017	13,475
2018	19,764
2019	21,561
2020 and thereafter	35,036
Total principal payments	89,836
Less: Unamortized debt issuance costs	2,593
Total Term Loan Facility, net	$	87,243

Long-Term Debt – Related Party:

As of June 30, 2016, the Company’s long-term related party debt was $127.5 million, consisting of $24.9 million owed under a 2011 Promissory Note, $50.0 million owed under a 2014 Convertible Subordinated Note, $46.9 million, net of discount, owed under a 2015 Convertible Note, and $5.7 million owed under a 2016 Promissory Note.

Allied, a related party, is the holder of each of the 2011 Promissory Note, the 2014 Convertible Subordinated Note, and the 2015 Convertible Note (collectively the "Allied Notes"). Each of the Allied Notes contains certain default and cross-default provisions,

13

ERIN ENERGY CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

including failure to pay interest and principal amounts when due and default under other indebtedness. As of June 30, 2016, the Company was not in compliance with certain default provisions of the Allied Notes with respect to the payment of quarterly interest. Further, the risk of cross-default exists for each of the Allied Notes if the holder of the Term Loan Facility exercises its right to terminate the Term Loan Facility and accelerate its maturity. Allied has agreed to waive its rights under all default provisions of each of the Allied Notes through July 2017.

2011 Promissory Note

The Company has a $25.0 million borrowing facility under a Promissory Note (the “2011 Promissory Note”) with Allied. Interest accrues on the outstanding principal under the 2011 Promissory Note at a rate of the 30-day LIBOR plus 2% per annum, payable quarterly. In October 2015, the 2011 Promissory Note was amended to extend the maturity date by one year to July 30, 2017. The stock of the Company’s subsidiary that holds the exploration licenses in The Gambia and Kenya were pledged as collateral to secure the 2011 Promissory Note, pursuant to an Equitable Share Mortgage arrangement. The entire $25.0 million facility amount can be utilized for general corporate purposes. As of June 30, 2016, the outstanding principal and accrued interest under the 2011 Promissory Note were $24.9 million and $1.2 million, respectively.

2014 Convertible Subordinated Note

As partial consideration in connection with the February 2014 acquisition of the Allied Assets, the Company issued a $50.0 million Convertible Subordinated Note in favor of Allied (the “2014 Convertible Subordinated Note”). Interest on the 2014 Convertible Subordinated Note accrues at a rate per annum of one-month LIBOR plus 5%, payable quarterly in cash until the maturity of the 2014 Convertible Subordinated Note five years from the closing of the Allied Transaction.

At the election of the holder, the 2014 Convertible Subordinated Note is convertible into shares of the Company’s common stock at an initial conversion price of $4.2984 per share, subject to anti-dilution adjustments. The 2014 Convertible Subordinated Note is subordinated to the Company’s existing and future senior indebtedness and is subject to acceleration upon an Event of Default (as defined in the 2014 Convertible Subordinated Note). The following events, among others, constitute an Event of Default under the 2014 Convertible Subordinated Note: the Company failing to pay interest within thirty days of the due date; the Company failing to pay principal when due; bankruptcy, insolvency, liquidation or dissolution of the Company; a material breach of the 2014 Convertible Subordinated Note by the Company that remains unremedied within ten days of such material breach; or a representation or warranty of the Company proves to have been incorrect or materially inaccurate when made. Upon any event of default, all outstanding principal and interest under any loans will become immediately due and payable. As of June 30, 2016, the Company owed $6.7 million in interest under the 2014 Convertible Subordinated Note.

The Company may, at its option, prepay the 2014 Convertible Subordinated Note in whole or in part, at any time, without premium or penalty. Further, the 2014 Convertible Subordinated Note is subject to mandatory prepayment upon (i) the Company’s issuance of capital stock or incurrence of indebtedness, the proceeds of which the Company does not apply to repayment of senior indebtedness or (ii) any capital markets debt issuance to the extent the net proceeds of such issuance exceed $250.0 million. Allied may assign all or any part of its rights and obligations under the 2014 Convertible Subordinated Note to any person upon written notice to the Company. As of June 30, 2016, the outstanding principal under the 2014 Convertible Subordinated Note was $50.0 million.

2015 Convertible Note

In March 2015, the Company entered into a new borrowing facility with Allied in the form of a Convertible Note (the “2015 Convertible Note”), allowing the Company to borrow up to $50.0 million for general corporate purposes. In March 2016, the maturity date of the 2015 Convertible Note was extended to December 2017. Interest accrues at the rate of LIBOR plus 5%, and is payable quarterly. 

The 2015 Convertible Note is convertible into shares of the Company’s common stock upon the occurrence and continuation of an event of default, at the sole option of the holder. The number of shares issuable upon conversion is equal to the sum of the principal amount and the accrued and unpaid interest divided by the conversion price, defined as the volume weighted average of the closing sales prices on the NYSE MKT for a share of common stock for the five complete trading days immediately preceding the conversion date.

14

ERIN ENERGY CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

During the three months ended June 30, 2016, the Company borrowed an additional $0.5 million under the 2015 Convertible Note and issued to Allied warrants to purchase approximately 48,291 shares of the Company's common stock with an exercise price of ranging from $2.00 to $2.13 per share with a total fair value of approximately $0.1 million.

As of June 30, 2016, the Company had borrowed $48.5 million under the note and issued to Allied warrants to purchase approximately 2.7 million shares of the Company’s common stock at prices ranging from $2.00 to $7.85 per share. The total fair market value of the warrants amounting to $5.0 million based on the Black-Scholes option pricing model was recorded as a debt discount, and is being amortized using the effective interest method over the life of the note. As of June 30, 2016, the unamortized balance of the discount was $1.6 million.

Additional warrants are issuable in connection with future borrowings, with the per share price for those warrants determined based on the market price of the Company’s common stock at the time of such future borrowings. As of June 30, 2016, the outstanding balance of the 2015 Convertible Note, net of discount, was $46.9 million. Accrued interest on the 2015 Convertible Note was $3.4 million as of June 30, 2016.

2016 Promissory Note

In March 2016, the Company borrowed $3.0 million under a short-term Promissory Note agreement entered into with an entity related to the Company's majority shareholder, which accrued interest at a rate of the 30-day LIBOR plus 7% per annum.

In April 2016, the Company borrowed an additional sum of $1.0 million from the same lender, under another short-term Promissory Note, which also accrued interest at a rate of the 30-day LIBOR plus 7% per annum.

In May 2016, the Lender of the two Promissory Notes agreed to combine both notes into a $10.0 million borrowing facility (the "2016 Promissory Note") with a maturity date of September 2017. Interest accrues at a rate of the 30-day LIBOR plus 7% per annum.

During May and June 2016, the Company had additional drawings under the 2016 Promissory Note totaling $1.7 million. As of June 30, 2016, the outstanding balance under the 2016 Promissory Note was $5.7 million. Accrued interest on the 2016 Promissory Note was $0.1 million as of June 30, 2016.

In August 2016, the Company had an additional drawing under the 2016 Promissory Note amounting to $0.5 million.

9. Related Party Transactions

Assets and Liabilities

The Company has transactions in the normal course of business with its shareholders, CEHL and their affiliates. The following table sets forth the related party assets and liabilities as of June 30, 2016 and December 31, 2015:

(In thousands)	June 30,   2016		December 31, 2015
Accounts receivable, CEHL	$	1,732	$	1,186
Accounts payable and accrued liabilities, CEHL	$	29,465	$	30,133
Long-term notes payable - related party, CEHL	$	127,517	$	120,006

As of June 30, 2016 and December 31, 2015, the related party receivable balances of $1.7 million and $1.2 million, respectively, were for advance payments made for certain transactions on behalf of affiliates.

As of June 30, 2016 and December 31, 2015, the Company owed $29.5 million and $30.1 million, respectively, to affiliates primarily for logistical and support services in relation to the Company's oilfield operations in Nigeria, as well as accrued interest on the various related party notes payable. As of June 30, 2016 and December 31, 2015, accrued and unpaid interest on the various related party notes payable were $11.7 million and $8.3 million, respectively.

As of June 30, 2016, the Company had a combined note payable balance of $127.5 million owed to affiliates, consisting of a $50.0 million 2014 Convertible Subordinated Note, $24.9 million in borrowings under the 2011 Promissory Note, a $46.9 million borrowing under the 2015 Convertible Note, net of discount, and $5.7 million under the 2016 Promissory Note. As of December 31, 2015, the Company had a combined note payable balance of $120.0 million owed to an affiliate, consisting of the $50.0 million

15

ERIN ENERGY CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

2014 Convertible Subordinated Note, $25.0 million in borrowings under the 2011 Promissory Note, and $45.0 million borrowing under the 2015 Convertible Note, net of discount. See Note 8 – Debt for further information relating to the notes payable transactions.

Results from Operations

The table below sets forth a summary of transactions included in the Company's results of operations that were incurred with affiliates during the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2016		2015		2016		2015
Total operating expenses, CEHL	$	2,336	$	2,967	$	4,019	$	4,923
Interest expense, CEHL	$	1,786	$	1,389	$	3,462	$	2,421

Certain affiliates of the Company provide procurement and logistical support services to the Company’s operations. In connection therewith, during the three months ended June 30, 2016 and 2015, the Company incurred operating costs amounting to approximately $2.3 million and $3.0 million, respectively, and during the six months ended June 30, 2016 and 2015, the Company incurred operating costs amounting to approximately $4.0 million and $4.9 million, respectively

During the three months ended June 30, 2016 and 2015, the Company incurred interest expense, excluding debt discount amortization, totaling approximately $1.8 million and $1.4 million, respectively, in relation to related party notes payable. During the six months ended June 30, 2016 and 2015, the Company incurred interest expense totaling approximately $3.5 million and $2.4 million, respectively.

10. Commitments and Contingencies

Commitments

In February 2014, a long-term contract was signed for the floating, production, storage, and offloading vessel (“FPSO”) Armada Perdana, which is the vessel currently connected to the Company’s productive wells, Oyo-7 and Oyo-8, offshore Nigeria. The contract provides for an initial term of seven years beginning January 1, 2014, with an automatic extension for an additional term of two years unless terminated by the Company with prior notice. The FPSO can process up to 40,000 barrels of liquid per day, with a storage capacity of approximately one million barrels. The annual minimum contractual commitment per the terms of the agreement is approximately $48.4 million per year through 2020.

The Company also has commitments related to four production sharing contracts with the Government of the Republic of Kenya (the “Kenya PSCs”), two Petroleum Exploration, Development & Production Licenses with the Republic of The Gambia (the “Gambia Licenses”), and one Petroleum Agreement with the Republic of Ghana. In all cases, the Company entered into these commitments through a subsidiary. To maintain compliance and ownership, the Company is required to fulfill certain minimum work obligations and to make certain payments as stated in each of the Kenya PSCs, the Gambia Licenses, and the Ghana Petroleum Agreement.

Contingencies

Legal Contingencies and Proceedings

From time to time, the Company may be involved in various legal proceedings and claims in the ordinary course of business. As of June 30, 2016, and through the filing date of this report, the Company does not believe the ultimate resolution of such actions or potential actions of which the Company is currently aware will have a material effect on its consolidated financial position or results of operations.

On January 22, 2016, a request for arbitration was filed with the London Court of International Arbitration by Transocean Offshore Gulf of Guinea VII Limited and Indigo Drilling Limited, as Claimants, against the Company and its Nigerian subsidiary, Erin Petroleum Nigeria Limited (fka CAMAC Petroleum Limited), as Respondents (the “Arbitration”). The Arbitration is in relation to a drilling contract entered into by the Claimants and CAMAC Petroleum Limited, and a parent company guarantee provided by the Company in relation thereto. The Claimants are seeking an order that the Respondents pay the sum of approximately $20.2 million together with interest and costs. The parties are in the process of trying to settle this matter and have agreed to extend deadlines in the Arbitration pending resolution of a settlement.

16

ERIN ENERGY CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

On February 5, 2016, a class action and derivative complaint was filed in the Delaware Chancery Court purportedly on behalf of the Company and on behalf of a putative class of persons who were stockholders as of the date the Company (1) acquired the Allied Assets pursuant to the Transfer Agreement and (2) issued shares to the PIC in a private placement (collectively the “February 2014 Transactions”). The complaint alleges the February 2014 Transactions were unfair to the Company and purports to assert derivative claims against (1) the seven individuals who served on our Board at the time of the February 2014 Transactions and (2) our majority shareholder, CEHL. The complaint also purports to assert a direct breach of fiduciary duty claim on behalf of the putative class against the seven individuals who served on our Board at the time of the February 2014 Transactions on the grounds that they purportedly caused the Company to disseminate a false and misleading proxy statement in connection with the February 2014 Transactions, and a direct claim for aiding and abetting against Dr. Lawal. The plaintiff is seeking, on behalf of the Company and the putative class, an undisclosed amount of compensatory damages. The Company is named solely as a nominal defendant against whom the plaintiff seeks no recovery.  On March 3, 2016, all of the defendants, including the Company, filed motions to dismiss the complaint. A hearing on this motion has been set for September 21, 2016.

On May 13, 2016, CEONA Contracting (UK) Limited initiated arbitration proceedings against the Company for $2.9 million, together with costs, expenses and interest, for work done in relation to the Company's ordinary course of business.  The parties are in the process of finalizing a settlement agreement.

On July 29, 2016, a judgment was entered against the Company in the amount of $2.7 million, including $0.3 million interest claimed under contractual terms, in relation to amounts due to a contractor (Polarcus MC Ltd.) in the ordinary course of business.

Unrecognized Loss Contingency

As of June 30, 2016, the Company has not accrued penalty and interest related to certain outstanding transactional tax obligations in Nigeria, including withholding taxes, value-added taxes, Nigerian Oil and Gas Industry Content Development Act (NCD) tax, Cabotage taxes, and Niger Delta Development Corporation taxes (NDDC). As of the date of this report, the Company believes that, based on its experience with local practices in Nigeria, the likelihood of being assessed penalty and interest is reasonably possible, with an estimated liability up to $11.1 million.

Contingency under the Allied Transfer Agreement

As provided for under the Transfer Agreement with Allied, the Company is required to make the following additional payments upon the occurrence of certain future events: (i) $25.0 million cash or the equivalent in shares of the Company’s common stock within fifteen days following the approval of a development plan by the Nigerian Department of Petroleum Resources ("DPR") with respect to a first new discovery of hydrocarbons in a non-Oyo field area; and (ii) $25.0 million cash or the equivalent in shares of the Company’s common stock within fifteen days starting from the commencement of the first hydrocarbon production in commercial quantities in a non-Oyo field area. The number of shares to be issued shall be determined by calculating the average closing price of the Company’s common stock over a period of thirty days, counted back from the first business day immediately prior to the approval of a development plan by DPR or the date of the first hydrocarbon production in commercial quantities, as applicable.

Contingency under the 2015 Convertible Note

As part of the condition to the extension of the maturity date of the 2015 Convertible Note, which extension was entered into in March 2016, the Company is required to (i) pay to Allied an amount equal to ten percent (10%) of any successful debt fundraising event completed during the remaining term of the 2015 Convertible Note; and (ii) pay to Allied an amount equal to twenty percent (20%) of any successful equity fundraising event completed during the remaining term of the 2015 Convertible Note.

11. Stock-Based Compensation

Stock Options

The table below sets forth a summary of stock option activity for the six months ended June 30, 2016.

17

ERIN ENERGY CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

	Shares Underlying Options (In Thousands)		Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term (Years)
Outstanding at December 31, 2015	2,532		$2.10	1.6
Granted	—		$—	—
Exercised	(885	)	$1.77	—
Forfeited	(27	)	$3.42	—
Expired	(131	)	$3.76	—
Outstanding at June 30, 2016	1,489		$2.45	2.0
Expected to vest	1,047		$2.09	1.3
Exercisable at June 30, 2016	442		$3.30	3.5

During the six months ended June 30, 2016, the Company issued 288,841 shares of common stock as a result of the exercise of stock options, of which 194,643 shares of common stock were issued as a result of the cashless exercise of 791,165 options. Also, during the six months ended June 30, 2016, options to purchase 130,714 shares of common stock expired, and options to purchase 27,052 shares were forfeited.

Stock Warrants

The table below sets forth a summary of stock warrant activity for the six months ended June 30, 2016.

	Shares Underlying Warrants (In Thousands)	Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term (Years)
Outstanding at December 31, 2015	2,935	$3.61	4.2
Granted	48	$2.07	4.8
Exercised	—	$—	—
Forfeited	—	$—	—
Expired	—	$—	—
Outstanding at June 30, 2016	2,983	$3.59	3.7
Expected to vest	—	$—
Exercisable at June 30, 2016	2,983	$3.59	3.7

During the six months ended June 30, 2016 and in connection with the execution of the 2015 Convertible Note, the Company issued warrants to purchase 48,291 shares of the Company's common stock at exercise prices ranging from $2.00 and $2.13 per share. The warrants are exercisable at any time starting from the date of issuance and have a five-year term.

Restricted Stock Awards

The table below sets forth a summary of restricted stock awards (“RSAs”) activity for the six months ended June 30, 2016.

	Shares (In Thousands)		Weighted-Average Grant Date Price Per Share
Restricted Stock
Non-vested at December 31, 2015	1,114		$	3.21
Granted	1,717		$	2.16
Vested	(613	)	$	3.54
Forfeited	(75	)	$	2.65
Non-vested as of June 30, 2016	2,143		$	2.29

During the six months ended June 30, 2016, the Company granted officers, directors, and employees a total of approximately 1.7 million shares of restricted common stock, including 0.5 million performance-based restricted stock awards ("PBRSA"), with vesting periods varying from immediate vesting to 36 months. During the same period, 74,949 shares of restricted common stock were forfeited.

18

ERIN ENERGY CORPORATION

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

With regards to the PBRSA, each grant will vest if the individuals remain employed three years from the date of grant and the Company achieves specific performance objectives at the end of the designated performance period. Up to 50% additional shares may be awarded if performance objectives are exceeded. None of the PBRSAs will vest if certain minimum performance goals are not met. The performance conditions are based on the Company’s total shareholder return over the performance period compared to an industry peer group of companies. Total estimated compensation expense is $0.4 million over three years.

12. Segment Information

The Company’s current operations are based in Nigeria, Kenya, The Gambia, and Ghana. Management reviews and evaluates the operations of each geographic segment separately. Operations include exploration for and production of hydrocarbons where commercial reserves have been found and developed. Revenues and expenditures are recognized at the relevant geographical location. The Company evaluates each segment based on operating income (loss).

Segment activity for the three and six months ended June 30, 2016 and 2015 are as follows:

(In thousands)	Nigeria			Kenya			The Gambia			Ghana			Corporate and Other			Total
Three months ended June 30,
2016
Revenues	$	23,151		$	—		$	—		$	—		$	—		$	23,151
Operating loss	$	(23,294	)	$	(509	)	$	(249	)	$	(232	)	$	(2,915	)	$	(27,199	)
2015
Revenues	$	—		$	—		$	—		$	—		$	—		$	—
Operating income (loss)	$	1,211		$	(555	)	$	(291	)	$	(655	)	$	(5,531	)	$	(5,821	)
Six months ended June 30,
2016
Revenues	$	28,080		$	—		$	—		$	—		$	—		$	28,080
Operating loss	$	(46,454	)	$	(1,051	)	$	(523	)	$	(1,118	)	$	(6,346	)	$	(55,492	)
2015
Revenues	$	—		$	—		$	—		$	—		$	—		$	—
Operating loss	$	(21,025	)	$	(6,106	)	$	(662	)	$	(949	)	$	(9,110	)	$	(37,852	)

Total assets by segment as of June 30, 2016 and December 31, 2015, are as follows:

(In thousands)	Nigeria		Kenya		The Gambia		Ghana		Corporate and Other		Total
Total Assets
As of June 30, 2016	$	339,821	$	1,352	$	3,014	$	3,191	$	1,582	$	348,960
As of December 31, 2015	$	366,766	$	1,399	$	3,016	$	2,447	$	971	$	374,599

13. Subsequent Events

Subsequent to June 30, 2016, the Company issued 26,602 shares of common stock as a result of the exercise of stock options.

19

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our Business

Erin Energy Corporation, a Delaware corporation, is an independent oil and gas exploration and production company focused on energy resources in Africa. Our strategy is to acquire and develop high-potential exploration and production assets in Africa, and to explore and develop those assets through strategic partnerships with national oil companies, indigenous local partners and other independent oil companies. We seek to build and operate a strategic portfolio of high-impact exploration and near-term development projects with significant production, reserves and resources growth potential. 

We actively manage investments and on-going operations by limiting capital exposure through farm-outs at various stages of exploration and development to share risks and costs. We prioritize on building a strong technical and operational team and place an emphasis on the utilization of modern oil field technologies that mature our assets, reduce the cost of our projects and improve the efficiency of our operations. 

Our shares are traded on both the NYSE MKT and on the Johannesburg Stock Exchange ("JSE") under the symbol “ERN.”

Our asset portfolio consists of nine licenses across four countries covering an area of approximately 10 million acres (approximately 40,000 square kilometers). We own producing properties offshore Nigeria and conduct exploration activities as an operator offshore Nigeria and conduct exploration activities as an operator onshore and offshore Kenya, offshore The Gambia, and offshore Ghana.

Our operating subsidiaries include Erin Petroleum Nigeria Limited, Erin Energy Kenya Limited, Erin Energy Gambia Ltd., and Erin Energy Ghana Limited.

We conduct certain business transactions with our majority shareholder, CAMAC Energy Holdings Limited (“CEHL”) and its affiliates, which include CAMAC International Nigeria Limited (“CINL”) and Allied. See Note 9 - Related Party Transactions to the Notes to Unaudited Consolidated Financial Statements for further information.

In May 2016, Dr. Kase L. Lawal retired from service as a member and Executive Chairman of the Board of Directors and Chief Executive Officer. John Hofmeister, a then current member of our Board of Directors, succeeded Dr. Lawal as the Chairman of the Board of Directors, and Segun Omidele, our then Chief Operating Officer, succeeded Dr. Lawal as the Chief Executive Officer.

Nigeria

The Company currently owns 100% of the economic interests in the Oil Mineral Leases ("OMLs"), which include the currently producing Oyo field.

In early May 2016, with the help of a light intervention vessel, the Company successfully completed well repair operations to resolve the mechanical problem related to well Oyo-8 and successfully resumed production from the well. Combined daily production from both the Oyo-7 and Oyo-8 wells during the three months ended June 30, 2016 was approximately 6,200 BOPD (approximately 5,400 BOPD net to the Company after royalty).

Current plans include drilling a development well in the Oyo field, and drilling an exploration well in the Miocene formation of the OMLs, subject to capital and rig availability.

Kenya

In May 2012, the Company, through a wholly owned subsidiary, entered into four production sharing contracts with the Government of the Republic of Kenya, covering onshore exploration blocks L1B and L16, and offshore exploration blocks L27 and L28 (the “Kenya PSCs”). Each block requires specific work commitments to be completed by the end of the respective license periods. The Company is the operator of all blocks with the Government having the right to participate up to 20%, either directly or through an appointee, in any area subsequent to declaration of a commercial discovery. The Company is responsible for all exploration expenditures.

The Company is currently in the First Additional Exploration Period for both onshore blocks, which will last through July 2017. In accordance with the Kenya PSCs, the Company is obligated, for each block, to (i) acquire, process and interpret high density 300 square kilometer 3-D seismic data at a minimum expenditure of $12.0 million and (ii) drill one exploration well to a minimum depth of 3,000 meters at a minimum expenditure of $20.0 million. The Company plans to pursue completion of the work program and is considering the possibility of farming-out a portion of its rights to both blocks to potential partners.

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In August 2015, the Company received approval from the Kenya Ministry of Energy and Petroleum for an 18-month extension of the Initial Exploration Period for offshore blocks L27 and L28, which will now last through February 2017. The remaining contractual obligation under the initial exploration period is for the Company to acquire, process and interpret 1,500 square kilometers of 3-D seismic data over both offshore blocks. The Company plans to pursue completion of the work program, and is also considering the possibility of farming-out a portion of its rights to both offshore blocks to potential partners. Upon completion of the work program, the Company has the right to apply for up to two additional two-year exploration periods, with specified additional minimum work obligations, including the acquisition of seismic data and the drilling of one exploratory well on each block during each additional period.

The Gambia

In May 2012, the Company, through a wholly owned subsidiary, signed two Petroleum Exploration, Development & Production Licenses with The Republic of The Gambia, for offshore exploration blocks A2 and A5 (the “Gambia Licenses”). For both blocks, the Company is the operator, with the Gambian National Petroleum Company (“GNPCo”) having the right to elect to participate up to a 15% interest, following approval of a development and production plan. The Company is responsible for all expenditures prior to such approval even if the GNPCo elects to participate. 

The term of the initial exploration period for both blocks A2 and A5, now extended through December 2018, require for the Company to (i) complete the processing and interpretation of approximately 1,500 square kilometers of 3-D seismic data that was acquired in September 2015 and (ii) drill one exploration well on either block A2 or A5 and evaluate the drilling results. The 3-D seismic processing by an outside contractor is ongoing and is expected to be completed by the third quarter of 2016. The Company intends to pursue completion of the work program, and is also considering the possibility of farming-out a portion of its rights to both blocks to potential partners.

Ghana

In April 2014, the Company, through an indirect 50%-owned subsidiary, signed a Petroleum Agreement with the Republic of Ghana (the “Petroleum Agreement”) relating to the Expanded Shallow Water Tano block offshore Ghana ("ESWT"). The Contracting Parties, which hold 90% of the participating interest in the block, are Erin Energy Ghana Limited as the operator, GNPC Exploration and Production Company Limited, and Base Energy (collectively the “Contracting Parties”), holding 60%, 25%, and 15% share of the participating interest of the Contracting Parties, respectively. The Ghana National Petroleum Corporation initially has a 10% carried interest through the exploration phase, and will have the option to acquire an additional paying interest of up to 10% following a declaration of commercial discovery. The Company owns 50% of its subsidiary Erin Energy Ghana Limited. The remaining 50% interest is owned by an affiliate of the Company’s majority shareholder. 

The ESWT block contains three previously discovered fields (the "Fields") and the work program requires the Contracting Parties to determine, within nine months of the effective date of the Petroleum Agreement, the economic viability of developing the Fields. In addition, the Petroleum Agreement provides for an initial exploration period of two years from the effective date of the Petroleum Agreement, with specified work obligations during that period, including the reprocessing of existing 2-D and 3-D seismic data and the drilling of one exploration well on the ESWT block.

The Petroleum Agreement became effective in January 2015. Having completed the initial technical and commercial evaluation of the Fields, the Contracting Parties concluded that certain fiscal terms in the Petroleum Agreement had to be adjusted in order to achieve commerciality of the Fields under current economic conditions. The Contracting Parties have presented this conclusion to the relevant government entities. The Ghanian Government is currently reviewing the requests for adjustment of the fiscal terms, and has granted Erin Energy an extension of the Initial Exploration Period for eighteen months until the end of July 2018.

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Results of Operations

The following discussion pertains to the Company’s results of operations, financial condition, liquidity and capital resources and should be read together with our unaudited consolidated financial statements and the notes thereto contained in this report, and our audited consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2015, filed on March 24, 2016 with the SEC.

Three months ended June 30, 2016, compared to three months ended June 30, 2015

Revenues

Revenue is recognized when an oil lifting occurs. Crude oil revenues for the three months ended June 30, 2016 were $23.2 million, as compared to nil for the same period in 2015. For the three months ended June 30, 2016, the Company sold approximately 508,000 net barrels of oil at an average price of $45.58/Bbl. There were no oil liftings during the three months ended June 30, 2015.

During the three months ended June 30, 2016 and 2015, the average daily production from the Oyo field, net of royalty, over the number of days production occurred, was approximately 5,400 BOPD and 6,700 BOPD, respectively.

Operating Costs and Expenses

Production costs for the three months ended June 30, 2016 were $22.1 million, as compared to $4.3 million for the same period in 2015. Production costs include costs directly related to the production of hydrocarbons. In June 2015, the operator of the FPSO agreed to a price reduction for the operating day rates incurred by the Company for the period of July 2014 through April 2015, which resulted in a $26.0 million reduction in production costs recognized in June 2015. There was no such reduction in 2016. The Company matches production expenses with crude oil sales. Any production expenses associated with unsold crude oil inventory are capitalized with a corresponding offset to operating costs. The capitalized crude oil inventory costs are subsequently expensed when crude oil is sold.

During the three months ended June 30, 2016, the Company incurred $7.6 million of workover expenses, as compared to expenditures of $0.6 million for the same period in 2015. The increase in workover expenses is due to the light intervention of well Oyo-8. During the same period 2015, the Company spent $0.6 million to repair a control module associated with its well Oyo-4 that is currently operating as a gas injection well.

During the three months ended June 30, 2016, the Company incurred $1.2 million of exploration expenses, including $0.5 million spent in Kenya, $0.3 million spent in Nigeria, $0.2 million spent in Ghana, and $0.2 million spent in The Gambia. During the three months ended June 30, 2015, the Company incurred $1.5 million of exploration expenses, including $0.5 million spent in Kenya, $0.3 million in The Gambia, and $0.7 million spent in Ghana for exploration activities.

Depreciation, depletion and amortization (“DD&A”) expenses for the three months ended June 30, 2016, were $14.9 million, as compared to $0.1 million for the same period in 2015. DD&A expenses were higher during the three months ended June 30, 2016 because there were no oil liftings during the same period in 2015. The average depletion rate for the three months ended June 30, 2016 was $29.25/Bbl, as compared to nil in the same period in 2015.

Accretion of asset retirement obligations ("ARO") for the three months ended June 30, 2016, was $0.5 million as compared to $0.3 million for the 2015 period. Increase in ARO accretion expense in 2016 is primarily due to the addition of accretion expense related to the development of wells Oyo-7 and Oyo-8.

There was no plug and abandonment ("P&A") activity during the three months ended June 30, 2016. In April 2015, the Company completed P&A activities for well Oyo-6 that was previously shut-in. Actual P&A expenditures exceeded estimated P&A liabilities by $3.5 million. Accordingly, the Company recognized a $3.5 million loss on settlement of its ARO during the three months ended June 30, 2015.

General and administrative ("G&A") expenses for the three months ended June 30, 2016 were $3.4 million, as compared to $5.4 million in the same period in 2015. G&A decreased in 2016 mainly due to the cost reduction initiatives implemented during 2016, primarily related to employee costs and professional and consulting fees.

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Other Income (Expense), Net

Other income for the three months ended June 30, 2016 was $4.5 million, consisting of a $10.5 million gain on foreign currency transactions, partially offset by $6.0 million interest expense on borrowings. Other expense for the same period in 2015 was $3.7 million consisting of $4.2 million in interest expense on borrowings, net of $1.0 million capitalized interest, partially offset by $0.6 million gain on foreign currency transactions.

Income Taxes

Income taxes were nil for each of the three months ended June 30, 2016 and 2015. The Company did not have any taxable income from its oil and gas activities in Nigeria in these respective periods.

Six months endedJune 30, 2016, compared to six months ended June 30, 2015

Revenues

Revenue is recognized when an oil lifting occurs. Crude oil revenues for the six months ended June 30, 2016 were $28.1 million, as compared to nil for the same period in 2015. For the six months ended June 30, 2016, the Company sold approximately 669,000 net barrels of oil at an average price of $41.95/Bbl. There were no oil liftings during the six months ended June 30, 2015.

During the six months ended June 30, 2016 and 2015, the average daily production from the Oyo field, net of royalty, over the number of days production occurred, was approximately 3,600 BOPD and 6,700 BOPD, respectively.

Operating Costs and Expenses

Production costs for the six months ended June 30, 2016 were $44.7 million, as compared to expenditures of $25.6 million for the same period in 2015. Production costs include costs directly related to the production of hydrocarbons. In June 2015, the operator of the FPSO agreed to a price reduction for the operating day rates incurred by the Company for the period of July 2014 through April 2015, which resulted in a $26.0 million reduction in production costs recognized in June 2015. There was no such reduction in 2016. The Company matches production expenses with crude oil sales. Any production expenses associated with unsold crude oil inventory are capitalized with a corresponding offset to operating costs. The capitalized crude oil inventory costs are subsequently expensed when crude oil is sold.

During the six months ended June 30, 2016, the Company incurred $7.6 million of workover expenses, as compared to expenditures of $0.6 million for the same period in 2015. The increase in workover expenses is due to the light intervention of well Oyo-8. During the same period 2015, the Company spent $0.6 million to repair a control module associated with its well Oyo-4 that is currently operating as a gas injection well.

During the six months ended June 30, 2016, the Company incurred $3.3 million of exploration expenses, including $1.1 million spent in Ghana, $1.0 million spent in Kenya, $0.7 million spent in Nigeria, and $0.5 million spent in The Gambia. During the six months ended June 30, 2015, the Company incurred $8.0 million of exploration expenses, including $5.4 million spent onshore Kenya primarily for the 2-D seismic acquisition and interpretation, $0.7 million offshore Kenya, $0.7 million in The Gambia, $0.3 million in Nigeria, and $0.9 million in Ghana for exploration activities.

DD&A expenses for the six months ended June 30, 2016, were $19.7 million, as compared to $0.2 million for the same period in 2015. DD&A expenses were higher during the six months ended June 30, 2016 because there were no oil liftings during the same period in 2015. The average depletion rate for the six months ended June 30, 2016 was $29.39/Bbl, as compared to nil in the same period in 2015.

Accretion of ARO for both the six months ended June 30, 2016 and 2015 was $0.9 million.

The Company recorded P&A expenses of $0.2 million during the six months ended June 30, 2016. In April 2015, the Company completed P&A activities for well Oyo-6 that was previously shut-in. Additional P&A expenditures paid in the six months ended June 30, 2015, in relation to well Oyo-6 P&A activities were $3.5 million. Accordingly, the Company recognized this cost as a loss on settlement of its ARO during 2015.

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G&A expenses for the six months ended June 30, 2016 were $7.4 million, as compared to $8.9 million in the same period in 2015. G&A decreased in 2016 mainly due to the cost reduction initiatives implemented during 2016, primarily related to employee costs and professional and consulting fees.

Other Income (Expense), Net

Other expense for the six months ended June 30, 2016 was $0.1 million, consisting of an $11.3 million gain on foreign currency transactions, partially offset by $11.4 million interest expense on borrowings. Other expense for the same period in 2015 was $4.8 million, consisting of $6.8 million in interest expense on borrowings, net of $2.2 million capitalized interest, partially offset by $2.0 million gain on foreign currency transactions. The increase in interest expense was mainly due to the increase in the average outstanding borrowings during 2016 as compared to 2015, and that no interest was capitalized during 2016.

Income Taxes

Income taxes were nil for each of the six months ended June 30, 2016 and 2015. The Company did not have any taxable income from its oil and gas activities in Nigeria in these respective periods.

Headline Earnings 

In addition to the Company’s primary listing on the NYSE MKT, the Company’s common stock is also traded on the JSE. The JSE requires for the Company to file certain documents that it files with the SEC. The JSE requires that we calculate Headline Earnings Per Share (“HEPS”) which, per the SEC, is considered a non-GAAP measurement.

As defined in the Circular 3/2009 of The South African Institute of Chartered Accountants, headline earnings is an additional earnings number that excludes certain separately identifiable re-measurements, net of related tax, and related non-controlling interest.

The number of shares used to calculate basic and diluted HEPS is the same as basic and diluted EPS. During the three and six months ended June 30, 2016 and 2015, there were no separate identifiable re-measurements required and headline earnings was the same as net loss per share as disclosed on the unaudited consolidated statements of operations. Therefore, HEPS for the three months ended June 30, 2016 and 2015, was a loss of $(0.11) and $(0.04), respectively, and for the six months ended June 30, 2016 and 2015, was a loss of $(0.26) and $(0.20), respectively.

Liquidity

Cash Flows from Operating Activities

Cash used in operating activities in the six months ended June 30, 2016 decreased by $26.8 million as compared to the same period in 2015 primarily due to a combination of higher revenues, use of vendor financing and higher non-cash adjustments to net loss.

Cash Flows from Investing Activities

Cash used in investing activities for the six months ended June 30, 2016 was $9.7 million, as compared to $56.7 million for the same period in 2015. Cash used in investing activities for both periods was used primarily to settle outstanding liabilities associated with additions to property, plant, and equipment for the Oyo field redevelopment campaign in the OMLs.

Cash Flows from Financing Activities

Net cash provided by financing activities of $8.6 million in the six months ended June 30, 2016, consisted of $6.0 million principal repayment of our Term Loan Facility, $0.7 million payment for debt issuance costs, and $0.2 million payment to settle withholding tax obligations upon vesting of restricted stock awards, partially offset by $8.7 million funds released from restricted cash, $6.1 million inflows from short-term borrowings from a related party, $0.5 million proceeds from a short-term note payable, and $0.2 million proceeds from the exercise of stock options. Net cash provided by financing activities of $60.0 million for the six months ended June 30, 2015, consisted of $1.9 million proceeds from the issuance of common stock arising from warrant and option exercises, $44.0 million borrowings under the 2015 Convertible Note, $13.8 million borrowings under the Promissory Note, and $0.4 million funding received from a related party owning a non-controlling interest in the Company's Ghana subsidiary.

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Capital Resources

Our primary cash requirements are for capital expenditures for the continued development of the Oyo field in Nigeria, operating expenditures for the Oyo field, exploration activities in unevaluated leaseholds, working capital needs, and interest and principal payments under current indebtedness.

The Company incurred losses from operations for the three and six months ended June 30, 2016. As of June 30, 2016, the Company's total current liabilities of $275.7 million exceeded its total current assets of $18.5 million, resulting in a working capital deficit of $257.2 million. As a result of the current low commodity prices and the Company’s low oil production volumes due to the recent mechanical problem which was resolved earlier in the year associated with well Oyo-8, the Company has not been able to generate sufficient cash from operations to satisfy certain obligations as they became due.

Well Oyo-7 is currently shut-in as a result of an emergency shut-in of the Oyo field production that occurred in early July of this year. This has resulted in a loss of approximately 1,400 BOPD. The Company is currently evaluating various technical options to optimize economic results from the Oyo field, including but not limited to, attempting a nitrogen lifting exercise to bring back production on well Oyo-7. 

The Company is currently pursuing a number of actions, including (i) obtaining additional funds through public or private financing sources, (ii) restructuring existing debts from lenders, (iii) obtaining forbearance of debt from trade creditors, (iv) reducing ongoing operating costs, (v) minimizing projected capital costs for the 2016 exploration and development campaign and (vi) farming-out a portion of our rights to certain of our oil and gas properties. There can be no assurances that sufficient liquidity can be raised from one or more of these actions or that these actions can be consummated within the period needed to meet certain obligations.

In February 2016, the Company lifted and sold approximately 183,000 Bbls of crude oil (approximately 161,000 Bbls net to the Company). Net proceeds to the Company were approximately $4.9 million.

In April 2016, the Company lifted and sold approximately 159,000 Bbls of crude oil (approximately 140,000 Bbls net to the Company). Net proceeds to the Company were approximately $5.6 million.

In June 2016, the Company lifted and sold approximately 418,000 Bbls of crude oil (approximately 368,000 Bbls net to the Company). Net proceeds to the Company were approximately $17.6 million.

In August 2016, the Company received $6.0 million as an advance under a prepayment agreement with TOTSA (the “August Advance”). Interest accrues on the August Advance at the rate of the 60-day LIBOR plus 5% per annum. Repayment of the August Advance will be made from proceeds to be received from the planned August 2016 crude oil lifting.

Although we believe that we will be able to generate sufficient liquidity from the measures described above, our current circumstances raise substantial doubt about our ability to continue to realize the carrying value of our assets and operate as a going concern.

Off-Balance Sheet Arrangements

From time-to-time, we may enter into arrangements that can give rise to off-balance sheet obligations. As of June 30, 2016, material off-balance sheet obligations include operating leases for the FPSO and certain employment contracts. Other than the material off-balance sheet arrangements discussed above, no other arrangements are likely to have a current or future material effect on our financial condition, results from operations, liquidity, capital expenditures or capital resources.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. All statements, other than statements of historical fact, in this report, including, without limitation, statements regarding our future financial position, business strategy, budgets, projected revenues, projected costs and plans and objectives of management for future operations, are, or may be deemed to be, forward-looking statements. Such forward-looking statements involve assumptions, known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company, to be materially different from historical earnings and those presently anticipated or projected or any future results, performance or achievements expressed or implied by such forward-looking statements contained in this report.

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In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “will likely,” or similar expressions. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct. We caution you not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Important factors that could affect our financial performance and that could cause actual results for future periods to differ materially from our expectations include, but are not limited to:

• the supply, demand and market prices of oil and natural gas;

• our current and future indebtedness;

• our ability to raise capital to fund our current and future operations;

• our ability to develop oil and gas reserves;

• competition from other companies in the energy market;

• political instability and foreign government regulations over international operations;

• our lack of diversification of production and reserves;

• compliance and enforcement of restriction on production and exports;

• compliance and enforcement of environmental laws and regulations;

• our ability to achieve profitability;

• our dependency on third parties to enable us to produce and deliver oil and gas; and

• other factors disclosed under Item 1. Description of Business, Item 1A. Risk Factors, Item 2. Properties, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Item 7A. Quantitative and Qualitative Disclosures About Market Risk of our Annual Report on Form 10-K for the year ended December 31, 2015, and elsewhere in this report.

We have based our forward-looking statements on our management’s beliefs and assumptions based on information available to our management at the time the statements are made. We caution you that assumptions, beliefs, expectations, intentions and projections about future events may and often do vary materially from actual results. Therefore, we cannot assure you that actual results will not differ materially from those expressed or implied by our forward-looking statements.

For a detailed description of these and other factors that could cause actual results to differ materially from those expressed in any forward-looking statement, please see “Risk Factors” in Item 1A of Part II of this report and in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016 and in our Annual Report on Form 10-K for the year ended December 31, 2015. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on our forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and, except as required by law, we undertake no duty to update or revise any forward-looking statement.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company may be exposed to certain market risks related to changes in foreign currency exchange, interest rates, and commodity prices.

Foreign Currency Exchange Risk

Our results of operations and financial conditions are affected by currency exchange rates. While oil sales are denominated in U.S. dollars, portions of our capital and operating costs in Nigeria are denominated in Naira, the Nigerian local currency. Similarly, portions of our exploration costs in Kenya, The Gambia, and Ghana are denominated in each country’s respective local currency.

Historically, the exchange rate between the U.S. dollar and the local currencies in the countries in which we operate has fluctuated widely in response to international political conditions, general economic conditions, and other factors beyond our control.

The weighted average exchange rate between the U.S. dollar and the Nigerian Naira was 184.10 Naira per each U.S. dollar for the six months ended June 30, 2016. For the six months ended June 30, 2016, a 10% fluctuation in the weighted average exchange rate between the U.S. dollar and the Nigerian Naira would have had an approximate $4.4 million impact on our capital and operating costs in Nigeria.

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To date, we have not engaged in hedging activities to hedge our foreign currency exposure in our foreign operations. In the future, we may enter into hedging instruments to manage our foreign currency exchange risk or continue to be subject to exchange rate risk.

Commodity Price Risk

As an independent oil producer, our revenue, other income and profitability, reserve values, access to capital and future rate of growth are substantially dependent upon the prevailing prices of crude oil. Prevailing prices for such commodities are subject to wide fluctuations in response to relatively minor changes in supply and demand and a variety of additional factors beyond our control. Prices received for oil production have been volatile and unpredictable, and such volatility is expected to continue.

Historically, realized commodity prices received for our crude oil sales have been tied to the Brent oil prices. Prices received have been volatile and unpredictable. For the six months ended June 30, 2016, a $10.00 fluctuation in the prices received for our crude oil sales would have had an approximate $6.7 million impact on our revenues.

We do not currently engage in hedging activities to hedge our exposure to commodity price risks. In the future, we may enter into hedging instruments to manage our exposure to fluctuations in commodity prices.

Interest Rate Risk

We are exposed to changes in interest rates, primarily from possible fluctuations in the London Interbank Borrowing Rate (“LIBOR”). The interest rates on our debt obligations are stated at floating rates tied to the LIBOR. Currently, we do not use interest rate derivative instruments to manage exposure to interest rate changes. For the six months ended June 30, 2016, the weighted average interest rate on our variable rate debt was 8.5%. Assuming our current level of borrowings, a 100 basis point increase in the interest rates we pay under our various debt facilities would result in an increase of our interest expense by $2.2 million over a twelve month period.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company’s reports under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Management of the Company, with the participation of its Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures as of June 30, 2016. Based on their evaluation, as of the end of the period covered by this Form 10-Q, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There have not been any changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The disclosures required in this Item 1 are included in Note 10 - Commitments and Contingencies in the Notes to the Unaudited Consolidated Financial Statements included in Part I, Financial Information, Item 1, Financial Statements and incorporated herein by reference.

Item 1A. Risk Factors

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The following risk factors update the Risk Factors included in our Annual Report on Form 10-K filed with the SEC on March 24, 2016 for the fiscal year ended December 31, 2015 (the “Annual Report”). Except as set forth below, there have not been any material changes to the risk factors previously disclosed in Part I, Item 1A of the Annual Report.

We have substantial indebtedness and may incur substantially more debt. Higher levels of indebtedness make us more vulnerable to economic downturns and adverse developments in our business.

As of June 30, 2016, we had approximately $50.0 million outstanding in aggregate principal under the 2014 Convertible Subordinated Note, $46.9 million, net of discount, under the 2015 Convertible Note, $87.2 million, net of discount, under the Term Loan Facility, $24.9 million under the 2011 Promissory Note, and $5.7 million under a 2016 Promissory Note, and we may incur additional indebtedness in the future. Our level of indebtedness has, or could have, important consequences to our business because:

• a substantial portion of our cash flows from operations will be dedicated to interest and principal payments and may not be available for operations, working capital, capital expenditures, expansion, acquisitions, general corporate or other purposes;

• it may impair our ability to obtain additional financing in the future for acquisitions, capital expenditures or general corporate purposes;

• it may limit our flexibility in planning for, or reacting to, changes in our business and industry; and

• we may be substantially more leveraged than some of our competitors, which may place us at a relative competitive disadvantage and make us more vulnerable to downturns in our business, our industry or the economy in general.

In addition, the terms of the Term Loan Facility restrict, and the terms of any future indebtedness including any future credit facility may restrict, our ability to incur additional indebtedness and grant liens because of debt or financial covenants we are, or may be, required to meet. Thus, we may not be able to obtain sufficient capital to grow our business or implement our business strategy and may lose opportunities to acquire interests in oil properties or related businesses because of our inability to fund such growth.

Our ability to comply with restrictions and covenants, including those in the Term Loan Facility or in any future credit facility, is uncertain and will be affected by the levels of cash flow from our operations and events or circumstances beyond our control. Our failure to comply with any of the restrictions and covenants in the Term Loan Facility could result in a default, which could permit the lenders to accelerate repayments and foreclose on the collateral securing such indebtedness.

Events of default may occur under the Allied related party notes, subject to waivers entered into by the Company and Allied in March 2016 and as subsequently amended. If events of default occur or Allied accelerates the repayment obligations, as to matters not covered or no longer covered by the waivers, cross-defaults will exist under the Allied related party notes, and we will not be able to repay the obligations that become immediately due.

Allied, a related party, is the holder of the 2014 Convertible Subordinated Note, the 2015 Convertible Note, and the 2011 Promissory Note (collectively the "Allied Notes"). Each of the Allied Notes contains certain default and cross-default provisions, including failure to pay interest and principal amounts when due and default under other indebtedness. As of June 30, 2016, the Company was not in compliance with the default provisions of each of the Allied Notes with respect to the payment of quarterly interest. Further, the risk of cross-default exists for each of the Allied Notes if the holder of the Term Loan Facility exercises its right to terminate the Term Loan Facility and accelerate its maturity. Allied agreed to waive its rights under all default provisions of each of the Allied Notes through July 2017. For additional information regarding defaults, cross-defaults and potential cross-defaults, please see the discussion regarding each debt instrument in Note 8 - Debt to the financial statements included herein. If any of our debt obligations are accelerated due to the events of default or future cross-defaults, we may not be able to repay the obligations that become immediately due and will have severe liquidity restraints.

Due to lack of liquidity, we may not be able to make the required principal and interest payments under the Term Loan Facility due June 30, 2017.

As a result of the current low commodity prices and a prior history of low oil production volumes related to mechanical problems with well Oyo-8, the Company has not been able to generate sufficient cash from operations to satisfy certain obligations as they become due. The Company has been relying on short-term promissory notes, such as the 2016 Promissory Note, with an entity related to the Company’s majority shareholder to supplement its liquidity needs, but there can be no assurances that the related party will continue to provide such short-term loans in the future.

Pursuant to the Term Loan Facility, Zenith has the right to review the terms and conditions of the Term Loan Facility.

28

Our failure to make the required payments under the Term Loan Facility or to comply with its applicable debt covenants could result in a default under the Term Loan Facility and a cross-default under the Allied Notes as described in the preceding risk factor, which could result in the acceleration of the payment of such debt, termination of Zenith’s commitments to make further loans to us, loss of our ownership interests in the secured properties or otherwise materially adversely affect our business, financial condition and results of operations. Also, if we are unable to service our debt obligations generally, we cannot assure you that the Company will continue in its current state or continue to operate as a going concern.

We may be unable to continue as a going concern.

As mentioned in the risk factors above, we have substantial debt obligations and may not be able to maintain adequate liquidity throughout 2016. As a result, the Company’s consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared under the assumption that it will continue as a going concern, which assumes the continuity of operations, the realization of assets and the satisfaction of liabilities as they come due in the normal course of business. Our financial statements do not include any adjustments that might result from the outcome of this uncertainty. Although the Company believes that it will be able to generate sufficient liquidity, its current circumstances raise substantial doubt about its ability to continue to operate as a going concern. If we become unable to continue as a going concern, we may have to liquidate our assets, and the values we receive for our assets in liquidation or dissolution could be significantly lower than the values reflected in our financial statements.

29

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Unregistered Sales of Equity Securities

During the three months ended June 30, 2016, we borrowed an additional $0.5 million under the 2015 Convertible Note and issued to Allied warrants to purchase approximately 48,291 shares of the Company's common stock with an exercise price of ranging from $2.00 to $2.13 per share. For further information, see Note 8 - Debt to the Unaudited Consolidated Financial Statements.

Issuer Purchases of Equity Securities

The following table sets forth certain information with respect to repurchases of our common stock during the quarter ended June 30, 2016.

	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program	Maximum Number  (or Approximate Dollar Value) of Shares that May be Purchased Under the Plans or Programs
May 1 - May 31, 2016	1,072	$	2.48	—	—
Total	1,072	$	2.48	—	—

(1) All shares repurchased were surrendered by employees to settle tax withholding upon the vesting of restricted stock awards.

Item 5. Other Information

On August 3, 2016, Erin Petroleum Nigeria Limited entered into an agreement to modify the Term Loan Facility (the “Modified Facility”). The Modified Facility establishes a moratorium on principal payments due under the Term Loan Facility until June 2017 and extends the remaining term of the Term Loan Facility until February 2021. Additionally, it reduces the funding requirement of the debt service reserve account to an amount equal to one quarter of interest until the price of oil exceeds $55 per barrel, at which time an amount equal to two quarters of interest will then be required.

Further, the Modified Facility increases the interest rates for amounts borrowed in (i) U.S. dollars to a rate equal to the London Interbank Offered Rate (“LIBOR”) plus 9% per annum (subject to a floor of 9.5% per annum) from LIBOR plus 7.5% per annum and (ii) Nigerian Naira to 22.75% per annum from 18.75% annum.

30

Item 6. Exhibits

The following exhibits are filed with this report:

Exhibit Number	Description
3.1	Amended and Restated Certificate of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 to the Company’s Form 10-SB filed on August 16, 2007).
3.2	Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on April 13, 2010).
3.3	Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on February 19, 2014).
3.4	Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on April 23, 2015).
3.5	Amended and Restated Bylaws of the Company as of April 11, 2011 (incorporated by reference to Exhibit 3.1 of the Company's Quarterly Report on Form 10-Q filed on May 3, 2011).
3.6	First Amendment to the Amended and Restated Bylaws of the Company adopted on March 11, 2016 (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on March 17, 2016.
10.1	Offer Letter to J. Kent Gilliam, dated July 11, 2016.
10.2	Offer for Credit Facility, dated June 17, 2016, by and between Erin Petroleum Nigeria Limited and Zenith Bank PLC.
10.3	Loan Agreement dated August 3, 2016, by and between Erin Petroleum Nigeria Limited and Zenith Bank PLC.
31.1	Certification of Chief Executive Officer Pursuant to 15 U.S.C. § 7241, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer Pursuant to 15 U.S.C. § 7241, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. § 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Principal Financial Officer Pursuant to 18 U.S.C. § 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101. INS	XBRL Instance Document.
101. SCH	XBRL Schema Document.
101. CAL	XBRL Calculation Linkbase Document.
101. DEF	XBRL Taxonomy Extension Definition Linkbase Document
101. LAB	XBRL Label Linkbase Document.
101. PRE	XBRL Presentation Linkbase Document.

31

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Erin Energy Corporation

Date: August 8, 2016

/s/ Daniel Ogbonna

Daniel Ogbonna

Senior Vice President and Chief Financial Officer

(Principal Financial Officer)

32

EX-10.1

July 11, 2016

Mr. J. Kent Gilliam

15 E Greenway Plaza, #14E

Houston, TX 77046

Dear Mr. Gilliam:

On behalf of Erin Energy Corporation. (“Company”), I am pleased to offer you the position of Vice President, Financial Controller, reporting to Daniel Ogbonna, Chief Financial Officer.

Upon verification of your right to work in the United States, your hire date will be July 14, 2016. In this position your annual base salary will be $165,000.

This position is considered an exempt position for purposes of federal wage and hour law, which means that you will not be eligible for overtime pay for hours actually worked in excess of 40 in a given work week.

Your target performance bonus will be up to 20% of your base salary. The amount of your bonus is based on individual and company performance and contributions. All performance bonuses are subject to the sole discretion of the Company.

The Company considers the first ninety (90) days of employment a probationary period in which we reserve the right to terminate our employment relationship if, after careful evaluation, the Company determines that your skills, capabilities or performance will limit your success in this position.

You will earn 28 days of Paid Time Off (PTO) per year accrued per pay period. Currently, we offer three different medical plans, dental, vision, short & long disability, life insurance and other voluntary coverage options. The health insurance benefits are effective the first of the month after the completion of your first 30 days. On the first day of each month after your start date, you will be eligible to participate in the Company’s sponsored 401K which entitles you to the 200% match on your first 3% contribution. Also you will be eligible for the Employee Equity Program after 6 months of your date of hire.

We are excited to have you join our team and hope that you find our offer competitive and rewarding as well as an opportunity to take the next step in your career. However, we recognize that you retain the option, as does the Company, of ending your employment with the Company at any time, with or without notice and with or without cause. As such, your employment with the Company is at-will and neither this letter nor any other oral or written representations may be considered a contract for any specific period of time.

In accordance with the Immigration Reform and Control Act of 1986, we are required to examine the original documents verifying that prospective employees are either United States citizens or are lawfully authorized to work in the U.S. Please note this documentation requirements for Form I-9 applies to both U.S. citizens and non-citizens. Please refer to the attached list and bring these documents with you when you report to work and these documents must be original or certified copies.

1330 Post Oak Blvd, Suite 2250, Houston, TX 77056

Tel: 713-797-2940 Fax: 713-797-2990

Should you have any questions about starting with the Company, please do not hesitate to contact the Human Resources Department.

Yours truly,

Heidi Wong

Senior Vice President

Corporate Services

If you are in agreement with the above offer letter, please indicate by signing and returning this letter to the Human Resources Department. This offer remains valid until noon July 12, 2016.

Agreed and accepted this offer on 11^th day of July, 2016.

/s/_James Kent Gilliam________________________

James Kent Gilliam

1330 Post Oak Blvd, Suite 2250, Houston, TX 77056

Tel: 713-797-2940 Fax: 713-797-2990

EX-10.2

	ZENITH BANK PLC
	HEAD OFFICE

June 17, 2016

The Managing Director

Erin Petroleum Nigeria Limited

Formerly Camac Petroleum Limited

Camac House, Plot 1649, Olosa Street

Victoria Island, Lagos

Emai: okezie.odimuko@camacenergy.com

Phone:08034294673

Dear Sir

OFFER OF CREDIT FACILITY

We are pleased to advise that the Board and Management of Zenith Bank Plc has approved a review of the credit facility earlier availed vide over Offer Letter dated July 21, 2014 to your company as requested under the following terms and conditions:

Lender	Zenith Bank Pic ("Zenith")
Borrower	Erin Petroleum Nigeria Limited ("EPNL")
Type of Facility	Term Loan
Initial Amount	US$100,000,000.00 (One Hundred Million Dollars)
New Amount	US$92,367,295.33 (Ninety-two Million, Three Hundred and Sixty· seven Thousand, Two Hundred and Ninety-five Dollars, Thirty· three Cents) to be booked in Dollar and Naira tranches as follows:
	(i) N1,528,133,618.25 (One Billion, Five Hundred and Twenty­ eight Million, One Hundred and Thirty-three Thousand, Six Hundred and Eighteen Naira, Twenty-five Kobo)
	(ii) US$84,375,000.00 (Eighty-fourMillion, Three Hundred and Seventy-five Thousand Dollars)
Purpose	To restructure the existing term loan facility earlier availed to finance the development of OML 120 and OML 121.
Effective Date	April 1, 2016
Expiry Date	February 2021
Moratorium	Twelve (12) months moratorium on Principal only effective April 01, 2016.

Pricing	(1) Interest Rate (Naira): 22.75% per annum
	(2) Interest Rate (Dollar): LIBOR + 9% per annum, subject to a floor of 9.5% per annum.)
	(3) Default Interest: Default interest will be applicable on all overdue amounts at floor rate plus margin of 2.00% per annum
	(4) Fee: (i) Restructure Fee: 0.75% flat, payable in line with agreed staggered fee payment structure below.
	(ii) Advisory Fee: 0. 25% flat, payable in line with agreed staggered fee payment structure below.
	(iii) Loan Service Fee (Periodic): 0.5% flat payable in line with agreed staggered fee payment structure below and subsequently as a lump sum payment on every anniversary on the outstanding balance until the facility is fully repaid.
Staggered Fee Payment Structure:	(i) 50% upon acceptance of offer
	(ii} 25% on September 30, 2016
	(iii) 25% on December 30, 2016
Repayment Terms	(1) Sculpting of Principal repayment to align with Cashflow as follows:
	(i) June 2017 to December 2017- 5% per quarter
	(ii) January 2018 to December 2018 - 5.5% per quarter
	(iii) January 2019 to December 2019- 6% per quarter (iv) January 2020 to December 2020-7.5% per quarter (v) February 2021-9% per quarter
	(2) Principal repayment shall be made quarterly after moratorium and interest payment to remain quarterly during and after moratorium period.
Prepayment	Prepayment is allowed without penalty.
Repayment Source	(i) Proceeds of sales of crude oil produced from OMLs 120 and 121 (Oil Fields OYO 7, 8 and 9) being financed by Zenith.
	(ii) Revenue from other sources of cash available to EPNL and Erin Energy Incorporated.

Security	(1) Legal charge over Allied Energy Plc's interest in OMLs 120 and 121.
	(2) All Asset Debenture over fixed and floating assets, present and future chargeable assets of EPNL.
	(3) Pledge over all the shares of the shareholders of EPNL (to be extended to any new shares issued in the event of share capital increases) to Zenith.
	(4) Assignment of EPNL's and Allied Energy's rights under all commercial contracts relating to OMLs 120 and 121 including sale and purchase agreements, offtake agreements and crude handling agreements.
	(5) Irrevocable domiciliation agreement between EPNL and offtakers that all proceeds in respect of the offtake agreements for OMLs 120 and 121 will be domiciled with Zenith Bank.
	(6) Irrevocable undertaking by Camac/AIIied Group to open all NXPs in respect of crude oil lifting from OML 120/121 ( OYO 7, 8 and 9) being financed throughout the tenor of the facility with Zenith and to route all proceeds of crude oil sales from OYO 7 & 8 to its account with Zenith.
	(7) Assignment of rights over Hedge, Insurance (including license non-renewal risk insurance) and all reinsurance contracts including Performance Guarantees by any EPC related to project execution and activities on OML 120 and 121 to Zenith.
	(8) First charge over all EPNL and Allied Energy accounts, receivables, rights and interests, with respect to OML 120 and 121.
	(9) Security Assignment by EPNL and Allied Energy of all rights under the Hedging Arrangements entered into in relation to the facility to Zenith Bank.
	(10) Corporate Guarantee of Allied Energy Plc.
	(11) Corporate Guarantee of Erin Energy Corporation, the parent company of Camac Petroleum Limited.
	(12) An undertaking from Allied Energy committing to domicile the proceeds from the sale of crude oil and processing of all NXPs through its account with Zenith.
	(13) Comfort letter from Camac (Erin) Energy Holdings Limited to ensure that its subsidiary (Allied Energy Plc) domiciles the crude oil proceeds with Zenith and ensure performance of obligations under the facility agreement.

Creation of Accounts

The following Reserve Accounts will be opened in the name of EPNL:

1. Collection Accounts for Crude and Gas.

2. Tax, Petroleum Profit Tax and Royalties.

3. Cash calls and OPEX

4. Debt Service Accounts

5. Debt Service Reserve Account

6. CAPEX

7. General Corporate Purpose Account

8. Hedge Proceeds Account

9. Cash Sweep Account with Zenith Bank

Special Condition:

• Cash Sweep

100% Cash Sweep of cash flow available for distribution after funding of Reserve Accounts.

• Hedge:

1. Execution of the Hedge Policy and International Swaps and Derivative Association Agreement (ISDA) prior to the completion of this restructuring with Zenith Capital appointed as Hedge Advisors. All cost associated with instituting an acceptable Hedge will be for the account of EPNL.

2. Execution of other Hedge Documents within 60 days of this restructuring to ensure activation of an appropriate hedge once an acceptable strike price is attained.

• Offtake Agreement

EPNL/Erin Energy Incorporated is to submit a duly executed copy of medium or long term Offtake Agreement between EPNL/Erin Energy Incorporated and its crude oil and/or gas offtakers expressly domiciling proceeds of sale of crude and/or gas through Camac/Erin account with Zenith.

• DSRA:

DSRA funding shall initially be for one (1) quarter of interest, but will increase to two (2) quarters once oil price is at or above $55 per barrel

Conditions Precedent:

1. Acceptance of offer evidenced by signing and returning the attached copy of this Offer Letter by authorized signatories of EPNL.

2. Submission of Board Resolution of EPNL authorizing and accepting usage of the facility.

3. Submission of a duly executed (under seal) Board Resolution of Allied Energy Plc authorizing the following:

(i) The use of its OMLs 120 and 121 as collateral for this facility. All the documents required for perfection and creation of legal charge shall be executed accordingly.

(ii) That all proceeds of crude oil export from OMLs 120 and 121 shall be domiciled with Zenith and transferred to the account of EPNL with Zenith towards liquidation of the maturing instalments of this facility.

4. Receipt of a Letter from EPNL stating its current indebtedness to other lenders with the following details:

(i) Facility Limits/Obtained (ii) Current Outstanding balance (iii) Collateral Pledged.

5. Receipt of duly executed Board Resolution of EPNL consenting to take over the liabilities and obligations of Camac Petroleum Limited under the facility granted by Zenith.

6. Execution of Term Loan agreement between EPNL and Zenith.

7. Execution of legal charge by Allied Energy Plc on its interest in OMLs 120 and 121.

8. Creation of All Asset Debenture over the fixed and floating assets of EPNL.

9. Execution of pledge over all the shares of EPNL (to be extended to any new shares issued in the event of share capital increases.

10. Submission of a duly executed medium or long term Offtake Agreement between Camac/Erin and its crude oil and gas offtakers expressly domiciling proceeds of sale of crude and/or gas through Camac/Erin Account with Zenith Bank.

11. Execution of an acceptable Hedge policy and ISDA.

12. Execution of assignment of EPNL and Allied Energy Pic's rights under all commercial contracts relating to OMLs 120 and 121 including sale and Purchase Agreements, Offtake Agreements and crude handling agreements.

13. Receipt of an irrevocable undertaking by EPNL and/or Allied Energy Pic to open all NXP in respect of crude oil lifting from OMLs 120 and 121 (OYO 7, 8 and 9) throughout the tenor of the facility with Zenith and to route all proceeds of crude oil sales from OMLs 120 and 121 (OYO 7, 8 and 9) to its account with Zenith.

14. Execution of pledge over EPNL accounts, receivables, rights and interests, but only to the extent that its relates to OMLs 120 and 121.

15. Execution of first charge on EPNL account with Zenith, warehousing the proceeds of crude oil sales on OMLs 120 and 121.

16. Receipt of duly executed standard Corporate Guarantee of Allied Energy Plc.

17. Receipt of duly executed standard notarized Corporate Guarantee of Erin Energy Incorporated, the parent company of EPNL.

18. EPNL shall undertake to provide the Naira equivalent of the foreign exchange or that its account with Zenith should be debited for the Naira equivalent of principal and interest in the event that payment from crude exported is delayed on due date of repayment or at the time of expiration of the facility.

19. Execution of all other necessary security documents.

Other Conditions:

1. EPNL shall submit a copy of its quarterly management accounts within sixty (60) days of the end of each quarter and audited accounts within one hundred and twenty (120) days of the end of the financial year.

2. This offer is made subject to availability of funds and to the rules and regulations governing banking business as enunciated by the Central Bank of Nigeria from time to time.

3. In line with Central Bank of Nigeria ("CBW) directive, Zenith shall disclose information relating to this facility to CBN Licensed Credit Bureaus.

4. EPNL shall be required to take out a comprehensive insurance policy with a reputable insurance company acceptable to Zenith against fire and any other form of peril on OMLs 120 and 121 with Zenith noted as the first loss payee.

5. EPNL shall use its best efforts to ensure that contractors/subcontractors associated with this project open/maintain accounts with Zenith wherein funds shall subsequently be disbursed.

6. Zenith reserves the right to review the terms and conditions of this facility. EPNL shall be notified of any decision taken in this respect, as it does not diminish the bank's control.

7. EPNL shall submit on an annual basis an independent reserves and technical report covering OMLs 120 and 121 prepared by an Independent Technical Consultant, acceptable to Zenith.

8. EPNL shall submit documents relating to EPNL's acquisition of the remaining economic interest in OMLs 120 and 121 from Allied Energy.

9. In the event of a contemplated sale of shares, issuance of additional share capital, amalgamation of business or any other change that would result in any change of ownership of the company, or a substantial share capital of the company being taken over by a new owner, the prior consent of Zenith must be obtained in writing, otherwise the facility shall become immediately due and payable.

10. EPNL shall submit Environmental Impact Assessment (EIA) or Environmental and Social Impact Assessment (ESIA) and other required regulatory permits from DPR as at when required.

11. EPNL shall not incur additional borrowings for further expansion of OMLs 120 and 121 without the written consent of Zenith. Zenith shall have right of first refusal.

12. EPNL shall carry out periodic reserve redetermination audit to ascertain changes in borrowing base.

13. Zenith reserves the right to securitize,syndicate or sell its interest in this credit facility based on its global risk/liquidity management objectives during the period of the facility.

14. All legal fees, out-of-pocket expenses, taxes or commissions including cost of recovery of the facility in the event of default shall be for the account of EPNL.

Kindly indicate your understanding and acceptance of the above terms and conditions by signing this offer letter, and returning same to us on or before July 1, 2016.

Please note that Zenith reserves the right to regard this offer as lapsed if it is not accepted on or

before the above date.

Yours faithfully

ZENITH BANK PLC

The offer of US$92,367,295.33 (Ninety-two Million, Three Hundred and Sixty-seven Thousand, Two Hundred and Ninety-five Dollars,Thirty-three Cents) Term Loan, together with all the terms and conditions has been read and is hereby accepted on behalf of Erin Petroleum Nigeria Limited by:

EX-10.3

LOAN AGREEMENT

MADE THIS 3rd DAY OF August 2016

BETWEEN

ZENITH BANK PLC

(The Lender)

AND

ERIN PETROLEUM NIGERIA LIMITED

(The Borrower)

THIS LOAN AGREEMENT is made this 3rd day of August 2016 between ERIN PETROLEUM NIGERIA LIMITED, a company incorporated under the laws of Nigeria having its office at Plot 1649, Olosa Street, Victoria Island, Lagos State (hereinafter referred to as "The Borrower" which expression shall wherever the context so admits or permits include its successors-in-title and assigns) of the one part and ZENITH BANK PLC, a Bank registered and licensed under the laws of the Federal Republic of Nigeria having its registered office at Plot 84 Ajose Adeogun Street, Victoria Island, Lagos State, Nigeria (hereinafter referred to as "The Lender" which expression shall wherever the context so permits or admits, include its successors-in-title and assigns) of the other part.

WHEREAS:

1. The Borrower has applied to the Lender to review and/or restructure the Term Loan earlier availed to the Borrower by the Lender via its Offer Letter dated July 21, 2014 and the Borrower has been servicing same.

11. Pursuant to the above request for the restructure of the Term Loan facility, the Lender has made an offer via its offer letter dated June 17, 2016 to restructure the outstanding indebtedness on the Term Loan facility in the aggregate sum of US$ 92,367,295.33 (Ninety Two Million, Three Hundred and Sixty Seven Thousand, Two Hundred and Ninety Five United States Dollars, Thirty Three Cents only), the terms of which have been duly accepted by the Borrower.

111. The Lender and the Borrower have agreed upon the grant of a Term Loan facility by the Lender to the Borrower upon the terms and conditions herein contained.

NOW THEREFORE IT IS AGREED as follows:

1. INTERPRETATION

1.1 In this Loan agreement except the context otherwise admits, the following words, terms, phrases and expressions shall have the meanings ascribed thereto. Further the male gender shall include the female gender and vice• versa while the words and phrases in the singular shall include the plural and vice-versa.

1. "Available Facility" means the undrawn and uncancelled portion of the Term Loan Facility.

11. "Availability Period" means the period during which the Lender undertakes    to make the Term Loan Facility available to the Borrower for utilization subject to the satisfaction by the Borrower of all the conditions precedent to utilisation.

111. "Board of Directors" means the board of directors for the time being of the Borrower within the meaning of the Companies and Allied Matters Act CAP C20, Laws of the Federal Republic of Nigeria, 2004.

iv. "Business Day" means a day on which banks in Nigeria are open for normal banking business excluding Saturdays and Sundays and any public holiday declared by the Federal Government of Nigeria.

v. "Closing Date" means the June 30, 2016 or any other date agreed for the execution of this Loan Agreement or any other finance or security document.

vi. "Existing Term Loan" means the existing debt obligations of the Borrower under the Term Loan Facility availed to the Borrower by the Lender via its Offer Letter dated July 21, 2014.

vii. "Events of Default" means any one of the events stated in clause

17 hereof.

viii. 'ISDA' means International Swaps and Derivatives Association.

ix. "LIBOR" means the London Interbank Offered Rate which is the rate at which banks offer and place money at the London Inter-bank money market. Specifically, this is the one-month LIBOR rate for a period equal to the interest period which appears on the screen display designated as Page 3750 on the Moneyline Telerate Service (or such other screen display or service as may replace it for the purpose of displaying British Banker's Association LIBOR rates for Dollar deposits in the London Interbank Market) at 1100 hours GMT on the applicable rate fixing day.

x. "Month" means a calendar month.

xi. "NXP" means Nigeria Export Proceeds. xii. "OML'' means Oil Mining Lease.

xiii. "Request" means a request by the Borrower to utilize the Term

Loan Facility, substantially in the form of Schedule 1.

xiv. "The Term Loan Facility" means the Term Loan facility described in clause 2 granted to the Borrower by the Lender.

xv. "The Loan" means the aggregate principal amounts drawn by the Borrower at any time under the Term Loan Facility and not repaid or prepaid.

1.2.1 Words and phrases defined in the Companies and Allied Maters Act CAP C20 Laws of the Federal Republic of Nigeria 2004 shall subject to the foregoing have the same meanings respectively in this Loan Agreement.

1.2.2 The headings of the various clauses are inserted for convenience only and shall not affect the construction of the clauses of this Loan Agreement.

1.2.3 References to any statute or statutory provisions are to the statute or provisions as may from time to time be amended, modified, extended or re-enacted.

2. FACILITY

The Lender hereby grants to the Borrower upon the terms and subject to the conditions herein contained a Term Loan facility not exceeding in the aggregate the sum of US$ 92,367,295.33 (Ninety Two Million, Three Hundred and Sixty Seven Thousand, Two Hundred and Ninety Five United States Dollars, Thirty Three Cents only), to be designated the Term Loan Facility, which Term Loan Facility is hereafter referred to as the "Facility" and the Borrower hereby accepts the Facility from the Lender. The facility shall be booked in Dollar and Naira tranches as stated below:

2.1 N1,528,133,618.25 (One Billion, Five Hundred and Twenty Eight Million, One Hundred and Thirty Three Thousand, Six Hundred and Eighteen Naira, Twenty Five Kobo only).

2.2 US$84,375,000.00 (Eighty Four Million, Three Hundred and Seventy Five

Thousand United States Dollars only).

3. COMMITMENT

The Lender hereby undertakes and agrees that subject to the terms of this Loan Agreement and the Offer Letter for the facility it shall during the Availability Period make the Term Loan Facility available to the Borrower for utilization as contemplated under this Agreement.

4. PURPOSE

The Borrower shall apply all amounts borrowed by it under the Term Loan towards the refinancing of all amounts outstanding under the existing Term Loan earlier availed to finance the development of OML 120 and OML 121 respectively.

5. TENOR

The Term Loan Facility shall be for a period of fifty nine (59) months effective April 1, 2016 and terminating on February 28, 2021, inclusive of a twelve (12) months moratorium on the principal only.

6. UTILISATION

The Borrower shall be entitled to utilise the Term Loan Facility which has earlier been drawn subject to satisfaction by the Borrower of all conditions precedent to utilisation specified in Clause 11.

7. PRICING

7.1 The interest rate (Dollar) chargeable in respect of the Loan shall be LIBOR +

9% per annum, subject to a floor of 9.5% per annum).

7.2 The interest rate (Naira) chargeable in respect of the Loan shall be 22.75 % per annum. This rate is subject to upward or downward review in line with money market realities. However, any future advice of upward review of interest rate shall be for information only and will be deemed accepted accordingly unless the facility is paid down on the effective date of the upward review.

7.3 Default Interest will be applicable on all overdue amounts at floor rate plus margin of 2.00 % per annum.

7.4 The Borrower shall pay a Restructuring Fee of 0.5% flat, payable in line with the agreed staggered fee payment structure stated in this agreement.

7.5 The Borrower shall pay an Advisory Fee of 0.25% flat, payable in line with the agreed staggered fee payment structure stated in this agreement.

7.6 The Borrower shall pay a Loan Service Fee (Periodic) of 0.5% flat payable in line with agreed staggered fee payment structure below and subsequently as a lump sum on every anniversary on the outstanding balance until the facility is fully repaid.

8. SECURITY

(a) Legal Charge over Allied Energy Plc's interest in OML 120 and OML 121.

(b) All Assets Debenture over the fixed and floating (both presents and future)

assets of the Borrower.

(c) Pledge over all the shares of shareholders of the Borrower (to be extended to any new shares issued in the event of increase in share capital) in favour of the Lender.

( d) Assignment of the Borrower and Allied Energy Plc' s rights under all commercial contracts relating to OML 120 and OML 121 including Sale and Purchase Agreements, Offtake Agreements and Crude Handling Agreements.

( e) Irrevocable Domiciliation Agreement between the Borrower and Offtakers that all proceeds in respect of the Offtake Agreements for OML 120 and 121 will be domiciled with the Lender.

(f) Irrevocable Undertaking by the Borrower and Allied Energy Plc to open all NXP in respect of crude oil lifting from OML 120 and 121 (OYO 7, 8 and 9) being financed throughout the tenor of the facility with the Lender and to route all proceeds of crude oil sales from OYO 7 and 8 to its account with the Lender.

(g) Assignment of rights over Hedge, Insurance (including License Non-Renewal Risk Insurance) and all reinsurance Contracts including Performance Guarantees by any EPC related to project execution and activities on OML 120 and 121 to the Lender.

(h) First Charge over all the Borrower and Allied Energy Pie's accounts, receivables, rights and interests with respect to OML 120 and OML 121 respectively.

(i) Security Assignment by the Borrower and Allied Energy Plc of all rights under the Hedging Agreements entered into in relation to the Facility granted by the Bank.

(j) Corporate Guarantee of Allied Energy Plc.

(k) Corporate Guarantee of Erin Energy Corporation, the parent company of the

Borrower.

(1) Letter of Undertaking from Allied Energy Plc committing to domicile the proceeds from the sale of crude oil and processing of all NXPs related to OML

120 and 121 through its account with the Lender.

(m) Letter of Comfort from Camac Energy Holdings Limited undertaking to ensure that its subsidiary, Allied Energy Plc domiciles the crude oil proceeds related to OML 120 and 121 with the Lender and ensure the performance of obligations under the facility agreement.

The Borrower hereby undertakes not to and shall not create or permit to subsist any other mortgage, charge, pledge or lien ( each a "Security Interest") on any of its current assets except for any Security Interest:

8.1 To secure any excise or import taxes or duties owed to, or industrial grants made by any state, government, political sub-division or international organization, or any agency, authority, instrumentality or body or any regulatory authority; or

8 .2 Arising by operation of law; or

8.3 Created or arising with the prior written approval of the Lender; or

8.4 Created or arising out of retention of title provisions or a conditional sale in respect of goods acquired by the Borrower in the ordinary course of business; or

8.5 Which is a lien or other Security Interest arising in the ordinary course of the Borrower's business consistent with the Borrower's past practice and not securing Borrowings; or

8.6 Over equity or revenues acquired after the acceptance of this facility and existing on the date of such acquisition and not created in contemplation thereof provided the aggregate principal amount secured thereby at the date of acquisition is not exceeded; or

8. 7 The principal purpose and effect of which is to allow the setting-off or netting off obligations with those of a financial institution in the ordinary course of the cash management arrangements of the Borrower; or

8.8 Constituted by netting, set-off or cash collateral arrangements in relation to swaps or other derivative agreements in the ordinary course of its business; or

8.9 Arising under arrangements in connection with the participation in or trading on or through any clearing system or investment, commodities or stock exchange where the Security Interest arises in the ordinary course of business under the rules or normal procedures or legislation governing such system or exchange; or

8.10 Over securities, derivatives or commodities, in respect of the acquisition cost of such securities, derivatives or commodities owed to a dealer therein or an agent for the purchase thereof where such cost falls to be paid within 180 days of being incurred; or

8.11 Arising out of or in connection with pre-judgment legal process or a judgment or a judicial award relating to security for costs; or

8.12 Which is to renew, extend or replace a Permitted Security Interest if the principal amount secured is not thereby exceeded and such permitted Security Interest is discharged or released within 3 (three) months of the creation of the replacement Security Interest; or

8.13 Over cash or cash equivalents covering any indebtedness (or obligations in respect thereof, such as future interest) in respect of capital market issues in existence which has been fully covered by cash or cash equivalents as a means of achieving the economic effect of full repayment of that indebtedness.

9. REPAYMENT

9.1 Repayment of the Principal shall be made quarterly after moratorium while repayment of interest shall be made quarterly during and after the moratorium period.

9.2 The Principal repayment shall be made as stated below:

i.     June 1, 2017 to December 31, 2017 - 5 % per quarter.

ii. January 1, 2018 to December 31, 2018 - 5.5 % per quarter.

iii. January 1, 2019 to December 31, 2019 - 6 % per quarter.

iv. January 1, 2020 to December 31, 2020 - 7.5 % per quarter.

v. January 1, 2021 to February 28, 2021 - 9 % per quarter.

9.3 The Fees payable under the facility shall me made as stated below:

1. 50 % upon acceptance of the offer letter.

11. 25% on September 30, 2016.

111. 25% on December 30, 2016.

9.4 The principal and interest on the facility shall be paid by the Borrower to the Lender on the due date through the legally accepted mode of repayment as specified by the CBN, accompanied by a letter signed by or on behalf of the Borrower, stating the purpose of the payment. Notwithstanding the purpose stated in the letter by the Borrower, the Lender shall apply any payment so received from the Borrower first in or towards the satisfaction or reduction of the payment of interest then due and unpaid before applying same to or towards the repayment of the principal sum then due and if the amount is not enough to repay the full amount then due, the Lender shall so notify the Borrower who shall within 30 (thirty) days of receiving such notification pay to the Lender the amount necessary to repay the instalment in full.

9.5 Where any date for a repayment and/or payment of fees under this Clause is not a Business Day, such repayment shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is none).

10. PREPAYMENT AND CANCELLATION

On giving not less than thirty (30) business days prior written notice to the Lender, the Borrower may without payment of penalty or any associated costs prepay the Loan in whole or in part.

Amounts prepaid will not be re-borrowed and shall first be applied in or towards payment of any interest due and unpaid then towards repayment of any principal instalments then due and unpaid.

11. CONDITIONS PRECEDENT FOR UTILISATION OF FACILITY

The Borrower shall not be entitled to draw or utilize the Facility or any part thereof unless the Lender shall have received the following:

11.1 Original copy of the Bank's offer letter duly accepted and executed by authorized signatories of the Borrower.

11.2 Original copy of resolution of the Board of Directors of the Borrower accepting the offer of the Facility made by the Lender and authorizing its usage.

11.3 Three (3) original copies of executed Loan agreement between the Borrower and the Lender.

11.4 Receipt of duly executed letter from the Borrower stating its current indebtedness to other lenders stating the facilities obtained, current outstanding indebtedness and collateral pledged.

11.5 Receipt of duly executed Board of the Borrower consenting to take over liabilities and obligations of Camac Petroleum Limited under the facility granted by the Lender.

11.6 Execution of Legal Charge by Allied Energy Plc on its interest in OML 120 and

OML 121.

11.7 Creation of All Assets Debenture over the fixed and floating assets of the Borrower.

11.8 Execution of Deed of Share Pledge over all the shares of the Borrower (to be extended to any new shares issued in the event of increase in share capital).

11.9 Submission of a duly executed Medium or Long Term Offtake Agreement between Camac/Erin and its Crude Oil and Gas Offtakers expressly domiciling proceeds of sale of crude and/or gas through the Borrower's account with the Lender.

11.10 Execution of an acceptable Hedge Policy and ISDA Agreement and/or Contract.

11.11 Execution of Assignment of the Borrower's and Allied Energy Plc's rights under all commercial contracts relating to OML 120 and OML 121 including Sale and Purchase Agreements, Offtake Agreements and Crude handling Agreements.

11.12 Receipt of an Irrevocable Undertaking by the Borrower and/or Allied Energy Plc to open all NXP in respect of crude oil lifting from OML 120 and OML 121 (OYO 7, 8 and 9) throughout the tenor of the facility with the Borrower and to route all proceeds of crude oil sales from OML 120 and OML 121 (OYO 7,8 and 9) to its account with the Lender.

11.13 Execution of pledge over the Borrower's accounts, receivables, rights and interests but only to the extent that it relates to OML 120 and OML 121.

11.14 Execution of first charge on the Borrower's account with the Lender warehousing the proceeds of crude oil sales on OML 120 and OML 121.

11.15 Receipt of duly executed Corporate Guarantee of Allied Energy Plc.

11.16 Receipt of duly executed Corporate Guarantee of Erin Energy Corporation, the parent company of the Borrower.

11.17 The Borrower shall undertake to provide the Naira equivalent of the foreign exchange or that its account with the Lender should be debited for the Naira equivalent of principal and interest in the event that repayment from crude exported is delayed on due date of repayment or at the time of expiration of the facility.

11.18 Execution of all other necessary security documents.

The Lender may allow the Borrower to utilize the facility or any part thereof notwithstanding that all or any of the conditions precedent to the utilization of the facility have not been fulfilled and such a concession shall not prejudice the right of the Lender to insist upon the fulfilment of all the conditions precedent to the utilization thereof before further utilization of the facility nor prejudice the right of the Lender to recover from the Borrower any part utilized before the fulfilment of all or any part of the conditions precedent.

12. OTHERCONDITIONS

12.1 The Borrower shall submit a copy of its quarterly management accounts within sixty ( 60) days of the end of each quarter and audited accounts within one hundred and twenty (120) days of the end of the financial year.

12 .. 2 This offer is made subject to availability of funds and to the rules and regulations governing banking business as enunciated by the Central Bank of Nigeria from time to time.

12.3 The Lender shall disclose information relating to the facility to Central Bank of

Nigeria licensed Credit Bureaus in line with CBN' s Directive.

12.4 The Borrower shall be required to take out insurance policy with a reputable insurance company acceptable to the Lender against fire and any form of peril on OML 120 and OML 121 with the interest of the Lender noted as first loss payee.

12.5 The Borrower shall use its best efforts to ensure that contractors/subcontractors associated with this project open and/or maintain accounts with the Lender wherein funds shall be subsequently disbursed.

12.6 The Lender reserves the right to review the terms and conditions of the facility. The Borrower shall be notified of any decision taken in this respect, as it does not diminish the Bank's control.

12.7 The Borrower shall submit on an annual basis an independent reserves and technical report covering OML 120 and OML 121 prepared by an Independent Technical Consultant, acceptable to the Lender.

12.8 The Borrower shall submit documents relating to the Borrower's acquisition of the remaining economic interest in OML 120 and OML 121 from Allied Energy Plc.

12.9 In the event of a contemplated sale of shares, issuance of additional share capital, amalgamation of business or any other change that would result in any change of

ownership of the Borrower, or a substantial share capital of the Borrower being taken over by a new owner, the prior consent of the Lender must be obtained in writing, otherwise the facility shall become immediately due and payable.

12.10 The Lender reserves the right to securitize, syndicate or sell its interest in this credit facility based on its global risk/liquidity management objectives during the period of the facility.

12.11 The Borrower shall submit Environmental Impact Assessment (EIA) or Environmental and Social Impact Assessment (ESIA) and other required regulatory permits from the Department of Petroleum Resources as at when required.

12.12 The Borrower shall not incur additional borrowings for further expansion of OML

120 and OML 121 without the written consent of the Lender. The Lender shall have a right of first refusal.

12 .13 The Borrower shall carry out periodic reserve redetermination audit to ascertain changes in borrowing base.

12.14 All legal fees, out-of-pocket expenses, taxes or commission including cost of recovery of the Facility in the event of default shall be for the account of the Borrower.

13. SET OFF

The Lender may set off any part of the loan that falls due and remains unpaid without notice or recourse to the Borrower from any money standing to the credit of the Borrower with the Lender, whether in the Borrower's account or combination of accounts or whether in the name of the Borrower or its associate or affiliate names.

14. TAXES

All payments (whether of principal interest or otherwise) to be made by the Borrower to the Lender shall be made free and clear of and without deduction of any taxes, levies, duties, charges, fees, deductions, set offs, counter-claims, restrictions or conditions of any nature provided that the Lender shall be responsible for such tax deduction as may be required by law.

15. REPRESENTATIONS AND WARRANTIES

The Borrower hereby makes the following representations and warranties to and for the benefit of the Lender

15.1 Status

The Borrower is a duly incorporated and validly existing company with limited liability under the laws of the Federal Republic of Nigeria.

15.2 Powers and Authority

The Borrower has the power to enter into, or, as the case may be, to comply with, and be bound by all obligations expressed on its part under this Loan Agreement including the powers to borrow under this Loan Agreement and that it has taken all necessary actions to authorize the borrowings under this Loan Agreement and to authorize the execution, delivery and performance of this Loan Agreement.

15.3 Non-Conflict

The execution, delivery and performance of this Loan Agreement will not violate any provisions of any existing law or regulation or statute applicable to it or of any mortgage, contract or other undertaking to which it is a party or which is binding upon its assets.

15.4 Borrowing Limits

Borrowings under this Loan Agreement up to and including the maximum amount available under this Loan Agreement will not, when borrowed, cause any limit on borrowings (whether imposed by statute, regulations, agreement or otherwise), or on the powers of its board of directors, applicable to it to be exceeded.

15.5 Accounts

The most recent audited profit and loss account and balance sheet of the Borrower which have been or are to be delivered to the Lender together with the notes thereto give a true and fair view of the results of the operations of the Borrower for the period to which they relate and, as the case may be, the financial position of the Borrower as at the date to which they relate and have been prepared in accordance with generally accepted accounting principles in Nigeria consistently applied.

15.6 No Event of Default

No Event of Default has occurred and is continuing.

16. COVENANTS AND UNDERTAKINGS

16.1 Duration

The undertakings in this Clause 16 will remain in force from the date of this Loan Agreement for so long as any amount is or may be outstanding under this Loan Agreement.

16.2 Financial Information

The Borrower shall submit a copy of its quarterly management accounts within sixty (60) days of the end of each quarter and audited accounts within one hundred and twenty (120) days of the end of the financial year.

16.3 Notification of Default

The Borrower shall notify the Lender of any Event of Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of it.

16.4 Pari Passu Ranking

The Borrower shall procure that its obligations under this Loan Agreement do and will rank at least pari passu with all its other present and future unsecured and unsubordinated obligations (subject to the preference of certain obligations in liquidation, bankruptcy or other analogous proceedings in respect of it by operation of applicable law).

16.5 Change of Business

The Borrower shall not change to a material extent the nature of the business being carried on by it as at the date of this Loan Agreement.

17. EVENTS OF DEFAULT

Upon the happening of any of the following events, the Lender may by notice in writing to the Borrower so long as such event is continuing declare such event to constitute an Event of Default and the amount of the Facility then outstanding and the interest accrued thereon and any other moneys payable hereunder to be immediately due and payable and its obligation to provide moneys under this Loan Agreement to be terminated:

1. If the Borrower does not pay any moneys payable hereunder when due and such moneys remains unpaid for thirty (30) days after becoming due;

11. If any order is made or effective resolution is passed or a successful petition is presented for winding up of the Borrower or if the Borrower goes into liquidation or dissolution; or

111. If the Borrower stops payment or ceases or threatens to cease to carry on its business or substantially the whole of its business; or

IV. If the Borrower stops the routing of the proceeds of the sale of its own share of crude oil through its account with the Lender.

v. If any encumbrancer takes possession or a Receiver is appointed for any part of the assets of the Borrower and the interest of such encumbrancer or the appointment of the Receiver is not terminated or rescinded within twenty one (21) days; or

vi. If any distress, execution, sequestration or other process is levied or enforced upon or issued out against the properties or assets/equity of the Borrower and is not discharged within twenty one (21) days; or

vii. If the Borrower is unable to pay its debt within the meaning of section 409 of the Companies and Allied Matters Act 2004 or any statutory modifications or re-enactment thereof; or

viii. If the Borrower commits any breach of any material part of this Loan Agreement and in the case of any breach capable of remedy fails to remedy the breach within thirty (30) days of being required m writing by the Lender to do so; or

IX. If any representation or warranty or covenants and undertaking made by the Borrower in this Loan Agreement or any notice, certificate or statement delivered or made hereunder proves to have been incorrect or materially inaccurate when made or delivered.

x. If any material licence over assets pledged as security is terminated, cancelled, suspended or revoked (whether wholly or in part).

xi. If any material licence over the assets pledged as security is modified or varied in a way that is adverse in any material aspect to the interest of the licence holder and/or repayment of the facility.

xii. If any material licence expires and is not renewed on substantially the same terms.

xii. If any Litigation, Arbitration, Administrative or Regulatory proceeding against the Borrower or its sister companies would materially affect the ability of the Borrower to perform its obligations under the Term Loan Facility.

Notwithstanding any event provided above, the Lender may allow the Borrower a fifteen (15) days cure period to remedy any event of default failing which the Lender may commence the process of realizing the security.

18. CHANGE IN CIRCUMSTANCE

18.1 If any change in the law or administrative regulations applicable to this Loan Agreement or any interpretation by the courts of law makes it unlawful or illegal for the Borrower to perform its obligations hereunder then the Borrower shall repay to the Lender any sums outstanding under the Facility together with all accrued but unpaid interest and commissions.

18.2 If any change in applicable law or administrative regulations or in the interpretation    thereof by any authority charged with the administration thereof    makes it unlawful for the Lender to perform its obligations hereunder then and in any such situation:

18.2.1 The Lender shall notify the Borrower accordingly;

18.2.2 The Lender shall be discharged from all obligations towards the

Borrower hereunder and its commitment reduced to zero; and

18.2.3 The Borrower shall on demand repay to the Lender the Loan within ninety (90) days thereafter.

18.3 The Lender undertakes that during the tenor, duration, pendency or life of this Loan Agreement it shall continue to uphold, adhere to and comply with all laws and Governmental rules and regulations applicable to it, its operations, business and status and in particular the rules, regulations and directives of the Federal Ministry of Finance, Central Bank of Nigeria and other monetary and fiscal authorities and shall not commit, do, condone, allow, facilitate or accommodate anything, action, breach or omission that will put or place the Lender in a position that it is unable to meet or continue to meet its obligations hereunder or comply with the terms of this Loan Agreement.

19. RECONSTRUCTION AND AMALGAMATION

This Loan Agreement shall not be affected by any amalgamation that may be effected by the Lender, its successors-in-title or assigns with any other company or persons whether the new company thus formed shall or shall not differ in its name, objects, character and constitution, it being the intent that this Loan Agreement shall remain valid and effectual in all respects in favour of and with reference to any such new company when formed and may be proceeded on or enforced in the same manner to all intents and purposes as if such new company had been named in and referred to herein instead of the Lender.

20. INDULGENCE

The Lender may without prejudice to its rights herein enter into any agreement for giving time or other accommodation to the Borrower for the Facility or other monies hereby covenanted to be paid or any part thereof and may release or compound same with the Borrower or any person, company or corporation liable to pay the same.

21. REMEDIES AND WAIVER

No failure to exercise and no delay in exercising on the part of the Lender rights, powers or privileges hereunder shall operate as a waiver thereof nor shall any single or partial exercise of any right, power or privilege preclude the exercise of any other right, power or privilege. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies provided by law.

22. DEFAULT INDEMNITY

If the Borrower fails to pay hereunder any sum due ( of principal or interest) or to become due hereunder, the Borrower shall pay interest at the rate aforesaid on the unpaid sum from the date when such payment fell due up to the date of payment, PROVIDED that interest shall at all times be calculated and payable as simple interest and on a reducing balance basis in conformity with monetary directives issued by the Central Bank of Nigeria.

23. ASSIGNMENT

The Lender and the Borrower shall be entitled, with the prior consent of the other in writing to assign any of their rights and powers under this Loan Agreement, with all or any of the obligations herein stated and may assign and/or deliver to any such assignee, the security collateral hereto and in the event of such assignment, the assignee thereof of such right and powers and of such security, if any security be assigned and/or delivered shall have the same rights and remedies as if originally named herein in place of the Lender or the Borrower as the case may be, and thereafter the assignor will be fully discharged from all responsibilities with respect to any obligations so assigned and/or security delivered.

24. NOTICE

Any notice or demand required hereunder shall be deemed to have been sufficiently given if in writing and delivered by hand or courier at the addressee's address as hereinbefore stated or at each party's last known address.

25. ACCOUNTS

The Lender shall open in its books such accounts as may be required by the Lender to show satisfactory evidence of the transactions contemplated by this Loan Agreement.

26. LEGAL COSTS, CHARGES AND EXPENSES

The Borrower shall be responsible for the stamp duty payable in respect of this Loan Agreement and the costs in connection with the preparation, negotiation and execution of this Loan Agreement.

27. DISPUTE RESOLUTION

27 .1 Initial Mediation of Dispute

In the event of a dispute between the parties to this Loan Agreement, the following procedure shall be followed to resolve the dispute prior to either party pursuing other remedies:

1. A meeting shall be held within seven (7) days at which all parties are present or represented by individuals with full decision making authority regarding the matters in dispute (Initial Meeting).

11. If within fourteen (14) days following the Initial Meeting, the parties have not resolved the dispute, the dispute shall be referred to Mediation directed by a mediator mutually agreeable to the parties. Each party shall bear its proportionate share of the costs of the mediator's fees.

The parties agree to negotiate in good faith in the Initial Meeting and in the Mediation.

111. If after a period of thirty (30) days following the commencement of Mediation the parties are unable to resolve the dispute either party may submit the dispute to binding arbitration in accordance with clause 27.2 hereof upon ten (10) days prior written notice to the other party.

27.2 Binding Arbitration

1. Either party may submit any dispute arising out of this Loan Agreement that is not resolved following the processes in clauses 27 (i), (ii) and (iii) above to final and binding Arbitration.

11. The referral of the dispute to Arbitration precludes any other course of action by the other party except upon the mutual agreement and consent of both parties.

iii. The Arbitration contemplated hereby shall be by three (3) Arbitrators one of whom shall be appointed by the Lender and the Borrower respectively while the third Arbitrator shall be nominated by the two (2) Arbitrators aforesaid and the venue for the proceedings shall be Lagos.

Where there is disagreement on the appointment of the third Arbitrator, then the third Arbitrator shall be appointed by the Chartered Institute of Arbitrators Nigeria.

iv, Each party shall be responsible for the cost of the Arbitrator appointed by it, while the cost of the third Arbitrator and all other costs and expenses of the arbitration proceedings shall be borne equally by the Lender and the Borrower respectively.

v. The Arbitration shall be conducted in accordance with the Arbitration and Conciliation Act Cap A 18 Laws of the Federation of Nigeria 2004.

28. FORCE MAJEURE

Any delay in or failure of performance of this Loan Agreement by either party hereto shall not constitute default by such party or give rise to any claim for damages against it if such delay or failure of performance is caused by force majeure including but not limited to acts of God, acts of war or revolution, civil commotion, strikes, lock out, any labour unrest, governmental action, fire, flood, earthquake, destructive lightning, epidemic or other circumstances which are beyond the reasonable control of the party affected and which they could not have reasonably foreseen and guarded against and which by exercise of reasonable care and diligence they are unable to prevent.

29. ACKNOWLEDGMENT

Any admission or acknowledgment in writing by the Borrower or by any authorized person on behalf of the Borrower of the amount of indebtedness of the Borrower to the Lender or any statement of account furnished by the Lender and reviewed by the Borrower as the case may be as a true copy extracted from the books of the Lender shall be accepted as prima facie evidence against the Borrower.

30. EXECUTION OF LOAN AGREEMENT

This Loan Agreement may be executed in any number of counterparts and such counterparts signed by all the parties hereto shall be deemed to constitute one and the same instrument and the Loan Agreement shall become effective when each of the parties hereto shall have signed a copy thereof (whether the same or different copies) and shall have delivered the same to the Lender.

31. SEVERABILITY OF PROVISIONS

Any provisions in this Loan Agreement which is prohibited or unenforceable under Nigerian Law shall be ineffective to the extent only of such prohibition or unenforceability without invalidating the remaining provisions hereof.

32. APPLICABLE LAW

The Loan Agreement shall be governed by and construed in accordance with the

Laws of the Federal Republic of Nigeria.

33. AGREEMENT

This Loan Agreement supersedes any prior agreements, promises, negotiations or representations either oral or written relating to the subject matter of this Loan Agreement and, except as provided for herein, may not be amended or modified.

34. ENTIRE AGREEMENT

This Loan Agreement shall be read in conjunction with the offer letter by the Lender dated June 17, 2016. In the event of any conflict between the terms of this Offer Letter and this Loan Agreement, the provisions of the Offer Letter will prevail.

35. AMENDMENT

This Loan Agreement may not be amended or modified save by a document signed and sealed by and on behalf of the parties hereto.

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

15 U.S.C. § 7241

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Segun Omidele, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Erin Energy Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present, in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors:

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2016	/s/ Segun Omidele
	Segun Omidele
	Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

15 U.S.C. § 7241

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Daniel Ogbonna, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Erin Energy Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present, in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors:

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2016	/s/ Daniel Ogbonna
	Daniel Ogbonna Senior Vice President and Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. § 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned hereby certifies, in his capacity as the Principal Executive Officer of Erin Energy Corporation (the “Corporation”), that the Quarterly Report of the Corporation on Form 10-Q for the quarter ended June 30, 2016, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in such report fairly presents, in all material respects, the financial condition and the results of operations of the Corporation.

Date: August 8, 2016	/s/ Segun Omidele
	Segun Omidele
	Chief Executive Officer (Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. § 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned hereby certifies, in his capacity as the Principal Financial Officer of Erin Energy Corporation (the “Corporation”), that the Quarterly Report of the Corporation on Form 10-Q for the quarter ended June 30, 2016, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in such report fairly presents, in all material respects, the financial condition and the results of operations of the Corporation. 

Date: August 8, 2016	/s/ Daniel Ogbonna
	Daniel Ogbonna
	Senior Vice President and Chief Financial Officer (Principal Financial Officer)

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Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 01, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	Erin Energy Corp.
Entity Central Index Key	0001402281
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		212,543,801

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CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 8,759	$ 8,363
Restricted cash	0	8,661
Accounts receivable - trade	3	1,029
Accounts receivable - partners	667	287
Accounts receivable - related party	1,732	1,186
Accounts receivable - other	71	28
Crude oil inventory	5,895	4,789
Prepaids and other current assets	1,363	684
Total current assets	18,490	25,027
Property, plant and equipment:
Oil and gas properties (successful efforts method of accounting), net	329,371	348,331
Other property, plant and equipment, net	1,023	1,174
Total property, plant and equipment, net	330,394	349,505
Other non-current assets	76	67
Total assets	348,960	374,599
Current liabilities:
Accounts payable and accrued liabilities	242,033	213,120
Accounts payable and accrued liabilities - related party	29,465	30,133
Short-term note payable	357	0
Current portion of long-term debt, net	3,802	96,558
Total current liabilities	275,657	339,811
Long-term notes payable - related party, net	127,517	120,006
Term loan facility, net	83,441	0
Asset retirement obligations	21,522	20,609
Total liabilities	508,137	480,426
Commitments and contingencies (Note 10)
Capital deficiency:
Preferred stock $0.001 par value - 50,000,000 shares authorized; none issued and outstanding as of June 30, 2016 and December 31, 2015, respectively	0	0
Common stock $0.001 par value - 416,666,667 shares authorized; 212,517,199 and 211,615,773 shares issued as of June 30, 2016 and December 31, 2015, respectively	213	212
Additional paid-in capital	791,453	789,615
Accumulated deficit	(951,434)	(896,451)
Treasury stock at cost, 84,185 and -0- shares as of June 30, 2016 and December 31, 2015, respectively	(192)	0
Total deficit - Erin Energy Corporation	(159,960)	(106,624)
Non-controlling interests	783	797
Total capital deficiency	(159,177)	(105,827)
Total liabilities and capital deficiency	$ 348,960	$ 374,599

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CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized shares	50,000,000	50,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	416,666,667	416,666,667
Common stock, issued shares	212,517,199	211,615,773
Treasury stock, shares	84,185	0

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CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Crude oil sales, net of royalties	$ 23,151	$ 0	$ 28,080	$ 0
Operating costs and expenses:
Production costs	22,123	4,258	44,687	25,573
Crude oil inventory (increase) decrease	729	(9,874)	(102)	(9,861)
Workover expenses	7,585	618	7,585	618
Exploratory expenses	1,200	1,502	3,262	8,017
Depreciation, depletion and amortization	14,856	123	19,668	243
Accretion of asset retirement obligations	461	299	913	876
Loss on settlement of asset retirement obligations	0	3,454	205	3,454
General and administrative expenses	3,396	5,441	7,354	8,932
Total operating costs and expenses	50,350	5,821	83,572	37,852
Operating loss	(27,199)	(5,821)	(55,492)	(37,852)
Other income (expense):
Currency transaction gain	10,465	555	11,328	1,991
Interest expense	(5,954)	(4,224)	(11,379)	(6,835)
Total other income (expense), net	4,511	(3,669)	(51)	(4,844)
Loss before income taxes	(22,688)	(9,490)	(55,543)	(42,696)
Income tax expense	0	0	0	0
Net loss before non-controlling interest	(22,688)	(9,490)	(55,543)	(42,696)
Net loss attributable to non-controlling interest	116	328	560	475
Net loss attributable to Erin Energy Corporation	$ (22,572)	$ (9,162)	$ (54,983)	$ (42,221)
Net loss attributable to Erin Energy Corporation per common share:
Basic (in dollars per share)	$ (0.11)	$ (0.04)	$ (0.26)	$ (0.20)
Diluted (in dollars per share)	$ (0.11)	$ (0.04)	$ (0.26)	$ (0.20)
Weighted average common shares outstanding:
Basic (in shares)	212,290	211,108	212,067	210,791
Diluted (in shares)	212,290	211,108	212,067	210,791

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CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock	Non-controlling Interest
Balance at December 31, 2015 at Dec. 31, 2015	$ (105,827)	$ 212	$ 789,615	$ (896,451)	$ 0	$ 797
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued	167	1	166
Stock-based compensation	1,619		1,619
Warrants issued with debt	53		53
Transfer to treasury upon vesting of restricted stock	(192)				(192)
Non-controlling interest	546					546
Net loss	(55,543)			(54,983)		(560)
Balance at June 30, 2016 at Jun. 30, 2016	$ (159,177)	$ 213	$ 791,453	$ (951,434)	$ (192)	$ 783

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities
Net loss	$ (55,543)	$ (42,696)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation, depletion and amortization	19,668	243
Accretion of asset retirement obligations	913	876
Amortization of debt discount and debt issuance costs	1,789	1,119
Loss on settlement of asset retirement obligations	0	3,454
Foreign currency transaction gain	(11,328)	(1,991)
Share-based compensation	1,619	3,434
Payments to settle asset retirement obligations	0	(16,441)
Change in operating assets and liabilities:
Decrease in accounts receivable	603	470
Increase in crude oil inventory	(102)	(9,861)
Increase in prepaids and other current assets	(688)	(1,234)
Increase in accounts payable and accrued liabilities	41,895	34,653
Net cash used in operating activities	(1,174)	(27,974)
Cash flows from investing activities
Capital expenditures	(9,667)	(56,741)
Net cash used in investing activities	(9,667)	(56,741)
Cash flows from financing activities
Proceeds from exercise of stock options and warrants	167	1,855
Payments for treasury stock arising from withholding taxes upon restricted stock vesting	(192)	0
Repayments of term loan facility	(5,981)	0
Proceeds from short-term notes payable	504	0
Proceeds from notes payable - related party, net	6,129	57,815
Debt issuance costs	(693)	0
Funds released from restricted cash	8,661	0
Funding from non-controlling interest	0	375
Net cash provided by financing activities	8,595	60,045
Effect of exchange rate changes on cash and cash equivalents	2,642	568
Net decrease in cash and cash equivalents	396	(24,102)
Cash and cash equivalents at beginning of period	8,363	25,143
Cash and cash equivalents at end of period	8,759	1,041
Cash paid for:
Interest, net	5,680	4,927
Supplemental disclosure of non-cash investing and financing activities:
Issuance of common shares for settlement of liabilities	0	125
Discount on notes payable pursuant to issuance of warrants	53	4,484
Reduction in accounts payable from settlement of Northern Offshore contingency	$ 0	$ 24,307

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Company Description

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Company Description

Company Description

Erin Energy Corporation (NYSE MKT: ERN; JSE: ERN) is an independent oil and gas exploration and production company engaged in the acquisition and development of energy resources in Africa. The Company’s asset portfolio consists of nine licenses across four countries covering an area of approximately 10 million acres (approximately 40,000 square kilometers ). The Company owns producing properties and conducts exploration activities offshore Nigeria, conducts exploration activities offshore Ghana and The Gambia, and both onshore and offshore Kenya.

The Company is headquartered in Houston, Texas and has offices in Lagos, Nigeria, Nairobi, Kenya, Banjul, The Gambia, Accra, Ghana and Johannesburg, South Africa.

The Company’s operating subsidiaries include Erin Petroleum Nigeria Limited (“EPNL”), Erin Energy Kenya Limited, Erin Energy Gambia Ltd., and Erin Energy Ghana Limited. The terms “we,” “us,” “our,” “the Company,” and “our Company” refer to Erin Energy Corporation and its subsidiaries.

The Company also conducts certain business transactions with its majority shareholder, CAMAC Energy Holdings Limited (“CEHL”), and its affiliates, which include Allied Energy Plc. (“Allied”). See Note 9 - Related Party Transactions for further information.

In May 2016, Dr. Kase L. Lawal retired from service as a member and Executive Chairman of the Board of Directors and Chief Executive Officer. John Hofmeister, a then current member of our Board of Directors, succeeded Dr. Lawal as the Chairman of the Board of Directors, and Segun Omidele, the Company's then Chief Operating Officer, succeeded Dr. Lawal as the Chief Executive Officer.

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Basis of Presentation and Recently Issued Accounting Standards

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation and Recently Issued Accounting Standards

Basis of Presentation and Recently Issued Accounting Standards

The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned direct and indirect subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). All significant intercompany transactions and balances have been eliminated in consolidation. The unaudited consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the consolidated financial position and results of operations for the indicated periods. All such adjustments are of a normal recurring nature. This Form 10-Q should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 24, 2016.

Use of Estimates

The preparation of the Company's consolidated financial statements in conformity with U.S. GAAP requires management to make estimates based on certain assumptions. Estimates affect the reported amounts of assets and liabilities, disclosure of contingent liabilities, and the reported amounts of revenues and expenses attributable to the reporting periods. Accordingly, accounting estimates in conformity with U.S. GAAP require the exercise of judgment. These estimates and assumptions used in the preparation of the Company’s consolidated financial statements are based on information available as of the date of the consolidated financial statements, and while management believes that the estimates and assumptions are appropriate, actual results could differ from management's estimates.

Estimates that may have a significant effect on the Company’s financial position and results from operations include share-based compensation assumptions, oil and natural gas reserve quantities, impairments, depletion and amortization relating to oil and natural gas properties, asset retirement obligation assumptions, and income taxes. The accounting estimates used in the preparation of the Company's consolidated financial statements may change as new events occur, more experience is acquired, additional information is obtained and our operating environment changes.

Capitalized Interest

The Company capitalizes interest costs for qualifying oil and gas properties. The capitalization period begins when expenditures are incurred on qualified properties, activities begin which are necessary to prepare the property for production, and interest costs have been incurred. The capitalization period continues as long as these events occur. Capitalized interest is added to the cost of the underlying assets and is depleted using the unit-of-production method in the same manner as the underlying assets.

During the six months ended June 30, 2016 and 2015, the Company capitalized nil and $2.2 million, respectively, in interest cost as additions to property, plant and equipment related to the Oyo field redevelopment campaign.

Treasury Stock

Treasury stock is reported at cost and is included in the accompanying consolidated balance sheets. Pursuant to the Company’s withholding tax policy with respect to vested restricted stock awards, the Company may withhold, on a cashless basis, a number of shares needed to settle statutory withholding tax requirements. During the six months ended June 30, 2016, 84,185 shares were withheld for taxes at a total cost of $0.2 million. The Company had no treasury stock withheld for taxes during the six months ended June 30, 2015.

The following table sets forth certain information with respect to the withholding and related repurchases of our common stock during the quarter ended June 30, 2016.

	Total Number of Shares Purchased (1)	Average Price Paid Per Share
January 1 - January 31, 2016	3,643	$	4.02
February 1 - February 29, 2016	62,152	2.16
March 1 - March 31, 2016	17,318	2.31
May 1 - May 31, 2016	1,072	$	2.48
Total	84,185	$	2.28

(1) All shares repurchased were surrendered by employees to settle tax withholding obligations upon the vesting of restricted stock awards.

Net Earnings (Loss) Per Common Share

Basic net earnings or loss per common share is computed by dividing net earnings or loss by the weighted average number of shares of common stock outstanding at the end of the reporting period. Diluted net earnings or loss per share is computed by dividing net earnings or loss by the fully dilutive common stock equivalent, which consists of shares outstanding, augmented by potentially dilutive shares issuable upon the exercise of the Company's stock options, stock warrants, non-vested restricted stock awards, and conversion of the Convertible Subordinated Note, calculated using the treasury stock method.

The table below sets forth the number of stock options, stock warrants, non-vested restricted stock, and shares issuable upon conversion of the Convertible Subordinated Note that were excluded from dilutive shares outstanding during the three and six months ended June 30, 2016 and 2015, as these securities are anti-dilutive because the Company was in a loss position during each period.

	Three Months Ended June 30,		Six Months Ended June 30,
(In thousands)	2016	2015	2016	2015
Stock options	183	1,476	250	1,119
Stock warrants	1	1,046	—	426
Unvested restricted stock awards	1,993	1,348	1,769	1,324
Convertible note	—	11,632	—	—
	2,177	15,502	2,019	2,869

Upon the occurrence of certain events, the Company is also contingently liable to make additional payments to Allied, under a Transfer Agreement entered into in November 2013 by the Company, its affiliates and Allied (the “Transfer Agreement”), up to an additional amount totaling $50.0 million in cash, or the equivalent in shares of the Company’s common stock, at Allied’s option. See Note 10 - Commitments and Contingencies for further information.

Fair Value Measurements

Fair value is defined as the amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in an orderly transaction between market participants at the measurement date. The established framework for measuring fair value establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and includes certain disclosure requirements. Fair value estimates are based on either (i) actual market data or (ii) assumptions that other market participants would use in pricing an asset or liability, including estimates of risk.

There are three levels of valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows:

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an on-going basis.

Level 2 - Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Substantially all of these inputs are observable in the marketplace throughout the term, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace.

Level 3 - Inputs that are unobservable and significant to the fair value measurement (including the Company’s own assumptions in determining fair value).

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, inventory, deposits, accounts payable and accrued liabilities, and debt at floating interest rates, approximate their fair values at June 30, 2016 and December 31, 2015, respectively, principally due to the short-term nature, maturities or nature of interest rates of the above listed items.

Reclassification

Certain reclassifications have been made to the 2015 consolidated financial statements to conform to the 2016 presentation. These reclassifications were not material to the accompanying consolidated financial statements.

Recently Issued Accounting Standards

In February 2016, the FASB issued ASU No. 2016-2, Leases (Topic 842). ASU 2016-2 is aimed at making leasing activities more transparent and comparable, and requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. ASU 2016-2 is effective for the Company in the fiscal year beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted. The Company is still evaluating the impact of the adoption of this standard on its financial statements.

In March 2016, the FASB issued ASU No. 2016-07, Investments-Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. ASU No. 2016-07 eliminates the requirement to retroactively adopt the equity method of accounting. ASU No. 2016-07 is effective for interim and annual periods beginning after December 15, 2016, and the Company will adopt this standards update, as required, beginning with the first quarter of 2017. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Consideration (Reporting Revenue Gross versus Net). ASU No. 2015-08 requires that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2016-08 is effective for interim and annual periods beginning after December 15, 2017, and the Company will adopt this standards update, as required, beginning with the first quarter of 2018. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The areas of simplification in ASU No. 2016-09 involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU No. 2016-09 is effective for interim and annual periods beginning after December 15, 2016, and the Company will adopt this standards update, as required, beginning with the first quarter of 2017. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU No. 2016-10 clarifies two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. ASU No. 2016-10 is effective for interim and annual periods beginning after December 15, 2017, and the Company will adopt this standards update, as required, beginning with the first quarter of 2018. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2016, the FASB issued ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. ASU No. 2016-11 rescinds SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extractive Activities - Oil and Gas, effective upon adoption of Topic 606. ASU No. 2016-11 is effective for interim and annual periods beginning after December 15, 2017, and the Company will adopt this standards update, as required, beginning with the first quarter of 2018. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The core principle of ASU No. 2016-12 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2016-12 is effective for interim and annual periods beginning after December 15, 2017, and the Company will adopt this standards update, as required, beginning with the first quarter of 2018. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

Adoption of Previously Issued ASUs

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs be presented as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. Prior to the issuance of ASU 2015-03, the Company recorded and presented debt issuance costs as part of prepaids and other current assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirement for debt issuance costs. The adoption of ASU 2015-03 resulted in the reclassification of approximately $1.6 million unamortized debt issuance costs related to the Company's Term Loan Facility (see Note 8 - Debt) from prepaids and other current assets to current portion of long-term debt within its consolidated balance sheets as of December 31, 2015. Other than this reclassification, the adoption of ASU 2015-03 did not have an impact on the Company's consolidated financial statements.

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Liquidity Matters and Going Concern

6 Months Ended

Jun. 30, 2016

Liquidity Matters [Abstract]

Liquidity Matters

Liquidity Matters and Going Concern

The Company incurred losses from operations for the three and six months ended June 30, 2016. As of June 30, 2016, the Company's total current liabilities of $275.7 million exceeded its total current assets of $18.5 million, resulting in a working capital deficit of $257.2 million. As a result of the current low commodity prices and the Company’s low oil production volumes due to the recent mechanical problem which was resolved earlier in the year associated with well Oyo-8, the Company has not been able to generate sufficient cash from operations to satisfy certain obligations as they became due.

Well Oyo-7 is currently shut-in as a result of an emergency shut-in of the Oyo field production that occurred in early July of this year. This has resulted in a loss of approximately 1,400 BOPD. The Company is currently evaluating various technical options to optimize economic results from the Oyo field, including but not limited to, attempting a nitrogen lifting exercise to bring back production on well Oyo-7. 

The Company is currently pursuing a number of actions, including (i) obtaining additional funds through public or private financing sources, (ii) restructuring existing debts from lenders, (iii) obtaining forbearance of debt from trade creditors, (iv) reducing ongoing operating costs, (v) minimizing projected capital costs for the 2016 exploration and development campaign and (vi) farming-out a portion of our rights to certain of our oil and gas properties. There can be no assurances that sufficient liquidity can be raised from one or more of these actions or that these actions can be consummated within the period needed to meet certain obligations.

The Company's consolidated financial statements have been prepared under the assumption that it will continue as a going concern, which assumes the continuity of operations, the realization of assets and the satisfaction of liabilities as they come due in the normal course of business. Although the Company believes that it will be able to generate sufficient liquidity from the measures described above, its current circumstances raise substantial doubt about its ability to continue to operate as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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Property, Plant and Equipment

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment were comprised of the following:

(In thousands)	June 30,   2016			December 31, 2015
Wells and production facilities	$	328,787		$	329,133
Proved properties	386,196			386,196
Work in progress and exploration inventory	66,822			65,043
Oilfield assets	781,805			780,372
Accumulated depletion	(462,874		)	(442,481		)
Oilfield assets, net	318,931			337,891
Unevaluated leaseholds	10,440			10,440
Oil and gas properties, net	329,371			348,331
Other property and equipment	3,092			2,963
Accumulated depreciation	(2,069		)	(1,789		)
Other property and equipment, net	1,023			1,174
Total property, plant and equipment, net	$	330,394		$	349,505

All of the Company’s oilfield assets are located offshore Nigeria in the Oil Mining Leases 120 and 121 (the "OMLs"). “Work-in-progress and exploration inventory” includes suspended costs for wells that are not yet completed, as well as warehouse inventory items purchased as part of the redevelopment plan of the Oyo field.

The Company’s unevaluated leasehold costs include costs to acquire the rights to the exploration acreage in its various oil and gas properties.

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Suspended Exploratory Well Costs

6 Months Ended

Jun. 30, 2016

Extractive Industries [Abstract]

Suspended Exploratory Well Costs - Work in Progress

Suspended Exploratory Well Costs - Work in Progress

In November 2013, the Company achieved both its primary and secondary drilling objectives for the well Oyo-7. The primary drilling objective was to establish production from the existing Pliocene reservoir. The secondary drilling objective was to confirm the presence of hydrocarbons in the deeper Miocene formation. Hydrocarbons were encountered in three Miocene intervals totaling approximately 65 feet, as interpreted by the logging-while-drilling (“LWD”) data. Plans are underway to secure a rig to drill at least one exploration well in the nearby G-Prospect. The primary objective of the G-Prospect is to target the same Miocene-age sediments as the ones found in the Oyo-7 exploratory drilling objective. Suspended exploratory well costs were $26.5 million at both June 30, 2016 and December 31, 2015 for the costs related to the Miocene exploratory drilling activities.

In August 2014, the Company drilled well Oyo-8 to a total vertical depth of approximately 6,059 feet (approximately 1,847 meters) and successfully encountered four new oil and gas reservoirs in the eastern fault block, with total gross hydrocarbon thickness of 112 feet, based on results from the LWD data, reservoir pressure measurement, and reservoir fluid sampling. Management has completed a detailed evaluation of the results and has future development plans in the area. Suspended exploratory well costs were $6.5 million at both June 30, 2016 and December 31, 2015 for the costs related to the Pliocene exploration drilling activities in the eastern fault block.

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Accounts Payable and Accrued Liabilities

6 Months Ended

Jun. 30, 2016

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities

Accounts Payable and Accrued Liabilities

The table below sets forth a summary of the Company’s accounts payable and accrued liabilities at June 30, 2016 and December 31, 2015:

(In thousands)	June 30, 2016		December 31, 2015
Accounts payable - vendors	$	175,417	$	153,085
Amounts due to government entities	62,059		53,119
Accrued interest	2,497		2,510
Accrued payroll and benefits	1,078		629
Other liabilities	982		3,777
	$	242,033	$	213,120

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Asset Retirement Obligations

6 Months Ended

Jun. 30, 2016

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

Asset Retirement Obligations

The Company’s asset retirement obligations primarily represent the estimated fair value of the amounts that will be incurred to plug, abandon and remediate its producing properties at the end of their productive lives. Significant inputs used in determining such obligations include, but are not limited to, estimates of plugging and abandonment costs, estimated future inflation rates and changes in property lives. The inputs used in the fair value determination were based on Level 3 inputs, which were essentially management's assumptions.

On a quarterly basis, the Company reviews the assumptions used to estimate the expected cash flows required to settle the asset retirement obligations, including changes in estimated probabilities, amounts and timing of the settlement of the asset retirement obligations, as well as changes in the legal obligation for each of its properties. Changes in any one or more of these assumptions may cause revisions in the estimated liabilities for the corresponding assets. The following summarizes changes in the Company’s asset retirement obligations during the six months ended June 30, 2016 (in thousands):

Balance at January 1, 2016	$	20,609
Accretion expense	913
Balance at June 30, 2016	$	21,522

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Debt

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Debt

Debt

Short-Term Debt:

Short-Term Borrowing - TOTSA Advance

In May 2016, the Company received $4.7 million as an advance under a prepayment agreement with TOTSA Total Oil Trading SA ("TOTSA")(the “May Advance”). Interest accrued on the May Advance at the rate of the 60-day LIBOR plus 5% per annum. Repayment of the May Advance was made from proceeds received from the June crude oil lifting.

Short-Term Note Payable

In June 2016, the Company borrowed approximately $0.5 million under a 30-day Promissory Note agreement entered into with a Nigerian bank (the “2016 Short-Term Note”), and had a facility flat fee of 2.5%. As of June 30, 2016, the Company recognized an unrealized foreign currency gain of $0.1 million, reducing the balance under the 2016 Short-Term Note to $0.4 million. The 2016 Short-Term Note was renewed for another 30 days in July 2016 at a flat fee facility rate of 2.5%, and was fully repaid in July 2016.

Long-Term Debt- Term Loan Facility:

In September 2014, the Company, through its wholly owned subsidiary EPNL, entered into the Term Loan Facility with Zenith Bank PLC ("Zenith"). 90.0% of the Term Loan Facility was available in U.S. dollars, while the remaining 10% was available in Nigerian Naira. U.S. dollar borrowings under the Term Loan Facility currently bear interest at the rate of 11.1%. The obligations under the Term Loan Facility include a legal charge over the OMLs and an assignment of proceeds from oil sales. The obligations of EPNL have been guaranteed by the Company and rank in priority with all its other obligations. Proceeds from the Term Loan Facility were used for the further expansion and development of the Oyo field offshore Nigeria.

In June 2016, the Term Loan Facility was modified contingent upon the signing of a loan agreement, which was signed in August 2016. The modification put in place a twelve month moratorium on principal payments and extended the term of the Term Loan Facility until February 2021. Additionally, it reduced the funding requirement of the debt service reserve account (“DSRA”) to an amount equal to one quarter of interest until the price of oil exceeds $55 per barrel, at which time an amount equal to two quarters of interest will then be required.

Upon executing the Term Loan Facility, the Company paid fees totaling $2.6 million. Upon modification of the Term Loan Facility, additional fees of $1.4 million were incurred. These fees were recorded as debt issuance cost and are being amortized over the life of the Term Loan Facility using the effective interest method. As of June 30, 2016, $2.6 million of the debt issuance costs remained unamortized.

Under the Term Loan Facility, the following events, among others, constitute events of default: EPNL failing to pay any amounts due within thirty days of the due date; bankruptcy, insolvency, liquidation or dissolution of EPNL; a material breach of the Loan Agreement by EPNL that remains unremedied within thirty days of written notice by EPNL; or a representation or warranty of EPNL proves to have been incorrect or materially inaccurate when made. Upon any event of default, all outstanding principal and interest under any loans will become immediately due and payable.

As of June 30, 2016, the Company was out of compliance with the DSRA funding requirement. This was brought into compliance in July 2016 with the Company making the required deposit.

Further, Zenith has the right to review the terms and conditions of the Term Loan Facility.

During the six months ended June 30, 2016, the Company made payments of $0.4 million and $5.6 million for the principal repayment of the Naira portion of the loan due on March 31, 2016 and for the U.S. dollar principal that was due as of December 31, 2015, respectively.

As of June 30, 2016, the Company recognized an unrealized foreign currency gain of $3.9 million on the Naira portion of the loan, reducing the balance under the Term Loan Facility to $87.2 million, net of debt discount. Of this amount, $83.4 million was classified as long-term and $3.8 million as short-term. Accrued interest for the Term Loan Facility was $2.5 million as of June 30, 2016. Scheduled principal repayments on the outstanding balance on the Term Loan Facility are as follows (in thousands):

Scheduled payments by year	Principal
2016	$	—
2017	13,475
2018	19,764
2019	21,561
2020 and thereafter	35,036
Total principal payments	89,836
Less: Unamortized debt issuance costs	2,593
Total Term Loan Facility, net	$	87,243

Long-Term Debt – Related Party:

As of June 30, 2016, the Company’s long-term related party debt was $127.5 million, consisting of $24.9 million owed under a 2011 Promissory Note, $50.0 million owed under a 2014 Convertible Subordinated Note, $46.9 million, net of discount, owed under a 2015 Convertible Note, and $5.7 million owed under a 2016 Promissory Note.

Allied, a related party, is the holder of each of the 2011 Promissory Note, the 2014 Convertible Subordinated Note, and the 2015 Convertible Note (collectively the "Allied Notes"). Each of the Allied Notes contains certain default and cross-default provisions, including failure to pay interest and principal amounts when due and default under other indebtedness. As of June 30, 2016, the Company was not in compliance with certain default provisions of the Allied Notes with respect to the payment of quarterly interest. Further, the risk of cross-default exists for each of the Allied Notes if the holder of the Term Loan Facility exercises its right to terminate the Term Loan Facility and accelerate its maturity. Allied has agreed to waive its rights under all default provisions of each of the Allied Notes through July 2017.

2011 Promissory Note

The Company has a $25.0 million borrowing facility under a Promissory Note (the “2011 Promissory Note”) with Allied. Interest accrues on the outstanding principal under the 2011 Promissory Note at a rate of the 30-day LIBOR plus 2% per annum, payable quarterly. In October 2015, the 2011 Promissory Note was amended to extend the maturity date by one year to July 30, 2017. The stock of the Company’s subsidiary that holds the exploration licenses in The Gambia and Kenya were pledged as collateral to secure the 2011 Promissory Note, pursuant to an Equitable Share Mortgage arrangement. The entire $25.0 million facility amount can be utilized for general corporate purposes. As of June 30, 2016, the outstanding principal and accrued interest under the 2011 Promissory Note were $24.9 million and $1.2 million, respectively.

2014 Convertible Subordinated Note

As partial consideration in connection with the February 2014 acquisition of the Allied Assets, the Company issued a $50.0 million Convertible Subordinated Note in favor of Allied (the “2014 Convertible Subordinated Note”). Interest on the 2014 Convertible Subordinated Note accrues at a rate per annum of one-month LIBOR plus 5%, payable quarterly in cash until the maturity of the 2014 Convertible Subordinated Note five years from the closing of the Allied Transaction.

At the election of the holder, the 2014 Convertible Subordinated Note is convertible into shares of the Company’s common stock at an initial conversion price of $4.2984 per share, subject to anti-dilution adjustments. The 2014 Convertible Subordinated Note is subordinated to the Company’s existing and future senior indebtedness and is subject to acceleration upon an Event of Default (as defined in the 2014 Convertible Subordinated Note). The following events, among others, constitute an Event of Default under the 2014 Convertible Subordinated Note: the Company failing to pay interest within thirty days of the due date; the Company failing to pay principal when due; bankruptcy, insolvency, liquidation or dissolution of the Company; a material breach of the 2014 Convertible Subordinated Note by the Company that remains unremedied within ten days of such material breach; or a representation or warranty of the Company proves to have been incorrect or materially inaccurate when made. Upon any event of default, all outstanding principal and interest under any loans will become immediately due and payable. As of June 30, 2016, the Company owed $6.7 million in interest under the 2014 Convertible Subordinated Note.

The Company may, at its option, prepay the 2014 Convertible Subordinated Note in whole or in part, at any time, without premium or penalty. Further, the 2014 Convertible Subordinated Note is subject to mandatory prepayment upon (i) the Company’s issuance of capital stock or incurrence of indebtedness, the proceeds of which the Company does not apply to repayment of senior indebtedness or (ii) any capital markets debt issuance to the extent the net proceeds of such issuance exceed $250.0 million. Allied may assign all or any part of its rights and obligations under the 2014 Convertible Subordinated Note to any person upon written notice to the Company. As of June 30, 2016, the outstanding principal under the 2014 Convertible Subordinated Note was $50.0 million.

2015 Convertible Note

In March 2015, the Company entered into a new borrowing facility with Allied in the form of a Convertible Note (the “2015 Convertible Note”), allowing the Company to borrow up to $50.0 million for general corporate purposes. In March 2016, the maturity date of the 2015 Convertible Note was extended to December 2017. Interest accrues at the rate of LIBOR plus 5%, and is payable quarterly. 

The 2015 Convertible Note is convertible into shares of the Company’s common stock upon the occurrence and continuation of an event of default, at the sole option of the holder. The number of shares issuable upon conversion is equal to the sum of the principal amount and the accrued and unpaid interest divided by the conversion price, defined as the volume weighted average of the closing sales prices on the NYSE MKT for a share of common stock for the five complete trading days immediately preceding the conversion date.

During the three months ended June 30, 2016, the Company borrowed an additional $0.5 million under the 2015 Convertible Note and issued to Allied warrants to purchase approximately 48,291 shares of the Company's common stock with an exercise price of ranging from $2.00 to $2.13 per share with a total fair value of approximately $0.1 million.

As of June 30, 2016, the Company had borrowed $48.5 million under the note and issued to Allied warrants to purchase approximately 2.7 million shares of the Company’s common stock at prices ranging from $2.00 to $7.85 per share. The total fair market value of the warrants amounting to $5.0 million based on the Black-Scholes option pricing model was recorded as a debt discount, and is being amortized using the effective interest method over the life of the note. As of June 30, 2016, the unamortized balance of the discount was $1.6 million.

Additional warrants are issuable in connection with future borrowings, with the per share price for those warrants determined based on the market price of the Company’s common stock at the time of such future borrowings. As of June 30, 2016, the outstanding balance of the 2015 Convertible Note, net of discount, was $46.9 million. Accrued interest on the 2015 Convertible Note was $3.4 million as of June 30, 2016.

2016 Promissory Note

In March 2016, the Company borrowed $3.0 million under a short-term Promissory Note agreement entered into with an entity related to the Company's majority shareholder, which accrued interest at a rate of the 30-day LIBOR plus 7% per annum.

In April 2016, the Company borrowed an additional sum of $1.0 million from the same lender, under another short-term Promissory Note, which also accrued interest at a rate of the 30-day LIBOR plus 7% per annum.

In May 2016, the Lender of the two Promissory Notes agreed to combine both notes into a $10.0 million borrowing facility (the "2016 Promissory Note") with a maturity date of September 2017. Interest accrues at a rate of the 30-day LIBOR plus 7% per annum.

During May and June 2016, the Company had additional drawings under the 2016 Promissory Note totaling $1.7 million. As of June 30, 2016, the outstanding balance under the 2016 Promissory Note was $5.7 million. Accrued interest on the 2016 Promissory Note was $0.1 million as of June 30, 2016.

In August 2016, the Company had an additional drawing under the 2016 Promissory Note amounting to $0.5 million.

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Related Party Transactions

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Assets and Liabilities

The Company has transactions in the normal course of business with its shareholders, CEHL and their affiliates. The following table sets forth the related party assets and liabilities as of June 30, 2016 and December 31, 2015:

(In thousands)	June 30,   2016		December 31, 2015
Accounts receivable, CEHL	$	1,732	$	1,186
Accounts payable and accrued liabilities, CEHL	$	29,465	$	30,133
Long-term notes payable - related party, CEHL	$	127,517	$	120,006

As of June 30, 2016 and December 31, 2015, the related party receivable balances of $1.7 million and $1.2 million, respectively, were for advance payments made for certain transactions on behalf of affiliates.

As of June 30, 2016 and December 31, 2015, the Company owed $29.5 million and $30.1 million, respectively, to affiliates primarily for logistical and support services in relation to the Company's oilfield operations in Nigeria, as well as accrued interest on the various related party notes payable. As of June 30, 2016 and December 31, 2015, accrued and unpaid interest on the various related party notes payable were $11.7 million and $8.3 million, respectively.

As of June 30, 2016, the Company had a combined note payable balance of $127.5 million owed to affiliates, consisting of a $50.0 million 2014 Convertible Subordinated Note, $24.9 million in borrowings under the 2011 Promissory Note, a $46.9 million borrowing under the 2015 Convertible Note, net of discount, and $5.7 million under the 2016 Promissory Note. As of December 31, 2015, the Company had a combined note payable balance of $120.0 million owed to an affiliate, consisting of the $50.0 million 2014 Convertible Subordinated Note, $25.0 million in borrowings under the 2011 Promissory Note, and $45.0 million borrowing under the 2015 Convertible Note, net of discount. See Note 8 – Debt for further information relating to the notes payable transactions.

Results from Operations

The table below sets forth a summary of transactions included in the Company's results of operations that were incurred with affiliates during the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2016		2015		2016		2015
Total operating expenses, CEHL	$	2,336	$	2,967	$	4,019	$	4,923
Interest expense, CEHL	$	1,786	$	1,389	$	3,462	$	2,421

Certain affiliates of the Company provide procurement and logistical support services to the Company’s operations. In connection therewith, during the three months ended June 30, 2016 and 2015, the Company incurred operating costs amounting to approximately $2.3 million and $3.0 million, respectively, and during the six months ended June 30, 2016 and 2015, the Company incurred operating costs amounting to approximately $4.0 million and $4.9 million, respectively

During the three months ended June 30, 2016 and 2015, the Company incurred interest expense, excluding debt discount amortization, totaling approximately $1.8 million and $1.4 million, respectively, in relation to related party notes payable. During the six months ended June 30, 2016 and 2015, the Company incurred interest expense totaling approximately $3.5 million and $2.4 million, respectively.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Commitments

In February 2014, a long-term contract was signed for the floating, production, storage, and offloading vessel (“FPSO”) Armada Perdana, which is the vessel currently connected to the Company’s productive wells, Oyo-7 and Oyo-8, offshore Nigeria. The contract provides for an initial term of seven years beginning January 1, 2014, with an automatic extension for an additional term of two years unless terminated by the Company with prior notice. The FPSO can process up to 40,000 barrels of liquid per day, with a storage capacity of approximately one million barrels. The annual minimum contractual commitment per the terms of the agreement is approximately $48.4 million per year through 2020.

The Company also has commitments related to four production sharing contracts with the Government of the Republic of Kenya (the “Kenya PSCs”), two Petroleum Exploration, Development & Production Licenses with the Republic of The Gambia (the “Gambia Licenses”), and one Petroleum Agreement with the Republic of Ghana. In all cases, the Company entered into these commitments through a subsidiary. To maintain compliance and ownership, the Company is required to fulfill certain minimum work obligations and to make certain payments as stated in each of the Kenya PSCs, the Gambia Licenses, and the Ghana Petroleum Agreement.

Contingencies

Legal Contingencies and Proceedings

From time to time, the Company may be involved in various legal proceedings and claims in the ordinary course of business. As of June 30, 2016, and through the filing date of this report, the Company does not believe the ultimate resolution of such actions or potential actions of which the Company is currently aware will have a material effect on its consolidated financial position or results of operations.

On January 22, 2016, a request for arbitration was filed with the London Court of International Arbitration by Transocean Offshore Gulf of Guinea VII Limited and Indigo Drilling Limited, as Claimants, against the Company and its Nigerian subsidiary, Erin Petroleum Nigeria Limited (fka CAMAC Petroleum Limited), as Respondents (the “Arbitration”). The Arbitration is in relation to a drilling contract entered into by the Claimants and CAMAC Petroleum Limited, and a parent company guarantee provided by the Company in relation thereto. The Claimants are seeking an order that the Respondents pay the sum of approximately $20.2 million together with interest and costs. The parties are in the process of trying to settle this matter and have agreed to extend deadlines in the Arbitration pending resolution of a settlement.

On February 5, 2016, a class action and derivative complaint was filed in the Delaware Chancery Court purportedly on behalf of the Company and on behalf of a putative class of persons who were stockholders as of the date the Company (1) acquired the Allied Assets pursuant to the Transfer Agreement and (2) issued shares to the PIC in a private placement (collectively the “February 2014 Transactions”). The complaint alleges the February 2014 Transactions were unfair to the Company and purports to assert derivative claims against (1) the seven individuals who served on our Board at the time of the February 2014 Transactions and (2) our majority shareholder, CEHL. The complaint also purports to assert a direct breach of fiduciary duty claim on behalf of the putative class against the seven individuals who served on our Board at the time of the February 2014 Transactions on the grounds that they purportedly caused the Company to disseminate a false and misleading proxy statement in connection with the February 2014 Transactions, and a direct claim for aiding and abetting against Dr. Lawal. The plaintiff is seeking, on behalf of the Company and the putative class, an undisclosed amount of compensatory damages. The Company is named solely as a nominal defendant against whom the plaintiff seeks no recovery.  On March 3, 2016, all of the defendants, including the Company, filed motions to dismiss the complaint. A hearing on this motion has been set for September 21, 2016.

On May 13, 2016, CEONA Contracting (UK) Limited initiated arbitration proceedings against the Company for $2.9 million, together with costs, expenses and interest, for work done in relation to the Company's ordinary course of business.  The parties are in the process of finalizing a settlement agreement.

On July 29, 2016, a judgment was entered against the Company in the amount of $2.7 million, including $0.3 million interest claimed under contractual terms, in relation to amounts due to a contractor (Polarcus MC Ltd.) in the ordinary course of business.

Unrecognized Loss Contingency

As of June 30, 2016, the Company has not accrued penalty and interest related to certain outstanding transactional tax obligations in Nigeria, including withholding taxes, value-added taxes, Nigerian Oil and Gas Industry Content Development Act (NCD) tax, Cabotage taxes, and Niger Delta Development Corporation taxes (NDDC). As of the date of this report, the Company believes that, based on its experience with local practices in Nigeria, the likelihood of being assessed penalty and interest is reasonably possible, with an estimated liability up to $11.1 million.

Contingency under the Allied Transfer Agreement

As provided for under the Transfer Agreement with Allied, the Company is required to make the following additional payments upon the occurrence of certain future events: (i) $25.0 million cash or the equivalent in shares of the Company’s common stock within fifteen days following the approval of a development plan by the Nigerian Department of Petroleum Resources ("DPR") with respect to a first new discovery of hydrocarbons in a non-Oyo field area; and (ii) $25.0 million cash or the equivalent in shares of the Company’s common stock within fifteen days starting from the commencement of the first hydrocarbon production in commercial quantities in a non-Oyo field area. The number of shares to be issued shall be determined by calculating the average closing price of the Company’s common stock over a period of thirty days, counted back from the first business day immediately prior to the approval of a development plan by DPR or the date of the first hydrocarbon production in commercial quantities, as applicable.

Contingency under the 2015 Convertible Note

As part of the condition to the extension of the maturity date of the 2015 Convertible Note, which extension was entered into in March 2016, the Company is required to (i) pay to Allied an amount equal to ten percent (10%) of any successful debt fundraising event completed during the remaining term of the 2015 Convertible Note; and (ii) pay to Allied an amount equal to twenty percent (20%) of any successful equity fundraising event completed during the remaining term of the 2015 Convertible Note.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

Stock Options

The table below sets forth a summary of stock option activity for the six months ended June 30, 2016.

	Shares Underlying Options (In Thousands)		Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term (Years)
Outstanding at December 31, 2015	2,532		$2.10	1.6
Granted	—		$—	—
Exercised	(885	)	$1.77	—
Forfeited	(27	)	$3.42	—
Expired	(131	)	$3.76	—
Outstanding at June 30, 2016	1,489		$2.45	2.0
Expected to vest	1,047		$2.09	1.3
Exercisable at June 30, 2016	442		$3.30	3.5

During the six months ended June 30, 2016, the Company issued 288,841 shares of common stock as a result of the exercise of stock options, of which 194,643 shares of common stock were issued as a result of the cashless exercise of 791,165 options. Also, during the six months ended June 30, 2016, options to purchase 130,714 shares of common stock expired, and options to purchase 27,052 shares were forfeited.

Stock Warrants

The table below sets forth a summary of stock warrant activity for the six months ended June 30, 2016.

	Shares Underlying Warrants (In Thousands)	Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term (Years)
Outstanding at December 31, 2015	2,935	$3.61	4.2
Granted	48	$2.07	4.8
Exercised	—	$—	—
Forfeited	—	$—	—
Expired	—	$—	—
Outstanding at June 30, 2016	2,983	$3.59	3.7
Expected to vest	—	$—
Exercisable at June 30, 2016	2,983	$3.59	3.7

During the six months ended June 30, 2016 and in connection with the execution of the 2015 Convertible Note, the Company issued warrants to purchase 48,291 shares of the Company's common stock at exercise prices ranging from $2.00 and $2.13 per share. The warrants are exercisable at any time starting from the date of issuance and have a five-year term.

Restricted Stock Awards

The table below sets forth a summary of restricted stock awards (“RSAs”) activity for the six months ended June 30, 2016.

	Shares (In Thousands)		Weighted-Average Grant Date Price Per Share
Restricted Stock
Non-vested at December 31, 2015	1,114		$	3.21
Granted	1,717		$	2.16
Vested	(613	)	$	3.54
Forfeited	(75	)	$	2.65
Non-vested as of June 30, 2016	2,143		$	2.29

During the six months ended June 30, 2016, the Company granted officers, directors, and employees a total of approximately 1.7 million shares of restricted common stock, including 0.5 million performance-based restricted stock awards ("PBRSA"), with vesting periods varying from immediate vesting to 36 months. During the same period, 74,949 shares of restricted common stock were forfeited.

With regards to the PBRSA, each grant will vest if the individuals remain employed three years from the date of grant and the Company achieves specific performance objectives at the end of the designated performance period. Up to 50% additional shares may be awarded if performance objectives are exceeded. None of the PBRSAs will vest if certain minimum performance goals are not met. The performance conditions are based on the Company’s total shareholder return over the performance period compared to an industry peer group of companies. Total estimated compensation expense is $0.4 million over three years.

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Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s current operations are based in Nigeria, Kenya, The Gambia, and Ghana. Management reviews and evaluates the operations of each geographic segment separately. Operations include exploration for and production of hydrocarbons where commercial reserves have been found and developed. Revenues and expenditures are recognized at the relevant geographical location. The Company evaluates each segment based on operating income (loss).

Segment activity for the three and six months ended June 30, 2016 and 2015 are as follows:

(In thousands)	Nigeria			Kenya			The Gambia			Ghana			Corporate and Other			Total
Three months ended June 30,
2016
Revenues	$	23,151		$	—		$	—		$	—		$	—		$	23,151
Operating loss	$	(23,294	)	$	(509	)	$	(249	)	$	(232	)	$	(2,915	)	$	(27,199	)
2015
Revenues	$	—		$	—		$	—		$	—		$	—		$	—
Operating income (loss)	$	1,211		$	(555	)	$	(291	)	$	(655	)	$	(5,531	)	$	(5,821	)
Six months ended June 30,
2016
Revenues	$	28,080		$	—		$	—		$	—		$	—		$	28,080
Operating loss	$	(46,454	)	$	(1,051	)	$	(523	)	$	(1,118	)	$	(6,346	)	$	(55,492	)
2015
Revenues	$	—		$	—		$	—		$	—		$	—		$	—
Operating loss	$	(21,025	)	$	(6,106	)	$	(662	)	$	(949	)	$	(9,110	)	$	(37,852	)

Total assets by segment as of June 30, 2016 and December 31, 2015, are as follows:

(In thousands)	Nigeria		Kenya		The Gambia		Ghana		Corporate and Other		Total
Total Assets
As of June 30, 2016	$	339,821	$	1,352	$	3,014	$	3,191	$	1,582	$	348,960
As of December 31, 2015	$	366,766	$	1,399	$	3,016	$	2,447	$	971	$	374,599

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Subsequent Events

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Subsequent to June 30, 2016, the Company issued 26,602 shares of common stock as a result of the exercise of stock options.

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Basis of Presentation and Recently Issued Accounting Standards (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned direct and indirect subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). All significant intercompany transactions and balances have been eliminated in consolidation. The unaudited consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the consolidated financial position and results of operations for the indicated periods. All such adjustments are of a normal recurring nature. This Form 10-Q should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 24, 2016.

Use of Estimates

The preparation of the Company's consolidated financial statements in conformity with U.S. GAAP requires management to make estimates based on certain assumptions. Estimates affect the reported amounts of assets and liabilities, disclosure of contingent liabilities, and the reported amounts of revenues and expenses attributable to the reporting periods. Accordingly, accounting estimates in conformity with U.S. GAAP require the exercise of judgment. These estimates and assumptions used in the preparation of the Company’s consolidated financial statements are based on information available as of the date of the consolidated financial statements, and while management believes that the estimates and assumptions are appropriate, actual results could differ from management's estimates.

Estimates that may have a significant effect on the Company’s financial position and results from operations include share-based compensation assumptions, oil and natural gas reserve quantities, impairments, depletion and amortization relating to oil and natural gas properties, asset retirement obligation assumptions, and income taxes. The accounting estimates used in the preparation of the Company's consolidated financial statements may change as new events occur, more experience is acquired, additional information is obtained and our operating environment changes.

Capitalized Interest

The Company capitalizes interest costs for qualifying oil and gas properties. The capitalization period begins when expenditures are incurred on qualified properties, activities begin which are necessary to prepare the property for production, and interest costs have been incurred. The capitalization period continues as long as these events occur. Capitalized interest is added to the cost of the underlying assets and is depleted using the unit-of-production method in the same manner as the underlying assets.

Net Earnings (Loss) Per Common Share

Basic net earnings or loss per common share is computed by dividing net earnings or loss by the weighted average number of shares of common stock outstanding at the end of the reporting period. Diluted net earnings or loss per share is computed by dividing net earnings or loss by the fully dilutive common stock equivalent, which consists of shares outstanding, augmented by potentially dilutive shares issuable upon the exercise of the Company's stock options, stock warrants, non-vested restricted stock awards, and conversion of the Convertible Subordinated Note, calculated using the treasury stock method.

Fair Value Measurements

Fair value is defined as the amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in an orderly transaction between market participants at the measurement date. The established framework for measuring fair value establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and includes certain disclosure requirements. Fair value estimates are based on either (i) actual market data or (ii) assumptions that other market participants would use in pricing an asset or liability, including estimates of risk.

There are three levels of valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows:

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an on-going basis.

Level 2 - Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Substantially all of these inputs are observable in the marketplace throughout the term, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace.

Level 3 - Inputs that are unobservable and significant to the fair value measurement (including the Company’s own assumptions in determining fair value).

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, inventory, deposits, accounts payable and accrued liabilities, and debt at floating interest rates, approximate their fair values at June 30, 2016 and December 31, 2015, respectively, principally due to the short-term nature, maturities or nature of interest rates of the above listed items.

Reclassifications

Certain reclassifications have been made to the 2015 consolidated financial statements to conform to the 2016 presentation. These reclassifications were not material to the accompanying consolidated financial statements.

Recently Issued Accounting Standards and Adoption of Previously Issued ASUs

In February 2016, the FASB issued ASU No. 2016-2, Leases (Topic 842). ASU 2016-2 is aimed at making leasing activities more transparent and comparable, and requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. ASU 2016-2 is effective for the Company in the fiscal year beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted. The Company is still evaluating the impact of the adoption of this standard on its financial statements.

In March 2016, the FASB issued ASU No. 2016-07, Investments-Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. ASU No. 2016-07 eliminates the requirement to retroactively adopt the equity method of accounting. ASU No. 2016-07 is effective for interim and annual periods beginning after December 15, 2016, and the Company will adopt this standards update, as required, beginning with the first quarter of 2017. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Consideration (Reporting Revenue Gross versus Net). ASU No. 2015-08 requires that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2016-08 is effective for interim and annual periods beginning after December 15, 2017, and the Company will adopt this standards update, as required, beginning with the first quarter of 2018. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The areas of simplification in ASU No. 2016-09 involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU No. 2016-09 is effective for interim and annual periods beginning after December 15, 2016, and the Company will adopt this standards update, as required, beginning with the first quarter of 2017. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU No. 2016-10 clarifies two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. ASU No. 2016-10 is effective for interim and annual periods beginning after December 15, 2017, and the Company will adopt this standards update, as required, beginning with the first quarter of 2018. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2016, the FASB issued ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. ASU No. 2016-11 rescinds SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extractive Activities - Oil and Gas, effective upon adoption of Topic 606. ASU No. 2016-11 is effective for interim and annual periods beginning after December 15, 2017, and the Company will adopt this standards update, as required, beginning with the first quarter of 2018. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The core principle of ASU No. 2016-12 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2016-12 is effective for interim and annual periods beginning after December 15, 2017, and the Company will adopt this standards update, as required, beginning with the first quarter of 2018. The adoption of this standards update is not expected to have a material impact on the Company’s consolidated financial statements.

Adoption of Previously Issued ASUs

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs be presented as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. Prior to the issuance of ASU 2015-03, the Company recorded and presented debt issuance costs as part of prepaids and other current assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirement for debt issuance costs. The adoption of ASU 2015-03 resulted in the reclassification of approximately $1.6 million unamortized debt issuance costs related to the Company's Term Loan Facility (see Note 8 - Debt) from prepaids and other current assets to current portion of long-term debt within its consolidated balance sheets as of December 31, 2015. Other than this reclassification, the adoption of ASU 2015-03 did not have an impact on the Company's consolidated financial statements.

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Basis of Presentation and Recently Issued Accounting Standards (Tables)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Schedule of Shares Withholding and Repurchases of Common Stock

The following table sets forth certain information with respect to the withholding and related repurchases of our common stock during the quarter ended June 30, 2016.

	Total Number of Shares Purchased (1)	Average Price Paid Per Share
January 1 - January 31, 2016	3,643	$	4.02
February 1 - February 29, 2016	62,152	2.16
March 1 - March 31, 2016	17,318	2.31
May 1 - May 31, 2016	1,072	$	2.48
Total	84,185	$	2.28

(1) All shares repurchased were surrendered by employees to settle tax withholding obligations upon the vesting of restricted stock awards.

Antidilutive Securities Excluded from Computation of Earnings Per Share

The table below sets forth the number of stock options, stock warrants, non-vested restricted stock, and shares issuable upon conversion of the Convertible Subordinated Note that were excluded from dilutive shares outstanding during the three and six months ended June 30, 2016 and 2015, as these securities are anti-dilutive because the Company was in a loss position during each period.

	Three Months Ended June 30,		Six Months Ended June 30,
(In thousands)	2016	2015	2016	2015
Stock options	183	1,476	250	1,119
Stock warrants	1	1,046	—	426
Unvested restricted stock awards	1,993	1,348	1,769	1,324
Convertible note	—	11,632	—	—
	2,177	15,502	2,019	2,869

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Property, Plant and Equipment (Tables)

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment were comprised of the following:

(In thousands)	June 30,   2016			December 31, 2015
Wells and production facilities	$	328,787		$	329,133
Proved properties	386,196			386,196
Work in progress and exploration inventory	66,822			65,043
Oilfield assets	781,805			780,372
Accumulated depletion	(462,874		)	(442,481		)
Oilfield assets, net	318,931			337,891
Unevaluated leaseholds	10,440			10,440
Oil and gas properties, net	329,371			348,331
Other property and equipment	3,092			2,963
Accumulated depreciation	(2,069		)	(1,789		)
Other property and equipment, net	1,023			1,174
Total property, plant and equipment, net	$	330,394		$	349,505

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Accounts Payable and Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2016

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities

The table below sets forth a summary of the Company’s accounts payable and accrued liabilities at June 30, 2016 and December 31, 2015:

(In thousands)	June 30, 2016		December 31, 2015
Accounts payable - vendors	$	175,417	$	153,085
Amounts due to government entities	62,059		53,119
Accrued interest	2,497		2,510
Accrued payroll and benefits	1,078		629
Other liabilities	982		3,777
	$	242,033	$	213,120

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Asset Retirement Obligations (Tables)

6 Months Ended

Jun. 30, 2016

Asset Retirement Obligation Disclosure [Abstract]

Summary of Changes in Asset Retirement Obligations

The following summarizes changes in the Company’s asset retirement obligations during the six months ended June 30, 2016 (in thousands):

Balance at January 1, 2016	$	20,609
Accretion expense	913
Balance at June 30, 2016	$	21,522

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Debt Debt (Tables)

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Schedule of Maturities of Long-term Debt

Scheduled principal repayments on the outstanding balance on the Term Loan Facility are as follows (in thousands):

Scheduled payments by year	Principal
2016	$	—
2017	13,475
2018	19,764
2019	21,561
2020 and thereafter	35,036
Total principal payments	89,836
Less: Unamortized debt issuance costs	2,593
Total Term Loan Facility, net	$	87,243

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Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Summary of Related Party Transactions and Balances

The following table sets forth the related party assets and liabilities as of June 30, 2016 and December 31, 2015:

(In thousands)	June 30,   2016		December 31, 2015
Accounts receivable, CEHL	$	1,732	$	1,186
Accounts payable and accrued liabilities, CEHL	$	29,465	$	30,133
Long-term notes payable - related party, CEHL	$	127,517	$	120,006

The table below sets forth a summary of transactions included in the Company's results of operations that were incurred with affiliates during the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2016		2015		2016		2015
Total operating expenses, CEHL	$	2,336	$	2,967	$	4,019	$	4,923
Interest expense, CEHL	$	1,786	$	1,389	$	3,462	$	2,421

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Stock-Based Compensation Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2016

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Restricted Stock and Restricted Stock Units Activity

The table below sets forth a summary of restricted stock awards (“RSAs”) activity for the six months ended June 30, 2016.

	Shares (In Thousands)		Weighted-Average Grant Date Price Per Share
Restricted Stock
Non-vested at December 31, 2015	1,114		$	3.21
Granted	1,717		$	2.16
Vested	(613	)	$	3.54
Forfeited	(75	)	$	2.65
Non-vested as of June 30, 2016	2,143		$	2.29

Stock warrants

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Share-based Compensation

The table below sets forth a summary of stock warrant activity for the six months ended June 30, 2016.

	Shares Underlying Warrants (In Thousands)	Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term (Years)
Outstanding at December 31, 2015	2,935	$3.61	4.2
Granted	48	$2.07	4.8
Exercised	—	$—	—
Forfeited	—	$—	—
Expired	—	$—	—
Outstanding at June 30, 2016	2,983	$3.59	3.7
Expected to vest	—	$—
Exercisable at June 30, 2016	2,983	$3.59	3.7

Employee Stock Option

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Share-based Compensation

The table below sets forth a summary of stock option activity for the six months ended June 30, 2016.

	Shares Underlying Options (In Thousands)		Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term (Years)
Outstanding at December 31, 2015	2,532		$2.10	1.6
Granted	—		$—	—
Exercised	(885	)	$1.77	—
Forfeited	(27	)	$3.42	—
Expired	(131	)	$3.76	—
Outstanding at June 30, 2016	1,489		$2.45	2.0
Expected to vest	1,047		$2.09	1.3
Exercisable at June 30, 2016	442		$3.30	3.5

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Schedule of Segment Activity

Segment activity for the three and six months ended June 30, 2016 and 2015 are as follows:

(In thousands)	Nigeria			Kenya			The Gambia			Ghana			Corporate and Other			Total
Three months ended June 30,
2016
Revenues	$	23,151		$	—		$	—		$	—		$	—		$	23,151
Operating loss	$	(23,294	)	$	(509	)	$	(249	)	$	(232	)	$	(2,915	)	$	(27,199	)
2015
Revenues	$	—		$	—		$	—		$	—		$	—		$	—
Operating income (loss)	$	1,211		$	(555	)	$	(291	)	$	(655	)	$	(5,531	)	$	(5,821	)
Six months ended June 30,
2016
Revenues	$	28,080		$	—		$	—		$	—		$	—		$	28,080
Operating loss	$	(46,454	)	$	(1,051	)	$	(523	)	$	(1,118	)	$	(6,346	)	$	(55,492	)
2015
Revenues	$	—		$	—		$	—		$	—		$	—		$	—
Operating loss	$	(21,025	)	$	(6,106	)	$	(662	)	$	(949	)	$	(9,110	)	$	(37,852	)

Total assets by segment as of June 30, 2016 and December 31, 2015, are as follows:

(In thousands)	Nigeria		Kenya		The Gambia		Ghana		Corporate and Other		Total
Total Assets
As of June 30, 2016	$	339,821	$	1,352	$	3,014	$	3,191	$	1,582	$	348,960
As of December 31, 2015	$	366,766	$	1,399	$	3,016	$	2,447	$	971	$	374,599

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Company Description (Details) - Jun. 30, 2016 km² in Thousands, a in Millions	a	license	country	km²
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of exploration and production licenses | license		9
Number of countries company operates in Africa | country			4
Area of land held for exploration activities (in acres and square kilometers)	10			40

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Basis of Presentation and Recently Issued Accounting Standards - Narrative (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Interest costs capitalized	$ 0	$ 2,200,000
Shares withheld for taxes (in shares)	84,185
Payments for treasury stock arising from withholding taxes	$ 192,000	$ 0
Treasury stock withheld for taxes (in shares)		0
Deferred finance costs, net	(2,593,000)
Allied
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contingent additional payment under transfer agreement (up to)	$ 50,000,000
Current assets | Accounting Standards Update 2015-03
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred finance costs, net			$ 1,600,000
Current portion of long-term debt | Accounting Standards Update 2015-03
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred finance costs, net			$ (1,600,000)

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Basis of Presentation and Recently Issued Accounting Standards - Shares Withholding and Repurchases of Common Stock (Details) - $ / shares	1 Months Ended				6 Months Ended
	May 31, 2016	Mar. 31, 2016	Feb. 29, 2016	Jan. 31, 2016	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of shares purchased (in shares)					84,185
Average price paid per share (in dollars per share)					$ 2.28
January 1 - January 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of shares purchased (in shares)				3,643
Average price paid per share (in dollars per share)				$ 4.02
February 1 - February 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of shares purchased (in shares)			62,152
Average price paid per share (in dollars per share)			$ 2.16
March 1 - March 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of shares purchased (in shares)		17,318
Average price paid per share (in dollars per share)		$ 2.31
May 1 - May 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total number of shares purchased (in shares)	1,072
Average price paid per share (in dollars per share)	$ 2.48

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Basis of Presentation and Recently Issued Accounting Standards - Antidilutive Shares (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	2,177	15,502	2,019	2,869
Stock options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	183	1,476	250	1,119
Stock warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	1	1,046	0	426
Unvested restricted stock awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	1,993	1,348	1,769	1,324
Convertible note
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities	0	11,632	0	0

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Liquidity Matters and Going Concern - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($) bbl	Dec. 31, 2015 USD ($)
Liquidity Matters [Abstract]
Current liabilities	$ 275,657	$ 339,811
Current assets	18,490	$ 25,027
Working capital deficit	$ (257,200)
Emergency shut-in, barrels of oil lost per day | bbl	1,400

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Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Wells and production facilities	$ 328,787	$ 329,133
Proved properties	386,196	386,196
Work in progress and exploration inventory	66,822	65,043
Oilfield assets	781,805	780,372
Accumulated depletion	(462,874)	(442,481)
Oilfield assets, net	318,931	337,891
Unevaluated leaseholds	10,440	10,440
Oil and gas properties, net	329,371	348,331
Other property and equipment	3,092	2,963
Accumulated depreciation	(2,069)	(1,789)
Other property and equipment, net	1,023	1,174
Total property, plant and equipment, net	$ 330,394	$ 349,505

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Suspended Exploratory Well Costs - Work in Progress - Narrative (Details) $ in Millions	1 Months Ended
	Aug. 31, 2014 m	Aug. 31, 2014 ft	Aug. 31, 2014 reservoir	Nov. 30, 2013 interval ft	Jun. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)
Costs Incurred Oil And Gas Property Acquisition Exploration And Development Activities [Line Items]
Number of hydrocarbons miocene formation intervals | interval				3
Number of feet encountered by hydrocarbons in three intervals, as interpreted by “LWD” data (in feet) | ft				65
Pliocene formation eastern fault block vertical depth (in feet and meters)	1,847	6,059
Number of pliocene formation eastern fault block new oil and gas reservoirs | reservoir			4
Hydrocarbons pliocene formation eastern fault block gross thickness | ft		112
Miocene Exploratory Drilling Activities
Costs Incurred Oil And Gas Property Acquisition Exploration And Development Activities [Line Items]
Suspended exploratory well cost | $					$ 26.5	$ 26.5
Pliocene Exploratory Drilling Activity
Costs Incurred Oil And Gas Property Acquisition Exploration And Development Activities [Line Items]
Suspended exploratory well cost | $					$ 6.5	$ 6.5

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Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accounts payable - vendors	$ 175,417	$ 153,085
Amounts due to government entities	62,059	53,119
Accrued interest	2,497	2,510
Accrued payroll and benefits	1,078	629
Other liabilities	982	3,777
Accounts payable and accrued liabilities	$ 242,033	$ 213,120

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Asset Retirement Obligations - Summary of Change in Asset Retirement Obligations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Asset retirement obligations beginning balance			$ 20,609
Accretion expense	$ 461	$ 299	913	$ 876
Asset retirement obligations ending balance	$ 21,522		$ 21,522

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Debt - Short-Term Debt (Details) - USD ($) $ in Thousands	1 Months Ended			6 Months Ended
	Jul. 31, 2016	Jun. 30, 2016	May 31, 2016	Jun. 30, 2016	Jun. 30, 2015
Short-term Debt [Line Items]
Foreign currency transaction gain				$ 11,328	$ 1,991
Notes Payable, Other Payables | TOTSA May Advance
Short-term Debt [Line Items]
Proceeds from short-term debt			$ 4,700
Notes Payable to Banks | 2016 Short-Term Note
Short-term Debt [Line Items]
Proceeds from short-term debt		$ 500
Debt term		30 days
Commitment fee percentage		2.50%
Foreign currency transaction gain		$ 100
Short-term debt		$ 400		$ 400
Subsequent Event | Notes Payable to Banks | 2016 Short-Term Note
Short-term Debt [Line Items]
Debt term	30 days
Commitment fee percentage	2.50%
60-Day London Interbank Offered Rate (LIBOR) | Notes Payable, Other Payables | TOTSA May Advance
Short-term Debt [Line Items]
Basis spread on variable rate			5.00%

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Debt - Term Loan Facility (Details) $ in Thousands		1 Months Ended		6 Months Ended
	Aug. 08, 2016 $ / bbl	Jun. 30, 2016 USD ($)	Sep. 30, 2014 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Line of Credit Facility [Line Items]
Less: Unamortized debt issuance costs		$ 2,593		$ 2,593
Foreign currency transaction gain				11,328	$ 1,991
Long-term debt		87,243		87,243
Term loan facility, net		83,441		83,441		$ 0
Current portion of long-term debt, net		3,802		3,802		$ 96,558
Term Loan Facility
Line of Credit Facility [Line Items]
Percent of maximum borrowing capacity available in USD			90.00%
Percent of maximum borrowing capacity available in Naira			10.00%
Line of credit facility, commitment fee amount		1,400	$ 2,600
Less: Unamortized debt issuance costs		2,600		$ 2,600
Debt instrument, unremedied material breach, maximum time period				30 days
Foreign currency transaction gain				$ 3,900
Long-term debt		87,200		87,200
Term loan facility, net		83,400		83,400
Interest payable		$ 2,500		2,500
Term Loan Facility | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread on variable rate			11.10%
Term Loan Facility, Naira Portion
Line of Credit Facility [Line Items]
Line of credit facility, annual principal payment				400
Term Loan Facility, U.S. Dollar Portion
Line of Credit Facility [Line Items]
Line of credit facility, annual principal payment				$ 5,600
Subsequent Event | Term Loan Facility
Line of Credit Facility [Line Items]
Price of oil per barrel, initial threshold (USD per barrel) | $ / bbl	55

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Debt - Schedule of Maturities of Long-term Debt (Details) $ in Thousands	Jun. 30, 2016 USD ($)
Principal
2016	$ 0
2017	13,475
2018	19,764
2019	21,561
2020 and thereafter	35,036
Total principal payments	89,836
Less: Unamortized debt issuance costs	2,593
Total Term Loan Facility, net	$ 87,243

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Debt - Related Party (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Apr. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term notes payable - related party, net	$ 127,517			$ 120,006
Convertible subordinate note issued	50,000
Term loan facility, net	83,441			$ 0
Convertible Debt | 2015 Convertible Note
Debt Instrument [Line Items]
Long-term notes payable - related party, net	46,900
Line of Credit | Majority Shareholder | Promissory Note to Majority Shareholder Related Party
Debt Instrument [Line Items]
Long-term notes payable - related party, net	5,700
Notes payable, related parties	$ 1,700	$ 1,000	$ 3,000

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Debt - Promissory Note (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Mar. 31, 2015
Debt Instrument [Line Items]
Long-term notes payable - related party, net	$ 127,517,000	$ 120,006,000
Promissory Note To Allied
Debt Instrument [Line Items]
Debt term	30 days
Convertible Debt | 2015 Convertible Note
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 50,000,000.0
Long-term notes payable - related party, net	$ 46,900,000
Interest payable	3,400,000
Line of Credit | Promissory Note To Allied
Debt Instrument [Line Items]
Maximum borrowing capacity	25,000,000.0
Long-term notes payable - related party, net	24,900,000	$ 25,000,000
Interest payable	$ 1,200,000
Line of Credit | Promissory Note To Allied | 30-Day London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%

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Debt - Convertible Subordinated Note (Details) - USD ($)	1 Months Ended
	Feb. 28, 2014	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Convertible subordinate note issued		$ 50,000,000
Long-term notes payable - related party, net		127,517,000	$ 120,006,000
Convertible Subordinated Debt
Debt Instrument [Line Items]
Convertible subordinate note issued	$ 50,000,000.0
Debt term	5 years
Convertible debt conversion price	$ 4.2984
Interest payable		6,700,000
Minimum proceeds from capital market debt issuance for mandatory prepayment option	$ 250,000,000.0
Long-term notes payable - related party, net		$ 50,000,000	$ 50,000,000
Convertible Subordinated Debt | 30-Day London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	5.00%

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Debt - Convertible Note (Details) - USD ($)	1 Months Ended	3 Months Ended	6 Months Ended
	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Line of Credit Facility [Line Items]
Number of shares called by warrants issued (in shares)		2,700,000	2,700,000
Long term debt, gross		$ 89,836,000	$ 89,836,000
Warrants issued with debt			53,000
Long-term notes payable - related party, net		$ 127,517,000	$ 127,517,000	$ 120,006,000
2015 Convertible Note
Line of Credit Facility [Line Items]
Number of shares called by warrants issued (in shares)		48,291	48,291
Convertible Debt | 2015 Convertible Note
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 50,000,000.0
Proceeds from convertible debt		$ 500,000
Number of shares called by warrants issued (in shares)		48,291	48,291
Convertible Debt, Fair Value Disclosures		$ 100,000	$ 100,000
Long term debt, gross		48,500,000	48,500,000
Warrants issued with debt			5,000,000
Debt issuance, unamortized discount		1,600,000	1,600,000
Long-term notes payable - related party, net		46,900,000	46,900,000
Interest payable		$ 3,400,000	$ 3,400,000
Convertible Debt | 2015 Convertible Note | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread on variable rate	5.00%
Minimum
Line of Credit Facility [Line Items]
Warrants exercise price (in dollars per share)		$ 2.00	$ 2.00
Minimum | 2015 Convertible Note
Line of Credit Facility [Line Items]
Warrants exercise price (in dollars per share)		2.00	2.00
Minimum | Convertible Debt | 2015 Convertible Note
Line of Credit Facility [Line Items]
Warrants exercise price (in dollars per share)		2.00	2.00
Maximum
Line of Credit Facility [Line Items]
Warrants exercise price (in dollars per share)		7.85	7.85
Maximum | 2015 Convertible Note
Line of Credit Facility [Line Items]
Warrants exercise price (in dollars per share)		2.13	2.13
Maximum | Convertible Debt | 2015 Convertible Note
Line of Credit Facility [Line Items]
Warrants exercise price (in dollars per share)		$ 2.13	$ 2.13

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Debt - 2016 Promissory Note (Details)	1 Months Ended
	May 31, 2016 USD ($) note_payable	Apr. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Aug. 08, 2016 USD ($)	Jun. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)
Short-term Debt [Line Items]
Current portion of long-term debt, net					$ 3,802,000	$ 96,558,000
Promissory Note to Majority Shareholder Related Party | Majority Shareholder | Line of Credit
Short-term Debt [Line Items]
Notes payable, related parties		$ 1,000,000	$ 3,000,000		1,700,000
Debt term		30 days	30 days
Number of outstanding notes payable | note_payable	2
Interest payable					100,000
Promissory Note to Majority Shareholder Related Party | Majority Shareholder | Line of Credit | 30-Day London Interbank Offered Rate (LIBOR)
Short-term Debt [Line Items]
Basis spread on variable rate		7.00%	7.00%
Promissory Note to Majority Shareholder Related Party | Majority Shareholder | Line of Credit
Short-term Debt [Line Items]
Debt term	30 days
Maximum borrowing capacity	$ 10,000,000
Promissory Note to Majority Shareholder Related Party | Majority Shareholder | Line of Credit | 30-Day London Interbank Offered Rate (LIBOR)
Short-term Debt [Line Items]
Basis spread on variable rate	7.00%
Subsequent Event | Promissory Note to Majority Shareholder Related Party | Majority Shareholder | Line of Credit
Short-term Debt [Line Items]
Notes payable, related parties				$ 500,000
Term Loan Facility
Short-term Debt [Line Items]
Interest payable					$ 2,500,000

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Related Party Transactions - Summary of Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Related Party Transactions [Abstract]
Accounts receivable, CEHL	$ 1,732	$ 1,186
Accounts payable and accrued liabilities, CEHL	29,465	30,133
Long-term notes payable - related party, CEHL	$ 127,517	$ 120,006

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Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Accounts receivable, CEHL	$ 1,732		$ 1,732		$ 1,186
Accounts payable and accrued expenses	29,465		29,465		30,133
Accrued and unpaid interest on notes payable	11,700		11,700		8,300
Long-term notes payable - related party, net	127,517		127,517		120,006
Total operating expenses, CEHL	2,336	$ 2,967	4,019	$ 4,923
Interest expense, CEHL	1,786	$ 1,389	3,462	$ 2,421
Convertible Subordinated Debt
Related Party Transaction [Line Items]
Long-term notes payable - related party, net	50,000		50,000		50,000
Convertible Subordinated Debt | 2015 Convertible Note
Related Party Transaction [Line Items]
Long-term notes payable - related party, net					45,000
Line of Credit | Promissory Note To Allied
Related Party Transaction [Line Items]
Long-term notes payable - related party, net	24,900		24,900		$ 25,000
Convertible Debt | 2015 Convertible Note
Related Party Transaction [Line Items]
Long-term notes payable - related party, net	46,900		46,900
Line of Credit | Majority Shareholder | Promissory Note to Majority Shareholder Related Party
Related Party Transaction [Line Items]
Long-term notes payable - related party, net	$ 5,700		$ 5,700

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Related Party Transactions - Summary of Results of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Related Party Transactions [Abstract]
Total operating expenses, CEHL	$ 2,336	$ 2,967	$ 4,019	$ 4,923
Interest expense, CEHL	$ 1,786	$ 1,389	$ 3,462	$ 2,421

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Commitments and Contingencies - Narrative (Details) $ in Millions			1 Months Ended		6 Months Ended
	Jul. 29, 2016 USD ($)	Feb. 05, 2016 people	Mar. 31, 2016	Feb. 28, 2014 bbl	Jun. 30, 2016 USD ($) license contract	May 13, 2016 USD ($)	Jan. 22, 2016 USD ($)
Kenya PSCs
Other Commitments [Line Items]
Production sharing contracts | contract					4
The Gambia
Other Commitments [Line Items]
Development and production licenses | license					2
NIGERIA
Other Commitments [Line Items]
Loss contingency, estimate of possible loss					$ 11.1
Approval by Nigerian Department of Petroleum Resources
Other Commitments [Line Items]
Payment of cash or the equivalent in shares					$ 25.0
Payment of cash or the equivalent of shares in period					15 days
Number of shares to be issued in period					30 days
Long-term Floating Production Storage and Offloading System Contract
Other Commitments [Line Items]
Initial contract term				7 years
Additional contract term				2 years
Barrels processing capacity (up to) | bbl				40,000
Maximum storage capacity for the FPSO | bbl				1,000,000
Contractual annual minimum commitment					$ 48.4
TransOcean Offshore Gulf of Guinea VII Limited and Indigo Drilling Limited
Other Commitments [Line Items]
Loss contingency, estimate of possible loss							$ 20.2
February 2014 Transactions
Other Commitments [Line Items]
Loss contingency, number of plaintiffs | people		7
Settlement with CEONA Contracting (UK) Limited
Other Commitments [Line Items]
Loss contingency, estimate of possible loss						$ 2.9
Subsequent Event | Settlement with Contractor Polarcus MC Ltd.
Other Commitments [Line Items]
Litigation settlement, amount	$ 2.7
Litigation settlement interest	$ 0.3
Convertible Debt | 2015 Convertible Note
Other Commitments [Line Items]
Debt instrument, convertible, percent owed on debt fundraising event			10.00%
Debt instrument, convertible, percent owed on equity fundraising event			20.00%

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Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2016 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock expired in period (in shares)	130,714
Options forfeited (in shares)	27,052
Number of shares called by warrants issued (in shares)	2,700,000
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants exercise price (in dollars per share) | $ / shares	$ 2.00
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants exercise price (in dollars per share) | $ / shares	$ 7.85
Cashless Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued during period (in shares)	194,643
Common stock exercised in period (in shares)	791,165
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued during period (in shares)	288,841
Common stock exercised in period (in shares)	885,000
Common stock expired in period (in shares)	131,000
Options forfeited (in shares)	27,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of grants in period	1,716,550
Number forfeited in period	74,949
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	36 months
Stock warrants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of grants in period	48,000
Number forfeited in period	0
Senior Officer | Performance-Based Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of grants in period	500,000
Award vesting period	3 years
Maximum percentage of additional shares awarded (up to)	50.00%
Estimated compensation expense | $	$ 0.4
Estimated compensation cost not yet recognized, period of recognition	3 years
Officers, Directors, and Employees | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of grants in period	1,700,000
2015 Convertible Note
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares called by warrants issued (in shares)	48,291
Warrants exercisable from date of issuance, term period (years)	5 years
2015 Convertible Note | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants exercise price (in dollars per share) | $ / shares	$ 2.00
2015 Convertible Note | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants exercise price (in dollars per share) | $ / shares	$ 2.13

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Stock Based Compensation - Summary of Stock Option Activity (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Forfeited (in shares)	(27,052)
Expired (in shares)	(130,714)
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at December 31, 2015 (in shares)	2,532,000
Granted (in shares)	0
Exercised (in shares)	(885,000)
Forfeited (in shares)	(27,000)
Expired (in shares)	(131,000)
Outstanding at June 30, 2016 (in shares)	1,489,000	2,532,000
Expected to vest (in shares)	1,047,000
Exercisable at June 30, 2016 (in shares)	442,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at December 31, 2015 (dollars per share)	$ 2.10
Granted (dollars per share)	0.00
Exercised (dollars per share)	1.77
Forfeited (dollars per share)	3.42
Expired (dollars per share)	3.76
Outstanding at June 30, 2016 (dollars per share)	2.45	$ 2.10
Expected to vest (dollars per share)	2.09
Exercisable at June 30, 2016 (dollars per share)	$ 3.30
Options Outstanding, Weighted-Average Remaining Contractual Term (Years)	2 years	1 year 7 months 6 days
Expected to vest	1 year 3 months 24 days
Exercisable at June 30, 2016, Weighted-Average Remaining Contractual Term (Years)	3 years 6 months

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Stock-Based Compensation - Summary of Stock Warrants Activity (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other than Options Granted Weighted Average Remaining Contractual Terms	4 years 10 months 2 days
Stock warrants
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at December 31, 2015 (in shares)	2,935,000
Granted (in shares)	48,000
Exercised (in shares)	0
Forfeited (in shares)	0
Expired (in shares)	0
Outstanding at June 30, 2016 (in shares)	2,983,000	2,935,000
Expected to vest (in shares)	0
Outstanding at June 30, 2016 (in shares)	2,983,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding at December 31, 2015 (in dollars per share)	$ 3.61
Granted (in dollars per share)	2.07
Exercised (in dollars per share)	0.00
Forfeited (in dollars per share)	0.00
Expired (in dollars per share)	0.00
Outstanding at June 30, 2016 (in dollars per share)	3.59	$ 3.61
Expected to vest (in dollars per share)	0.00
Exercisable at June 30, 2016 (in dollars per share)	$ 3.59
Shares outstanding, weighted average remaining contractual terms	3 years 8 months 12 days	4 years 2 months 12 days
Exercisable at June 30, 2016, Weighted-Average Remaining Contractual Term (Years)	3 years 8 months 12 days
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Expected to vest	1 year 3 months 24 days
2015 Convertible Note
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants exercisable from date of issuance, term period (years)	5 years

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Stock-Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted Stock	6 Months Ended
	Jun. 30, 2016 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at December 31, 2015 (in shares) | shares	1,113,771
Granted (in shares) | shares	1,716,550
Vested (in shares) | shares	(612,585)
Forfeited (in shares) | shares	(74,949)
Outstanding at June 30, 2016 (in shares) | shares	2,142,787
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding at December 31, 2015 (in dollars per share) | $ / shares	$ 3.21
Granted (in dollars per share) | $ / shares	2.16
Vested (in dollars per share) | $ / shares	3.54
Forfeited (in dollars per share) | $ / shares	2.65
Outstanding at June 30, 2016 (in dollars per share) | $ / shares	$ 2.29

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Segment Information - Segment Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Revenues	$ 23,151	$ 0	$ 28,080	$ 0
Operating loss	(27,199)	(5,821)	(55,492)	(37,852)
Operating Segments | Nigeria
Segment Reporting Information [Line Items]
Revenues	23,151	0	28,080	0
Operating loss	(23,294)	1,211	(46,454)	(21,025)
Operating Segments | Kenya
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Operating loss	(509)	(555)	(1,051)	(6,106)
Operating Segments | The Gambia
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Operating loss	(249)	(291)	(523)	(662)
Operating Segments | Ghana
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Operating loss	(232)	(655)	(1,118)	(949)
Corporate and Other
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Operating loss	$ (2,915)	$ (5,531)	$ (6,346)	$ (9,110)

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Segment Information - Segment Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Assets	$ 348,960	$ 374,599
Operating Segments | Nigeria
Segment Reporting Information [Line Items]
Assets	339,821	366,766
Operating Segments | Kenya
Segment Reporting Information [Line Items]
Assets	1,352	1,399
Operating Segments | The Gambia
Segment Reporting Information [Line Items]
Assets	3,014	3,016
Operating Segments | Ghana
Segment Reporting Information [Line Items]
Assets	3,191	2,447
Corporate and Other
Segment Reporting Information [Line Items]
Assets	$ 1,582	$ 971

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Subsequent Events - Narrative (Details) - Employee Stock Option - shares	1 Months Ended	6 Months Ended
	Aug. 08, 2016	Jun. 30, 2016
Subsequent Event [Line Items]
Common stock issued (in shares)		288,841
Subsequent Event
Subsequent Event [Line Items]
Common stock issued (in shares)	26,602