Delaware | 001-34525 | 30-0349798 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
ERIN ENERGY CORPORATION | ||
By: | /s/ Daniel Ogbonna | |
Daniel Ogbonna | ||
Senior Vice President and Chief Financial Officer | ||
Date: August 12, 2016 |
• | Successfully re-established production from the Oyo-8 well; |
• | Achieved net average daily production of 5,400 barrels of oil per day (bbls/d); |
• | Lifted and sold 508,000 barrels of oil; |
• | Realized revenues of $23.2 million; |
• | Successfully restructured Zenith term loan facility. |
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 |
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 |
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 |
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