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Segment Information
3 Months Ended
Mar. 31, 2021
Segment Information [Abstract]  
Segment Information 4. SEGMENT INFORMATION

The Company’s operations are based in Gabon and the Company has an undeveloped block in Equatorial Guinea. Each of the Company’s two reportable operating segments is organized and managed based upon geographic location. The Company’s Chief Executive Officer, who is the chief operating decision maker, and management review and evaluate the operation of each geographic segment separately, primarily based on operating income (loss). The operations of all segments include exploration for and production of hydrocarbons where commercial reserves have been found and developed. Revenues are based on the location of hydrocarbon production. Corporate and other is primarily corporate and operations support costs that are not allocated to the reportable operating segments.

Segment activity of continuing operations for the three months ended March 31, 2021 and 2020 as well as long-lived assets and segment assets at March 31, 2021 and December 31, 2020 are as follows:

Three Months Ended March 31, 2021

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Revenues-crude oil and natural gas sales

$

39,774

$

$

$

39,774

Depreciation, depletion and amortization

4,121

27

4,148

Operating income (loss)

18,680

(132)

(4,205)

14,343

Derivative instruments gain, net

(5,954)

(5,954)

Other, net

7,681

(2)

(3,099)

4,580

Income tax expense (benefit)

5,239

1

(2,154)

3,086

Additions to crude oil and natural gas properties and equipment – accrual

2,515

2,515

Three Months Ended March 31, 2020

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Revenues-crude oil and natural gas sales

$

18,389

$

$

$

18,389

Depreciation, depletion and amortization

3,072

31

3,103

Impairment of proved crude oil and natural gas properties

30,625

30,625

Bad debt expense and other

810

810

Operating loss

(26,283)

(125)

(275)

(26,683)

Derivative instruments loss, net

7,339

7,339

Income tax expense

22,039

11,439

33,478

Additions to crude oil and natural gas properties and equipment – accrual

9,421

9,421

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Long-lived assets from continuing operations:

As of March 31, 2021

$

68,016

$

10,000

$

176

$

78,192

As of December 31, 2020

$

26,832

$

10,000

$

204

$

37,036

(in thousands)

Gabon

Equatorial Guinea

Corporate and Other

Total

Total assets from continuing operations:

As of March 31, 2021

$

154,130

$

10,426

$

12,581

$

177,137

As of December 31, 2020

$

101,399

$

10,267

$

29,566

$

141,232

Information about the Company’s most significant customers

The Company currently sells crude oil production from Gabon under term contracts with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. From February 2019 to January 2020, crude oil sales were to Mercuria Energy Trading SA (“Mercuria”). The Company signed a new contract with ExxonMobil Sales and Supply LLC (“Exxon”) that covers sales from February 2020 through July 2021 with pricing based upon an average of Dated Brent in the month of lifting,

adjusted for location and market factors. During the three months ended March 31, 2021, revenues from sales of crude oil to Exxon were 100% of the Company’s total revenues from customers.