Segment Information

3 Months Ended

Mar. 31, 2021

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.