Segment Information

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 2021 and 2020 as well as long-lived assets and segment assets at September 30, 2021 and December 31, 2020 are as follows:

	Three Months Ended September 30, 2021
(in thousands)	Gabon		Equatorial Guinea		Corporate and Other		Total
Revenues-crude oil and natural gas sales	$	55,899	$	—	$	—	$	55,899
Depreciation, depletion and amortization		6,953		—		17		6,970
Operating income (loss)		22,834		(271)		(2,533)		20,030
Derivative instruments loss, net		—		—		(5,147)		(5,147)
Income tax expense (benefit)		436		—		(17,619)		(17,183)
Additions to crude oil and natural gas properties and equipment – accrual		6,696		—		—		6,696

	Nine Months Ended September 30, 2021
(in thousands)	Gabon		Equatorial Guinea		Corporate and Other		Total
Revenues-crude oil and natural gas sales	$	142,696	$	—	$	—	$	142,696
Depreciation, depletion and amortization		16,860		—		68		16,928
Bad debt expense and other		814		—		—		814
Other operating expense, net		(440)		—		—		(440)
Operating income (loss)		64,933		(505)		(11,181)		53,247
Derivative instruments loss, net		—		—		(21,070)		(21,070)
Other, net		7,207		(2)		(3,117)		4,088
Income tax expense (benefit)		8,396		1		(19,669)		(11,272)
Additions to crude oil and natural gas properties and equipment – accrual		10,993		—		—		10,993

	Three Months Ended September 30, 2020
(in thousands)	Gabon		Equatorial Guinea		Corporate and Other		Total
Revenues-crude oil and natural gas sales	$	18,256	$	—	$	—	$	18,256
Depreciation, depletion and amortization		1,946		—		266		2,212
Bad debt expense and other		151		—		—		151
Operating income (loss)		6,957		(95)		(2,184)		4,678
Income tax expense (benefit)		(2,464)		1		(296)		(2,759)
Additions to crude oil and natural gas properties and equipment – accrual		(306)		—		(9)		(315)

	Nine Months Ended September 30, 2020
(in thousands)	Gabon		Equatorial Guinea		Corporate and Other		Total
Revenues-crude oil and natural gas sales	$	54,619	$	—	$	—	$	54,619
Depreciation, depletion and amortization		7,790		—		326		8,116
Impairment of proved crude oil and natural gas properties		30,625		—		—		30,625
Bad debt expense and other		1,140		—		—		1,140
Other operating expense, net		(883)		—		—		(883)
Operating loss		(17,622)		(289)		(5,060)		(22,971)
Derivative instruments gain, net		—		—		6,583		6,583
Income tax expense		19,302		1		9,167		28,470
Additions to crude oil and natural gas properties and equipment – accrual		10,305		—		(9)		10,296

(in thousands)	Gabon		Equatorial Guinea		Corporate and Other		Total
Long-lived assets from continuing operations:
As of September 30, 2021	$	63,966	$	10,000	$	136	$	74,102
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 September 30, 2021	$	149,188	$	10,430	$	46,642	$	206,260
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 January 2022 with pricing based upon an average of Dated Brent in the month of lifting, adjusted for location and market factors. During the three and nine months ended September 30, 2021, revenues from sales of crude oil to Exxon were 100% of the Company’s total revenues from customers.