Deferred Revenue

12 Months Ended

Dec. 31, 2014

Note 11 – Deferred Revenue

For certain of our U.K. fields, we sell production on a monthly basis; however, the production remains in the field’s storage tanks. The inventory associated with these sales remains on our balance sheet and the revenue is deferred until the production is shipped out of our storage tanks.

In 2013 and 2014, we entered into three separate forward sale agreements with one of our established purchasers for payments of approximately $22.5 million each. This effectively hedged a portion of production from our U.K. North Sea assets by locking in pricing for in excess of 200,000 barrels of oil, over a six month delivery period for each forward sale transaction. Payment for two of these agreements was received in the first and third quarters of 2013. Payment for the 2014 transaction was received in the second quarter of this year.

The 2013 forward sale commitments were fulfilled in June 2013 and March 2014. The 2014 forward sale commitment was fulfilled during the fourth quarter of 2014. Payments received related to the forward sale commitments are included in deferred revenue until the purchaser takes possession of the product.

At December 31, 2014, our deferred revenue was attributable to our fields as follows:



	Amount		Delivery Date
Alba	$	12,338	Estimated for 1st Quarter 2015
Rochelle		1,819	Estimated for 1st Quarter 2015
Total	$	14,157