Related Party Transactions

3 Months Ended

Mar. 31, 2014

Related Party Transactions

12. Related Party Transactions

The Company has transactions in the normal course of business with its shareholders, CEHL and their affiliates. The following table summarizes related party transactions for the respective periods:

	March 31,		December 31,
	2014		2013
	(In thousands)
Accounts receivable	$	4,154	$	1,026
Other current assets	$	624	$	624
Accounts payable and accrued expenses	$	27,047	$	25,721
Note payable-related party	$	92,147	$	6,496
Long-term note payable-related party	$	50,000	$	-

The Company was owed $4.2 million and $1.0 million as of March 31, 2014 and December 31, 2013, respectively, for both crude oil lifting receivables and billings under the Technical Services Agreement (“TSA”) signed with Allied in January 2013. Under the TSA, the Company agreed to provide certain services related to the Oyo Field within OMLs 120 and 121, in exchange for payments from Allied of $150,000 per month with effect from September 2012.  The TSA was terminated as of the closing of the Allied Acquisition in February, 2014 pursuant to the Transfer Agreement.

The company was owed $0.6 million as of March 31, 2014 and December 31, 2013, respectively, as a result of a prepayment made for royalty and petroleum profit taxes in Nigeria under the PSC.

As of March 31, 2014 and December 31, 2013, the Company owed $27.0 million and $25.7 million, respectively, to Allied as reimbursement for costs incurred for the benefit of the Company.

As of March 31, 2014 and December 31, 2013, the Company had outstanding notes payable balances of $92.1 million and $6.5 million, respectively, owed to Allied. Included in the note payable balance at March 31, 2014 is an amount of $85.0 million due to Allied for the remaining cash consideration upon the Second Closing of the Private Placement with PIC and the remaining principal balance of the Promissory Note with Allied.  See Note 3 – Acquisitions, for details relating to the Allied Transaction, and Note 7 – Debt, for details relating to the Promissory Note.

As partial consideration in connection with the February 2014 closing of the Allied Acquisition, the Company issued a $50.0 million Convertible Subordinated Note in favor of Allied.  See Note 7, Debt for details relating to the Convertible Subordinated Note.