Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

(13) SEGMENT INFORMATION

We currently have one reportable segment consisting of our investment in BWI which is managed separately. Our BWI operating segment owns a patented oilfield emulsion breaking technology. This is a continuous process technology that can purify oilfield emulsions by breaking and separating the emulsions into oil, water and solids, thereby reducing the environmental impact and disposal costs of these waste materials while recovering valuable oil. See Note 2 – “BriteWater International, Inc.” for further discussion.

We have included activity of our parent company, HKN, in our disclosure to reconcile to our consolidated operating loss and total assets. HKN includes our investment in Global, our non-operated working interests in properties held by HBI, mineral interests leased in Texas, performance of general corporate activities such as corporate reporting and governance, financing, management and growth of current operations and the evaluation of new investment opportunities. Our accounting policies for each of our operating segments are the same as those for our consolidated financial statements. Intersegment interest income and intersegment expenses between our parent company and BWI have been eliminated in consolidation. There were no material intersegment sales or transfers for the periods presented.

Our financial information, expressed in thousands, for each of our operating segments for the years ended December 31, 2014 and 2013 is as follows:

	Year Ended December 31, 2014
		HKN			BWI			Eliminations			Consolidated
Oil and gas revenues	$	988		$	—		$	—		$	988
Oil and gas expenses		(218	)		—			—			(218	)
Selling, general and administrative expenses		(2,894	)		(968	)		—			(3,862	)
Depreciation, depletion and amortization		(470	)		(337	)		—			(807	)
Impairment losses		(1,688	)		(16,441	)					(18,129	)
Gain on BWI contingency		—			800						800
Interest and other expenses		—			(437	)		271			(166	)
Interest and other income - related parties		1,879			—			(271	)		1,608
Interest and other income		80			—			—			80
Impairment loss on investment in Global		(937	)		—			—			(937	)
Segment loss from continuing operations	$	(3,260	)	$	(17,383	)	$	—		$	(20,643	)
Capital Expenditures	$	386		$	7,611		$	—		$	7,997
Total Assets	$	37,582		$	8,088		$	(10,690	)	$	34,980

	Year Ended December 31, 2013
		HKN			BWI			Eliminations			Consolidated
Oil and gas revenues	$	1,093		$	—		$	—		$	1,093
Oil and gas expenses		(209	)		—			—			(209	)
Selling, general and administrative expenses		(2,767	)		(753	)		—			(3,520	)
Depreciation, depletion and amortization		(523	)		(220	)		—			(743	)
Interest and other expenses		(36	)		(651	)		651			(36	)
Interest and other income - related parties		2,901			—			(651	)		2,250
Interest and other income		163			—			—			163
Segment income (loss) from continuing operations	$	622		$	(1,624	)	$	—		$	(1,002	)
Capital Expenditures	$	694		$	5,924		$	—		$	6,618
Total Assets	$	62,149		$	17,014		$	(12,203	)	$	66,960