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Acquisitions and Dispositions
12 Months Ended
Dec. 31, 2017
Business Combinations [Abstract]  
Acquisitions and Dispositions
Acquisitions and Dispositions

On April 15, 2016, we closed our transaction with Texegy LLC for the sale of a 75% working interest share of the Company's holdings in the South Bearhead Creek and Burr Ferry field areas located in Central Louisiana. The net proceeds of $46.9 million were credited to the full cost pool and used primarily to reduce the amount of borrowings under the Company’s Prior First Lien Credit Facility, and for other general corporate purposes. This disposition also included the buyer's assumption of approximately $6.5 million of plugging and abandonment liability. On December 8, 2016, we sold the remaining 25% working interest share of the Company's holdings in the South Bearhead Creek and Burr Ferry fields to Texegy. We received net proceeds of $7.1 million on the sale which were used to reduce the amount of borrowings under the Company's Credit Facility. This disposition also included the buyer's assumption of approximately $2.4 million of plugging and abandonment liability.

Effective April 25, 2016, we disposed of our Masters Creek field in Central Louisiana. We received net proceeds of less than $0.1 million and the buyer assumed approximately $8.1 million of plugging and abandonment liability.

Effective September 30, 2016, we closed our transaction with Blue Marble Resources LLC for the sale of the Company's holdings in our Sun TSH field located in South Texas. We received net proceeds of approximately $0.9 million and the buyer assumed approximately $1.8 million of plugging and abandonment liability.

On December 1, 2016, we closed our transaction with Hilcorp Energy I, L.P., effective September 1, 2016, for the sale of the Company's holdings in our Lake Washington field located in South East Louisiana. We received net proceeds of approximately $37.0 million which were used to reduce the amount of borrowings under the Company's Credit Facility. The buyer assumed approximately $30.5 million of plugging and abandonment liability.

Effective December 16, 2016, we sold an overriding royalty package in the Barnett Shale area for $0.5 million to San Saba Royalty Company.

Effective July 31, 2017, we disposed of our Wheeler Ranch wells in AWP Olmos in South Texas. We received net proceeds of $0.7 million and the buyer's assumption of approximately $0.6 million of plugging and abandonment liability. No gain or loss was recorded on the sale of this property.

On November 6, 2017 the Company purchased the non-operating working interest of two joint interest partners in certain wells and leases in AWP Field. The value of these assets are concentrated in proved oil and gas reserves. This purchase constitutes a business combination. The acquisition cost of this interest was $9.4 million. Additionally, the Company assumed asset retirement obligations of $0.2 million. We determined that these amounts are representative of the fair value of these assets. The fair-value measurements of these assets and associated asset retirement obligations are based on inputs that are not observable in the market and thus represent Level 3 inputs. This fair value assessment is primarily based on the income stream forecast for these properties.

Effective December 22, 2017, the Company closed a Purchase and Sale contract to sell the Company's wellbores and facilities in Bay De Chene. The contract price of $16.3 million will be paid by the Company, as seller. The payments will be funded over time, passed through an escrow account, with funds being released as abandonment work is performed and certified to meet state requirements. The buyer assumed approximately $20.9 million of plugging and abandonment liability with no gain or loss recorded on the sale of this property. Of the $16.3 million to be paid by the Company, approximately $6 million was released in the first quarter of 2018 for completion of initial post-closing requirements. The remaining $10 million will be funded as the abandonment work is completed and certified. Based on the estimated timing of the abandonment work to be performed, $11.3 million has been included in accrued capital expenditures as a current liability and $5.0 million has been included in other long-term liabilities in the accompanying consolidated balance sheet as of December 31, 2017.

In accordance with the full cost method of accounting, no gains or losses were recognized on these disposition transactions as they were not considered a significant amount of reserves or the proceeds did not significantly alter the relationships between capitalized costs and reserves. The sales proceeds, accrued payments and removal of related asset retirement obligations were treated as adjustments to our proved oil and gas property accounts.