Notes Payable to Noncontrolling Interest Owners

9 Months Ended

Sep. 30, 2015

Notes Payable to Noncontrolling Interest Owners [Abstract]

Notes Payable to Noncontrolling Interest Owners

Note 9 – Notes Payable to Noncontrolling Interest Owners

	As of September 30,		As of December 31,
	2015		2014
	(in thousands)
Notes payable to noncontrolling interest owners	$	—	$	13,709
	$	—	$	13,709

At December 31, 2014, HNR Energia had a note payable to Vinccler of $6.1 million. Principal and interest were payable upon the maturity date of December 31, 2015. We had classified the note as a current liability as of December 31, 2014. Interest accrued at a rate of USD based on the three months London Interbank Offered Rate (“LIBOR”) plus 0.5%.  On March 9, 2015, Vinccler forgave the note payable and accrued interest totaling in the aggregate $6.2 million.  This was reflected as a contribution to stockholders’ equity.

On August 28, 2014, Petroandina exercised its right to a one month extension of the termination date of the Share Purchase Agreement, dated December 16, 2013 (the “SPA”).  In accordance with the extension the Company had the option to borrow $2.0 million from Petroandina, which it exercised.  Petroandina again extended the SPA on September 29 and October 30, 2014, with the Company borrowing $2.0 million per extension.  On November 27, 2014, Petroandina exercised their final extension and the Company borrowed the final maximum amount allowed of $1.6 million.  Quarterly interest payments began on December 31, 2014 with the principal of $7.6 million due January 1, 2016. Interest accrued at a rate of 11%.  On June 23, 2015, the Company repaid the note payable of $7.6 million plus accrued interest of $0.4 million.