Cobalt Annual Report 2015 - page 117

Cobalt International Energy, Inc.
Notes to Consolidated Financial Statements (Continued)
F-25
11. Angola Transaction (Continued)
right to receive the market value of its rights and obligations under the Royalty Agreement, based upon the amount in cash a willing
transferee of such rights and obligations would pay a willing transferor in an arm’s length transaction. Given potential issues regarding
how such market value of Whitton’s rights and obligations under the Royalty Agreement could be calculated, including, without
limitation, outstanding issues related to the RSA Economic Model, the amount of any such payment that could be owed to Whitton
upon consummation of the Angola Transaction is uncertain, but may be significant. Resolution of any such payment may include an
expert determination of such cash value payment. The Company can make no assurance that any results from an expert determination
process will be favorable to it
.
The Company’s working interests in Blocks 9, 20, and 21 offshore Angola have been classified as “held for sale” on the
consolidated balance sheet. The results of operations associated with Blocks 9, 20 and 21 offshore Angola have been presented as
discontinued operations in the accompanying consolidated statement of operations.
The following table summarizes the assets and liabilities associated with Blocks 9, 20, and 21 offshore Angola:
December 31,
2015
December 31,
2014(1)
($ in thousands)
Cash and cash equivalents ......................................................... $
8,578 $
12,017
Joint interest and other receivables ............................................
156,599
46,399
Prepaid expenses and other current assets .................................
8,216
10,655
Inventory....................................................................................
56,224
59,581
Short term restricted funds.........................................................
22,538
45,062
Oil and gas properties ................................................................ 1,465,299 1,209,741
Other property and equipment, net ............................................
10,107
7,965
Long term restricted funds .........................................................
82,568
105,051
Other assets ................................................................................
922
4,904
Total assets of the discontinued operation ................................. 1,811,051 1,501,375
Trade and other accounts payable..............................................
(6,089)
(7,939)
Accrued liabilities ......................................................................
(128,259) (116,956)
Short term contractual obligations .............................................
(115,110)
(50,285)
Long term contractual obligations .............................................
(1,381) (101,945)
Other long term liabilities ..........................................................
(351)
Total liabilities of the discontinued operation............................ $ (250,839) $ (277,476)
(1) Amounts in the comparative period are broken out between current and long-term on the consolidated
balance sheet.
Results for Blocks 9, 20, and 21 offshore Angola classified within discontinued operations consisted of the following:
Year ended
2015
2014
2013
Seismic and exploration ....................................................................... $ 16,526 $ 44,136 $
24,366
Dry hole expense and impairment(1) ...................................................
153,274
103,707
126,945
General and administrative...................................................................
23,603
42,770
32,652
Depreciation and amortization .............................................................
2,478
2,890
546
Gain (loss) on sale of assets .................................................................
12
3
$ 195,881 $ 193,515 $
184,512
(1)
In light of (i) the apparent conflict between Presidential Decree No. 212/15 and the Company's rights under the Block 20
PSC and (ii) the denial of the Company's request for an extension of the declaration of commercial discovery deadline
with respect to Lontra, the Company has elected to impair the value of the Lontra #1 exploration well as of December 31,
2015.
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