On February 24, 2026, we entered into a Share Sale and Purchase Agreement with a subsidiary of Panoro Energy ASA for the sale of all our 40.4% participating interest in the Ceiba Field and Okume Complex production assets located in Block G offshore Equatorial Guinea for upfront cash consideration of $180.0 million, subject to certain adjustments, and future contingent consideration of up to $39.5 million. The transaction has an effective date of January 1, 2025, has received approval from the Government of Equatorial Guinea and completion only remains subject to CEMAC customary approval. While we expect to close the transaction around the middle of 2026, there can be no assurance that closing will ultimately occur or that it may not be delayed.

Management considers the assets and liabilities in the Ceiba Field and Okume Complex production assets located in Block G offshore Equatorial Guinea included in the Share Sale and Purchase Agreement as a disposal group. As of March 31, 2026, the assets and liabilities of the disposal group were classified as held for sale. The expected cash consideration of $180.0 million, subject to certain adjustments, and future contingent consideration of up to $39.5 million per the Share Sale and Purchase Agreement exceeds the carrying value of the disposal group, and thus, no adjustment to the carrying value of the disposal group was necessary. Upon classification of the disposal group as held for sale, the Company ceased recording depletion expense for long-lived assets of the disposal group. The divestiture does not meet the criteria to be reported as discontinued operations as it did not represent a strategic shift for the Company. Therefore, the Company continued to report operating results for the assets held for sale in the Company’s Consolidated Statement of Operations.


	March 31, 2026
	(In thousands)
Assets held for sale
Current assets:
Cash and cash equivalents	$	7,960
Receivables	49
Inventories	36
Prepaid expenses and other	10,662
Total current assets	18,707

Non-current assets:
Property and equipment, net	408,895
Total non-current assets	408,895
Total assets held for sale	$	427,602

Liabilities held for sale
Current liabilities:
Accounts Payable	$	42,944
Accrued Liabilities	600
Total current liabilities	43,544

Long-term Liabilities
Asset retirement obligations	139,602
Deferred tax liabilities	120,999
Total long-term liabilities	260,601
Total liabilities held for sale	$	304,145