Property, Plant and Equipment |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant, and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment | Property, Plant and Equipment
(1) The “other” category includes right-of-use assets for operating and finance leases of $90.0 million, which had a net book value of $42.9 million as at June 30, 2026 (December 31, 2025 - $65.0 million, which had a net book value of $30.8 million). During the three and six months ended June 30, 2026, the Company entered into three and four new finance leases related to power generation agreements in Ecuador and Colombia and recognized right-of-use assets of $5.3 million and $21.0 million, respectively, related to these agreements. During the six months ended June 30, 2026, the Company entered into one new operating office lease agreement in Colombia and recognized right-of-use asset of $4.0 million related to this agreement. For the three and six months ended June 30, 2026 and 2025, the Company had no ceiling test impairment losses. The Company used a 12-month unweighted average of the first-day-of-the-month prices prior to the ending date of the period ended June 30, 2026 as follows: Brent Crude $78.55 per bbl, Edmonton Light Crude of C$98.28 per bbl, Alberta AECO spot price of C$1.55 per MMBtu, Edmonton Propane C$32.84 per boe, Edmonton Butane C$41.70 per boe and Edmonton Condensate C$100.06 per boe (June 30, 2025 as follows: Brent Crude of $73.60 per bbl, Edmonton Light Crude of C$91.55 per bbl, Alberta AECO spot price of C$1.69 per MMBtu, Edmonton Propane C$33.82 per boe, Edmonton Butane C$47.11 per boe and Edmonton Condensate C$95.75 per boe). On June 30, 2026, the Company completed an asset exchange transaction in which it transferred a 30% working interest ("WI") in certain oil and natural gas rights, wells, and tangible assets located in the Marten Hills area, in exchange for oil and natural gas rights, wells, and tangible assets in the Seal/Dawson area, WI ranging from 35% to 100%. In connection with this transaction, the Company received cash consideration of C$0.8 million (US$0.6 million). On June 23, 2026, the Company completed a disposition of 54% WI and associated title rights in the Lodgepole area in Canada effective January 1, 2026, for a total cash consideration of C$12.8 million (US$9.3 million). As part of disposition, the Company derecognized asset retirement obligation attributed to Lodgepole area totaling C$17.5 million (US$12.8 million) on an undiscounted basis and C$9.0 million (US$6.6 million) on a discounted basis. No gain or loss was recognized in the statement of operations as the disposal did not materially change the relationship between capital costs and the proved reserves of oil and natural gas assets. On March 10, 2026, the Company completed the disposition of the entire WI and associated title rights in the Simonette Montney area in Canada effective January 1, 2026, for total cash consideration of C$66.3 million (US$48.6 million). No gain or loss was recognized in the statement of operations as the disposal did not materially change the relationship between capital costs and the proved reserves of oil and natural gas assets. On March 17, 2026, the Company entered into a strategic partnership with Ecopetrol S.A. to earn, subject to regulatory approvals and conditions precedent, a 49% WI in the Tisquirama Block in Colombia. Under the terms of the agreement, the Company has committed to fund approximately $47.1 million of a $92.4 million gross capital program over 40 months, including a minimum Phase 1 investment of $15.0 million. Upon completion of Phase 1, the Company will be entitled to 49% of production and is expected to assume operatorship. On May 27, 2026, the Company satisfied all outstanding conditions precedent to the partnership agreement and received regulatory approval.
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