Property, Plant and Equipment
|9 Months Ended|
Sep. 30, 2019
|Property, Plant and Equipment [Abstract]|
|Property, Plant and Equipment||
NOTE 3 — PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is comprised of fixed assets and oil and natural gas properties, as shown below (in thousands):
We own land in Louisiana for the purpose of constructing the Driftwood Project.
We own producing and non-producing acreage in northern Louisiana.
On September 10, 2019 (the “Sale Closing Date”), we sold our wholly owned subsidiary, Magellan Petroleum (UK) Investments Holdings Limited (“Magellan Petroleum UK”), to a third party for approximately $14.8 million. The assets and liabilities of Magellan Petroleum UK consisted predominantly of our non-operated interests in the Weald Basin, United Kingdom. On the Sale Closing Date, we received $6.2 million in cash and the equivalent of $3.7 million in the purchaser’s publicly traded equity securities (“Tradable Equity Securities”), which have been measured at fair value and represent a Level 1 instrument in the fair value hierarchy. The remaining consideration of approximately $4.9 million (the “Future Proceeds”) will be received as follows:The sale of Magellan Petroleum UK generated an overall gain of approximately $4.2 million, of which approximately $2.8 million has been recognized in the current period as Other income, net in our Condensed Consolidated Statements of Operations.
The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef