Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.19.3
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):
 
September 30, 2019
 
December 31, 2018
Land
$
13,808

 
$
13,276

Proved properties
141,898

 
101,459

Unproved properties
—

 
10,204

Wells in progress
324

 
4,660

Corporate and other
5,285

 
2,905

Total property, plant and equipment at cost
161,315

 
132,504

Accumulated DD&A
(15,601
)
 
(1,924
)
Total property, plant and equipment, net
$
145,714

 
$
130,580


Land
We own land in Louisiana for the purpose of constructing the Driftwood Project.
Proved Properties
We own producing and non-producing acreage in northern Louisiana.
Unproved Properties
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:
 
Amount
 
Due Date
December future proceeds
$
3,705

 
On or before December 31, 2019
March future proceeds
1,235

 
On or before March 31, 2020
Total remaining consideration
$
4,940

 
 

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.