HOUSTON, Aug. 6, 2012 /PRNewswire/ -- CAMAC Energy Inc.
(NYSE MKT: CAK) ("the Company") today provided an operational
update and announced its second quarter 2012 results.
Operations Update
Africa ‒ New
Production Sharing Contracts signed in Kenya and Gambia
In May 2012, the Company signed
four production sharing contracts ("PSCs") with the Government of
the Republic of Kenya, covering
previously awarded onshore exploration Blocks L1B and L16, and two
new offshore deep water exploration Blocks L27 and L28. The
Company will be the operator with 100% interest in the
blocks. The Government of Kenya will be entitled to participate up to
20% in any area subsequent to a commercial discovery.
The PSCs for deep water offshore Blocks L27 and L28 each provide
for an initial exploration period of three years with a minimum
work program requiring the carrying out of regional geological and
geophysical studies, reprocessing and re-interpreting previous 2D
seismic data, and acquiring, processing and interpreting 1,500
square kilometers of 3D seismic data. The Company has the right to
apply for up to two additional exploration periods requiring the
drilling of one well in each such additional two year period.
The PSCs for the onshore Blocks L16 and L1B each provide for an
initial exploration period of two years with a minimum work program
requiring the acquisition and interpretation of gravity, magnetic,
and 500 kilometers of 2D seismic data. The Company has the right to
apply for up to two additional exploration periods requiring the
drilling of one well in each such additional two year period.
Also in May 2012, the Company
signed two Petroleum Exploration, Development and Production
Licenses with The Republic of The Gambia for previously awarded offshore
exploration blocks A2 and A5. The Company will be the
operator with 100% interest in both Blocks. Gambia National
Petroleum Company will have the right to participate up to 15%
following approval of an exploration and development plan.
The Licenses for both blocks provide for an initial exploration
period of four years, during which the Company will, for each
Block, be responsible for a regional geologic survey, acquiring,
processing, and interpreting 750 square kilometers of 3D seismic
data, and drilling one exploration well. The Company has the
right to apply for up to two additional exploration periods
requiring the drilling of one well in each such additional two year
period.
Nigeria ‒ Oyo
Field
On June 29, 2012, Allied Energy
PLC ("Allied"), an affiliate of the Company's largest shareholder
completed the previously announced transaction to acquire the 40%
working interest in Nigerian OMLs 120 and 121 owned by Nigerian
Agip Exploration ("NAE"), a subsidiary of Eni SpA. As a
result, Allied is now the operator of the Oyo Field, and is
expected to engage CAMAC Energy to act as its technical service
provider. Allied has informed the Company that it plans to
drill well #7 in the Oyo Field in the fourth quarter of 2012 with
the dual objective of increasing production and testing the
resource potential in the deeper Miocene formation. Average
daily production from the Oyo Field in Nigeria was 2,786 bopd during the second
quarter of 2012, and 4,109 bopd during the second quarter of
2011. CAMAC Energy's share of average daily net production at
the Oyo Field, excluding royalty, was 441 bopd for the quarter
ended June 30, 2012, and 1,215 bopd
for the quarter ended June 30,
2011.
China
On August 6, 2012, the Company
completed the previously announced sale of its interest in the
Zijinshan Gas Block in China to
Leyshon Resources Limited (AIM/ASX: LRL) ("Leyshon"), a natural
resources mining company based in Beijing. Under the agreed
terms, CAMAC Energy divested its wholly-owned Hong Kong subsidiary Pacific Asia Petroleum
Limited (PAPL) for a cash consideration of $2.5 million and 10 million fully paid ordinary
shares in Leyshon. The Company expects to invest both the
proceeds and savings from its China operations into its African exploration
projects.
"I am very pleased with the progress we have made in the first
half of this year," commented Dr. Kase
Lawal, Chairman and Chief Executive Officer. "We have
successfully repositioned CAMAC Energy as an exploration company
focused on the continent of Africa. With the six new
exploration blocks in Kenya and
Gambia, we will be a participant
in two of the most exciting exploration provinces in the
world. We are already working to gather data that will allow
us to identify prospects for drilling on the new blocks and attract
partners, while keeping an eye on exploration wells scheduled to be
drilled on neighboring blocks in coming months. At the same
time, we will benefit further from our relationship with Allied as
we jointly work to increase production from the Oyo Field and to
test the promising Miocene formation below."
Operating Results
CAMAC Energy announced a net loss of $4.0
million, or $(0.03) per
diluted share, for the quarter ended June
30, 2012. For the same period in 2011, CAMAC Energy
reported net income of $5.7 million,
or $0.04 per diluted share. The
Company's net loss during the second quarter of 2012 was primarily
a result of having no oil lifting from the Oyo Field during the
quarter.
There was no lifting and therefore no operating revenue from the
Oyo Field in the second quarter of 2012. Operating revenues
for the second quarter of 2011 were $20.0
million, based on an average oil price of approximately
$113 per barrel received for the
lifting from the Oyo Field during the quarter. General and
administrative expenses were $3.2
million for the second quarter of 2012, compared to
$4.2 million for the second quarter
of 2011. The decrease in 2012 was mainly due to lower salary
and benefit expense related to officer resignations in the prior
period.
Cash and cash equivalents at June 30,
2012, were $3.4 million
compared to $8.5 million at
March 31, 2012. The decrease in
cash and cash equivalents was principally due to cash payments made
for normal operations and expenditures related to six new
exploration licenses in Kenya and
Gambia.
Conference Call Details
A conference call for investors will be held on Wednesday, August 8, 2012 at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss CAMAC
Energy's operations and second quarter results with a focus on the
Company's strategy for the future. Hosting the call will be
Earl W. McNiel, Interim Chief
Financial Officer.
The call can be accessed live over the telephone by dialing:
- (877)-317-6789 for callers in the
United States;
- (866)-605-3852 for callers in Canada;
- +1-(412)-317-6789 for international callers.
Callers should request to be added to the CAMAC Conference
Call.
A replay will be available one hour after the conference call
and can be accessed by dialing (877)-344-7529 for callers in
the United States, or for
international callers, +1-(412)-317-0088. The conference
number for logging into the replay is 10016862. The telephone
replay will be available until 9AM
Eastern September 10, 2012.
Interested parties may also listen to a simultaneous webcast of
the conference call by accessing the Investors--Events &
Presentations section of CAMAC Energy's website at
www.camacenergy.com. A replay of the webcast will be
available for approximately 30 days.
About CAMAC Energy Inc.
CAMAC Energy Inc. (NYSE MKT: CAK) is a U.S.-based energy
company engaged in the exploration, development and production of
oil and gas. The Company's principal assets include
interests in OML 120 and OML 121, offshore oil and gas leases in
deep water Nigeria which include
the currently producing Oyo Oilfield, and six recently acquired
exploration blocks in Kenya and
Gambia, and the Company is currently pursuing further
additions to its exploration portfolio in East and West
Africa. The Company was founded in 2005 and has offices in
Houston, Texas, Beijing, China, and Lagos, Nigeria.
Forward-Looking Statements
This press release contains certain statements that may include
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended (the "Securities Act"), and
Section 21E of the Securities Exchange Act of 1934, as amended. All
statements, other than statements of historical fact, are
"forward-looking statements," including statements regarding the
Company's proposed transactions, business strategy, plans and
objectives and statements of non-historical information. These
forward-looking statements are often identified by the use of
forward-looking terminology such as "will," "should," "believes,"
"expects," "anticipates" or similar expressions, and involve known
and unknown risks and uncertainties. Although the Company believes
that the expectations reflected in these forward-looking statements
are reasonable, they involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. You should not
place undue reliance on these forward-looking statements, which
speak only as of their respective dates. Risks and uncertainties
regarding the transactions described herein include the possibility
that the closing of the transactions does not occur, either due to
the failure of closing conditions or other reasons, risks that the
transactions disrupt current plans and divert management from
day-to-day operations, and the amount of the costs, fees, expenses
and charges related to the transactions. In addition, the
Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a
variety of other factors including those discussed in the Company's
periodic reports that are filed with and available from the
Securities and Exchange Commission ("SEC"). All forward-looking
statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by these factors.
Other than as required under the securities laws, the Company does
not assume a duty to update these forward-looking statements.
Contacts
Media:
CAMAC Energy Inc.
Cristy Taylor, +1-713-797-2940
PR@camacenergy.com
or
Investor Relations:
Jason Lee
832-209-1419
IR@camacenergy.com
Liviakis Financial Communications, Inc.
John Liviakis,CEO
+1-415-389-4670
