Provides Operational Update on its West and
East Africa Operations
CAMAC Energy Inc. (“CAMAC” or the “Company”) (NYSE MKT:CAK)
announced today financial and operational results for the year
ended December 31, 2014.
2014 Highlights:
- Successfully drilled the Oyo-8 well and
encountered four new oil and gas reservoirs;
- Acquired 100% economic interest in OMLs
120 and 121 offshore Nigeria;
- Increased unrisked P50 recoverable
resource estimates of four top-priority exploration prospects
offshore Nigeria fivefold;
- Completed a $270 million private
placement with the Public Investment Corporation (SOC)
Limited;
- Secured a $100 million credit
facility;
- Signed a Petroleum Agreement with the
Government of Ghana for the Expanded Shallow Water Tano Block;
- Commenced a secondary listing on the
Johannesburg Stock Exchange.
Nigeria
The Oyo field averaged 1,300 barrels of oil per day (bbls/d).
Oyo-8 was successfully drilled to a total depth of 6,059 feet, and
encountered four new oil and gas reservoirs with a total gross
hydrocarbon thickness of 112 feet, based on results from the
logging-while-drilling data, reservoir pressure measurement, and
reservoir fluid sampling. The Company commenced and is near
completion of the Oyo field facilities expansion, which will allow
for increased production from the Oyo development program.
Flowlines and other subsea equipment from Oyo-5 and Oyo-6 were
installed and tested on the Oyo-7 and Oyo-8 wells to facilitate the
tie-in of production from the two wells.
CAMAC high-graded four of the prospects in OMLs 120 and 121 to
drill-ready status, which target a combined 2,377 million barrels
of oil, P50 recoverable resources. Three of these prospects will
target the highly-prolific Miocene formation confirmed in the
exploration portion of the previously drilled Oyo-7 development
well. The Company plans to drill the first of these Miocene
prospects in 2015 and is in active discussions with potential
farm-in partners.
In December 2014, the Company entered into a contract with a
unit of Transocean Ltd. for the drilling rig Sedco Express and is
currently using this rig to horizontally complete the Oyo-8 well.
The rig will then move to the Oyo-7 location to commence completion
operations on the Oyo-7 well.
Ghana
In April 2014, the Company signed a Petroleum Agreement relating
to the Expanded Shallow Water Tano block located in the Tano Basin
offshore Ghana. CAMAC signed the Joint Operating Agreement with its
joint venture partners in January 2015. The Company has been named
operator, holds a 30% interest, and has commenced work towards
determining commerciality of the three previously-discovered
fields. Additionally, in light of recent nearby discoveries
and related regional play concepts, CAMAC is studying possible
exploration targets in the block.
Kenya
The Company made good progress in Kenya during 2014. An
Environmental and Social Impact Study was initiated and completed
in March 2014. Subsequently, 2-D seismic was acquired on offshore
blocks L27 and L28 and on the onshore blocks L1B and L16. The
Company has thus completed 2-D seismic acquisitions covering both
offshore blocks, and both onshore blocks. These four blocks cover a
total of nine million acres.
A regional geological and geophysical study on the L27 and L28
offshore blocks by Robertson Research is also ongoing and expected
to be completed in mid-2015. The Company is currently making plans
to acquire 2-D seismic on the offshore portion of block L-16, but
has essentially satisfied the work obligations of the initial
exploration period required by the licence agreement.
Gambia
In April 2014, the Company completed a regional geology and
geophysical study of offshore blocks A2 and A5. CAMAC’s next step
is to acquire 3-D seismic over the most promising areas and has
contracted with Polarcus for the 3-D seismic acquisition. CAMAC is
engaged in active discussions with the government of The Gambia to
extend the exploration period of the licenses, which it believes
will be successful, and is also in discussions with a potential
partner to farm-out a portion of its rights under the licenses.
Results of Operations
For 2014, CAMAC reported a net loss of $96 million, or $0.08 per
basic and diluted share. Revenues were $53.8 million, or $106.41
per barrel, on average production of 1,300 barrels of oil per day,
net of royalties. There was no production in the fourth quarter
2014 due to the shut-in of Oyo-5 and Oyo-6 wells in preparation of
tying-in Oyo-7 and Oyo-8 wells. Cash and cash equivalents at
December 31, 2014 was $25.1 million.
Year-End Reserves
The Company’s total net proved oil reserves as of December 31,
2014 increased 6% to 9.1 million barrels (MMbbls), versus 8.5
MMbbls for the year-end 2013. The PV-10 of the net proved reserves
increased 134% to $237.1 million compared to $101.30 at year-end
2013.
Conference Call
CAMAC will host a conference call today, March 12, 2015 at 10
a.m. CT (11 a.m. ET) to discuss full year and fourth quarter
results, current operations and the Company’s outlook for 2015. The
dial-in number is 1 877-317-6789 in the United States or
+1 412-317-6789 internationally. To access the live audio
webcast, please visit the “Investors” section of the Company’s
website at www.camacenergy.com.
About CAMAC Energy
CAMAC Energy is an independent oil and gas exploration and
production company focused on energy resources in sub-Saharan
Africa. Its asset portfolio consists of nine licenses across four
countries covering an area of 43,000 square kilometers, including
current production and other exploration projects offshore Nigeria,
as well as exploration licenses offshore Ghana, Kenya, and Gambia,
and onshore Kenya. CAMAC Energy is headquartered in Houston, Texas.
For more information about CAMAC Energy, please visit
www.camacenergy.com.
Resource Estimates
This press release refers to prospective resources, including
recoverable resources and resources in place. The Securities and
Exchange Commission (“SEC”) permits oil and gas companies, in their
filings with the SEC, to disclose only “reserves,” as that term is
defined under SEC rules. Prospective resources are those quantities
of petroleum estimated, as at a given date, to be potentially
recoverable from undiscovered accumulations by application of
future development projects. Prospective resources have both an
associated chance of discovery and a chance of development.
Investors should not assume there will be any discovery associated
with prospective resources, or that any discovery will be
economically drillable or ever be upgraded into reserves.
Forward-Looking Statements
This news release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements,
other than statements of historical fact, concerning activities,
events or developments that the Company expects, believes or
anticipates will or may occur in the future are forward-looking
statements. Although the Company believes the expectations
reflected in these forward-looking statements are reasonable, they
involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. The Company’s actual
results could differ materially from those anticipated or implied
in these forward-looking statements due to a variety of factors,
including the Company’s ability to successfully finance, drill and
develop the wells and prospects identified in this release and
risks and other risk factors discussed in the Company’s periodic
reports filed with the Securities and Exchange Commission. All
forward-looking statements are expressly qualified in their
entirety by this cautionary statement. You should not place undue
reliance on forward-looking statements, which speak only as of
their respective dates. The Company undertakes no duty to update
these forward-looking statements.
CAMAC ENERGY INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands,
except per share amounts) Years Ended December
31, 2014 (Unaudited) 2013
2012 Revenues: Crude oil sales, net of royalties $ 53,844 $
63,736 $ 74,667 Operating costs and expenses: Production
costs 94,808 70,427 41,555 Exploratory expenses 14,283 5,501 3,236
Depreciation, depletion and amortization 23,756 16,875 51,002
General and administrative expenses 14,322 14,460
10,998 Total operating costs and expenses 147,169
107,263 106,791 Operating loss (93,325 )
(43,527 ) (32,124 ) Other income (expense): Currency
transaction gain (loss) 1,758 224 (22 ) Interest expense (4,383 )
(99 ) (117 ) Other, net (358 ) (87 ) (443 )
Total other income (expense) (2,983 ) 38 (582 ) Loss from
continuing operations before income taxes (96,308 ) (43,489 )
(32,706 ) Income tax expense - - - Net loss
from continuing operations (96,308 ) (43,489 ) (32,706 )
Discontinued operations Net loss from discontinued
operations, net of tax - (36 ) (991 ) Gain on divestiture, net
- - 4,160 Net (loss) income from discontinued
operations - (36 ) 3,169 Net loss before non-controlling
interests (96,308 ) (43,525 ) (29,537 ) Non-controlling interests -
discontinued operations - - 8 Net loss before
non-controlling interest from continuing operations (96,308 )
(43,525 ) (29,529 ) Net loss attributable to non-controlling
interest 246 - -
Net loss attributable to CAMAC Energy
Inc.
$ (96,062 ) $ (43,525 ) $ (29,529 ) Net (loss) income per
common share attributable to CAMAC Energy Inc. - basic: Continuing
operations $ (0.08 ) $ (0.05 ) $ (0.05 ) Discontinued operations $
- $ (0.00 ) $ 0.01 Total $ (0.08 ) $ (0.05 ) $ (0.05 ) Net (loss)
income per common share attributable to CAMAC Energy Inc. -
diluted: Continuing operations $ (0.08 ) $ (0.05 ) $ (0.05 )
Discontinued operations $ - $ (0.00 ) $ 0.01 Total $ (0.08 ) $
(0.05 ) $ (0.05 ) Weighted-average common shares outstanding: Basic
1,168,468 878,710 628,101 Diluted 1,168,468 878,710 628,101
CAMAC ENERGY INC. CONSOLIDATED BALANCE SHEETS (In
thousands) As of December 31, 2014
(Unaudited) 2013 ASSETS Current assets: Cash
and cash equivalents $ 25,143 $ 163 Restricted cash 1,496 -
Accounts receivable - partners 496 - Accounts receivable - related
party 624 1,650 Accounts receivable - other 54 86 Crude oil
inventory 1,089 16,254 Prepaids and other current assets
2,929 232 Total current assets 31,831 18,385
Property, plant and equipment: Oil and gas properties
(successful efforts method of accounting), net 595,269 435,035
Other property, plant and equipment, net 1,060 752
Total property, plant and equipment, net 596,329
435,787 Other non-current assets Restricted cash 8,909 -
Debt issuance costs 1,307 - Other non-current assets 67
52 Other assets, net 10,283 52 Total assets $ 638,443
$ 454,224
LIABILITIES AND EQUITY Current liabilities:
Accounts payable and accrued liabilities $ 108,047 $ 12,886
Accounts payable and accrued liabilities - related party 9,391
26,228 Asset retirement obligations 12,703 12,479 Current portion
of long-term debt 6,200 - Short-term notes payable - related party
- 6,496 Total current liabilities 136,341
58,089 Term loan facility 93,000 - Long-term notes
payable - related party 61,185 - Asset retirement obligations
13,830 8,122 Other long-term liabilities 82 67
Total liabilities 304,438 66,278 Commitments
and contingencies Equity:
Preferred stock $0.001 par value -
50,000,000 shares authorized; none issued and outstanding as of
December 31, 2014 and 2013, respectively
- -
Common stock $0.001 par value -
2,500,000,000 shares authorized; 1,261,845,103 and 879,817,093
shares outstanding as of December 31, 2014 and 2013,
respectively
1,262 879 Additional paid-in capital 777,043 735,959 Accumulated
deficit (444,954 ) (348,892 ) Total equity - CAMAC
Energy Inc. 333,351 387,946 Non-controlling interests 654
- Total equity 334,005 387,946 Total
liabilities and equity $ 638,443 $ 454,224
CAMAC ENERGY
INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In
thousands) Years Ended December 31, 2014
(Unaudited) 2013 2012 Cash
flows from operating activities Net loss, including
non-controlling interest $ (96,308 ) $ (43,525 ) $ (29,537 )
Adjustments to reconcile net loss to cash (used in) provided by
operating activities: Depreciation, depletion and amortization
21,590 14,640 49,963 Asset retirement obligation accretion 2,166
2,235 1,047 Amortization of debt issuance costs 147 - - Related
party liability offset (32,880 ) - - Unrealized currency
transaction (gain) loss (1,572 ) (224 ) 22 Share-based compensation
3,095 2,013 739 Dry hole costs - - (37 ) Gain on divestiture, net -
- (4,160 ) Other (17 ) 16 55 Changes in operating assets and
liabilities: (Increase) decrease in accounts receivable 562 (3,046
) 12,836 (Increase) decrease in inventories 14,512 (14,004 ) (1,483
) (Increase) decrease in prepaids and other current assets (1,672 )
156 649 (Increase) decrease in other non-current assets (15 ) - -
Increase (decrease) in accounts payable and accrued liabilities
56,845 5,114 (20,660 ) Net cash (used in)
provided by operating activities (33,547 ) (36,625 )
9,434
Cash flows from investing activities
Capital expenditures (128,510 ) (602 ) (3,576 ) Allied transaction
(170,000 ) - - Proceeds from divestiture, net - - 2,364 Decrease in
other assets - - 465 Proceeds from the sale long-term investments
- - 1,966 Net cash (used in) provided by
investing activities (298,510 ) (602 ) 1,219
Cash flows from financing activities Proceeds from
the issuance of common stock 270,000 - - Proceeds from the exercise
of stock options 415 - 3 Proceeds from term loan facility 100,000 -
- Debt issuance costs (2,082 ) - - Proceeds (repayments) of note
payable - related party, net 10,649 4,350 (5,128 ) Funds restricted
for debt service (10,405 ) - - Allied Transaction adjustments
(12,440 ) 29,234 (15,331 ) Funding from non-controlling interest
900 - - Net cash provided by (used in)
financing activities 357,037 33,584 (20,456 )
Effect of exchange rate on cash and cash equivalents - - (17
) Net increase (decrease) in cash and cash equivalents
24,980 (3,643 ) (9,820 ) Cash and cash equivalents at beginning of
year 163 3,806 13,626 Cash and cash
equivalents at end of year $ 25,143 $ 163 $ 3,806
Supplemental disclosure of cash flow information Cash paid
for: Interest, net $ 8 $ 99 $ 117 Contingent consideration stock $
- $ - $ 890 Supplemental disclosure of non-cash investing and
financing activities: Non-subsidiary common stock received as
partial proceeds from divestiture, net $ - $ - $ 1,877 Related
party accounts payable, net, settled with related party notes
payable $ (32,880 ) $ 1,274 $ - Non-cash gain from asset retirement
obligation extinguishment $ - $ 5,833 $ - Change in asset
retirement obligation estimate $ 3,766 $ - $ - Net assets
contributed by parent $ - $ 61,205 $ 190,925
CAMAC Energy Inc.Investors:Christopher D. Heath,
713-797-2945Director, Corporate Finance and Investor
Relationschris.heath@camacenergy.comorMedia:Lionel C. McBee,
713-797-2960Manager, Corporate
Communicationslionel.mcbee@camacenergy.com
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