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Camac Energy Incorporated - Camac Energy Announces Second Quarter 2014 Results

Release Date: 11/08/2014 07:15:00      Code(s): CME     
CAMAC Energy Incorporated
(Incorporated and registered in Delaware, United States of America)
Share code on the NYSE MKT: CAK
Share code on the JSE: CME
ISIN: US1317451011
USA ISIN: US1317451011
(?Camac? or ?the company?)




CAMAC Energy Announces Second Quarter 2014 Results


Provides Operational Update on its West and East Africa Operations

HOUSTON, August 11, 2014 - CAMAC Energy Inc. (JSE: CME) announced today financial and operating
results for the second quarter of 2014. The company plans to file its Form 10-Q for the quarter ended June
30, 2014 with the Securities and Exchange Commission later today.

Highlights for the quarter ended June 30, 2014 include:


-   Spudded the Oyo-8 development well offshore Nigeria
-   Signed a Petroleum Agreement with the Government of Ghana for the Expanded Shallow Water Tano
    Block
-   Completed the $270 million private placement with the Public Investment Corporation (SOC) Limited
-   Currently processing the 2D seismic data that was acquired offshore Kenya in March 2014


Nigeria
The Northern Offshore Energy Searcher drillship commenced drilling operations on the Oyo-8 development
well on June 15. Oyo-8 was drilled to a total depth (TD) of 6,059 feet, and successfully encountered four
new oil and gas reservoirs with total gross hydrocarbon thickness of 112 feet based on results from the
logging-while-drilling (LWD) data, reservoir pressure measurement, and reservoir fluid sampling. The well
will now be completed horizontally as a producing well in the Pliocene formation of the Central Oyo field.
Further, Oyo-7, which was successfully drilled in October 2013, will also be completed horizontally in the
Pliocene formation of the Central Oyo field. CAMAC Energy is the operator, and owns a 100% interest.

In addition to the development wells offshore Nigeria, the company has identified 10 exploration prospects
and 12 leads, and is in the process of maturing several prospects to drill-ready status, each containing
substantial prospective resources. The company plans to commence drilling of the first exploration well in
2015.


Ghana
In April 2014, the company signed a Petroleum Agreement relating to the Expanded Shallow Water Tano
(ESWT) block located in the Tano Basin offshore Ghana. The block contains three discovered fields, and
the work program requires the partners to determine, within nine months of the effective date, the economic
viability of developing the discovered fields. In collaboration with its partners, the company is working on
plans to conduct basin modeling and field studies.


The ESWT block size is 1,508 square kilometres, located about 15-35 km off the coast of Ghana, in water
depths ranging from 55 meters to 116 meters (180 feet to 380 feet) and contains three discovered fields:
Tano North, Tano West and Tano South.        Significant quantities of oil and gas have been discovered in
these fields, and drill stem tests also established producibility of the reservoirs.   A leading worldwide
independent petroleum consulting firm has been identified to assist with the evaluation.      Activities will
include evaluating existing 3D seismic data, and geological and well data. CAMAC Energy is the operator,
and owns a 30% interest.


Kenya
Exploration activities are continuing in the Lamu Basin on Blocks L1B and L16 onshore, and on Blocks L27
and L28 offshore.


L1B/L16 Onshore
- Completed a Gravity and Magnetic Survey in April 2013
- Completed an Environmental and Social Impact Assessment Study in March 2014
- Currently preparing to acquire 2D seismic on both blocks

The initial exploration period for blocks L1B and L16 expires in June 2015. The company has the right to
apply for up to two additional two-year exploration periods with specified additional minimum work
obligations, including the acquisition of 3D seismic data, and the drilling of one exploratory well on each
block during each such additional period. CAMAC Energy is the operator, and owns a 100% interest.


L27/L28 Offshore


- WesternGeco, a Schlumberger company, is currently processing the 2D seismic data that was
acquired in March 2014
- Presently conducting a regional Geophysical Study
- Results from the 2D interpretation will be used to outline the location for a 3D seismic acquisition
- 3D seismic will then be processed to interpret the geologic framework


Current efforts are being directed towards drilling one exploration well in either Block L27 or Block L28.
CAMAC Energy is the operator, and owns a 100% interest.


Gambia
Frontier exploration activities are also continuing offshore Gambia on Blocks A2 and A5. CAMAC Energy is
reprocessing existing 2D seismic, conducting a regional geological study, and also has plans for a 3D
seismic survey. CAMAC Energy is the operator, and owns a 100% interest.

Results of Operations


For the second quarter of 2014, revenues were $14.9 million, on net daily production of 1,600 barrels of oil,
net of royalties. Revenue on a per barrel basis was $110.40. CAMAC Energy reported a net loss of $11.9
million for the second quarter of 2014, or $0.01 per basic and diluted share. Cash and cash equivalents at
June 30, 2014 was $39.7 million.

Conference Call


CAMAC Energy will host a conference call on Tuesday, August 12, 2014 at 10 a.m. CT (11 a.m. ET) to
discuss second quarter 2014 results, current operations and the company?s outlook for the remainder of
2014. The dial-in number is 877-317-6789 in the United States or 412-317-6789 internationally. To access
the live audio webcast, please visit 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 Africa. Its asset portfolio consists of nine licenses across four countries covering an area of
43,000 square kilometers, including current production and other 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.


Forward-Looking Statements
This press 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 in these forward-looking statements
due to a variety of factors, including the company?s ability to successfully drill, complete, test and produce
the wells 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.


Source: CAMAC Energy Inc.


Investors:
Chris Heath
Director, Corporate Finance and Investor Relations
+1 713-797-2945
chris.heath@camacenergy.com


Media:
Magna Carta
Jacques de Bie
+27 (0)11 784 2598
jacques@magna-carta.co.za
CAMAC ENERGY INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)




                                             Three  Months Ended             Six Months Ended June
                                             June 30,                        30,
                                             2014              2013          2014            2013


Revenues:
  Oil and gas revenue                        $ 14,940         $ 20,007       $ 34,834       $ 42,013


Operating costs and expenses:
  Production costs                            15,459           21,489         38,356         43,602
  Exploratory expenses                        427              1,899          2,703          3,097
  Depreciation, depletion and amortization    5,985            5,142          10,956         10,609
  General and administrative expenses         4,340            3,401          8,773          7,113
  Total operating costs and expenses          26,211           31,931         60,788         64,421


Operating loss                                (11,271     )    (11,924   )    (25,954   )    (22,408   )


Other income (expense):
  Interest expense                            (681        )    (6        )    (866      )    (10       )
  Other, net                                  22               -              32             -
     Total other income (expense)             (659        )    (6        )    (834      )    (10       )


Loss before income taxes                      (11,930     )    (11,930   )    (26,788   )    (22,418   )
Income tax expense                            -                -              -              -


Net loss                                     $ (11,930    ) $ (11,930    ) $ (26,788    ) $ (22,418    )


Net loss per common share:
  Basic                                      $ (0.01      ) $ (0.03      ) $ (0.03      ) $ (0.06      )
  Diluted                                    $ (0.01      ) $ (0.03      ) $ (0.03      ) $ (0.06       )
Weighted average common shares outstanding:
  Basic                                      1,188,214         380,196         932,571         380,287
  Diluted                                    1,188,214         380,196         932,571         380,287




CAMAC ENERGY INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)




                                                                                                  December
                                                                              June 30,            31,
                                                                              2014                2013
ASSETS
Current assets:
  Cash and cash equivalents                                                   $   39,742         $ 163
  Accounts receivable                                                             144              1,112
  Crude oil inventory                                                             14,379           16,254
  Prepaids and other current assets                                               11,435           856
  Total current assets                                                            65,700           18,385


Property, plant and equipment:
Oil and gas properties (successful efforts method of accounting), net             462,171          435,035
Other property, plant and equipment, net                                          1,100            752
Total property, plant and equipment, net                                          463,271          435,787


Other assets                                                                      46               52


     Total Assets                                                             $ 529,017           $ 454,224


LIABILITIES AND EQUITY
Current liabilities:
   Accounts payable                                                           $ 30,938            $ 31,668
   Accrued expenses                                                             20,325               7,446
   Asset retirement obligations                                                 13,029              12,479
   Notes payable - related party                                                    -                6,496
   Total current liabilities                                                    64,292              58,089


Asset retirement obligations                                                     8,462               8,122
Long-term notes payable - related party                                         57,146                  -
Other long-term liabilities                                                         71                  67


Total liabilities                                                              129,971              66,278


Equity:
   Preferred stock $0.001 par value - 50,000,000 shares
     authorized; zero issued and outstanding at June 30,
     2014 and December 31, 2013                                                     -                   -
   Common stock $0.001 par value - 2,500,000,000 shares
     authorized; 1,261,550,807 and 382,362,236 shares
     outstanding as of June 30, 2014 and December 31, 2013                       1,262                 382
   Paid-in capital                                                             773,464             736,456
   Accumulated deficit                                                        (375,680 )          (348,892 )
   Total equity                                                                399,046             387,946


Total liabilities and equity                                                 $ 529,017           $ 454,224


CAMAC ENERGY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)




                                                                          Six Months Ended June
                                                                          30,
                                                                          2014            2013
Cash flows from operating activities
Net loss                                                                  $ (26,788   ) $ (22,418   )


Adjustments to reconcile net loss to cash used in operating activities:
  Depreciation, depletion and amortization                                 10,066          9,515
  Asset retirement obligation accretion                                    890             1,094
  Stock-based compensation                                                 1,394           889
  Changes in operating assets and liabilities:
     (Increase) decrease in accounts receivable                            (13,161    )    708
     (Increase) decrease in inventories                                    4,144           1,484
     (Increase) decrease in other current assets                           (10,579    )    77
     Increase (decrease) in accounts payable and accrued liabilities       8,648           2,649
     Net cash used in operating activities                                (25,386    )    (6,002   )


Cash flows from investing activities
Capital expenditures                                                       (22,179    )    (490     )
Allied transaction                                                         (170,000   )    -
Net cash used in investing activities                                      (192,179   )    (490     )


Cash flows from financing activities
Proceeds from issuance of common stock                                     270,000         -
Proceeds from exercise of stock options                                    415             -
Proceeds from note payable - related party                                 650             -
Allied Transaction adjustments                                             (13,921    )    4,671
Net cash provided by financing activities                                  257,144         4,671




Net increase (decrease) in cash and cash equivalents                       39,579          (1,821   )
Cash and cash equivalents at beginning of period                           163             3,806
Cash and cash equivalents at end of period                                $ 39,742        $ 1,985


Supplemental disclosure of cash flow information
Cash paid for:
 Interest, net                                                                  $8         $9
Supplemental disclosure of non-cash investing and financing activities:
 Related party accounts payable capital expenditures, offset with related party
 accounts receivable                                                      $ 14,129         $ -




11 August 2014
Johannesburg


Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)

Date: 11/08/2014 07:15:00 Supplied by www.sharenet.co.za                     
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