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Camac Energy Incorporated - Third Quarter 2014 Results

Release Date: 10/11/2014 15:14:00      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 Third Quarter 2014 Results
Provides Operational Update on its West and East Africa Operations

HOUSTON, November 10, 2014 - CAMAC Energy Inc. (?CAMAC Energy? or the ?Company?) (NYSE MKT: CAK) (JSE:
CME) announced today financial and operational results for the three months ended September 30, 2014. The
Company plans to file its Form 10-Q for the third quarter 2014 with the Securities and Exchange Commission later
today.

Highlights for the quarter ended September 30, 2014 include:

-   Successfully drilled the Oyo-8 well and encountered four new oil and gas reservoirs
-   Awarded a contract for the acquisition of 2D seismic surveys on Kenyan onshore blocks L1B and L16
-   Secured a $100 million credit facility
-   Fivefold increase in the P50 recoverable resources in four of its top exploration prospects offshore Nigeria

Nigeria

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. Both Oyo-7 and Oyo-8 have now been successfully drilled, the
flowlines and other subsea equipment from Oyo-5 and Oyo-6 have been recovered, and successfully installed and
tested on the Oyo-7 and Oyo-8 wells. The Energy Searcher drillship is currently plugging and abandoning Oyo-5 and
Oyo-6, and will then drill the horizontals to complete Oyo-7 and Oyo-8. The Company expects to bring the first of
these two development wells online by year-end, and the second in early 2015.

In addition to these development wells, the Company has 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. The Company will
have the ability to drill the first of these prospects out of internal cash flow, generated by the two new development
wells, and is also at the early stages of marketing these prospects to potential partners. CAMAC Energy has engaged
Stellar Energy Advisors in London to market these four exploration prospects to potential partners and expects to
announce the results of this process during the first half of 2015.



Ghana


                                                           1
CAMAC Energy is finalizing the Joint Operating Agreement with its joint venture partners covering the Expanded
Shallow Water Tano block in Ghana. The Company has been named operator, holds a 30% interest, and has
commenced work towards declaring commerciality on the three previously-discovered fields within the next nine
months.

Kenya

The Company continues its progress in Kenya. The 2D seismic acquired in March 2014 on offshore blocks L27 and L28
has been processed, and CAMAC Energy has commenced the interpretation. For onshore blocks L1B and L16, the 2D
seismic acquisition has commenced in L1B, and the acquisition of 2D seismic is expected to be completed in both
blocks over the next several months. At such time, the Company will have completed 2D seismic acquisitions
covering both offshore blocks, and both onshore blocks. These four blocks cover a total of nine million acres.
CAMAC Energy is the operator, and owns a 100% interest.

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.

Gambia

The Company completed a regional geology and geophysical study of offshore blocks A2 and A5. CAMAC Energy?s
next step is to acquire 3D seismic over the most promising areas. CAMAC Energy is the operator, and owns a 100%
interest.

Results of Operations

For the third quarter of 2014, revenues were $19.0 million, on average net daily production of approximately 800
barrels of oil, net of royalties. Revenue on a per barrel basis was $100.85. The Company reported a net loss of $42.2
million for the third quarter of 2014, or $0.03 per basic and diluted share. Cash and cash equivalents at September
30, 2014 was $54.3 million.

Conference Call

CAMAC Energy will host a conference call on Tuesday, November 11, 2014 at 10 a.m. CT (11 a.m. ET) to discuss third
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 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

                                                          2
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 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.

Source: CAMAC Energy Inc.


CAMAC Energy
1330 Post Oak Blvd., Suite 2250
Houston, TX 77056
www.camacenergy.com

Investors:
Chris du Toit
Director Corporate Finance
+27 11 881 5681
Chris.dutoit@camacenergy.com

Christopher D. Heath
Director, Corporate Finance and Investor Relations
713-797-2945
chris.heath@camacenergy.com

Media:
Magna Carta
Jacques de Bie
+27 (0)11 784 2598
jacques@magna-carta.co.za

Sponsor
                                                          3
Sasfin Capital (a division of Sasfin Bank Limited)



                                            CAMAC ENERGY INC.
                                  CONSOLIDATED STATEMENTS OF OPERATIONS
                                                           (Unaudited)
                                             (In thousands, except per share amounts)

                                                          Three Months Ended September             Nine Months Ended September
                                                                       30,                                      30,
                                                              2014            2013                     2014            2013
Revenues:
   Oil and gas revenue                                    $         19,010     $        21,723     $     53,844     $    63,736

Operating costs and expenses:
  Production costs                                                  34,261              22,155           72,617          65,757
  Exploratory expenses                                               1,148                 967            3,851           4,064
  Depreciation, depletion and amortization                          21,720               5,607           32,676          16,216
  General and administrative expenses                                3,427               3,395           12,200          10,508
      Total operating costs and expenses                            60,556              32,124          121,344          96,545

Operating loss                                                      (41,546)            (10,401)         (67,500)       (32,809)

Other income (expense):
   Interest expense                                                   (771)                 (16)          (1,637)           (26)
   Other, net                                                           94                    -              126              -
       Total other income (expense)                                   (677)                 (16)          (1,511)           (26)

Loss before income taxes                                            (42,223)            (10,417)         (69,011)       (32,835)
Income tax expense                                                        -                   -                -              -

Net loss                                                  $         (42,223) $          (10,417) $       (69,011) $     (32,835)

Net loss per common share:
   Basic                                                  $           (0.03) $            (0.03) $         (0.07) $       (0.09)
   Diluted                                                $           (0.03) $            (0.03) $         (0.07) $       (0.09)
Weighted average common shares outstanding:
   Basic                                                        1,261,646           380,321            1,045,483        380,883
   Diluted                                                      1,261,646           380,321            1,045,483        380,883




                                                                4
                                                    CAMAC ENERGY INC.
                                                CONSOLIDATED BALANCE SHEETS
                                                         (Unaudited)
                                                       (In thousands)
                                                                                  September 30,           December 31,
                                                                                      2014                    2013
ASSETS
Current Assets:
   Cash and cash equivalents                                                  $           54,264      $             163
   Accounts receivable                                                                     1,122                  1,112
   Crude oil inventory                                                                     1,952                 16,254
   Prepaids and other current assets                                                       8,492                    856
      Total current assets                                                                65,830                 18,385

Property, plant and equipment:
Oil and gas properties (successful efforts method of accounting), net                    521,306                435,035
Other property, plant and equipment, net                                                   1,059                    752
       Total property, plant and equipment, net                                          522,365                435,787

Other non-current assets                                                                   1,988                     52

       Total assets                                                           $          590,183      $         454,224

LIABILITIES AND EQUITY
Current Liabilities:
   Accounts payable                                                           $           48,182      $          31,668
   Accrued liabilities                                                                    34,076                  7,446
   Asset retirement obligations                                                           23,086                 12,479
   Promissory note - related party                                                        11,185                  6,496
       Total current liabilities                                                         116,529                 58,089

Convertible subordinated note - related party                                             50,000                      -
Term loan facility                                                                        50,000                      -
Asset retirement obligations                                                              13,914                  8,122
Other long-term liabilities                                                                   81                     67

       Total liabilities                                                                 230,524                 66,278

Commitments and contingencies

Equity:
   Preferred stock $0.001 par value - 50,000,000 shares
    authorized; none issued and outstanding at September 30,
    2014 and December 31, 2013                                                                    -                      -
   Common stock $0.001 par value - 2,500,000,000 shares
    authorized; 1,261,763,853 and 382,362,236 shares
    outstanding as of September 30, 2014 and December 31, 2013                             1,262                    382
   Paid-in capital                                                                       776,300                736,456
   Accumulated deficit                                                                  (417,903 )             (348,892 )
        Total equity                                                                     359,659                387,946

       Total liabilities and equity                                           $          590,183      $         454,224

                                                                   5
                                                  CAMAC ENERGY INC.
                                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                       (Unaudited)
                                                     (In thousands)
                                                                                Nine Months Ended September 30,
                                                                                     2014             2013
Cash flows from operating activities
Net loss                                                                        $      (69,011 ) $      (32,835 )
Adjustments to reconcile net loss to cash used in operating activities:
   Depreciation, depletion and amortization                                             31,327           14,558
   Asset retirement obligation accretion                                                 1,349            1,658
   Share based compensation                                                              2,216            1,468
   Related party liability offset                                                      (32,880 )              -
   Other                                                                                    21                3
   Change in operating assets and liabilities:
       (Increase) decrease in accounts receivable                                          (10 )         (2,612 )
       Decrease (increase) in inventories                                               13,715            1,483
       (Increase) decrease in other current assets                                      (7,103 )            114
       Increase (decrease) in accounts payable and accrued liabilities                  27,277            3,205
           Net cash used in operating activities                                       (33,099 )        (12,958 )

Cash flows from investing activities
Capital expenditures                                                                   (59,481 )           (590 )
Allied transaction                                                                    (170,000 )              -
           Net cash used in investing activities                                      (229,481 )           (590 )

Cash Flows from Financing Activities
Proceeds from the issuance of common stock                                             270,000                -
Proceeds from exercise of stock option                                                     415                -
Proceeds from term loan facility                                                        50,000                -
Proceeds from promissory note - related party, net                                      10,649            1,500
Debt costs                                                                              (1,943 )              -
Allied transaction adjustments                                                         (12,440 )          8,677
           Net cash provided by financing activities                                   316,681           10,177

Net increase (decrease) in cash and cash equivalents                                    54,101           (3,371 )
Cash and cash equivalents at beginning of period                                           163            3,806
Cash and cash equivalents at end of period                                      $       54,264     $        435

Supplemental disclosure of cash flow information
Cash paid for:
 Interest, net                                                                  $            8     $         26
Supplemental disclosure of non-cash investing and financing activities:
 Related party liability offset                                                 $       32,880     $          -
 Related party accounts payable settled with note payable - related party       $            -     $      9,311

10 November 2014

Sponsor
Sasfin Capital (a division of Sasfin Capital Limited)
                                                                 6

Date: 10/11/2014 03:14:00 Supplied by www.sharenet.co.za                     
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