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Camac Energy Incorporated - Full Year And Fourth Quarter 2014 Results

Release Date: 12/03/2015 13:00:00      Code(s): CME     
CAMAC Energy Incorporated
(Previously Pacific Asia Petroleum Inc.)
(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 Full Year and Fourth Quarter 2014 Results

Provides Operational Update on its West and East Africa Operations

HOUSTON, March 12, 2015 - 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.

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 76 424 5167
Chris.dutoit@camacenergy.com

Media:
Lionel C. McBee
Manager, Corporate Communications
+1 713 797 2960
Lionel.mcbee@camacenergy.com

Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)


                                         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


12 March 2015

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

Date: 12/03/2015 01:00:00 Supplied by www.sharenet.co.za                     
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