CAMAC Energy Announces Third Quarter 2014 Results
CAMAC Energy Inc. (“CAMAC Energy” or the “Company”) (NYSE MKT: CAK) 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
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.
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.
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.
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.