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CanArgo Energy Corporation: Q3 Results 2008 GUERNSEY, BRITISH ISLES--(MARKET WIRE)--Nov 7, 2008 -- CanArgo Energy Corporation ("CanArgo" or the "Company")
(Oslo:CNR.OL - News) (AMEX:CNR - News) today reported results for the three
and nine months ending September 30, 2008.
Operating Revenues from Continuing Operations for the three month period ended September 30, 2008 increased to $3.0 million from $nil million for the corresponding period for 2007. The increase in revenue was attributable to higher sales volumes of oil at the Ninotsminda Field in Georgia. The Company reported a net loss for the three month period ended September 30, 2008 of $0.9 million compared to a net loss of $10.0 million in the corresponding period for 2007. Operating Income from Continuing Operations for the three month period ended September 30, 2008 improved significantly to $0.2 million compared to an Operating Loss of $2.2 million in the corresponding period for 2007. This was due to improvements in Operating revenues from Continuing Operations and reduced Selling, General and Administrative Expenses offset partially by increased Field Operating Expenses and Depreciation, Depletion and Amortization. Operating Revenues from Continuing Operations for the nine months ended September 30, 2008 increased by approximately 241% over the corresponding period for 2007 to $8.2 million. The increase in revenue was attributable to increased realised oil sales prices and higher sales volumes of oil at the Ninotsminda Field in Georgia. The Company reported a net loss for the nine months ended September 30, 2008 of $3.1 million compared to a net loss the corresponding period for 2007 of $11.1 million. Operating Loss from Continuing Operations for the nine months ended September 30, 2008 improved significantly to $nil compared to $4.7 million in the corresponding period for 2007. This was due to improvements in Operating revenues from Continuing Operations and reduced Selling, General and Administrative Expenses offset partially by increased Field Operating Expenses and Depreciation, Depletion and Amortization. Please see the tables attached to this release. The Form 10-Q can be accessed at the following link; http://www.sec.gov/Archives/edgar/data/310316/000115697308000930/u56875e10vq.htm CanArgo is an independent oil and gas exploration and production company with its oil and gas operations currently located in Georgia. The matters discussed in this press release include forward-looking statements, which are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such forward-looking statements. Such risks, uncertainties and other factors include the uncertainties inherent in oil and gas development and production activities, the effect of actions by third parties including government officials, fluctuations in world oil prices and other risks detailed in the Company's reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission. The forward-looking statements are intended to help shareholders and others assess the Company's business prospects and should be considered together with all information available. They are made in reliance upon the safe harbour provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company cannot give assurance that the results will be attained.
CANARGO ENERGY CORPORATION AND SUBSIDIARIES
Financial Statements
Consolidated Condensed Balance Sheets
Expressed in United States dollars
September 30, December 31,
2008 2007
----------------------------------------
(Expressed in United States dollars)
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 2,449,231 $ 6,869,381
Accounts receivable 172,902 379,268
Crude oil inventory 591,840 373,770
Prepayments 294,724 311,537
Assets to be disposed 80,499 71,294
Other current assets 150,930 167,404
----------------------------------------
Total current assets $ 3,740,126 $ 8,172,654
Non Current Assets
Prepaid financing fees 710,171 74,804
Capital assets, net (including
unevaluated amounts of
$14,400,200 and
$9,444,742, respectively) 53,675,568 51,304,619
----------------------------------------
Total Assets $ 58,125,865 $ 59,552,077
----------------------------------------
----------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable - trade $ 801,810 $ 481,665
Loans payable - short term 3,626,297 -
Accrued liabilities 6,339,019 6,639,887
Liabilities to be disposed 381,071 336,446
----------------------------------------
Total current liabilities $ 11,148,197 $ 7,457,998
Long term debt 9,339,040 11,697,231
Other non current liabilities - 37,778
Provision for future site
restoration 248,024 230,720
----------------------------------------
----------------------------------------
Total Liabilities $ 20,735,261 $ 19,423,727
----------------------------------------
Temporary Equity $ 2,119,530 $ 2,119,530
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Stockholders' equity:
Common stock, par value $0.10;
authorized 1,000,000,000 shares
at September 30, 2008 and
500,000 at December 31, 2007;
shares issued, issuable and
outstanding - 242,120,974 at
September 30, 2008 and at
December 31, 2007 24,212,096 24,212,096
Capital in excess of par value 245,650,775 245,316,295
Accumulated deficit (234,591,797) (231,519,571)
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Total stockholders' equity $ 35,271,074 $ 38,008,820
----------------------------------------
----------------------------------------
Total Liabilities, Temporary Equity
and Stockholders' Equity $ 58,125,865 $ 59,552,077
----------------------------------------
CANARGO ENERGY CORPORATION AND SUBSIDIARIES
Financial Statements
Consolidated Condensed Statement of Operations - Unaudited
Expressed in United States dollars
Unaudited Unaudited
----------------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2008 2007 2008 2007
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(Expressed in United States dollars)
Operating Revenues
from Continuing
Operations:
Oil and gas
sales $ 2,965,661 $ 32,961 $ 8,196,657 $ 3,394,808
----------------------------------------------------------
2,965,661 32,961 8,196,657 3,394,808
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Operating Expenses:
Field operating
expenses 454,348 16,427 1,252,433 690,851
Direct project
costs 67,345 173,105 585,620 515,939
Selling,
general and
administrative 1,543,237 1,901,454 4,255,189 5,327,739
Depreciation,
depletion
and
amortization 702,432 139,171 2,136,274 1,516,246
----------------------------------------------------------
2,767,362 2,230,157 8,229,516 8,050,775
----------------------------------------------------------
----------------------------------------------------------
Operating
Income (Loss)
from Continuing
Operations 198,299 (2,197,196) (32,859) (4,655,967)
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Other Income
(Expense):
Interest
income 2,873 63,329 40,848 250,146
Interest and
amortization
of debt discount
and expense (867,057) (1,144,539) (2,571,244) (5,307,304)
Loss/Cost on
debt
extinguishment - (5,592,828) - (12,127,494)
Foreign exchange
losses (210,581) (7,497) (401,208) (38,806)
Other (15,708) (1,025,067) (72,861) (761,196)
----------------------------------------------------------
Total Other
Expense (1,090,473) (7,706,602) (3,004,465) (17,984,654)
----------------------------------------------------------
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Loss from
Continuing
Operations
Before Taxes (892,174) (9,903,798) (3,037,324) (22,640,621)
Income taxes - - - -
----------------------------------------------------------
Loss from
Continuing
Operations (892,174) (9,903,798) (3,037,324) (22,640,621)
Net Income
(Loss) from
Discontinued
Operations, net
of taxes and
minority interest (4,237) (55,873) (34,902) 11,493,685
----------------------------------------------------------
Net Income
(Loss) $ (896,411) $ (9,959,671) $ (3,072,226) $(11,146,936)
----------------------------------------------------------
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Weighted
average number
of common shares
outstanding
- Basic 242,120,974 239,053,232 242,120,974 238,557,879
----------------------------------------------------------
- Diluted 242,120,974 239,053,232 242,120,974 238,557,879
----------------------------------------------------------
Basic Net
Income (Loss)
Per Common
Share
- from
continuing
operations $ (0.00) $ (0.04) $ (0.01) $ (0.09)
- from
discontinued
operations $ (0.00) $ (0.00) $ (0.00) $ 0.05
----------------------------------------------------------
Basic Net
Income (Loss)
Per Common
Share $ (0.00) $ (0.04) $ (0.01) $ (0.04)
----------------------------------------------------------
----------------------------------------------------------
Diluted Net
Income
(Loss) Per
Common Share
- from
continuing
operations $ (0.00) $ (0.04) $ (0.01) $ (0.09)
- from
discontinued
operations $ (0.00) $ (0.00) $ (0.00) $ 0.05
-----------------------------------------------------------
Diluted Net
(Income)
Loss Per
Common Share $ (0.00) $ (0.04) $ (0.01) $ (0.04)
-----------------------------------------------------------
-----------------------------------------------------------Contact: Contacts:
US and NORWAY
Eric Cameron, Christopher Rodsten, Fredrik Tangeraas
Gambit Hill & Knowlton AS
+47 96 62 55 94
Email: canargo@hillandknowlton.com
Source: CanArgo Energy Corporation
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