CanArgo Announces Preliminary 2005 Year-End Results.OSLO Oslo (äz`lō, äs`–, Nor.  s`l), city (1995 pop. 482,555), capital of Norway, of Akershus co., and of Oslo co. , Norway Norway, Nor. Norge, officially Kingdom of Norway, constitutional monarchy (2005 est. pop. 4,593,000), 125,181 sq mi (324,219 sq km), N Europe, occupying the western part of the Scandinavian peninsula. & NEW YORK New York, state, United StatesNew York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- CanArgo Energy Corporation (AMEX AMEX See: American Stock Exchange :CNR See riser card. CNR - Communication and Network Riser ) (OSE OSE - Open Systems Environment :CNR) today announced its preliminary un-audited results for the year ended December December: see month. 31, 2005, and also gave an update on its current operations in Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. . The results show that the net loss for 2005 was $12,335,314. This compares to the net loss for 2004 of $4,757,494. The principal reason for the increased loss was an increase in Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. which rose from $12,528,720 in 2004 to $18,591,128 in 2005. Of this $9,201,248 (2004: $5,929,256) related to selling, general and administrative expenses. The year was marked by significant additional general and administrative expenditure on professional fees principally for SOX (1) (Schema for Object-oriented XML) An XML schema developed by Veo Systems and Muzino Communications, which was submitted to the W3C. SOX is based on DTD, but adds data typing and reuse mechanisms. 404 compliance, additional audit fees, capital raising and regulatory returns. Other increases were $979,542 on non-cash stock compensation expense and $394,533 for depreciation, depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able and amortization. In 2005 there was no repeat of the credit for income on dispositions of $1,606,274 in 2004. Operating Revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. from Continuing Operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , comprising of oil and gas sales, decreased from $9,574,520 in 2004 to $7,582,375 in 2005. This decrease in revenue was attributable to lower production partly offset by higher oil prices. CanArgo also commented on operations in Georgia. On the Ninotsminda Ninotsminda (Georgian: ნინოწმინდა, Armenian: Նինոցմինդա N97H horizontal well, drilling has now been completed with a 534 metre metre In poetry, the rhythmic pattern of a poetic line. Various principles have been devised to organize poetic lines into rhythmic units. Quantitative verse, the metre of Classical Greek and Latin poetry, measures the length of time required to pronounce syllables, (1,725 feet) horizontal section having been drilled through the Middle Eocene reservoir where good mud losses were observed, these indicating good permeability permeability /per·me·a·bil·i·ty/ (per?me-ah-bil´i-te) the property or state of being permeable. per·me·a·bil·i·ty n. 1. The property or condition of being permeable. 2. . It is now planned to run a 454 metre (1,490 feet) 5 inch (127 mm) slotted production liner liner /lin·er/ (lin´er) material applied to the inside of the walls of a cavity or container for protection or insulation of the surface. liner see teat cup liner. in the horizontal section and to test the well. Testing is expected to commence within the next week and if successful it is planned to put the well on production immediately. Perforating guns are now available at the well to commence the first part of the testing program on the Norio MK72 Oligocene section, and it is anticipated that testing with these guns on the lowermost zone will commence within the next week. Additional guns for the remaining section are to be imported into Georgia in the next few weeks. On the Manavi Manavi is a village in the Georgian province of Kakheti. It is famous for its yellowish green wine, Manavis Mtsvane. In Georgia, wine drinking is central to the culture and is especially recommended for long celebrations. M12 appraisal well the 20 inch (508 mm) casing has now been set and the well is drilling ahead in the 17 1/2 inch (445 mm) at a depth of 589 metres (1,932 feet) using the Saipem rig. On the Manavi M11Z well, CanArgo is still anticipating the arrival of Schlumberger in April to continue the testing program on this well. CanArgo is an independent oil and gas exploration and production company with its oil and gas operations currently located in the Republic of Georgia and the Caspian area. The matters discussed in this press release include forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , 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 harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. The Company cannot give assurance that the results will be attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. .
Consolidated Statement of Operations
Expressed in United States dollars
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2005 2004 2005 2004
----------------------------------------------------
(Unaudited) (Unaudited) (Unaudited) (Audited)
Operating Revenues
from Continuing
Operations:
Oil and gas
sales $ 2,435,319 $ 2,127,658 $ 7,582,375 $ 9,574,520
----------------------------------------------------
Operating Expenses:
Field operating
expenses 533,962 630,132 2,281,434 2,320,756
Direct project
costs 327,473 215,525 1,458,315 1,434,114
Selling, general
and
administrative 3,488,466 2,200,966 9,201,248 5,929,256
Non-cash stock
compensation
expense 611,688 1,236,590 2,374,578 1,395,036
Depreciation,
depletion and
amortization 1,474,606 615,143 3,275,553 2,881,020
Impairment of
oil and gas
properties,
ventures and
other assets - 35,260 - 174,812
Income on
dispositions - (1,271,260) - (1,606,274)
----------------------------------------------------
6,436,195 3,662,356 18,591,128 12,528,720
----------------------------------------------------
Operating Loss
from Continuing
Operations (4,000,876) (1,534,698) (11,008,753) (2,954,200)
----------------------------------------------------
Other Income
(Expense):
Interest, net (634,460) (237,485) (1,069,724) (902,130)
Foreign exchange
gains (losses) 127,785 (447,455) 14,450 (447,455)
Other (155,874) 142,553 (116,271) (790,689)
Equity Loss from
investments - (205,230) (155,016) (205,230)
----------------------------------------------------
Total Other
Expense (662,549) (747,617) (1,326,561) (2,345,504)
----------------------------------------------------
Loss from
Continuing
Operations Before
Taxes (4,663,425) (2,282,315) (12,335,314) (5,299,704)
Income taxes - - - -
----------------------------------------------------
Loss from
Continuing
Operations (4,663,425) (2,282,315) (12,335,314) (5,299,704)
Net Income (Loss)
from Discontinued
Operations, net of
taxes and minority
interest - - - 542,210
----------------------------------------------------
Net Loss $(4,663,425) $(2,282,315)$(12,335,314)$ (4,757,494)
----------------------------------------------------
----------------------------------------------------
Weighted average
number of common
shares outstanding
- Basic 222,586,867 195,141,706 211,586,953 134,005,490
----------------------------------------------------
- Diluted 222,586,867 195,141,706 211,586,953 134,005,490
----------------------------------------------------
Basic Net Loss
Per Common Share
- from
continuing
operations $ (0.02)$ (0.01)$ (0.06)$ (0.04)
- from
discontinued
operations $ - $ - $ - $ 0.00
----------------------------------------------------
Basic Net Loss
Per Common $ (0.02)$ (0.01)$ (0.06)$ (0.04)
----------------------------------------------------
Diluted Net Loss
Per Common Share
- from continuing
operations $ (0.02)$ (0.01)$ (0.06)$ (0.04)
- from discontinued
operations $ - $ - $ - $ 0.00
----------------------------------------------------
Diluted Net Loss
Per Common $ (0.02)$ (0.01)$ (0.06)$ (0.04)
----------------------------------------------------
Other Comprehensive
Income:
Foreign currency
translation - (163,768) - 146,463
----------------------------------------------------
Comprehensive
Loss $(4,663,425)$ (2,446,083)$(12,335,314)$ (4,611,031)
----------------------------------------------------
----------------------------------------------------
Consolidated Balance Sheet
Expressed in United States dollars
December 31, December 31,
2005 2004
------------------------------
(Unaudited) (Audited)
Cash and cash equivalents $ 18,540,558 $ 24,617,047
Assets held for sale 600,000 600,000
Other current assets 9,012,784 5,819,746
Capital assets 119,048,049 72,995,666
Other Intangible assets 246,910 648,507
Investments in and advances to
oil and gas and other ventures - net - 478,632
------------------------------
Total Assets $ 147,448,301 $ 105,159,598
------------------------------
------------------------------
Other current liabilities 13,075,647 7,084,901
Long term liabilities 26,524,041 1,254,165
Stockholders' equity 107,848,613 96,820,532
------------------------------
Total liabilities and stockholders'
equity $ 147,448,301 $ 105,159,598
------------------------------
------------------------------
CanArgo Energy Corporation (AMEX:CNR) (OSLO STOCK EXCHANGE Oslo Stock Exchange An exchange founded in 1819 and trading stocks, bonds, and stock options that is considered the options market of Norway. :CNR) |
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