CanArgo Energy Corp. Reports Second Quarter Results.CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , ALBERTA Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. AND HOUSTON Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; AND OSLO Oslo (äz`lō, äs`–, Nor.  s`l), city (1995 pop. 482,555), capital of Norway, of Akershus co., and of Oslo co. , NORWAY--(BUSINESS WIRE)--
Aug. 17, 1999--CanArgo Energy Corp.(OTCBB OTCBB See OTC Bulletin Board (OTCBB). :GUSH)(OSE OSE - Open Systems Environment :CNR See riser card. CNR - Communication and Network Riser ) today reported a net loss of $604,000, ($0.03 per share) for the three month period ended June June: see month. 30, 1999 compared to a net loss of $1,191,000, ($0.11 per share) for the three month period ended June 30, 1998. The Company's net loss for the six months ended June 30, 1999 was $1,576,000, ($0.07 per share) compared to a net loss of $4,009,000, ($0.36 per share) for the six month period ended June 30, 1998. The decrease in the net loss is attributable primarily to the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of CanArgo's operations in 1998 and the acquisition of producing properties in the Republic of 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. . CanArgo recorded operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. of $904,000 for the six month period ended June 30, 1999 compared with $145,000 for the six month period ended June 30, 1998. Ninotsminda Ninotsminda (Georgian: ნინოწმინდა, Armenian: Նինոցմինդա Oil Company, a 68.5 percent owned subsidiary of CanArgo, generated revenues of $707,000 primarily from the Ninotsminda field for the six month period ended June 30, 1999. During this period its net share of the 205,700 barrels of gross production from the field amounted to 71,300 barrels. Oil production from the Sylvan Lake Sylvan Lake can refer to: Communities:
Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Binnion, President and Chief Financial Officer of CanArgo, stated, "I am extremely pleased with our restructuring program. Efforts to curb spending over the last year were successful - our G & A expenses have dropped 45 percent from a one year ago. CanArgo is on target to achieve positive cash flow by year end." CanArgo Energy Corp. is an independent oil and gas exploration and production company operating primarily in Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. . On August 6, 1999 CanArgo received gross proceeds of approximately US $3.55 million through the issuance and sale of 11,850,362 shares at $0.30 per share in a registered public offering. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the offering will be used to fund development plans in Eastern Europe and provide working capital. In particular, CanArgo expects to utilize the proceeds to satisfy a condition in a US $6,000,000 loan facility granted by the International Finance Corporation, a World Bank affiliate, to CanArgo's majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. , Ninotsminda Oil Company, that will assist Ninotsminda Oil Company in drawing upon that facility. 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 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 anticipated herein 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. .
CANARGO ENERGY CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheet
Unaudited
-----------------------------
June 30, December 31,
1999 1998
------------- --------------
ASSETS
Cash and cash equivalents $ 190,618 $ 1,924,908
Accounts receivable 158,272 424,367
Advances to operator 290,338 376,890
Inventory 179,212 170,405
Other current assets 174,867 453,476
-------------- -------------
Total current assets $ 993,307 $ 3,350,046
Deferred share issue costs 292,688 --
Property and equipment, net 6,383,049 6,201,936
Oil and gas properties, net,
full cost method (including
unevaluated amounts of $13,510,157
and $13,266,368 respectively) 30,297,132 30,137,573
Investments in and advances to
oil and gas and other ventures
- net 7,375,832 6,877,974
-------------- -------------
Total Assets $45,342,008 $46,567,529
-------------- -------------
-------------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 1,633,174 $ 821,761
Accrued liabilities 717,702 1,162,050
------------- --------------
Total current liabilities $ 2,350,876 $ 1,983,811
Provision for future site
restoration 4,300 --
Minority interest in subsidiaries 4,395,796 4,552,285
Stockholders' equity:
Preferred stock, par value
$0.10 per share -- --
Common stock, par value
$0.10 per share 2,135,589 2,101,464
Capital in excess of par value 101,646,976 101,545,941
Accumulated deficit (65,191,529) (63,615,972)
------------- --------------
Total stockholders' equity $38,591,036 $40,031,433
------------- --------------
Total Liabilities and
Stockholders' Equity $45,342,008 $46,567,529
------------- --------------
------------- --------------
CANARGO ENERGY CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Operations
Unaudited Unaudited
----------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
----------------------- ---------------------
Operating Revenues:
Oil and gas
sales $ 790,795 $ 51,902 $ 904,462 $ 132,516
Other -- 12,000 -- 12,000
----------- ----------- ----------- ------------
790,795 63,902 904,462 144,516
----------- ----------- ----------- ------------
Operating Expenses:
Lease operating
expense 433,332 78,110 500,050 177,627
Direct project
costs 118,337 245,078 403,537 784,484
General and
administrative 419,550 757,403 1,104,384 2,214,754
Depreciation,
depletion and
amortization 373,300 42,647 398,300 160,471
Equity loss from
investments in
unconsolidated
subsidiaries 20,000 43,946 41,581 135,377
Impairment of
oil and gas
properties -- 100,000 -- 900,000
--------- ----------- ----------- ------------
1,364,519 1,267,184 2,447,852 4,372,713
--------- ----------- ----------- ------------
OPERATING LOSS 573,724 1,203,282 1,543,390 4,228,197
--------- ----------- ----------- ------------
Other Income (Expense):
Interest, net (102,361) 39,227 (150,620) 242,799
Other income
(expense) 32,652 775 (8,233) 4,000
Loss on disposition
of equipment (29,803) (27,698) (29,803) (27,698)
---------- ----------- ----------- ------------
TOTAL OTHER
INCOME (EXPENSE)(99,512) 12,304 (188,656) 219,101
---------- ----------- ----------- ------------
Minority interest
in loss of
consolidated
subsidiary 68,902 -- 156,489 --
---------- ----------- ----------- ------------
NET LOSS AND
COMPREHENSIVE
LOSS $ 604,334 $ 1,190,978 $ 1,575,557 $ 4,009,096
---------- ----------- ----------- -----------
---------- ----------- ----------- -----------
Weighted average
number of
common shares
outstanding 21,297,844 11,223,744 21,217,799 11,223,744
---------- ----------- ----------- ------------
BASIC AND DILUTED
NET LOSS PER
COMMON SHARE $ (0.03) $ (0.11) $ (0.07) $ (0.36)
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