CanArgo Energy Corporation Reports Third 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 and OSLO, Norway--(BUSINESS WIRE)--Nov. 15, 1999-- CanArgo Energy Corporation (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 208% increase in revenue to $1,157,000 in the third quarter from $376,000 in the same quarter of 1998. For the nine months ended September 30, 1999 revenue was $2,061,000 compared to $508,000 for the same period in 1998. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses in the third quarter totaled ($51,000) compared to ($610,000) for the same period in 1998. For the nine months ended September 30, 1999 cash flow from operations was ($1,313,000) compared to ($3,503,000) for the same period period in 1998. Ninotsminda Oil Company, a 68.5% owned subsidiary of CanArgo, generated $1,817,000 of revenue in the nine month period ended September 30, 1999. Its net share of the 302,400 barrels of gross production from the Ninotsminda field in the period amounted to 102,400 barrels. In 2000, Ninotsminda's net share of gross production is scheduled to increase as the state oil company's share of determined or base oil decreases from approximately 542 barrels of oil per day to 280 barrels of oil per day. During the nine month period ended September 30, 1999, 50,000 barrels of oil was removed from storage and sold into the Georgian local, regional and international market. Net sale prices for Ninotsminda oil sold during the three and nine month periods ended September 30, 1999 averaged $15.06 and $11.92 per barrel respectively. Oil production from the Sylvan Lake Sylvan Lake can refer to: Communities:
CanArgo's net loss in the third quarter was $5,939,000, or $0.25 per share compared to a net loss of $781,000, or $0.04 per share, for the same period in 1998. CanArgo's net loss for the nine months ended September 30, 1999 was $7,514,000, or $0.32 per share, compared to a net loss of $4,790,000, or $0.34 per share, for the same period in 1998. The increase in the net loss is attributable to the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. in the third quarter of CanArgo's investment in and advances to Boryslaw Oil Company of $5,460,000. Under the terms of the license Boryslaw Oil Company holds in the Stynawske field, field operations were to be transferred to Boryslaw Oil Company effective January 1, 1999. While negotiations continue on the transfer of the field, the length and difficulty of the negotiations have created significant uncertainty as to CanArgo's ability to raise funds for the project or enter into a satisfactory farm-out agreement on a timely basis. Michael Binnion, President & Chief Financial Officer of CanArgo, reported, "We continue to be encouraged by improvements in both revenue and cash flow. These improvements, together with an opportunity to enhance our Ninotsminda oil production concurrently with commercial production of gas, should provide the Company a solid base from which we can develop many of our other exciting prospects in the region." CanArgo Energy Corporation 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. . In addition, the Company has interests in several other oil and gas prospects and in refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar , marketing, independent power production and oilfield technology activities. 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. . |
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