CanArgo Energy Corporation Third Quarter Results Announced.GUERNSEY Guernsey (gûrn`zē), island, 25 sq mi (65 sq km), in the English Channel, second largest of the Channel Islands. Guernsey bailiwick (2005 est. pop. 65,000) includes Alderney, Sark, Herm, Brechou, Jethou, and smaller islands. , Channel Islands -- CanArgo Energy Corporation ("CanArgo") (OSE OSE - Open Systems Environment :CNR See riser card. CNR - Communication and Network Riser )(AMEX AMEX See: American Stock Exchange :CNR) today announced its unaudited results for the nine-month period ended September September: see month. 30, 2005. A summary of these results is attached. Operations Update 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 Ninotsminda Ninotsminda (Georgian: ნინოწმინდა, Armenian: Նինոցմինդա Field horizontal well N100H2 has been completed and is currently being tested. The well was drilled by CanArgo using its own rig and equipment while utilising directional In one direction. Contrast with omnidirectional. equipment and services provided by Baker Hughes Baker Hughes NYSE: BHI is the world's third-largest oilfield services company behind Schlumberger & Halliburton, its main competitors. Baker Hughes provides the world's oil & gas industry with products and services for drilling, formation evaluation, completion and production. . The well is a horizontal sidetrack from an existing well bore in the Middle Eocene reservoir at approximately 2,640 metres (8,659 feet) TVD TVD Tuvalu Dollar (ISO currency code) TVD True Vertical Depth (oil drilling) TVD Total-Variation-Diminishing TVD Total Vertical Depth (oil and gas) . The horizontal section extends some 508 metres (1,667 feet) in the central area of the field and a pre-perforated 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. has been run over a 433 metres (1,421 feet) interval furthest from the original well bore. Another rig is already erected on well N97 where operations have commenced on the next horizontal sidetrack well. This well will take longer to complete than the N100H2 well as it is located on the northern flank flank (flank) the side of the body between ribs and ilium. flank n. 1. The side of the body between the pelvis or hip and the last rib; the side. 2. of the field and it will be necessary to first sidetrack the well towards the crest crest, in feudal livery, an ornament of the headpiece that afforded protection against a blow. The term is incorrectly used to mean family coat of arms. Crests were widely used in the 13th cent. of the field before the horizontal section can be drilled through the reservoir in a westerly Westerly, town (1990 pop. 21,605), Washington co., extreme SW R.I., between the Pawcatuck River and Block Island Sound; inc. 1669. Its textile industry dates from 1814, and granite has been quarried there since c.1850. direction along the crest of the structure. Results for N97H are expected in January January: see month. 2006. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile negotiations are continuing with a number of service companies to move forward with the planned horizontal well development program in 2006 using under-balanced drilling technology. Management still believe that under-balanced drilling will minimise formation damage and lead to a longer-term sustainable production from the fields. On the M11Z appraisal well, CanArgo continues to consult with Schlumberger well completions experts who have advised on the best techniques with which to re-establish communication with the formation in the well by removing near-wellbore damage. It has been concluded to acidise the Cretaceous Limestone limestone, sedimentary rock wholly or in large part composed of calcium carbonate. It is ordinarily white but may be colored by impurities, iron oxide making it brown, yellow, or red and carbon making it blue, black, or gray. The texture varies from coarse to fine. interval using coiled tubing Coiled tubing refers to metal piping, normally 1" to 2" in diameter, used for interventions in oil and gas wells, which comes spooled on a large drum. The main benefits over wireline are the ability to pump chemicals through the coil and the ability to push it into hole rather than , and if necessary perforate per·fo·rate v. 1. To make a hole or holes in, as from injury, disease, or medical procedure. 2. To pass into or through (a body structure or tissue). adj. Having been perforated. . Preparations are being made to recommence Re`com`mence´ v. i. 1. To commence or begin again. 2. To begin anew to be; to act again as. He seems desirous enough of recommencing courtier. - Johnson. v. t. 1. To commence again or anew. these testing operations within the next week. On the Norio MK72 well we are drilling ahead and are currently at a depth of 4,832 metres (15,853 feet). In Kazakhstan, testing has been completed on well KYZ KYZ Kyzyl (Russia) KYZ Kyzen Corporation (former stock symbol; now KYZN) 104 on the Kyzyloi Field which flowed gas at a rates of up to 96,000 cubic metres Noun 1. cubic metre - a metric unit of volume or capacity equal to 1000 liters cubic meter, kiloliter, kilolitre metric capacity unit - a capacity unit defined in metric terms (3.4 million cubic feet) per day on a 16 mm (40/64 inch) choke (jargon) choke - To fail to process input or, more generally, to fail at any endeavor. E.g. "NULs make System V's "lpr(1)" choke." See barf, gag. , and is now shut in waiting for the installation of field development equipment. In the surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. Akkulka contract area, exploration well AKK04 has reached total depth of 600 metres (1,961 feet) with good gas shows whilst drilling and there is a clear indication of the presence of gas bearing sands on wireline logs. The well will be tested in due course as part of a co-ordinated testing program including the Kyzyloi Field development wells. CanArgo's Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Dr. David Robson commented, "We have completed the N100H2 horizontal well and look forward to the test results within the next month. We also look forward to the next horizontal well results in January 2006 and to re-commencing our comprehensive program using under-balanced equipment. The delay in testing the M11Z appraisal well has been frustrating frus·trate tr.v. frus·trat·ed, frus·trat·ing, frus·trates 1. a. To prevent from accomplishing a purpose or fulfilling a desire; thwart: for us, but we now believe we will be applying the most efficient methodology to enable communication with the reservoir. The MK72 Norio well is drilling ahead and is near to the prognosed target zone. This is an exciting exploration prospect and we are delighted that together with Saipem we have made good progress in what has been very difficult drilling conditions." 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 Kazakhstan. 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. .
CANARGO ENERGY CORPORATION AND SUBSIDIARIES
Financial Statements (Unaudited)
Consolidated Condensed Balance Sheets
-------------------------------
September 30, December 31,
2005 2004
-------------- --------------
(Unaudited) (Audited)
ASSETS
------
Cash and cash equivalents $ 27,020,001 $ 24,617,047
Restricted cash 3,155,269 1,400,000
Accounts receivable 2,162,635 2,526,442
Crude oil inventory 611,693 253,858
Prepayments 3,856,708 1,517,836
Assets held for sale 600,000 600,000
Other current assets 129,415 121,610
-------------- --------------
Total current assets $ 37,535,721 $ 31,036,793
Capital assets, net (including
unevaluated amounts of $42,383,952
and $25,102,945 respectively) 109,118,307 72,995,666
Prepaid financing fees 300,082 648,507
Investments in and advances to oil
and gas and other
ventures - net - 478,632
-------------- --------------
Total Assets $ 146,954,110 $ 105,159,598
-------------- --------------
-------------- --------------
LIABILITIES AND STOCKHOLDERS'
-----------------------------
EQUITY
------
Accounts payable - trade $ 1,931,035 $ 2,331,945
Loans payable 930,943 1,500,000
Other liabilities 37,043 3,080,839
Accrued liabilities 6,015,933 172,117
-------------- --------------
Total current liabilities $ 8,914,954 $ 7,084,901
Long term debt 25,000,000 832,165
Other non current liabilities 439,156 -
Provision for future site
restoration 699,650 422,000
-------------- --------------
Total Liabilities $ 35,053,760 $ 8,339,066
-------------- --------------
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.10;
authorized - 300,000,000 shares;
shares issued, issuable and
outstanding - 222,586,867 at
September 30, 2005 and 195,212,089
at December 31, 2004 22,258,685 19,521,208
Capital in excess of par value 204,595,666 184,141,618
Deferred compensation expense (2,415,920) (1,976,102)
Accumulated deficit (112,538,081) (104,866,192)
-------------- --------------
Total stockholders' equity $ 111,900,350 $ 96,820,532
-------------- --------------
Total Liabilities and Stockholders'
Equity $ 146,954,110 $ 105,159,598
-------------- --------------
CANARGO ENERGY CORPORATION AND SUBSIDIARIES
Financial Statements (Unaudited)
Consolidated Condensed Statements of Operations
Unaudited Unaudited
--------------------------- ---------------------------
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2005 2004 2005 2004
------------- ------------- ------------- -------------
Operating Revenues
from
Continuing
Operations:
Oil and
gas sales $ 2,580,847 $ 2,007,838 $ 5,147,056 $ 7,446,862
------------- ------------- ------------- -------------
2,580,847 2,007,838 5,147,056 7,446,862
------------- ------------- ------------- -------------
Operating
Expenses:
Field
operating
expenses 778,242 457,663 1,747,472 1,690,623
Direct
project
costs 349,646 591,454 1,130,842 1,218,589
Selling,
general and
administrative 2,354,045 1,602,983 5,712,782 3,728,290
Non-cash stock
compensation
expense 920,720 158,446 1,762,890 158,446
Depreciation,
depletion and
amortization 769,909 458,833 1,800,947 2,265,878
Impairment of
oil and gas
ventures and
other assets - 139,552 - 139,552
Income on
dispositions - - - (335,014)
------------- ------------- ------------- -------------
5,172,562 3,408,931 12,154,933 8,866,364
------------- ------------- ------------- -------------
Operating Loss
from Continuing
Operations (2,591,715) (1,401,093) (7,007,877) (1,419,502)
------------- ------------- ------------- -------------
Other Income
(Expense):
Interest,
net (458,084) (408,259) (435,264) (664,645)
Other 107,869 (834,521) (73,732) (933,241)
Equity Loss
from
investments - - (155,016) -
------------- ------------- ------------- -------------
Total Other
Expense (350,215) (1,242,780) (664,012) (1,597,886)
------------- ------------- ------------- -------------
Loss from
Continuing
Operations
Before Minority
Interest and
Taxes (2,941,930) (2,643,873) (7,671,889) (3,017,388)
Minority
interest in
loss (income)
of consolidated
subsidiaries - (301) - -
------------- ------------- ------------- -------------
Loss from
Continuing
Operations (2,941,930) (2,644,174) (7,671,889) (3,017,388)
Net Income
from
Discontinued
Operations,
net of taxes
and minority
interest - 95,384 - 542,210
------------- ------------- ------------- -------------
Net Loss $ (2,941,930) $ (2,548,790) $ (7,671,889) $ (2,475,178)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Weighted
average number
of common
shares
outstanding
- Basic 221,485,695 120,589,698 207,880,022 113,468,383
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
- Diluted 221,485,695 120,589,698 207,880,022 113,468,383
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Basic Net Loss
Per Common
Share
- from
continuing
operations $ (0.01) $ (0.02) $ (0.04) $ (0.03)
- from
discontinued
operations $ - $ 0.00 $ - $ 0.00
------------- ------------- ------------- -------------
Basic Net Loss
Per Common $ (0.01) $ (0.01) $ (0.04) $ (0.02)
------------- ------------- ------------- -------------
Diluted Net
Loss Per
Common Share
- from
continuing
operations $ (0.01) $ (0.02) $ (0.04) $ (0.03)
- from
discontinued
operations $ - $ 0.00 $ - $ 0.00
------------- ------------- ------------- -------------
Diluted Net
Loss Per
Common $ (0.01) $ (0.01) $ (0.04) $ (0.02)
------------- ------------- ------------- -------------
Other
Comprehensive
Income:
Foreign
currency
translation - 90,708 - 310,231
------------- ------------- ------------- -------------
Comprehensive
Loss $ (2,941,930) $ (2,458,082) $ (7,671,889) $ (2,164,947)
------------- ------------- ------------- -------------
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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