CanArgo Reports Second Quarter Results.Business Editors 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. & 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. 14, 2000CanArgo Energy Corporation (OSE OSE - Open Systems Environment :CNR See riser card. CNR - Communication and Network Riser )(OTCBB OTCBB See OTC Bulletin Board (OTCBB). :GUSH) today reported revenue of $3,596,000 for the six months ended June June: see month. 30, 2000 up from $904,000 for the same period in 1999. Cash flow from operating activities for the six months ended June 30, 2000 was $1,363,000 compared to a net cash outflow of $273,000 for the six months ended June 30, 1999. CanArgo's net loss for the six month period ended June 30, 2000 was $179,000 ($0.00 per share) compared to a net loss of $1,576,000 ($0.07 per share) for the same period in 1999. Ninotsminda Ninotsminda (Georgian: ნინოწმინდა, Armenian: Նինոցմինդա Oil Company, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of CanArgo, generated $2,600,000 of oil revenue and $631,000 of gas revenue for the six month period ended June 30, 2000, compared with $707,000 of oil revenue and no gas revenue for the same period in 1999. Its net share of the 244,800 barrels of gross production from the Ninotsminda field in the period amounted to 126,600 barrels. Net sale prices for Ninotsminda oil sold during the six month period ended June 30, 2000 averaged $19.06 per barrel. Ninotsminda Oil Company's net share of the 791,000 mcf of gas delivered in the six month period ended June 30, 2000 was 514,000 mcf. In addition to oil and gas revenue, CanArgo recorded equipment rental revenue of $365,000 for the six months ended June 30, 2000. No equipment rental revenue was earned in the six month period ended June 30, 1999. Revenue for the second quarter ended June 30, 2000 was $1,515,000 compared to $791,000 for the second quarter ended June 30, 1999 and $2,081,000 for the first quarter of 2000. Gas revenue decreased in the second quarter of 2000 as a result of the unanticipated shut down and maintenance overhaul of two generating units at the Gardabani Gardabani (Georgian: გარდაბანი) is a city in the Georgian province of Kvemo Kartli, and the centre of the Garbabani raioni. As of 2002, its population was 19,900 people. power plant. Gas supplies to AES Gardabani are expected to re-commence in September September: see month. 2000. In June 2000, gas deliveries commenced to a second purchaser of gas for use in the Rustavi Rustavi (r stä`vē), city (1989 pop. 153,661), E Georgia, on the Kura River. industrial complex. Cash flow
from operating activities for the three months ended June 30, 2000 was
$677,000 compared to a net cash outflow of $152,000 for the same period
in 1999.Dr. David Robson See Robson cache. , Chairman & Chief Executive Officer of CanArgo, reported, "Our results continue to reflect the benefits of our concurrent At the same time. It implies that multiple processes are taking place simultaneously. See concurrent operation. production program and cost cutting efforts over the past year. With these results, our efforts can now move into the next phase of development with the drilling of our first horizontal well 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. and the execution in July July: see month. 2000 of a binding Participation Agreement with AES Gardabani relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the exploration and potential future development of gas prospects on CanArgo's Ninotsminda license in Georgia." CanArgo Energy Corporation is an independent oil and gas exploration and production company operating 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. . CanArgo's principal oil and gas operations are located in the republic of Georgia. The Company's activities at its primary field in Georgia, the Ninotsminda field, are conducted through its wholly owned subsidiary, Ninotsminda Oil Company Limited. 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 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. 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,
2000 1999
------------- -------------
ASSETS
------
Cash and cash equivalents $ 5,299,752 $ 3,534,983
Accounts receivable 438,852 464,435
Advances to operator 810,973 -
Inventory 68,681 188,500
Other current assets 30,717 94,174
------------- -------------
Total current assets $ 6,648,975 $ 4,282,092
Property and equipment, net 7,284,646 7,101,125
Oil and gas properties, net,
full cost method (including
unevaluated amounts of $12,531,313
and $12,531,313 respectively) 31,090,534 30,707,037
Investments in and advances to
oil and gas and other
ventures - net 1,722,862 1,709,215
------------- -------------
Total Assets $ 46,747,017 $ 43,799,469
------------- -------------
------------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Accounts payable $ 1,160,011 $ 1,159,949
Accrued liabilities 330,058 393,411
------------- -------------
Total current liabilities $ 1,490,069 $ 1,553,360
Provision for future
site restoration 26,490 12,700
Minority interest in subsidiary - 4,370,785
Stockholders' equity:
Preferred stock, par value
$0.10 per share - -
Common stock, par value
$0.10 per share 4,524,658 3,735,292
Capital in excess of par value 112,973,922 106,216,164
Accumulated deficit (72,268,122) (72,088,832)
------------- -------------
Total stockholders' equity $ 45,230,458 $ 37,862,624
------------- -------------
Total Liabilities and
Stockholders' Equity $ 46,747,017 $ 43,799,469
------------- -------------
------------- -------------
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,
2000 1999 2000 1999
----------------------------------------------
Operating Revenues:
Oil and gas sales $1,346,495 $ 790,795 $3,231,171 $ 904,462
Other 168,600 - 364,900 -
---------------------- ----------------------
1,515,095 790,795 3,596,071 904,462
---------------------- ----------------------
Operating Expenses:
Lease operating
expense 259,532 433,332 632,128 500,050
Direct project costs 247,220 118,337 383,529 403,537
General and
administrative 392,145 419,550 766,019 1,104,384
Depreciation,
depletion and
amortization 803,590 373,300 1,879,080 398,300
---------------------- ----------------------
1,702,487 1,344,519 3,660,756 2,406,271
---------------------- ----------------------
Operating Loss (187,392) (553,724) (64,685) (1,501,809)
---------------------- ----------------------
---------------------- ----------------------
Other Income (Expense):
Interest, net 67,128 (102,361) 101,463 (150,620)
Other 7,054 32,652 274 (8,233)
Loss on disposition
of equipment - (29,803) - (29,803)
Equity loss from
investments in
unconsolidated
subsidiaries (69,154) (20,000) (82,154) (41,581)
---------------------- ----------------------
Total Other
Income (Expense) 5,028 (119,512) 19,583 (230,237)
---------------------- ----------------------
Minority interest in
loss (income) of
consolidated
subsidiary (97,388) 68,902 (134,188) 156,489
---------------------- ----------------------
Net Loss and
Comprehensive Loss (279,752) (604,334) (179,290) (1,575,557)
---------------------- ----------------------
---------------------- ----------------------
Weighted average
number of common
shares outstanding 40,467,113 21,297,844 38,944,248 21,217,799
---------------------- ----------------------
Net Loss Per
Common Share
- Basic $ (0.01) $ (0.03) $ (0.00) $ (0.07)
---------------------- ----------------------
Net Loss Per
Common Share
- Diluted $ (0.01) $ (0.03) $ (0.00) $ (0.07)
---------------------- ----------------------
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