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CAMAC Energy Announces Second Quarter 2014 Results

August 13, 2014

ENP Newswire - 13 August 2014

Release date- 12082014 - HOUSTON, TX - CAMAC Energy Inc. (NYSE MKT: CAK) announced today financial and operating results for the second quarter of 2014.

The company plans to file its Form 10-Q for the quarter ended June 30, 2014 with the Securities and Exchange Commission later today.

Highlights for the quarter ended June 30, 2014 include:

Spudded the Oyo-8 development well offshore Nigeria

Signed a Petroleum Agreement with the Government of Ghana for the Expanded Shallow Water Tano Block

Completed the $270 million private placement with the Public Investment Corporation (SOC) Limited

Currently processing the 2D seismic data that was acquired offshore Kenya in March 2014


The Northern Offshore Energy Searcher drillship commenced drilling operations on the Oyo-8 development well on June 15. Oyo-8 was drilled to a total depth (TD) of 6,059 feet, and successfully encountered four new oil and gas reservoirs with total gross hydrocarbon thickness of 112 feet based on results from the logging-while-drilling (LWD) data, reservoir pressure measurement, and reservoir fluid sampling.

The well will now be completed horizontally as a producing well in the Pliocene formation of the Central Oyo field. Further, Oyo-7, which was successfully drilled in October 2013, will also be completed horizontally in the Pliocene formation of the Central Oyo field. CAMAC Energy is the operator, and owns a 100% interest.

In addition to the development wells offshore Nigeria, the company has identified 10 exploration prospects and 12 leads, and is in the process of maturing several prospects to drill-ready status, each containing substantial prospective resources. The company plans to commence drilling of the first exploration well in 2015.


In April 2014, the company signed a Petroleum Agreement relating to the Expanded Shallow Water Tano (ESWT) block located in the Tano Basin offshore Ghana. The block contains three discovered fields, and the work program requires the partners to determine, within nine months of the effective date, the economic viability of developing the discovered fields. In collaboration with its partners, the company is working on plans to conduct basin modeling and field studies.

The ESWT block size is 1,508 square kilometres, located about 15-35 km off the coast of Ghana, in water depths ranging from 55 meters to 116 meters (180 feet to 380 feet) and contains three discovered fields: Tano North, Tano West and Tano South.

Significant quantities of oil and gas have been discovered in these fields, and drill stem tests also established producibility of the reservoirs. A leading worldwide independent petroleum consulting firm has been identified to assist with the evaluation. Activities will include evaluating existing 3D seismic data, and geological and well data. CAMAC Energy is the operator, and owns a 30% interest.


Exploration activities are continuing in the Lamu Basin on Blocks L1B and L16 onshore, and on Blocks L27 and L28 offshore.

L1B/L16 Onshore

Completed a Gravity and Magnetic Survey in April 2013

Completed an Environmental and Social Impact Assessment Study in March 2014

Currently preparing to acquire 2D seismic on both blocks

The initial exploration period for blocks L1B and L16 expires in June 2015. The company has the right to apply for up to two additional two-year exploration periods with specified additional minimum work obligations, including the acquisition of 3D seismic data, and the drilling of one exploratory well on each block during each such additional period. CAMAC Energy is the operator, and owns a 100% interest.

L27/L28 Offshore

WesternGeco, a Schlumberger company, is currently processing the 2D seismic data that was acquired in March 2014

Presently conducting a regional Geophysical Study

Results from the 2D interpretation will be used to outline the location for a 3D seismic acquisition

3D seismic will then be processed to interpret the geologic framework

Current efforts are being directed towards drilling one exploration well in either Block L27 or Block L28. CAMAC Energy is the operator, and owns a 100% interest.


Frontier exploration activities are also continuing offshore Gambia on Blocks A2 and A5. CAMAC Energy is reprocessing existing 2D seismic, conducting a regional geological study, and also has plans for a 3D seismic survey. CAMAC Energy is the operator, and owns a 100% interest.

Results of Operations

For the second quarter of 2014, revenues were $14.9 million, on net daily production of 1,600 barrels of oil, net of royalties. Revenue on a per barrel basis was $110.40. CAMAC Energy reported a net loss of $11.9 million for the second quarter of 2014, or $0.01 per basic and diluted share. Cash and cash equivalents at June 30, 2014 was $39.7 million.

About CAMAC Energy

CAMAC Energy is an independent oil and gas exploration and production company focused on energy resources in Africa. Its asset portfolio consists of nine licenses across four countries covering an area of 43,000 square kilometers, including current production and other projects offshore Nigeria, as well as exploration licenses offshore Ghana, Kenya, and Gambia, and onshore Kenya. CAMAC Energy is headquartered in Houston, Texas.

Forward-Looking Statements

This press release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, concerning activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements.

Although the company believes the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. The company's actual results could differ materially from those anticipated in these forward-looking statements due to a variety of factors, including the company's ability to successfully drill, complete, test and produce the wells identified in this release and risks and other risk factors discussed in the company's periodic reports filed with the Securities and Exchange Commission.

All forward-looking statements are expressly qualified in their entirety by this cautionary statement. You should not place undue reliance on forward-looking statements, which speak only as of their respective dates. The company undertakes no duty to update these forward-looking statements.


Chris Heath


Investor Relations

Tel: 713-797-2945


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Source: ENP Newswire

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