CAMAC Energy Inc. (NYSE Amex: CAK), a U.S.-based energy company engaged in the exploration, development and production of oil and gas in West Africa and China, today announced a net loss of $0.7 million, or $0.00 per diluted common share, for the third quarter ended September 30, 2011 as compared to a net loss of $188.6 million, or $1.32 per diluted common share, for the same period in 2010. The decrease in net loss was principally related to the impairment charge taken for the Oyo Field in the prior period and cost oil recovery revenues in the current period, partially offset by an increase in exploratory expenses in the current period related to the ZJS-3 and ZJS-4 wells in China. For the nine months ended September 30, 2011, the Company reported a net loss of $23.2 million, or $0.15 per diluted common share, as compared to a net loss of $194.9 million, or $1.79 per diluted common share, in the nine months ended September 30, 2010. The decrease in net loss was principally related to the impairment charge taken for the Oyo Field in the prior period, partially offset by increased depletion expense and the increased exploratory expenses as previously discussed.
From inception of the workover related to the Oyo Field well #5 in December 2010 through September 30, 2011, the Company has incurred a total expense of $56.4 million related to the workover. Through September 30, 2011, the Company has recognized cost oil recovery revenues of $23.6 million and recovered $32.2 million in cash related to this workover. In addition, the Company expects to recognize the remaining $32.8 million in cost oil recovery revenues and recover the remaining $24.2 million through future liftings, in correlation with payments made.
Cash and cash equivalents at the end of the third quarter of 2011 were $18.9 million. Cash flows provided by operations of $33.0 million for the current quarter were primarily affected by cost recovery for workover costs for well #5 in the Oyo Field. With the proceeds from the June 2011 lifting, CAMAC Energy repaid in full the amounts outstanding under its $25 million credit facility. The remaining unpaid workover balance of $24.2 million will be funded using available cash, borrowings under the credit facility and future Oyo Field lifting proceeds.
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