CanArgo Energy Corporation
OSLO STOCK EXCHANGE : CNR
NYSE Alternext US : CNR

CanArgo Energy Corporation

August 09, 2005 19:09 ET

CanArgo Energy Corporation: Q2 Results 2005

GUERNSEY, BRITISH ISLES--(CCNMatthews - Aug. 9, 2005) - CanArgo Energy Corporation ("CanArgo" or the "Company") (OSE:CNR) (AMEX:CNR) today reported results for the three and six months ending June 30, 2005.

Please see the attached results.

The Form 10-Q can be accessed at the following link;

http://www.sec.gov/Archives/edgar/data/310316/000115697305001304/0001156973-05-001304-index.htm

CanArgo is an independent oil and gas exploration and production company with its principal oil and gas operations currently located in the Republic of Georgia. Further information on the Company as set forth in the Company's public filings is available at http://www.sec.gov.

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 provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company can not give assurance that the results will be attained.



CANARGO ENERGY CORPORATION AND SUBSIDIARIES
Financial Statements (Unaudited)
Consolidated Condensed Balance Sheets

--------------------------------------
--------------------------------------
June 30, December 31,
2005 2004
--------------------------------------
(Unaudited) (Audited)
ASSETS

Cash and cash equivalents $ 18,810,753 $ 24,617,047
Restricted cash 5,300,000 1,400,000
Accounts receivable 1,613,431 2,526,442
Crude oil inventory 691,527 253,858
Prepayments 2,971,569 1,517,836
Assets held for sale 600,000 600,000
Other current assets 155,663 121,610
--------------------------------------
Total current assets $ 30,142,943 $ 31,036,793

Capital assets, net
(including unevaluated
amounts of $39,505,594
and $25,102,945 respectively) 100,006,728 72,995,666
Prepaid financing fees 550,250 648,507
Investments in and
advances to oil and gas
and other
ventures - net - 478,632


--------------------------------------
Total Assets $ 130,699,921 $ 105,159,598
--------------------------------------
--------------------------------------

LIABILITIES AND
STOCKHOLDERS' EQUITY

Accounts payable - trade $ 2,045,247 $ 2,331,945
Loans payable 10,200,000 1,500,000
Other liabilities 758,647 3,080,839
Accrued liabilities 5,897,634 172,117
--------------------------------------
--------------------------------------
Total current liabilities $ 18,901,528 $ 7,084,901

Long term debt 897,655 832,165
Provision for future site
restoration 731,848 422,000
--------------------------------------
Total Liabilities $ 20,531,031 $ 8,339,066
--------------------------------------

Commitments and
contingencies

Stockholders' equity:
Common stock, par value
$0.10; authorized -
300,000,000 shares;
shares issued, issuable
and outstanding -
218,485,420 at June 30,
2005 and 195,212,089 at
December 31, 2004 21,848,540 19,521,208
Capital in excess of par
value 199,749,926 184,141,618
Deferred compensation
expense (1,833,425) (1,976,102)
Accumulated deficit (109,596,151) (104,866,192)
--------------------------------------
Total stockholders'
equity $ 110,168,890 $ 96,820,532
--------------------------------------
Total Liabilities and
Stockholders' Equity $ 130,699,921 $ 105,159,598
--------------------------------------
--------------------------------------



CANARGO ENERGY CORPORATION AND SUBSIDIARIES
Financial Statements (Unaudited)
Consolidated Condensed Statement of Operations

Unaudited Unaudited
--------------------------------------------------
Three Months Ended Six Months Ended
--------------------------------------------------
--------------------------------------------------
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
--------------------------------------------------
Operating Revenues
from Continuing
Operations:
Oil and gas sales $ 1,232,532 $ 2,078,553 $ 2,566,209 $5,439,024
--------------------------------------------------
1,232,532 2,078,553 2,566,209 5,439,024
--------------------------------------------------
Operating
Expenses:
Field operating
expenses 470,310 564,622 969,230 1,232,959
Direct project
costs 412,358 346,668 781,196 627,135
Selling, general
and administrative 1,530,105 1,213,706 3,358,737 2,125,308
Non-cash stock
compensation
expense 509,828 - 842,170 -
Depreciation,
depletion and
amortization 519,375 926,224 1,031,038 1,807,045
(Gain) Loss on
dispositions - 19,937 - (335,014)
--------------------------------------------------
3,441,976 3,071,157 6,982,371 5,457,433
--------------------------------------------------
Operating Loss
from Continuing
Operations (2,209,444) (992,604) (4,416,162) (18,409)
--------------------------------------------------
Other Income
(Expense):
Interest, net (1,149) (248,913) 22,820 (256,386)
Other 16,110 (163,130) (181,601) (98,720)
Equity Loss from
investments (62,000) - (155,016) -
--------------------------------------------------
Total Other
Expense (47,039) (412,043) (313,797) (355,106)
--------------------------------------------------
Loss from
Continuing
Operations Before
Minority Interest
and Taxes (2,256,483) (1,404,646) (4,729,959) (373,515)

Minority interest
in loss (income)
of consolidated
subsidiaries - (583) - 301
--------------------------------------------------
Loss from Continuing
Operations (2,256,483) (1,405,229) (4,729,959) (373,214)
Net Income (Loss)
from Discontinued
Operations, net of
taxes and minority
interest - (43,539) - 446,825
--------------------------------------------------
Net Income (Loss) $ (2,256,483) $(1,448,768) $(4,729,959) $ 73,611
--------------------------------------------------
--------------------------------------------------
Weighted average
number of
common shares
outstanding
- Basic 205,796,809 113,006,430 200,964,431 109,868,598
--------------------------------------------------
- Diluted 205,796,809 113,006,430 200,964,431 112,690,648
--------------------------------------------------
Basic Net Income
(Loss) Per Common
Share
- from continuing
operations $ (0.01) $ (0.01) $ (0.02) $ (0.00)
- from
discontinued
operations $ - $ (0.00) $ - $ 0.00
--------------------------------------------------
Basic Net Income
(Loss) Per Common $ (0.01) $ (0.00) $ (0.02) $ 0.00
--------------------------------------------------
Diluted Net Income
(Loss) Per Common
Share
- from continuing
operations $ (0.01) $ (0.01) $ (0.02) $ (0.00)
- from
discontinued
operations $ - $ (0.00) $ - $ 0.00
--------------------------------------------------
Diluted Net Income
(Loss) Per
Common $ (0.01) $ (0.00) $ (0.02) $ 0.00
--------------------------------------------------
Other
Comprehensive
Income:
Foreign currency
translation - (242,613) - 219,523
--------------------------------------------------
Comprehensive
Income (Loss) $ (2,256,483) $(1,691,381) $(4,729,959) $ 293,134
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Contact Information

  • CanArgo Energy Corporation
    Julian Hammond
    +44 1481 729980 or Mobile: +44 7740 576139
    +44 1481 729982 (FAX)
    Email: info@canargo.com