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

CanArgo Energy Corporation

August 10, 2007 01:13 ET

CanArgo Energy Corporation: Q2 Results 2007

GUERNSEY, BRITISH ISLES--(Marketwire - Aug. 10, 2007) - CanArgo Energy Corporation ("CanArgo" or the "Company") (OSLO:CNR)(AMEX:CNR) today reported results for the six months ending June 30, 2007.

The Form 10-Q filed with the Securities and Exchange Commission in the United States can be accessed at the following link; http://www.sec.gov/Archives/edgar/data/310316/000115697307001226/0001156973-07-001226-index.htm

CanArgo is an independent oil and gas exploration and production company with its oil and gas operations currently located in Georgia.

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 cannot give assurance that the results will be attained.



CANARGO ENERGY CORPORATION AND SUBSIDIARIES

Selected Financial Information
Consolidated Condensed Statements of Operations
Expressed in United States dollars

Unaudited Unaudited
----------------------- ------------------------
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
--------- --------- --------- ---------
(Expressed in United States dollars)
Operating Revenues
from Continuing
Operations:
Oil and gas sales $ 2,915,000 $ 1,303,132 $ 3,361,847 $ 2,002,077
--------- --------- --------- ---------
2,915,000 1,303,132 3,361,847 2,002,077
--------- --------- --------- ---------
Operating
Expenses:
Field operating
expenses 443,873 484,000 674,424 894,159
Direct project
costs 166,188 173,509 342,834 442,497
Selling, general
and administrative 1,697,483 2,621,101 3,426,285 4,919,041
Depreciation,
depletion and
amortization 1,111,364 719,026 1,377,075 1,530,928
--------- --------- --------- ---------
3,418,907 3,997,636 5,820,618 7,786,625
Operating Loss
from Continuing
Operations (503,907) (2,694,504) (2,458,771) (5,784,548)
--------- --------- --------- ---------
Other Income
(Expense):
Interest income 76,930 59,973 186,817 207,430
Interest and
amortization of
debt discount and
expense (1,934,771) (1,518,787) (4,162,765) (2,581,676)
Loss on debt
extinguishment (6,534,666) - (6,534,666) -
Foreign exchange
gains (losses) (11,392) (113,305) (31,309) (138,051)
Other 262,386 (68,680) 263,871 (116,448)
--------- --------- --------- ---------
Total Other
Expense (8,141,513) (1,640,799) (10,278,052) (2,628,745)
--------- --------- --------- ---------
Loss from
Continuing
Operations Before
Taxes (8,645,420) (4,335,303) (12,736,823) (8,413,293)
Income taxes - - - -
--------- --------- --------- ---------
Loss from
Continuing
Operations (8,645,420) (4,335,303) (12,736,823) (8,413,293)

Net Income from
Discontinued
Operations, net of
taxes 13,754,777 1,630,267 11,549,558 249,115
--------- --------- --------- ---------

Net Incone (Loss) $ 5,109,357 $ (2,705,036) $ (1,187,265) $ (8,164,178)
--------- --------- --------- ---------
--------- --------- --------- ---------
Weighted average
number of
common shares
outstanding
- Basic 238,503,148 224,108,606 238,303,156 223,780,717
--------- --------- --------- ---------
- Diluted 240,703,127 224,108,606 238,303,156 223,780,717
--------- --------- --------- ---------
Basic Net Income
(Loss) Per Common
Share
- from continuing
operations $ (0.04) $ (0.02) $ (0.05) $ (0.04)
- from
discontinued
operations $ 0.06 $ 0.01 $ 0.05 $ 0.00
--------- --------- --------- ---------

Basic Net Income
(Loss) Per Common
Share $ 0.02 $ (0.01) $ (0.00) $ (0.04)
--------- --------- --------- ---------
Diluted Net Loss
Per Common Share
- from continuing
operations $ (0.04) $ (0.02) $ (0.05) $ (0.04)
- from
discontinued
operations $ 0.06 $ 0.01 $ 0.05 $ 0.00
--------- --------- --------- ---------
Diluted Net Loss
Per Common $ 0.02 $ (0.01) $ (0.00) $ (0.04)
--------- --------- --------- ---------


CANARGO ENERGY CORPORATION AND SUBSIDIARIES

Selected Financial Information
Consolidated Condensed Balance Sheets
Expressed in United States dollars

June 30, December 31,
2007 2006
------------ -------------
(Expressed in United States dollars)
(Unaudited) (Audited)
ASSETS
Current Assets
------------
Cash and cash equivalents $ 7,270,981 $ 14,689,289
Restricted cash - 299,777
Accounts receivable 82,443 503,953
Crude oil inventory 336,304 452,500
Prepayments 720,112 2,254,563
Assets to be disposed 6,919 5,965,341
Securities held for sale 22,374,016 -
Other current assets 166,790 163,561
------------ -------------
Total current assets $ 30,957,565 $ 24,328,984

Non Current Assets
------------------
Prepaid financing fees 209,947 288,632
Assets to be disposed - 24,560,166

Capital assets, net (including
unevaluated amounts of $60,089,297 and
$55,097,099, respectively) 92,387,278 87,307,700
------------ -------------
Total Assets $ 123,554,790 $ 136,485,482
------------ -------------
------------ -------------

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

Accounts payable - trade $ 1,277,933 $ 3,672,731
Deferred revenue - 484,515
Accrued liabilities 6,173,137 6,918,468
Liabilities to be disposed 372,374 1,625,282
------------ -------------
Total current liabilities $ 7,823,444 $ 12,700,996

Long term debt 28,767,431 37,264,270
Other non current liabilities 580,707 1,260,079
Provision for future site restoration 215,460 205,200
Liabilities to be disposed - 3,566,055
------------ -------------
Total Liabilities $ 37,387,042 $ 54,996,600
------------ -------------

Temporary Equity $ 2,119,530 $ 2,119,530
------------ -------------

Stockholders' equity:
Common stock, par value $0.10;
authorized - 375,000,000 shares at
March 31, 2007 and December 31, 2006;
shares issued, issuable and
outstanding - 238,520,974 at June 30,
2007 and 237,145,974 at
December 31, 2006 23,852,096 23,714,596
Capital in excess of par value 239,125,744 233,397,113
Accumulated deficit (178,929,622) (177,742,357)
------------ -------------
Total stockholders' equity $ 84,048,218 $ 79,369,352
------------ -------------
Total Liabilities, Temporary Equity and
Stockholders' Equity $ 123,554,790 $ 136,485,482
------------ -------------


Contact Information

  • CanArgo Energy Corporation - USA
    Sabin Rossi
    VP External Affairs and Investor Relations
    (617) 669-1841
    (617) 973-6406 (FAX)
    Email: sabin@canargo.com
    or
    Gambit H&K AS - NORWAY
    Eric Cameron
    +47 (22) 048211