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

CanArgo Energy Corporation

November 09, 2007 18:24 ET

CanArgo Energy Corporation: Q3 Results 2007

GUERNSEY, CHANNEL ISLANDS--(Marketwire - Nov. 9, 2007) - CanArgo Energy Corporation ("CanArgo" or the "Company") (AMEX:CNR) (OSLO:CNR) today reported results for the nine months ending September 30, 2007.

Please see the tables attached to this release.

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/310316/000115697307001661/0001156973-07-001661-index.htm

Shareholders are also reminded that there will be a briefing meeting held at the Scandic KNA Hotel, Parkveien 68, Oslo, Norway at 09:00 am Central European Time on Tuesday, November 13, 2007 to present the Q3 Results and to provide an update on the Company's current operations in Georgia.

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 Nine Months Ended
September 30, September 30, September 30, September 30,
2007 2006 2007 2006
----------------------------- ----------------------------
(Expressed in United States dollars)
Operating
Revenues from
Continuing
Operations:
Oil and gas sales $ 32,961 $ 2,090,147 $ 3,394,808 $ 4,092,224
----------------------------------------------------------------------------
32,961 2,090,147 3,394,808 4,092,224
----------------------------------------------------------------------------
Operating
Expenses:
Field operating
expenses 16,427 446,010 690,851 1,340,169
Direct project
costs 173,105 235,159 515,939 677,656
Selling, general
and
administrative 1,901,454 2,891,133 5,327,739 7,810,174
Depreciation,
depletion and
amortization 139,171 700,391 1,516,246 2,231,319
----------------------------- ----------------------------
2,230,157 4,272,693 8,050,775 12,059,318
----------------------------- ----------------------------
Operating Loss
from Continuing
Operations (2,197,196) (2,182,546) (4,655,967) (7,967,094)
----------------------------- ----------------------------
Other Income
(Expense):
Interest income 63,329 70,720 250,146 278,150
Interest and
amortization of
debt discount and
expense (1,144,539) (2,020,279) (5,307,304) (4,601,955)
Loss/Cost on debt
extinguishment (5,592,828) - (12,127,494) -
Foreign exchange
gains (losses) (7,497) (28,509) (38,806) (166,560)
Other (1,025,067) (65,793) (761,196) (182,241)
----------------------------- ----------------------------
Total Other
Expense (7,706,602) (2,043,861) (17,984,654) (4,672,606)
----------------------------- ----------------------------

Loss from
Continuing
Operations Before
Taxes (9,903,798) (4,226,407) (22,640,621) (12,639,700)
Income taxes - - - -
----------------------------- ----------------------------
Loss from
Continuing
Operations (9,903,798) (4,226,407) (22,640,621) (12,639,700)

Net Income (Loss)
from Discontinued
Operations, net
of taxes (55,873) (1,491,710) 11,493,685 (1,242,595)
----------------------------- ----------------------------
Net Loss $ (9,959,671) $ (5,718,117) $(11,146,936) $ (13,882,295)
----------------------------- ----------------------------
----------------------------- ----------------------------

Weighted average
number of
common shares
outstanding
- Basic 239,053,232 224,260,628 238,557,879 223,942,445
----------------------------- ----------------------------
- Diluted 239,053,232 224,260,628 238,557,879 223,942,445
----------------------------- ----------------------------

Basic Net Income
(Loss) Per Common
Share
- from continuing
operations $ (0.04) $ (0.02) $ (0.09) $ (0.06)
- from
discontinued
operations $ (0.00) $ (0.01) $ 0.05 $ (0.01)
----------------------------- ----------------------------
Basic Net Income
(Loss) Per Common
Share $ (0.04) $ (0.03) $ (0.05) $ (0.06)
----------------------------- ----------------------------
Diluted Net
Income (Loss) Per
Common Share
- from continuing
operations $ (0.04) $ (0.02) $ (0.09) $ (0.06)
- from
discontinued
operations $ (0.00) $ (0.01) $ 0.05 $ (0.01)
----------------------------- ----------------------------
Diluted Net
(Income) Loss Per
Common Share $ (0.04) $ (0.03) $ (0.05) $ (0.06)
----------------------------- ----------------------------


CANARGO ENERGY CORPORATION AND SUBSIDIARIES

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

September 30, December 31,
2007 2006
------------------------------------
(Expressed in United States dollars)
(Unaudited) (Audited)

ASSETS

Current Assets
Cash and cash equivalents $ 7,079,858 $ 14,689,289
Restricted cash - 299,777
Accounts receivable 254,551 503,953
Crude oil inventory 1,067,752 452,500
Prepayments 407,527 2,254,563
Assets to be disposed 8,120 5,965,341
Other current assets 169,698 163,561
------------------------------------
Total current assets $ 8,987,506 $ 24,328,984

Non Current Assets
Prepaid financing fees 92,406 288,632
Assets to be disposed - 24,560,166

Capital assets, net (including
unevaluated amounts of $57,586,235 and
$55,097,099, respectively) 93,091,460 87,307,700
------------------------------------
Total Assets $ 102,171,372 $ 136,485,482
------------------------------------
------------------------------------

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable - trade $ 1,084,432 $ 3,672,731
Deferred revenue - 484,515
Accrued liabilities 6,432,267 6,918,468
Liabilities to be disposed 374,998 1,625,282
------------------------------------
Total current liabilities $ 7,891,697 $ 12,700,996

Long term debt 11,292,148 37,264,270
Other non current liabilities 64,671 1,260,079
Provision for future site restoration 220,590 205,200
Liabilities to be disposed - 3,566,055
------------------------------------

Total Liabilities $ 19,469,106 $ 54,996,600
------------------------------------

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

Stockholders' equity:
Common stock, par value $0.10; authorized
- 500,000,000 shares at September 30,
2007 and 375,000,000 at December 31,
2006; shares issued, issuable and
outstanding - 242,120,974 at September
30, 2007 and 237,145,974 at December
31, 2006 24,212,096 23,714,596
Capital in excess of par value 245,259,933 233,397,113
Accumulated deficit (188,889,293) (177,742,357)
------------------------------------
Total stockholders' equity $ 80,582,736 $ 79,369,352
------------------------------------
Total Liabilities, Temporary Equity and
Stockholders' Equity $ 102,171,372 $ 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 04 82 11