The company, which released first quarter results for the year ended March 31 2014, reported an operating loss of 14, 683 dollars for the period from 10, 484 in the previous comparative period.
Oil and gas revenues for the period declined to 19, 894 dollars from 22, 006 dollars in the previous comparative period.
“We are pleased to conclude the review of our financials. This process has caused us to re-evaluate our internal controls with respect to complex, nonrecurring transactions, and we are implementing additional procedures to mitigate the risk of similar misstatements in the future,” Earl McNiel, senior vice president and CFO said in a statement.
[DATA CME:CAMAC Energy] is an independent oil and gas firm headquartered in America, but with a focus on energy resources in Africa. The firm has assets in Kenya, Gambia, Nigeria and Ghana.
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Depreciation, depletion and amortisation decreased to 4,971 dollars from 5, 467 dollars, and loss before income taxes increased to 14, 858 dollars from 10, 488 dollars in 2013. Production costs also increased to 22, 897 dollars from 22, 113 for the same period in 2013.
“In January 2014, a long-term drilling contract was signed for the drillship Energy Searcher. The rig is expected to be delivered to the Oyo Field [in Nigeria] in Oil Mining Leases 120 in May 2014 to commence the planned Oyo Field development campaign. The agreement covers an initial term of one year, with an option to extend the contract for an additional one year,” CAMAC explained.
“The minimum commitment pursuant to the initial term of the agreement is approximately 86.0 million dollars.”
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Previously, CAMAC has also entered into four production sharing contracts with the Kenya government, covering onshore exploration blocks L1B and L16, and new offshore exploration blocks L27 and L28 in the country.
“Although there are no assurances that the company’s plans will be realised, management believes that the company will have sufficient capital resources to meet projected cash flow requirements for the next twelve months from the date of filing this report,” said CAMAC.