|By Marketwired .||
|July 18, 2014 09:33 PM EDT||
HOUSTON, TX -- (Marketwired) -- 07/18/14 -- CAMAC Energy Inc. (NYSE MKT: CAK) announced today that it has completed its review of the previously announced accounting issues affecting the first quarter 2014 financial statements. These issues were identified in the course of preparing recast historical financial information of the Company to account for the February 2014 acquisition of economic interests in OMLs 120/121 from Allied Energy Plc as a combination of businesses under common control.
As a result of the review, the revised financial statements for the quarter ended March 31, 2014 reflect (i) an increase in crude oil inventory as of December 31, 2013 and a corresponding increase in production costs for the first quarter of 2014 and (ii) an increase in operating costs due to the receipt of additional third-party vendor cost information from Allied following the completion of the first quarter 2014 financial statements.
These adjustments primarily relate to the financial statements of the acquired business in the Allied Energy transaction for prior periods, have no effect on the cash position of the Company and are not expected to materially affect results in future periods. In addition, the adjustments do not lead to any purchase price adjustment in connection with the Allied Energy transaction.
For further information on the restated financial statements, please refer to the quarterly report on Form 10-Q/A for the quarterly period ended March 31, 2014 available at www.sec.gov or on the Company's website at www.camacenergy.com/financial-information.php.
"We are pleased to conclude the review of our financials," said Earl McNiel, Senior Vice President and Chief Financial Officer. "This process has caused us to reevaluate 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. This is a one-time, non-recurring event relating to the pre-acquisition financials of Allied Energy, and while the adjustments did not involve the loss of cash to the Company, we take it very seriously. We are confident that we will be able to implement the appropriate systems and controls to avoid similar situations in the future."
About CAMAC Energy Inc.
CAMAC Energy Inc. is an independent oil and gas exploration and production company focused on energy resources in Africa. Its asset portfolio consists of nine licenses across four countries covering an area of 43,000 square kilometers, including existing production and other exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana, Kenya, and Gambia, and onshore Kenya. CAMAC Energy is headquartered in Houston, Texas, and is listed on the New York Stock Exchange under the ticker symbol CAK, and on the Johannesburg Stock Exchange under the ticker symbol CME. For more information, please visit www.camacenergy.com.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, concerning activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. The Company's actual results could differ materially from those anticipated in these forward-looking statements due to a variety of factors, including the Company's ability to successfully remediate its internal control systems and procedures and other risk factors discussed in the Company's periodic reports filed with the Securities and Exchange Commission. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. You should not place undue reliance on forward-looking statements, which speak only as of their respective dates. The Company undertakes no duty to update these forward-looking statements.