Caspian Basin
Exploration, development & production of oil and gas in the Republic of Kazakhstan.
Message: Announces Financial Results
| March 31, 2009 |
| Caspian Energy Inc. Announces Financial Results |
| TORONTO, ONTARIO--(Marketwire - March 31, 2009) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. Caspian Energy Inc. (the "Company" or "CEK") (TSX:CEK) announced today its financial results year ending December 31, 2008. Its audited financial statements for the period and related management's discussion and analysis have been filed with Canadian securities regulatory authorities and are available for viewing at www.sedar.com. For the year ending December 31, 2008, CEK's net and comprehensive loss was $16,001,426. For the year ending December 31, 2007, CEK's net loss was $$13,208,688. Large non-cash items equal to $844,279 (prior period - $2,437,039) relating to stock-based compensation charges and $4,426,520 (prior period - $5,780,432) pertaining to foreign exchange losses contributed to this figure. For the current fiscal period the loss included an income taxes recovery of $815,680 while in the prior fiscal period the Company reflected a charge of $740,178. CEK's operations provided $26,443 in cash for the year ending December 31, 2008. CEK's operations used $8,825,229 in cash during the year ending 2007. Realized foreign exchange losses of $202,628 in the current period (prior period - $8,893,668) are included in these figures. Oil revenues before transportation costs for the year ending December 31, 2008 were $9,183,212. Oil revenues before transportation costs for 2007 were $6,269,118. For the year ended December 31, 2008 operating costs were $3,197,008. For the year ended December 31, 2007 operating costs were $2,163,997 and transportation expenses were $1,944,230 and $487,257, respectively. Administrative expenses for the same periods were $6,256,580 and $3,584,285, respectively. Capital expenditures were $2,003,324 for the year ending December 31, 2008. Capital expenditures were $8,991,257 for the year ending December 31, 2007. Capital expenditures are composed of advances to Aral and the Company's share of the expenditure of funds by Aral. CEK today filed on SEDAR financial statements and MD&A with respect to its December 31, 2008 fiscal year-end. A request for an extension of three years (through year 2012) of the exploration period for the North Block contract has been submitted to applicable government regulatory bodies. At December 31, 2008 the Company had working capital of $186,985. The Company's existing sources of financing and expected cash flow from operating activities are not sufficient to meet: (i) the repayment of the Loan payable of $4,339,485, which has no specified repayment terms; and (ii) the Convertible Debentures plus accrued interest, totalling $23,531,717 on December 31, 2008, which mature on March 2, 2011. Management is presently in discussions with the Debentures holders to negotiate settlement of the interest obligation through avenues other than cash payment. Caspian, through Aral, has a contractual commitment to expend USD 10.5 million during calendar 2009 to discharge its exploration obligations pursuant to its exploration license with the ROK. To fund this circumstance, the Company is pursuing a farmout or sale of the North Block, which will result in an up-front cash payment plus an undertaking of the exploration and development obligations to earn a portion of the Company's interest. Several parties have indicated genuine interest and substantial discussions are taking place, but the outcome of these discussions cannot be determined with certainty. More news will be forthcoming as it is available. The Company's ability to continue as a going concern is in substantial doubt and is dependent upon a successful outcome to the negotiations taking place with the debentures holders and a positive conclusion to its farmout activities. The Corporation also wishes to announce that Mr. Robert Cudney has resigned as a director of the Corporation effective March 30, 2009. The board of directors of the Corporation extends its best wishes to Mr. Cudney in his future endeavours and wishes to thank him for his past contributions to the Corporation. The Company is an oil exploration and development corporation operating in the Republic of Kazakhstan. |
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