🕐08.11.08 - 18:53 Uhr

Q3 Results



CanArgo Energy Corporation

FOR IMMEDIATE RELEASE IN EUROPE & NORTH AMERICA

Q3 RESULTS 2008
November 7, 2008 - Guernsey, British Isles - CanArgo Energy Corporation ("CanArgo"
or the "Company") (OSE: CNR, AMEX:CNR) today reported results for the three and
nine months ending September 30, 2008.
Operating Revenues from Continuing Operations for the three month period ended
September 30, 2008 increased to $3.0 million from $nil million for the corresponding
period for 2007.

The increase in revenue was attributable to higher sales volumes of oil
at the Ninotsminda Field in Georgia.
The Company reported a net loss for the three month period ended September 30, 2008 of
$0.9 million compared to a net loss of $10.0 million in the corresponding period for 2007.
Operating Income from Continuing Operations for the three month period ended
September 30, 2008 improved significantly to $0.2 million compared to an Operating
Loss of $2.2 million in the corresponding period for 2007.

This was due to
improvements in Operating revenues from Continuing Operations and reduced Selling,
General and Administrative Expenses offset partially by increased Field Operating
Expenses and Depreciation, Depletion and Amortization.
Operating Revenues from Continuing Operations for the nine months ended September
30, 2008 increased by approximately 241% over the corresponding period for 2007 to
$8.2 million.

The increase in revenue was attributable to increased realised oil sales
prices and higher sales volumes of oil at the Ninotsminda Field in Georgia.
The Company reported a net loss for the nine months ended September 30, 2008 of $3.1
million compared to a net loss the corresponding period for 2007 of $11.1 million.
Operating Loss from Continuing Operations for the nine months ended September 30,
2008 improved significantly to $nil compared to $4.7 million in the corresponding period
for 2007.

This was due to improvements in Operating revenues from Continuing
Operations and reduced Selling, General and Administrative Expenses offset partially by
increased Field Operating Expenses and Depreciation, Depletion and Amortization.
Please see the tables attached to this release.
The Form 10-Q can be accessed at the following link;
http://www.sec.gov/Archives/edgar/data/310316/000115697308000930/u56875e10vq.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 harbour 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.

For more information please contact:
US and NORWAY
Eric Cameron, Christopher Rodsten, Fredrik Tangeraas
Gambit Hill & Knowlton AS
Tel: +47 96 62 55 94
Email:
September 30, December 31,
2008 2007
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 2 ,449,231 $ 6,869,381
Accounts receivable 1 72,902 379,268
Crude oil inventory 5 91,840 373,770
Prepayments 2 94,724 311,537
Assets to be disposed 8 0,499 71,294
Other current assets 1 50,930 167,404
Total current assets $ 3 ,740,126 $ 8,172,654
Non Current Assets
Prepaid financing fees 710,171 74,804
Capital assets, net (including unevaluated amounts of $14,400,200 and
$9,444,742, respectively) 5 3,675,568 51,304,619
Total Assets $ 5 8,125,865 $ 59,552,077

LIABILITIES AND STOCKHOLDERS" EQUITY
Accounts payable - trade $ 8 01,810 $ 481,665
Loans payable - short term 3 ,626,297 -
Accrued liabilities 6 ,339,019 6,639,887
Liabilities to be disposed 3 81,071 336,446
Total current liabilities $ 1 1,148,197 $ 7,457,998
Long term debt 9 ,339,040 11,697,231
Other non current liabilities - 37,778
Provision for future site restoration 2 48,024 230,720
Total Liabilities $ 2 0,735,261 $ 19,423,727
Temporary Equity $ 2,119,530 $ 2,119,530
Stockholders" equity:
Common stock, par value $0.10; authorized - 1,000,000,000 shares at
September 30, 2008 and 500,000 at December 31, 2007; shares
issued, issuable and outstanding - 242,120,974 at September 30, 2008
and at December 31, 2007 2 4,212,096 24,212,096
Capital in excess of par value 2 45,650,775 245,316,295
Accumulated deficit ( 234,591,797) ( 231,519,571)
Total stockholders" equity $ 3 5,271,074 $ 38,008,820
Total Liabilities, Temporary Equity and Stockholders" Equity $ 58,125,865 $ 59,552,077
(Expressed in United States dollars)

CANARGO ENERGY CORPORATION AND SUBSIDIARIES
Financial Statements
Consolidated Condensed Balance Sheets
Expressed in United States dollars
Financial Statements
Expressed in United States dollars
Consolidated Condensed Statement of Operations - Unaudited
CANARGO ENERGY CORPORATION AND SUBSIDIARIES
September 30, September 30, September 30, September 30,
2008 2007 2008 2007
Operating Revenues from Continuing Operations:
Oil and gas sales $ 2,965,661 $ 3 2,961 $ 8 ,196,657 $ 3,394,808
2,965,661 3 2,961 8 ,196,657 3,394,808

Operating Expenses:
Field operating expenses 454,348 1 6,427 1 ,252,433 690,851
Direct project costs 67,345 1 73,105 585,620 515,939
Selling, general and administrative 1,543,237 1,901,454 4 ,255,189 5,327,739
Depreciation, depletion and amortization 702,432 1 39,171 2 ,136,274 1,516,246
2,767,362 2,230,157 8 ,229,516 8,050,775
Operating Income (Loss) from Continuing Operations 198,299 ( 2,197,196) ( 32,859) ( 4,655,967)
Other Income (Expense):
Interest income 2,873 6 3,329 40,848 250,146
Interest and amortization of debt discount and expense (867,057) ( 1,144,539) ( 2,571,244) ( 5,307,304)
Loss/Cost on debt extinguishment - ( 5,592,828) - ( 12,127,494)
Foreign exchange losses (210,581) (7,497) ( 401,208) (38,806)
Other (15,708) ( 1,025,067) ( 72,861) ( 761,196)
Total Other Expense ( 1,090,473) ( 7,706,602) ( 3,004,465) ( 17,984,654)
Loss from Continuing Operations Before Taxes (892,174) ( 9,903,798) ( 3,037,324) ( 22,640,621)
Income taxes - - - -
Loss from Continuing Operations (892,174) ( 9,903,798) ( 3,037,324) ( 22,640,621)
Net Income (Loss) from Discontinued Operations, net of taxes and
minority interest (4,237) ( 55,873) ( 34,902) 11,493,685
Net Income (Loss) $ (896,411) $ ( 9,959,671) $ ( 3,072,226) $ ( 11,146,936)
Weighted average number of
common shares outstanding
- Basic 242,120,974 2 39,053,232 242,120,974 238,557,879
- Diluted 242,120,974 2 39,053,232 242,120,974 238,557,879
Basic Net Income (Loss) Per Common Share
- from continuing operations $ ( 0.00) $ ( 0.04) $ ( 0.01) $ ( 0.09)
- from discontinued operations $ ( 0.00) $ ( 0.00) $ ( 0.00) $ 0.05
Basic Net Income (Loss) Per Common Share $ ( 0.00) $ ( 0.04) $ ( 0.01) $ ( 0.04)
Diluted Net Income (Loss) Per Common Share
- from continuing operations $ ( 0.00) $ ( 0.04) $ ( 0.01) $ ( 0.09)
- from discontinued operations $ ( 0.00) $ ( 0.00) $ ( 0.00) $ 0.05
Diluted Net (Income) Loss Per Common Share $ ( 0.00) $ ( 0.04) $ ( 0.01) $ ( 0.04)
Nine Months Ended
Unaudited
Three Months Ended
(Expressed in United States dollars)
Unaudited

 




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