CAMAC ENERGY INC: DESPITE NET LOSS, BRIGHT FUTURE ABOUNDS
CAMAC Energy Inc. (NYSE MKT: CAK), a United States publicly traded Energy Company that primarily engaged and focused on strategic development of oil projects by singular and multilateral operations principally in Africa. The market capitalization of CAMAC Energy Inc is $104.46 million.
As reported by eStock daily, CAMAC Energy current ratio stood at 0.68, "while its shares were looking forward SMA50 with 9.19. The company offered earnings per share of -0.05 while its 155.91 million shares were outstanding. YTD performance of the stock was 13.56%."
For its fiscal last-quarter which ended in December 31, 2012; CAMAC Energy reported a net loss of $2.9 million or $0.02 a share, compared to previous net loss of $1.7 million, or $0.01 a share of same quarter in 2011.
CAMAC Energy reported a net loss of $6.1 million, or $0.04 per share for the fiscal year of 2012 that ended in December 31, in comparison to net loss of $24.9 million or $0.16 per share of 2011 fiscal year that ended in December 31.
With the totality of net loss, It may be little fuzzy to see the light at the end of tunnel. But the bleeding may be drying up and confidence building on the Camac energy stocks maybe ramping up with the improvement in the net loss when compared that of 2011 and 2012. And it was highlighted that the " net loss for the year 2012 was primarily due to lower workover costs related to well #5 in Oyo Field."
Dr. Kase Lawal, Chairman and Chief Executive Officer said "During 2012, the Company acquired six promising exploration blocks in Gambia and Kenya, assumed technical operatorship of its Nigerian blocks OML 120 and 121, divested its China asset, and worked alongside its partner Allied Energy Plc. ("Allied") to engage contractors for the drilling of Oyo well #7. As a result of these achievements, CAMAC Energy is currently poised to create significant value for shareholders over the next twelve months by increasing gross production from Oyo, exploring the deeper Miocene in OML 120 and 121, and conducting critical pre-drilling work in Kenya and the Gambia. We expect these activities, along with our ongoing business development program, to improve the cash flow, asset value, and market profile of the Company for the benefit of all our stakeholders."
Camac Energy’s future of oil exploration in Africa has an ample outlook particularly in Oyo Field. At this particular Oyo Field, Camac Energy emphasized that" In the fourth quarter of 2012, there was one oil lifting from Oyo Field of approximately 251,000 barrels compared to one lifting of approximately 400,000 barrels of oil for the same period in 2011."
This has proven that previous net loss of 2011 and 2012 respectively can be improved with the “estimated net proved reserves at the end of 2012 were approximately 3.1 million barrels of oil, as compared to approximately 2.7 million barrels of oil at December 31, 2011. The Oyo Field accounted for 100% of the proved reserves."
Camac Enery has strong financial backing to fulfill its obligations especially in investing in the technical and scientific know-how needed for the further oil exploration in the oil fields of Kenya and Gambia.
Together with its efficient managers and technicians, Camac Enegy has a strong and bright future.
Written By AFRIPOL Commentary and Analysis
Africa Political & Economic Strategic Center (AFRIPOL)