Caracal issues first quarter 2014 results

Caracal issues first quarter 2014 results CALGARY, May 9, 2014 /CNW/ - Caracal Energy Inc. ("Caracal" or the "Company")(LSE:CRCL) is pleased its first quarter results for 2014. A summary of theresults follows, which should be read in conjunction with the financialstatements and related Management's Discussion & Analysis ("MD&A") for thethree months ended March 31, 2014 and 2013 which are available atwww.caracalenergy.com and on the Caracal's SEDAR profile at www.sedar.com. Unless otherwise stated, all dollar amounts are expressed in US$. Highlights: · On April 23, 2014 received the Company's first lifting proceeds of $55.9 million; · On April 14, 2014, GlencoreXstrata plc ("Glencore") and Caracal reached a definitive agreement for a wholly owned subsidiary of Glencore to acquire Caracal for an all cash consideration of £5.50 per common share by way of Plan of Arrangement (the "Arrangement"). The deal is subject to regulatory and shareholder approvals and is expected to close in June 2014; · On April 7, 2014, Caracal announced it signed a $140 million Reserve Based Senior Secured Facility (the "Facility"). In addition, Caracal has an option to increase the Facility by up to an additional US$110 million subject to receipt of further lender commitments. The Facility has a final maturity date of March 31, 2017; · Generated net income of $9.3 million and operating cash flow before changes in non-cash working capital of $32.6 million; · Exited the quarter with working capital of $194.5 million. Operational highlights since the Company's March 31, 2014 and April 7, 2014press releases: · Average gross field production of 11,799 barrels of oil per day ("bopd"); · Drilled Badila 9 (16 days spud to rig release) and drilled Badila 11 (12 days spud to rig release); · Completed the 2D and 3D seismic acquisition which is currently being interpreted; · Substantially completed the rig move to Kibea-2 with an anticipated spud date Mid-May; · Mangara 6 was completed in preparation for production; · Received a new drilling rig (Rig 60) in the field and anticipate spudding Mangara 7 in late May; · Received a new completion rig (rig 102) and anticipate operation starting late May on Mangara 4. Selected Financial Results for the three months ended March 31, 2014 and 2013 2014 2013 Oil revenue 55,894 - Change in oil inventory (10,828) - 45,066 - Expenses Operating expenses 4,906 - Transportation expenses 4,024 - Depreciation and depletion 8,344 394 Share-based compensation 2,723 2,121 General and administrative 9,084 12,733 Finance expense 6,595 7,765 Foreign exchange loss 733 354 36,409 23,367 Net income (loss) before tax 8,657 (23,367) Deferred tax reduction 678 - Net and comprehensive income (loss) 9,335 (23,367) Oil Production Volumes (bbl) bbls/d Gross Field Production 1,061,890 11,799 Entitlement Production 455,974 5,066 Oil inventory comprises production volumes accumulated in pipeline and storagefacilities that have not yet been offloaded and transported to market. As perthe Joint Marketing Agreement ("JMA") for the sale of the Company's crude oil,the price formula to value the inventory uses a dated Brent average and certainadjustments, including a discount or premium to Brent for the difference incrude oil quality. Revenues For the three months ended March 31, 2014, Caracal generated revenue of $55.9million from one cargo lifting. Operating and Transportation Expenses Production commenced September 2013 and as such there was no operating ortransportation expense recorded in the comparative period. Transportation costs include the costs to transport the Company's crude oilthrough the Export Transportation System ("ETS"). Transportation costs perbarrel are anticipated to decrease as additional volumes are transportedthrough the ETS. Depreciation and Depletion Depreciation and depletion expense increased by $8.0 million for the threemonths ending March 31, 2014. The increase is the result of the recognition ofdepletion relating production from the Badila field which commenced inSeptember 2013. Prior thereto, depreciation was related primarily to corporateassets. Share-based compensation The share-based compensation expense for the three months ended March 31, 2014,increased $0.6 million over the comparative period. The increase is attributedto additional stock options and other long term incentive plans granted to newand existing employees. During the three months ended March 31, 2014, Caracalcapitalized $1.1 million (2013 - $0.7 million) of share-based compensationassociated with exploration and development activities. General and administrative General and administrative costs decreased by $3.6 million for the three monthsended March 31, 2014 compared to March 31, 2013 as a result of certain costsrelating to operations being allocated to operating costs. In the comparativequarter these costs were allocated to general and administrative as productionhad not yet commenced. During the period, the Company capitalized $2.3 million(2013 - $1.1 million) of salaries and benefits. Finance Expense Finance expense for the three months ended ending March 31, 2014 decreased by$1.2 million compared to three months ended March 31, 2013. The decrease ismainly a result of the interest income recorded from the accretion of thefarm-in receivable. Documents filed with National Storage Mechanism Copies of the following documents have been submitted to the National StorageMechanism and can be accessed at http://www.morningstar.co.uk/uk/NSM: · Interim Consolidated Financial Statements (unaudited) for the three months ended March 31, 2014 and 2013 · Management's Discussion and Analysis for the three months ended March 31, 2014 and 2013 · Material Change Report dated March 21, 2014 · Material Change Report dated April 7, 2014 · Material Change Report dated April 24, 2014 About Caracal Energy Inc. Caracal Energy Inc. is an international exploration and development companyfocused on oil and gas exploration, development and production activities inthe Republic of Chad, Africa. In 2011, the Company entered into threeproduction sharing contracts ("PSCs") with the government of the Republic ofChad. These PSCs provide exclusive rights, along with its partners, to exploreand develop reserves and resources over a combined area of 26,103 km2 insouthern Chad. The PSCs cover two world-class oil basins with oil discoveries,and numerous exploration prospects. The Company's shares trade on the London Stock Exchange under the symbol CRCL. About Glencore Glencore is one of the world's largest global diversified natural resourcecompanies. As a leading integrated producer and marketer of commodities with awell balanced portfolio of diverse industrial assets, Glencore is stronglypositioned to capture value at every stage of the supply chain, from sourcingmaterials deep underground to delivering products to an international customerbase. The Group's industrial and marketing activities are supported by a globalnetwork of more than 90 offices located in over 50 countries. The Group'sdiversified operations comprise over 150 mining and metallurgical sites,offshore oil production assets, farms and agricultural facilities. Glencoreemploys approximately 190,000 people, including contractors. Cautionary Statements This announcement contains certain forward-looking information and statements.Forward-looking information typically contains statements with words such as"intend", "target", "anticipate", "plan", "estimate", "expect", "potential","could", "will", or similar words suggesting future outcomes. Informationrelating to reserves and resources is deemed to be forward-looking information,as it involves the implied assessment, based on certain estimates andassumptions, that the reserves and resources described exist in the quantitiespredicted or estimated, and can be profitably produced in the future. TheCompany cautions readers not to place undue reliance on forward-lookinginformation which by its nature is based on current expectations regardingfuture events that involve a number of assumptions, inherent risks anduncertainties, which could cause actual results to differ materially from thoseanticipated by the Company. In addition, any forward-looking information ismade as of the date hereof, and each of the Company and its affiliatesexpressly disclaim any obligation or undertaking to update, review or revisesuch forward-looking information contained in this announcement to reflect anychange in its expectations or any change in events, conditions or circumstanceson which such information is based unless required to do so by applicable law. Forward-looking information is not based on historical facts but rather oncurrent expectations and assumptions regarding, among other things, the timingand scope of certain of the Company's operations and the timing and level ofproduction from the Company's properties, plans for and results of drillingactivity and testing programs, future capital and other expenditures (includingthe amount, nature and sources of funding thereof), continued politicalstability, and timely receipt of any necessary government or regulatoryapprovals. Although the Company believes the expectations and assumptionsreflected in such forward-looking information are reasonable, they may prove tobe incorrect. Forward-looking information involves significant known andunknown risks and uncertainties. A number of factors could cause actual resultsto differ materially from those anticipated by the Company including, but notlimited to, risks associated with the oil and gas industry (e.g. operationalrisks in exploration and production; inherent uncertainties in interpretinggeological data; changes in plans with respect to exploration or capitalexpenditures; interruptions in operations together with any associatedinsurance proceedings; reductions in production capacity, the uncertainty ofestimates and projections in relation to costs and expenses and health, safetyand environmental risks), the risk of commodity price and foreign exchange ratefluctuations, the uncertainty associated with negotiating with foreigngovernments, risk associated with international activity, including the risk ofpolitical instability, the risk of adverse economic market conditions, theactual results of marketing activities and the risk of regulatory changes.Forward-looking information cannot be relied upon as a guide to futureperformance. Well-test results are not necessarily indicative of long-termperformance or ultimate recovery. SOURCE: Caracal Energy Inc. For further information: Caracal Energy Inc.Gary Guidry, President and Chief Executive OfficerTrevor Peters, Chief Financial Officer+1 403-724-7200 Longview Communications - Canadian Media EnquiriesAlan BaylessJoel Shaffer+1 604-694-6035+1 416-649-8006 FTI Consulting - UK Media EnquiriesBen Brewerton / Ed Westropp+ 44 (0) 207 8313 [email protected]

(CRCL)