A Review of the Nigerian Energy Industry

CAMAC Energy announces revenue loss for 3rd quarter 2011

9 November 2011, Sweetcrude, Houston – CAMAG Energy Incorporated, a U.S.-based energy company engaged in the exploration, development and production of oil and gas in West Africa, today announced a net loss of $0.7 million, or $0.00 per diluted common share, for the third quarter ended September 30, 2011.

This compares to a net loss of $188.6 million, or $1.32 per diluted common share, for the same period in 2010.

According to the company, the decrease in net loss was principally related to the impairment charge taken for its Nigerian asset, the Oyo field, in the prior period and cost oil recovery revenues in the current period, partially offset by an increase in exploratory expenses in the current period related to the ZJS-3 and ZJS-4 wells in China.

For the nine months ended September 30, 2011, CAMAC Energy reported a net loss of $23.2 million, or $0.15 per diluted common share, as compared to a net loss of $194.9 million, or $1.79 per diluted common share, in the nine months ended September 30, 2010.

The decrease in net loss was principally related to the impairment charge taken for the Oyo Field in the prior period, partially offset by increased depletion expense and the increased exploratory expenses as previously discussed.

The company said from inception of the workover related to the Oyo Field well 5 in December 2010 through September 30, 2011, it has incurred a total expense of $56.4 million related to the workover.

Up to September 30, 2011, it has earned oil recovery revenues of $23.6 million and $32.2 million in cash related to the workover.

The company expects to recover the remaining $32.8 million in cost oil revenues and $24.2 million through future liftings, in correlation with payments made.

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