Pacific Asia Petrole (NYSE AMEX:CAK)

On May 24, 2012, CAMAC Energy Inc. (“CAMAC Energy” or the “Company”), through an indirect wholly owned subsidiary, signed two Petroleum Exploration, Development & Production Licenses with The Republic of The Gambia (the “Licenses”), for two previously awarded exploration blocks A2 and A5 (“the Blocks”). For both Blocks, the Company will be the operator, with the Gambia National Petroleum Company (GNPC) having the right to elect to participate up to a 15% interest, following approval of a development and production plan. The Company is responsible for all expenditures prior to such approval even if the GNPC elects to participate.

Fourth Quarter 2011 Results

• Operating revenues were $9.2 million for the fourth quarter of 2011 compared to $4.4 million for the same period in 2010.
• Net loss of $1.7 million, or $0.01 per diluted share for the quarter ended December 31, 2011. For the same period in 2010, CAMAC Energy reported a net loss of $35.6 million, or $0.25 per diluted share, which included $0.21 per diluted share of intervention expenses.

Chairman and Chief Executive Officer Dr. Kase Lawal commented, “2011 was a transformational year for CAMAC Energy. As a result, we have entered 2012 with a growing portfolio of assets across Africa. The CAMAC Energy of today now has production in Nigeria, the provisional award of two offshore exploration blocks located in the West African Transform Margin, and a Heads of Agreement for three exploration blocks in East Africa’s rift basins. We continue to transform the Company into a Pan-African play for the advantage of our shareholders.”

Estimated net proved reserves at the end of 2011 were approximately 2.7 million barrels of oil, as compared to approximately 5.3 million barrels of oil at December 31, 2010. The Oyo Field accounted for 100% of the proved reserves.

HOUSTON--(BUSINESS WIRE)--CAMAC Energy Inc (NYSE Amex: CAK), a U.S.-based energy company engaged in the exploration, development and production of oil and gas in West Africa and China, today announced a net loss of $0.7 million, or $0.00 per diluted common share, for the third quarter ended September 30, 2011 as compared to a net loss of $188.6 million, or $1.32 per diluted common share, for the same period in 2010.

The decrease in net loss was principally related to the impairment charge taken for 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, the Company 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.

HOUSTON--(BUSINESS WIRE)--CAMAC Energy Inc. (NYSE Amex: CAK), a U.S.- based energy company engaged in the exploration, development and production of oil and gas, today announced net income of $5.7 million, or $0.04 per diluted common share, for the second quarter ended June 30, 2011 as compared to a net loss of $3.2 million, or $0.02 per diluted common share, for the same period in 2010. In the 2011 period, the Company recorded significantly higher net income in Africa, principally due to Cost Oil recovery revenues of $16.2 million on the initial recovery of workover costs on well # 5 in the Oyo Field, located offshore Nigeria. For the six months ended June 30, 2011, the Company reported a net loss of $22.5 million, or $0.15 per diluted common share, as compared to a net loss of $6.3 million, or $0.07 per diluted common share, in the six months ended June 30, 2010. The increased net loss was principally related to workover costs for well # 5 in the Oyo Field recorded in the first quarter of 2011, partially offset by the increase in net income described above for the second quarter 2011 as compared to second quarter 2010.

From inception of the workover related to the Oyo Field well #5 in December 2010 through June 30, 2011, the Company has incurred a total expense of $55.9 million, representing the total estimated cost of the workover. As of the same date, the Company recognized Cost Oil recovery revenues of $16.2 million related to this workover and expects to recognize the remaining $39.7 million, in correlation with payments made, through future liftings.

Cash and cash equivalents at the end of the second quarter of 2011 were $11.2 million. Additionally, at the end of the second quarter our accounts receivable were $28.2 million, all of which was subsequently collected at the end of July. Cash flows used in operations of $33.2 million for the current quarter were primarily affected by payments of workover costs for well #5 in the Oyo Field of $30.8 million, partially offset by proceeds received from financing activities of $25.0 million related to a credit facility secured during the quarter. The remaining unpaid workover amounts will be funded using available cash, proceeds from the credit facility and through Oyo Field lifting proceeds.