RE: RE: Summary for the week of March 1, 2013 Needless to say I am rather disappointed by the drop in share price this past week. If CAK's drop was an isolated incident then investors should be concerned. Since the price of other O&G companies have also hit the skids, I am of the opinion this is becoming a gift to those who wish to purchase more shares which is what I intend to do.
Selling into a share price decline will only exacerbate the situation. Try to keep in mind CAMAC has both oil & gas production, is 40% owner of OML 120 & 121, not a production sharing agreement like Mart for instance. MMT has 2.4x the shares outstanding of CAK. For every barrel of oil CAK produces Mart would have to produce 2.4 barrels to keep pace. At least that is the simple calculation. Tax rates, well costs etc, will no doubt be a factor of how much profit each company would get per barrel. Just something I thought I'd mention.
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Last time I checked Camak Energy had a 60% Working Interest in both field OML 120 and 121 and Allied Plc. the sister Company who has Indiginous Status ( not Camac), had the remaining 40 WI, which they acquired from ENI and Allied is the operator.
What is unclear and a tad nebulous, is when you look at the Groos Oil Production and resulting NET to Camak Energy it appears to reflect a ~ 25 % Yield. hence I'm a tad at a loss to understand that piece of the equation.
From latest Sedar filing:
For the three months ended September 30, 2012 and 2011, the Oyo Field had gross crude oil production from two producing wells averaging 2,641 and 3,514 barrels per day, respectively, of which the Company’s net shares including Cost Oil were 388 and 833 barrels per day, respectively. For the nine months ended September 30, 2012 and 2011, the Oyo Field had gross crude oil production from two producing wells averaging 2,791 and 3,878 barrels per day, respectively, of which the Company’s net shares including Cost Oil were 438 and 1,025 barrels per day, respectively. .
Playing the number game :
OML 120 looks like
388/2641= 14.69% yield NET to Camak for Q3
438/2791= 15.70% yield NET for YTD.
OML 121 looks like
833/3514 = 23.70% yield NET to Camak for Q3
1025/3878 = 26.43% yield NET for YTD
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I do not understand how they do their reporting on the OIL side. For 60% WI interest is surely not those yields.