February 26, 2008
Artumas Group Inc. (OSE: AGI) ("Artumas"), today announced its interim results for the fourth quarter 2007and preliminary, unaudited financial results for the full year 2007. (In US Dollars, unless stated otherwise.)
Q4:2007 Highlights
On 7 November 2007, Artumas Group Inc. successfully closed a private placement, consisting of an equity issue and a convertible bond issue for gross proceeds of $168 million. Twelve (12) million common shares were issued for gross proceeds of $98 million, bringing the total number of issued and outstanding shares to 36.6 million. Concurrently, gross proceeds of $70 million were raised in convertible bonds carrying a coupon of 6% per annum, paid semi-annually and maturing in November 2012.
This financing indicates the strong market support for the Artumas business plan, especially in a time of relative financial market uncertainty. The net proceeds of this offering are committed to advance Artumas' understanding of the crude oil exploration potential in the Rovuma Basin in Mozambique, to appraise the development potential of the Mnazi Bay Concession in Tanzania through seismic acquisition and subsequent drilling activities, and to fund general and administrative costs, operations and business development.
Subsequent to the financing, Artumas has adequate financial resources and support to fund the 2008 capital expenditure program into the 2009 drilling program.
Operations: Tanzania
- Phase 1 Pre-Feasibility Analysis for proposed 300 MW power generation and transmission interconnection project was completed, confirming the economic and commercial feasibility of this project.
- Announcement of Arranger Agreement with FMO to facilitate the financing of planned 300 MW integrated power project.
- Discussions with KenGen regarding CNG imports continue.
Operations: Mozambique
- Oil samples collected from Mnazi Bay concession well tests and rock samples obtained from drilling operations in mid 2007, confirm the potential for a new oil-prone system in the Rovuma Basin. This new analysis increases the chances of finding commercial quantities of oil in the Rovuma Delta Basin as a whole.
- Rose & Associates play analysis concluded a success case net present value (discounted at 10%) of Artumas' 8.5% net participating interest in the Offshore Area 1 Block ranges from a P90 of $215 million to a P10 of $1,450 million with a Pmean or expected value of $714 million net to Artumas.
- Anadarko Petroleum Corp. commenced 3300 sq km of 3D seismic on Offshore Area 1 Block in January 2008.
- Offshore Area 1 Block is being prepared for 1000 km of 2D seismic.
- Artumas received approval to acquire 750 km of 2D seismic on its Rovuma Onshore Block.
- Rose & Associates is scheduled to report on new play analysis of success case of Rovuma Onshore Block and shallow and transitional analysis of Offshore Area 1 Block, which is expected March 2008.
Financial
- Subsequent to the November private placement, the company had a closing cash position as of year end 2007 of $145 million, being held in a combination of cash and guaranteed investment certificates with effective interest rates between 4.05% and 4.58%.
- Artumas reported assets as of end 2007 of $335.6 million compared to the end 2006 of US $164.9 million, with liabilities of $154.5 million at 2007 year end versus $102.6 million at 2006 year end.
- Total expenses in the year ended 2007 were $33 million compared to $14 million in the same period of the previous year. The increase was due to net financing costs, higher operating costs for the Tanzanian and Mozambique exploration program and increased general and administrative costs to support the company's expanded programs.
- Losses per share were $0.39 in the fourth quarter and $1.09 for the full year. This compares to $0.11 in the fourth quarter last year and $0.32 for the full 2006 year.
- At December 31, 2007, and subsequent to the private placement, Artumas had 36.6 million shares issued and outstanding.
- At December 31, 2007 and subsequent to the November private placement, the Company had four convertible bonds outstanding totaling $135 million. This balance included the private placement convertible bond issue that closed during the fourth quarter whereby gross proceeds of $70 million were raised with an annual coupon of 6% per annum, paid semi-annually and maturing in November 2012.
Stephen W. Mason, CEO and President, and Cameron Barton, CFO, will give a presentation of the interim financial statements for the fourth quarter and preliminary, unaudited financial results for the full year 2007. The presentation will be held at 10:30 a.m. on Tuesday, February 26, 2008 at the Hotel Continental at Oslo. The presentation will be held in English.
The fourth quarter presentation can also be followed live on the internet as a webcast http://media01.smartcom.no/Microsite/start.aspx?eventid=2701 or at www.artumas.com. An archived version of the webcast will be posted on the company's website shortly after the presentation. This summary should be read in conjunction with today's release of the Financial Statements and Management's Discussion and Analysis.
For further information, please contact: www.artumas.com
www.artumas.tv
Stephen W. Mason, President and CEO +44 784 137 3695
Cameron Barton, CFO +1 403 268 6511
Kathrine Astrup, Argument +47 994 38 413
Wendy Shaw, Director Investor Relations +1 403 681 8960
Artumas Group Inc. is an independent hydrocarbon exploration and production company with a significant asset base position and a competitive advantage in the emerging resource basins of East Africa.
Artumas' common shares trade on the Oslo Stock Exchange under the symbol AGI.
FORWARD LOOKING STATEMENTS
This news release may contain forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
This news release is not for dissemination in the United States or to any United States news services. The common shares of Artumas have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
NOTICE
Oslo Bors has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This information is subject of the disclosure requirements
acc. to ยง5-12 vphl (Norwegian Securities Trading Act)
acc. to ยง5-12 vphl (Norwegian Securities Trading Act)
