GeoGlobal Resources Inc. ("GeoGlobal" or the "Company") (NYSE
MKT:GGR) today announced that the Company has not filed with the US
and Canadian Regulatory authorities its audited consolidated
financial statements for the year ended December 31, 2012, that
were due to be filed on April 16, 2013. The Company did not have
sufficient funding to file its audited financial statements by the
due date. As previously announced, the Company and Sarus Energy
Ltd. ("Sarus") had agreed to close the first part of the sale of
certain of the Company's Indian assets (the "Indian Asset Sale")
for proceeds to the Company of $2 million on April 12, 2013. Sarus
did not close the first part of the transaction on time and has
requested an extension. The Company continues to focus on closing
the transaction with Sarus and on finding other sources of capital.
There is a substantial risk it will not prove to be successful.
The Company anticipates filing its audited financial statements
upon the closing and funding of the first part of Indian Asset Sale
or upon obtaining funding from other sources.
Financial Review
Set forth below is certain financial information from our
unaudited financial statements as at and for the year ended
December 31, 2012. All amounts in the release are in U.S. dollars
unless otherwise noted:
Oil and gas sales 487,467
Interest Income 14,319
Impairment of oil and gas properties 15,861,223
Net loss and comprehensive loss 21,812,552
Net loss per share - basic and diluted 0.17
Current assets 22,336,143
Property and equipment 42,256,456
Total assets 67,503,267
Current liabilities 41,417,139
Total liabilities 42,251,973
Stockholders' equity 25,251,294
Cash dividends -0-
Going Concern
The Company has not achieved its planned principal operations
and is considered to be in the development stage. The Company's
exploration activities and overhead expenses are financed by way of
equity issuance and to-date, oil and gas sales are incidental to
the exploration process.
The Company's financial statements as at and for the year ended
December 31, 2012 have been prepared on a going concern basis,
which contemplates the realization of assets and the settlement of
liabilities and commitments in the normal course of business.
During the year ended December 31, 2012, the Company incurred a net
loss of approximately $21.8 million, used approximately $1.8
million of cash flow in its operating activities, used
approximately $9.7 million in its investing activities and had an
accumulated deficit of approximately $82.0 million. As at December
31, 2012, the Company has working capital deficiency of
approximately $19.1 million. These matters raise substantial doubt
about the Company's ability to continue as a going concern.
The Company's cash balance at December 31, 2012 and anticipated
cash flow from operating activities are not sufficient to satisfy
its current liabilities and meet its exploration commitments of
$12.1 million and $21.9 million, over the twelve months ending
December 31, 2013 and the twenty-four months ending December 31,
2014, respectively. As at December 31, 2012 the Company has $0.8
million of cash and cash equivalents, of which $0.1 million is
committed to carry out activities of the Myra and Sara joint
venture. The residual cash of $0.7 million is available for general
operations of the Company and to meet its current liabilities and
exploration commitments of $12.1 million and $21.9 million as
described above.
To meet its obligations, the Company must divest certain oil and
gas interests, subsidiaries or other available assets, including
entering into other financing arrangements typical in the industry
such as farming out interests in oil and natural gas properties.
The Company will also continue to seek to raise capital through
equity and debt markets.
The Company's cash as at December 31, 2012, available for
general operations of $0.7 million is not sufficient to meet its
ongoing operational requirements. In the fourth quarter of 2012,
the Company has curtailed staffing at its Canadian and Indian
offices and rationalized other expenditures to minimize the ongoing
operational requirements pending the outcome of uncommitted
financing activities described above. If these activities are
unsuccessful, the Company will be forced to substantially curtail
or cease exploration, appraisal and development expenditures and
other operating activities.
The Company's ability to continue as a going concern is
dependent on the success of the operational and financing
initiatives and the successful completion of further exploration
and development activities that will generate profitable operations
from its oil and natural gas interests in the future. The Company
must make an assessment of its ability to fulfill current
liabilities and to meet future exploration requirements in the
normal course of business. The assessment requires estimates
regarding future uncommitted financing, future costs of exploration
programs, timing of activities, future oil and gas prices, amongst
other things. Such estimates are subject to uncertainty and should
our estimates be materially incorrect, the Company's ability to
continue as a going concern would be impaired and these
consolidated financial statements could require material
adjustments to the value of assets and liabilities. These
consolidated financial statements do not reflect any such
adjustments or reclassifications.
Subsequent to December 31, 2012, the Company entered into share
purchase agreement with Sarus Energy Limited, sold its office
premise in India and entered into agreement with a private Israeli
investment group. Proceeds received from these transactions will be
used to reduce the working capital deficiency. As of today, these
transactions, except for sale of office premise in India, have not
closed and there can be no certainty that these transactions will
successfully close. The Company's ability to continue to meet our
ongoing financial commitments and pay our creditors is dependent on
closing these transactions.
About GeoGlobal
GeoGlobal Resources Inc., headquartered in Calgary, Alberta,
Canada, is a US publicly traded oil and gas company, which, through
its subsidiaries, is engaged in the pursuit of petroleum and
natural gas in high potential exploration targets through
exploration and development in India, Israel and Colombia.
Cautionary Statement For Purposes Of The "Safe Harbor"
Provisions Of The Private Securities Litigation Reform Act Of
1995.
This press release contains statements which constitute
forward-looking statements within the meaning of the US Private
Securities Litigation Reform Act of 1995, including statements
regarding the plans, intentions, beliefs and current expectations
of GeoGlobal Resources Inc., its directors, or its officers with
respect to the oil and gas exploration, development and drilling
activities being conducted and intended to be conducted and the
outcome of those activities on the exploration blocks in which the
Company has an interest. The Company updates forward-looking
information related to operations, production and capital spending
on a quarterly basis and updates reserves, if any, on an annual
basis.
We caution you that various risk factors accompany our
forward-looking statements and are described, among other places,
under the caption "Risk Factors" in our Annual Reports on Form
10-K, Quarterly Reports on Form 10-Q and our Current Reports on
Form 8-K. These risk factors could cause our operating results,
financial condition and ability to fulfill our plans to differ
materially from those expressed in any forward-looking statements
made in this press release and could adversely affect our financial
condition and our ability to pursue our business strategy and
plans. If our plans fail to materialize, your investment will be in
jeopardy.
An investment in shares of our common stock involves a high
degree of risk. Our periodic reports, which we file with the
Securities and Exchange Commission and Canadian provincial
authorities may be viewed at http://www.sec.gov and
www.sedar.com.
Contacts: GeoGlobal Resources Inc.
+1-403-777-9250info@geoglobal.com www.geoglobal.com
Geoglobal Resources (AMEX:GGR)
Historical Stock Chart
From Dec 2024 to Jan 2025
Geoglobal Resources (AMEX:GGR)
Historical Stock Chart
From Jan 2024 to Jan 2025
