Caracal issues first quarter 2014 results

CALGARY, May 9, 2014 /CNW/ - Caracal Energy Inc. ("Caracal" or the "Company")
(LSE:CRCL) is pleased its first quarter results for 2014. A summary of the
results follows, which should be read in conjunction with the financial
statements and related Management's Discussion & Analysis ("MD&A") for the
three months ended March 31, 2014 and 2013 which are available at
www.caracalenergy.com and on the Caracal's SEDAR profile at www.sedar.com.

Unless otherwise stated, all dollar amounts are expressed in US$.

Highlights:

·        On April 23, 2014 received the Company's first lifting proceeds of
         $55.9 million;

·        On April 14, 2014, GlencoreXstrata plc ("Glencore") and Caracal
         reached a definitive agreement for a wholly owned subsidiary of Glencore
         to acquire Caracal for an all cash consideration of £5.50 per common
         share by way of Plan of Arrangement (the "Arrangement"). The deal is
         subject to regulatory and shareholder approvals and is expected to close
         in June 2014;

·        On April 7, 2014, Caracal announced it signed a $140 million Reserve
         Based Senior Secured Facility (the "Facility"). In addition, Caracal has
         an option to increase the Facility by up to an additional US$110 million
         subject to receipt of further lender commitments. The Facility has a
         final maturity date of March 31, 2017;

·        Generated net income of $9.3 million and operating cash flow before
         changes in non-cash working capital of $32.6 million;

·        Exited the quarter with working capital of $194.5 million.

Operational highlights since the Company's March 31, 2014 and April 7, 2014
press releases:

·        Average gross field production of 11,799 barrels of oil per day
         ("bopd");

·        Drilled Badila 9 (16 days spud to rig release) and drilled Badila 11
         (12 days spud to rig release);

·        Completed the 2D and 3D seismic acquisition which is currently being
         interpreted;

·        Substantially completed the rig move to Kibea-2 with an anticipated
         spud date Mid-May;

·        Mangara 6 was completed in preparation for production;

·        Received a new drilling rig (Rig 60) in the field and anticipate
         spudding Mangara 7 in late May;

·        Received a new completion rig (rig 102) and anticipate operation
         starting late May on Mangara 4.

Selected Financial Results for the three months ended March 31, 2014 and 2013

                                      2014       2013

Oil revenue                           55,894     -

Change in oil inventory               (10,828)   -

                                      45,066     -

Expenses

Operating expenses                    4,906      -

Transportation expenses               4,024      -

Depreciation and depletion            8,344      394

Share-based compensation              2,723      2,121

General and administrative            9,084      12,733

Finance expense                       6,595      7,765

Foreign exchange loss                 733        354

                                      36,409     23,367

Net income (loss) before tax          8,657      (23,367)

Deferred tax reduction                678        -

Net and comprehensive income (loss)   9,335      (23,367)


Oil Production

                             Volumes (bbl)  bbls/d

Gross Field Production       1,061,890      11,799

Entitlement Production       455,974        5,066


Oil inventory comprises production volumes accumulated in pipeline and storage
facilities that have not yet been offloaded and transported to market. As per
the Joint Marketing Agreement ("JMA") for the sale of the Company's crude oil,
the price formula to value the inventory uses a dated Brent average and certain
adjustments, including a discount or premium to Brent for the difference in
crude oil quality.

Revenues

For the three months ended March 31, 2014, Caracal generated revenue of $55.9
million from one cargo lifting.

Operating and Transportation Expenses

Production commenced September 2013 and as such there was no operating or
transportation expense recorded in the comparative period.

Transportation costs include the costs to transport the Company's crude oil
through the Export Transportation System ("ETS"). Transportation costs per
barrel are anticipated to decrease as additional volumes are transported
through the ETS.

Depreciation and Depletion

Depreciation and depletion expense increased by $8.0 million for the three
months ending March 31, 2014. The increase is the result of the recognition of
depletion relating production from the Badila field which commenced in
September 2013. Prior thereto, depreciation was related primarily to corporate
assets.

Share-based compensation

The share-based compensation expense for the three months ended March 31, 2014,
increased $0.6 million over the comparative period. The increase is attributed
to additional stock options and other long term incentive plans granted to new
and existing employees. During the three months ended March 31, 2014, Caracal
capitalized $1.1 million (2013 - $0.7 million) of share-based compensation
associated with exploration and development activities.

General and administrative

General and administrative costs decreased by $3.6 million for the three months
ended March 31, 2014 compared to March 31, 2013 as a result of certain costs
relating to operations being allocated to operating costs. In the comparative
quarter these costs were allocated to general and administrative as production
had not yet commenced. During the period, the Company capitalized $2.3 million
(2013 - $1.1 million) of salaries and benefits.

Finance Expense

Finance expense for the three months ended ending March 31, 2014 decreased by
$1.2 million compared to three months ended March 31, 2013. The decrease is
mainly a result of the interest income recorded from the accretion of the
farm-in receivable.

Documents filed with National Storage Mechanism

Copies of the following documents have been submitted to the National Storage
Mechanism and can be accessed at http://www.morningstar.co.uk/uk/NSM:

·        Interim Consolidated Financial Statements (unaudited) for the three
         months ended March 31, 2014 and 2013

·        Management's Discussion and Analysis for the three months ended March
         31, 2014 and 2013

·        Material Change Report dated March 21, 2014

·        Material Change Report dated April 7, 2014

·        Material Change Report dated April 24, 2014

About Caracal Energy Inc.

Caracal Energy Inc. is an international exploration and development company
focused on oil and gas exploration, development and production activities in
the Republic of Chad, Africa. In 2011, the Company entered into three
production sharing contracts ("PSCs") with the government of the Republic of
Chad. These PSCs provide exclusive rights, along with its partners, to explore
and develop reserves and resources over a combined area of 26,103 km2 in
southern Chad. The PSCs cover two world-class oil basins with oil discoveries,
and numerous exploration prospects.

The Company's shares trade on the London Stock Exchange under the symbol CRCL.

About Glencore

Glencore is one of the world's largest global diversified natural resource
companies. As a leading integrated producer and marketer of commodities with a
well balanced portfolio of diverse industrial assets, Glencore is strongly
positioned to capture value at every stage of the supply chain, from sourcing
materials deep underground to delivering products to an international customer
base. The Group's industrial and marketing activities are supported by a global
network of more than 90 offices located in over 50 countries. The Group's
diversified operations comprise over 150 mining and metallurgical sites,
offshore oil production assets, farms and agricultural facilities. Glencore
employs approximately 190,000 people, including contractors.

Cautionary Statements

This announcement contains certain forward-looking information and statements.
Forward-looking information typically contains statements with words such as
"intend", "target", "anticipate", "plan", "estimate", "expect", "potential",
"could", "will", or similar words suggesting future outcomes. Information
relating to reserves and resources is deemed to be forward-looking information,
as it involves the implied assessment, based on certain estimates and
assumptions, that the reserves and resources described exist in the quantities
predicted or estimated, and can be profitably produced in the future. The
Company cautions readers not to place undue reliance on forward-looking
information which by its nature is based on current expectations regarding
future events that involve a number of assumptions, inherent risks and
uncertainties, which could cause actual results to differ materially from those
anticipated by the Company. In addition, any forward-looking information is
made as of the date hereof, and each of the Company and its affiliates
expressly disclaim any obligation or undertaking to update, review or revise
such forward-looking information contained in this announcement to reflect any
change in its expectations or any change in events, conditions or circumstances
on which such information is based unless required to do so by applicable law.

Forward-looking information is not based on historical facts but rather on
current expectations and assumptions regarding, among other things, the timing
and scope of certain of the Company's operations and the timing and level of
production from the Company's properties, plans for and results of drilling
activity and testing programs, future capital and other expenditures (including
the amount, nature and sources of funding thereof), continued political
stability, and timely receipt of any necessary government or regulatory
approvals. Although the Company believes the expectations and assumptions
reflected in such forward-looking information are reasonable, they may prove to
be incorrect. Forward-looking information involves significant known and
unknown risks and uncertainties. A number of factors could cause actual results
to differ materially from those anticipated by the Company including, but not
limited to, risks associated with the oil and gas industry (e.g. operational
risks in exploration and production; inherent uncertainties in interpreting
geological data; changes in plans with respect to exploration or capital
expenditures; interruptions in operations together with any associated
insurance proceedings; reductions in production capacity, the uncertainty of
estimates and projections in relation to costs and expenses and health, safety
and environmental risks), the risk of commodity price and foreign exchange rate
fluctuations, the uncertainty associated with negotiating with foreign
governments, risk associated with international activity, including the risk of
political instability, the risk of adverse economic market conditions, the
actual results of marketing activities and the risk of regulatory changes.
Forward-looking information cannot be relied upon as a guide to future
performance. Well-test results are not necessarily indicative of long-term
performance or ultimate recovery.

SOURCE: Caracal Energy Inc.

For further information:

Caracal Energy Inc.
Gary Guidry, President and Chief Executive Officer
Trevor Peters, Chief Financial Officer
+1 403-724-7200

Longview Communications - Canadian Media Enquiries
Alan Bayless
Joel Shaffer
+1 604-694-6035
+1 416-649-8006

FTI Consulting - UK Media Enquiries
Ben Brewerton / Ed Westropp
+ 44 (0) 207 8313 3113
caracalenergy.sc@fticonsulting.com

(CRCL)