EastSiberian Plc (TSXV: ESB) Reports Financial Results for the Second Quarter 2013 and Agreement to Extend Farm-in Agreement

ST. HELIER, JERSEY, Jan. 28, 2013 /CNW/ - EastSiberian Plc, formerly PetroKamchatka Plc, ("EastSiberian" or the "Corporation") a Jersey company, reports its unaudited financial results for its second quarter of fiscal year 2013. EastSiberian has filed its Condensed Interim Consolidated Financial Statements for the six months ended November 30, 2012 and its Management's Discussion and Analysis ("MD&A") on www.sedar.com and on its website at www.eastsiberianplc.com.

Selected financial information as at and for the three and six months ended November 30, 2012 and 2011 are set out below and should be read in conjunction with EastSiberian's condensed consolidated interim financial statements for the three and six months ended November 30, 2012 and 2011, its MD&A for the six months ended November 30, 2012 and its May 31, 2012 audited Consolidated Financial Statements.

SELECTED FINANCIAL INFORMATION

The unaudited consolidated financial information of EastSiberian includes the Corporation, its subsidiaries and its proportionate share of the accounts of its joint interest entities.

All financial information is stated in United States dollars.

                   
  Three months ended
November 30,
Six months ended
November 30,
 
  2012 2011 2012 2011  
Expenses $ 440,507 $ 2,966,793 $ 957,755 $ 4,392,046  
Net loss and comprehensive loss $ (440,507) $ (1,517,820) $ (957,755) $ (3,167,243)  
Net loss per share - basic and diluted $ (0.09) $ (0.61) $ (0.20) $ (0.90)  
Cash flow from (used in) operating activities $ (591,337) $ (1,452,484) $ (1,772,277) $ (2,500,429)  
Cash flow from (used in) investing activities $ - $ (30,915) $ 1,595,945 $ (30,915)  
Foreign exchange gain (loss) on cash held in foreign currencies $ - $ (41,009) $ 3,305 $ (57,107)  
Increase (decrease) in cash and cash equivalents $ (591,337) $ (1,483,399) $ (176,332) $ (2,531,341)  
                   
As at   November 30,
2012
  May 31,
2012
 
Total assets $ 1,154,877 $ 3,775,498  
Total liabilities $ 1,421,114 $ 3,083,980  
Shareholders' equity $ (266,237) $ 691,518  
Number of common shares outstanding   4,903,998   4,903,998  

EastSiberian reported a net loss for the three and six months ended November 30, 2012 of $440,507 ($0.09 per share) and $957,755 ($0.20 per share) respectively, compared to a net loss of $2,966,793 ($0.61 per share) and $4,392,046 ($0.90) respectively, for the three and six months ended November 30, 2011.  The loss for the three months ended November 30, 2012, consisted of general and administrative expenses of $448,390, finance income of $10,483 and income taxes of $2,600, whereas the loss for the second quarter of fiscal year 2012 consisted of operating expense recovery of $79,579, general and administrative expenses of $692,245, share-based compensation of $8,664, depreciation of $550,764, impairment of $1,824,760, finance costs of $39,015 and income tax recovery of $69,076..  For the six months ended November 30, 2012, net loss consisted of general and administrative expenses of $984,103, finance income of $115,815 and income taxes of $89,467. The net loss for the period November 30, 2011, consisted of operating expenses of $109,828, general and administrative expenses of $1,518,437, share based compensation of $32,064, depreciation of $945,433, impairment of $1,824,760, finance costs of $30,603 and income tax recovery of $69,076.

For the three and six months ended November 30, 2012, cash used in operating activities was $591,337 and $1,772,277 respectively.  Cash from investing activities for the three and six months ended November 30, 2012, was $nil and $1,595,945 respectively. Cash used in operating activities for the three and six months ended November 30, 2011, were $1,452,484 and $2,500,429 respectively.  Cash used in investing activities were $30,915 and $30,915 respectively, for the three and six months ended November 30, 2011.

At November 30, 2012, the Corporation had negative working capital of $266,237 compared to working capital of $691,518 at May 31, 2012.  At November 30, 2012, current liabilities consisted of $471,875 owing to directors and officers who have agreed to accept common shares of the Corporation at $0.50 per share in lieu of cash.

Farm-in Agreement Extension
The Corporation also announces signing of an Addendum to the previously announced Farm-in Agreement with East Siberian Resources Ltd. that extends the farm-in funding target date from December 31, 2012 to March 31, 2013. All other terms and conditions of the Farm-in Agreement remain unchanged. The extension will provide additional time to complete the initial fund raise of a minimum of $15 million, which will be used to complete the first phase of work program of the farm-in agreement.

About EastSiberian Plc
EastSiberian Plc is an international junior oil exploration company incorporated in the Bailiwick of Jersey with properties located in the Russian Federation. For further information, please visit the EastSiberian Plc website at www.eastsiberianplc.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Advisory Regarding Forward-Looking Statements

This press release together with the audited consolidated financial statements and MD&A referred to therein contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements").  Forward-looking statements are based on the PetroKamchatka's current beliefs as well as assumptions made by, and information currently available to, PetroKamchatka concerning business prospects, strategies, regulatory developments, the ability to obtain equipment in a timely manner to carry out development activities, the ability to get oil to market, and the ability to obtain financing on acceptable terms  Although management of EastSiberian considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.  Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur.  There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized.  Actual results will differ, and the difference may be material and adverse to either PetroKamchatka and/or its security holders.  The forward-looking statements contained in this press release are made as of the date hereof and PetroKamchatka does not undertakes any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law.  The forward-looking statements contained herein are expressly qualified by this cautionary statement.

 

SOURCE EastSiberian Plc



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