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Current CAK Stock Info

CAMAC Energy Inc. (NYSE MKT: CAK) is a U.S. based oil and gas company engaged in the exploration of offshore oil and gas leases in deep water Nigeria. The Company was founded in 2005 and has offices in Houston, Texas, Nairobi, Kenya, Banjul, Gambia and Lagos, Nigeria.

CAMAC Energy, Inc. announced on October 16, 2013, preliminary results from its Oyo-7 well in OML 120 offshore Nigeria. The results exceed joint internal Allied-CAMAC pre-drill expectations; Allied Energy PLC is the operator of the Oyo-7 well. Logging while drilling data indicated gross oil pay was encountered at 133 ft. (net oil pay of 115 ft.) and gross gas pay of 103 ft. (net gas pay of 93 ft.) in the gas cap from the Pliocene reservoir. The reservoir was penetrated at 5,564 ft. with a planned total drilling depth of 8,038 ft. CAK expects to penetrate the Miocene secondary objective, which ultimately is as critical as the Pliocene results at Oyo-7 given that the large Bonga and Erha Fields offshore Nigeria are both producing from the deeper Miocene.

In its Q2’13 earnings call, Earl McNiel, CAMAC Energy’s Senior Vice President and Chief Financial Officer, said he expects the drilling process on the Oyo 7 to take approximately 60 days. He also explained the well is dual-purpose, and is being used to both increase production and test potential in the deeper Miocene. CAK expects to begin production on the Oyo 8 in 2014, and estimates gross production at 6MBOPD TO 7MBOPD. The prospect of spudding the Oyo 9 and another exploratory Miocene well remain under consideration.

CAMAC Commentary

Dr. Kase Lawal, Chairman and CEO of CAMAC Energy, said: “We are highly encouraged by these preliminary net pay results in the Pliocene reservoir, which is the primary objective of the well. Not only have we confirmed net oil pay results that exceed our internal expectations, but a smaller than expected gas column was also penetrated. As a result, we expect improved oil production from the horizontal section. I am proud of the technical teams at both Allied Energy and CAMAC Energy for our successful drilling operations, and look forward to updating shareholders as we complete drilling and evaluation of the deep Miocene reservoir.”

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.