CIC Energy Corp. which has recently entered into a preliminary agreement with Japanese Corporation Sumitomo, announced financial results for the third quarter of 2007. The company reported a loss for the three month period ended August 31, 2007, in the amount of $2,188,008, or $0.04 per share, and a loss for the three quarters period, of $5,949,220 or $0.13 per share.
The company could have these losses because of non-capitalized exploration expenditures, administration and personnel costs, as well as the cost of private placements financings. Capitalized exploration costs amounted to $73,561,520, with exploration costs for the nine month period totaling $22,326,282.
In this release, the BVI-registered CIC Energy also updated estimates for the Mmamabula Energy Project, as Engineering, Procurement and Construction (EPC) contract prices for power stations have increased significantly worldwide since 2005, when it had been started. This increase of the price is due to substantial global demand for new power plants, robust construction market, higher commodity prices and tight supply for engineering services. Now the Mmamabula Project is currently estimated to be approximately 40% of company’s last published cost estimate. Now CIC Energy is revising schedule estimates of its major Project by approximately four to six months.