Quarterly report pursuant to Section 13 or 15(d)

3. CASH AND CASH EQUIVALENTS

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3. CASH AND CASH EQUIVALENTS
 6 Months Ended
Sep. 30, 2012
Notes to Financial Statements  
CASH AND CASH EQUIVALENTS

As of September 30, 2012 and March 31, 2012 cash and cash equivalents included:

 

    September 30,
2012		   March 31,
2012
                 
U.S. Dollars   $ 37,208,737     $ 39,363,094  
Foreign currency     —         9,184  
     Total cash and cash equivalents     37,208,737       39,372,278  
Less restricted cash     —         36,002,101  
     Cash and cash equivalents – unrestricted   $ 37,208,737     $ 3,370,177  

 

In accordance with the Purchase Agreement, at the closing the Company placed $36 million in cash in escrow to indemnify Palaeontol and its affiliates for losses arising from the Company’s breaches of representations and warranties, failure to perform covenants, ongoing litigation matters, compliance with (and validity of) Emir Oil’s exploration contract, transfer of certain payables, defects in ownership of certain facilities and pipelines, or violations of applicable environmental law. The maximum indemnification obligation of the Company is limited to $39 million except with respect to losses arising out of fraud or criminal misconduct.  On September 20, 2012 the escrow period expired and the entire $36 million that was being held in escrow was released to the Company without any depletion for indemnification obligations.