Quarterly report pursuant to Section 13 or 15(d)

CASH AND CASH EQUIVALENTS

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CASH AND CASH EQUIVALENTS
 9 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
NOTE 3 - CASH AND CASH EQUIVALENTS

As of December 31, 2011 and March 31, 2011 cash and cash equivalents included:

 

    December 31, 2011   March 31,
2011
                 
US Dollars   $ 41,741,011     $ 274,870  
Foreign currency     15,447       151,175  
     Total Cash and Cash Equivalents     41,756,458       426,045  
Less restricted cash     36,001,190       —    
     Cash and cash equivalents – unrestricted   $ 5,755,268     $ 426,045  

 

In accordance with the Purchase Agreement, the Company has 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.