Annual report pursuant to Section 13 and 15(d)

CASH AND CASH EQUIVALENTS

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CASH AND CASH EQUIVALENTS
 12 Months Ended
Mar. 31, 2012
Notes to Financial Statements  
CASH AND CASH EQUIVALENTS

 

NOTE 3 - CASH AND CASH EQUIVALENTS

 

As of March 31, 2012 and 2011 cash and cash equivalents included:

 

  March 31, 2012   March 31, 2011
       
US Dollars $ 39,363,094   $ 274,870
Foreign currency 9,184   151,175
     Total Cash and Cash Equivalents  39,372,278    426,045
Less restricted cash 36,002,101   -
     Cash and cash equivalents – unrestricted $ 3,370,177   $ 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.