Quarterly report pursuant to Section 13 or 15(d)

3. CASH AND CASH EQUIVALENTS

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

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

 

    June 30, 2012     March 31, 2012
           
US Dollars $   37,478,730   $   39,363,094
Foreign currency   -     9,184
     Total cash and cash equivalents    37,478,730      39,372,278
Less restricted cash   36,003,011     36,002,101
     Cash and cash equivalents – unrestricted $   1,475,719   $   3,370,177

 

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.