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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.