02 January 2012, Sweetcrude, LAGOS – CAMAC Energy Incorporated, a US-based energy company engaged in the exploration, development and production of oil and gas, has announced that Nigerian Agip Exploration (NAE), a subsidiary of Eni SpA and its partner in Nigeria’s OMLs 120 and 121, has signed a definitive agreement to divest its 40% working interest in the OMLs to Allied Energy Plc, a CAMAC Energy affiliate.
But, the transaction is subject to customary conditions for closing and is expected to conclude during the first quarter of 2012, according to NAE.
CAMAC Energy said in a statement that at the closure of the transaction, Allied plans to expedite the development of Oyo Field by drilling two additional production wells commencing in 2012.
“These two wells are expected to significantly increase oil production over current levels. It is the Company’s understanding that Allied also intends to accelerate exploration activities in the OMLs to fully exploit potential outside of Oyo Field, independently estimated at up to two billion barrels of unrisked prospective oil resources,” the company said.
The company stated that as part of its West African regional growth strategy, it has reached agreement on commercial terms with two national oil companies to acquire three offshore exploration licenses covering three blocks.
CAMAC Energy said it will be the operator, with majority working interests in each of the license blocks.
“The license blocks are located in the highly prospective West African Transform Margin, home to several recent major discoveries in Ghana (Jubilee, Odum) and Sierra Leone (Venus, Mercury) and a core focus area for the Company’s expansion efforts,” it stated.
All terms and final award of the license blocks are subject to the final governmental approvals and signing of production sharing contracts, which are expected in the first quarter of 2012, the company said, adding that full details are expected to be released at that time.
Chairman and CEO, Kase Lawal, said of the developments: “Since assuming the role of CEO in 2011, I consistently reiterated two primary goals for CAMAC Energy during 2011. The first was to remove uncertainty with regards to our Nigerian OMLs 120 and 121 by defining and accelerating a development and exploration programme.
” The second goal was to expand our asset footprint by acquiring high-impact exploration acreage in emerging frontier basins in Sub-Saharan Africa.”
“With today’s announcements, we believe we have made significant progress towards both goals. First, we are very pleased that NAE has agreed to sell its interest in the OMLs to Allied, which has subsequently committed to a two well drilling programme commencing in 2012. We expect this new clarity to help unlock the value of both our reserves and prospective resources in OMLs 120 and 121.
“We are in the process of acquiring highly sought after assets in the West African Transform Margin and the East Africa offshore region. Each of these areas is considered among the world’s most exciting emerging hydrocarbon provinces. These new properties will open a new chapter for CAMAC Energy as an operator with ability to control the pace of exploration and development.”
Lawal added: “2011 has been a year of immense challenges and opportunities for CAMAC Energy, and we are pleased to exit the year with very positive momentum towards our goal of creating significant shareholder value.”