26 November 2013, Lagos – United States-based, CAMAC Energy Inc.is concluding plans to acquire the remaining economic interests that it does not currently own in the production sharing contract covering Oil Mining Leases 120 and 121 offshore Nigeria.
CAMAC announced last week that it has entered into a definitive agreement for the assets, which include the currently producing Oyo Field, from Allied Energy Plc.Allied is a wholly owned subsidiary of CAMAC Energy Holdings Limited CEHL, the 57.2% majority stockholder of the Company.
To acquire the interests, CAMAC Energy said in a statement that it will issue 497,454,857 shares of common stock, pay $170 million in cash and issue another $50 million convertible subordinated note.
CAMAC also said it had entered into a definitive agreement with a South Africa firm to fund the cash portion of the consideration for the transaction with Allied.
The company said a portion of the anticipated capital expenditures for development of the Oyo Field, will be funded by the Public Investment Corporation (SOC) Limited of South Africa.
The investment is for a $270 million equity investment through a private placement of 376,884,422 shares of common stock, representing an approximate 30% ownership interest in the Company after completion of the transactions.
In connection with the investment by the PIC, the Company has agreed to list its common stock on the Johannesburg Stock Exchange, JSE.
These transactions are subject to stockholder and regulatory approvals and are each conditional upon the closing of the other transaction and listing on the JSE.
“We are honored that the PIC has placed their trust and confidence in us by investing in our organization,” said Chairman and Chief Executive Officer of CAMAC Energy, Dr. Kase Lawal.He added, “The Allied acquisition, investment by the PIC and secondary listing on the JSE will completely change the complexion of our Company, and we look forward to beginning 2014, as a stronger organisation with increased production, revenues and scale. Being dual-listed on the NYSE and JSE will provide increased liquidity and transparency for our shareholders.“With 100% economic ownership of our high-impact, deepwater offshore assets, we will be well positioned to pursue our goal of producing approximately 14,000 barrels of oil per day once Oyo-7 and Oyo-8 are completed next year.”