M&A Activity • Jun 30, 2015
M&A Activity
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30 June 2015
African#Petroleum#Corporation#Limited ("African#Petroleum"#or#the#"Company")
African#Petroleum,#an#independent#oil#and#gas#exploration#company#operating#ten#licences# in# five# countries# offshore# West# Africa, provides the# following# update# on# its# previously# announced#partnering process.
African#Petroleum#is# seeking# strategic#partners#on#its# ten#licences#in#Côte#d'Ivoire,#Liberia,# Senegal,# The# Gambia# and# Sierra# Leone# in# order# to# share# risk and# potential reward# of# the# Company's#exploration#programme.
African# Petroleum#announces# that#a#nonPbinding# term# sheet#with#a# private# London# based# independent#oil#and#gas#company#to#farm in#to#the#Company's#100%#owned#Liberian#LBP08# licence# ("Term# Sheet")# has# now# lapsed# due# to# lack# of# progress# within# the# extended# timeframe#granted#to#the#third#party#(as#announced#on#20#March#2015).#
Although#the#Term#Sheet#did not#yield#a#transaction#on this#occasion,#the#intention#remains# to#seek a#partner#on#the#Company's#prospective LBP08#and#LBP09#licences#in#Liberia.
As# announced# on# 29# June# 2015,# African# Petroleum# has# signed# a# binding# joint# bidding# agreement#with#a#large#London#listed#oil#and#gas#company to#provide#a# framework#for#the# incoming#third#party to#secure#a#45%#operated#interest#in#a#Production#Sharing#Contract#(on# terms#to#be#agreed)#covering#the#Company's#Block#CIP513#licence#area#in#Côte#d'Ivoire.#It#is# intended# that# African# Petroleum# will# hold a# nonPoperated# interest# of# 45%, with# the# remaining 10%#carried#interest#held#by#Petroci,#the#National#Oil#Company#of#Côte#d'Ivoire.
Completion# of# the# transaction# is# subject# to# negotiation# and# entry# into# commercial# agreements#and#several#conditions#precedent#including, but#not#limited# to,# the#agreement# and#approval#of#the#Government#of#Côte#d'Ivoire.#
African#Petroleum#and#the#incoming#party are#working#together#towards#completion#of#the# transaction#as#soon#as#possible,#and#the#Company#expects#to#make#further#announcements,# including#further#details#of#commercial#terms, in#due#course#as progress#is made.#
The#Company is in#advanced#farm out#discussions#with#numerous#interested#parties#across# the#Company's#assets,#including The#Gambia#and#Senegal.##The#recent#exploration#success#of# third# party# operators# within# this# area,# namely# Cairn# Energy# in# Senegal# and# Kosmos# in# Mauritania,#has#led#to#a#significant#increase#in#the#level#of#interest#in#these#assets.##There#has# been# a 60%# increase# in# visits# to# the# Company's# data# room# during# H1# 2015# from# a# high# calibre#set# of# companies,# a# number# of# whom# have# confirmed#their# interest# in# pursuing# a# transaction.# # The# Company#seeks# to# attract binding# offers# as# soon# as# possible.# # Further# announcements#on#progress#will#be#made#in#due#course.
The#Company's#immediate#focus#is#to#conclude#the transaction#in#Côte#d'Ivoire,#and#to#farm# out# the# Company's# assets# in# The# Gambia# and# Senegal,# so# that# the# Company# can# align# funding# opportunities# for# the# upcoming# drilling commitments in# areas# with# nearby significant# discoveries.# # # Having# successfully# concluded#the# agreement# for Block# CIP513# in# Côte#d'Ivoire,#the#Company#remains#confident#that#it has#an#asset#base that is#attractive#to# the# industry#and, despite# the# sector# backdrop# of#a low# oil# price#environment,#will# be# in#a# position#to#announce#further#agreements#during H2#2015.##
"Of#importance#to#the#Company#and#its#shareholders#is#the#progress#that#we#are#making#in# securing# partners# and# funding# for# our# acreage# in# Côte# d'Ivoire,#The#Gambia, and# Senegal.## We# are# delighted#to# have# signed# a# binding# joint# bidding# agreement# with# a# large# London# listed#oil#and#gas#company#in#Côte#d'Ivoire#and# remain#in#advanced#discussions#with#other high#quality#industry#players in#relation#to#our#acreage#in#The#Gambia#and#Senegal.##We#hope# to# mature# these discussions# into# farm out# transactions# in due# course# to# enable# us# to# monetise our# quality asset# base by rePcommencing# our# high# impact# exploration# drilling# campaign.
It# was# disappointing# that# the# LBP08# Term# Sheet# lapsed,# but# this# was# a# result# of# external# issues# faced# by# the# third# party# rather# than# any# issues# with# our# asset,# and# our# intention# remains#to#seek#a#high#quality#partner#for#this#highly#prospective#acreage."
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For!further!information,!please!contact: Stuart#Lake,#Chief#Executive#Officer Stephen#West,#Finance#Director Tel:#+44#20#3761 6900
Angeline#Hicks,#Company#Secretary Tel:#+#61#401#489#883
For#UK#and#International#media#– Buchanan Ben#Romney/Helen#Chan Tel:#+44#207#466#5000
For#Norwegian#media#– First#House Geir#Arne#Drangeid Tel:#+47#913#10#458 Geir#Gjervan# Tel:#+47#908#79#108
African#Petroleum#Corporation#is#a#dynamic,#independent#oil#and#gas#exploration#company# operating# ten# licences# in# five# countries# offshore# West# Africa.# The# Company's# assets# are# located# in# fastPemerging# hydrocarbon# basins,# principally# the# West# African# Transform# Margin,# where# several# discoveries# have# been# made# in# recent# years,# including# African# Petroleum# Corporation's# NarinaP1# discovery# in# February# 2012,# which# proved# a# working# hydrocarbon# system# in# the# Liberian# basin.# With a# combined# net# acreage# position# of# 30,378km2 through# its# licences# in# Côte# d'Ivoire,# Liberia,# Senegal,# Sierra# Leone# and# The# Gambia,#the#Company#has#matured#its#portfolio#rapidly,#acquiring#more#than#18,500km2 of# 3D# seismic# data# and# successfully# drilling# three# wells,# one# of# which# was# the# first# hydrocarbons#discovery#in#the#offshore#Liberian#deepPwater#basin.
For# more# information# about# African# Petroleum# Corporation,# please# see# www.africanpetroleum.com.au
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