CAMAC Energy Inc . (NYSE Amex: CAK), a U.S.-based energy company engaged in the exploration, development and production of oil and gas, today announced that it has been informed that Nigerian Agip Exploration (“NAE”),[ a subsidiary of Eni SpA (“Eni”)], its partner in Nigerian OMLs 120 and 121 (the “OMLs”), has signed a definitive agreement to divest its 40% working interest in the OMLs to Allied Energy PLC (“Allied”), an affiliate of the Company’s largest shareholder. According to NAE, the transaction is subject to customary conditions for closing and is expected to conclude during the first quarter of 2012.
The Company has also been informed that following the closing, 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.
As part of its West African regional growth strategy, the Company is also announcing today that it has reached agreement on commercial terms with two national oil companies to acquire three offshore exploration licenses covering three blocks (“license blocks”). Per the agreed terms, CAMAC Energy 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. 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. Full details are expected to be released at that time.