CAMAC Energy Finalizes Acquisition of Allied

CAMAC Energy Inc. closed the acquisition of the remaining economic interests that it did not already own in the production sharing contract covering Oil Mining Leases 120 and 121 (“OMLs”) offshore Nigeria, which include the currently producing Oyo Field, from Allied Energy Plc (“Allied”).

CAMAC Energy now has operatorship and a 100% interest in 8 production and exploration licenses in 3 countries, including the OMLs, Blocks L1B and L16 onshore Kenya, Blocks L27 and L28 offshore Kenya, and Blocks A2 and A5 offshore Gambia. Total net acreage is just over 41,000 square kilometers, or approximately 10 million acres. Current net daily production is approximately 2,000 barrels of oil, and 40 million cubic feet of natural gas.

To fund the cash portion of the consideration for the transaction with Allied and a portion of anticipated capital expenditures for development of the Oyo Field, CAMAC Energy has also closed the first $135 million of a total $270 million equity investment from the Public Investment Corporation (SOC) Limited (“PIC”) of South Africa. In connection with the investment by the PIC the Company began trading on the Johannesburg Stock Exchange (“JSE”).

“We are pleased to announce the closing of these transformational events for our company,” said Chairman and Chief Executive Officer Kase Lawal. “We are especially honored that the PIC has invested in our growth plans with confidence and we welcome them on board as a significant strategic partner on our exciting journey ahead. With 100% interest in all of our assets in Nigeria, Kenya, and Gambia, we can now focus on our drilling program to increase current production and reserves.”

Zeona Jacobs, Director of Issuer and Investor Relations of the JSE, said, “We are pleased to see CAMAC Energy list on our main board today. The listing in Johannesburg gives CAMAC Energy a presence on Africa’s biggest bourse and access to a large and diverse investor base with an array of investors looking to gain exposure to the African continent.”

Press Release, February 24, 2014; Image: CAMAC