The oil mining leases had been granted to Allied by the Federal Republic of Nigeria (Non-Oyo Contract Rights).
Allied and one of its affiliates together own approximately 62% of Camac Energy’s outstanding capital stock.
Upon consummation of the transaction contemplated under the purchase agreement, Camac Energy will have acquired Allied’s full interest in the PSC and recombined the Oyo Field within OML 120, and will have also acquired all of Allied’s rights under OML 121.
In exchange for the Non-Oyo Contract Rights, Camac Energy has agreed to an option-based de-risking consideration structure, which provides Camac Energy the ability to make staged valuation determinations at set development points before committing additional purchase capital.
The OML 120 block is located directly east of OML 133, which contains the giant 500 million barrel Erha Field, and north of OML 121, where in the southeast corner of the block Allied has detected signs of potential gas resources in preliminary drilling results.
Based upon internal mapping and 3D seismic studies, nine new prospects have been identified by Allied within the OML 120/121 blocks.
