Marathon Oil acquired 50% interest in Africa Oil’s Block 9 and 15% interest in its Block 12A for an entry payment of $32m and has agreed to fund the company’s expenditures on these blocks up to $25m.
As per the new farm out agreement, Block 9 interest is equally divided between Africa Oil and Marathon Oil whereas in Block 12A, Tullow Oil holds 65%, Africa Oil owns 20%, and Marathon Oil has 15%.
Africa Oil president and CEO Keith Hill said, "The consideration to be received from Marathon Oil will allow us to both accelerate the exploration in the blocks that Marathon Oil is farming into as well as provide additional funding to the Company for the accelerated exploration program on the Tertiary rift trend being executed in partnership with Tullow Oil."
Africa Oil with 50% interest in Block 9 will be the operator whereas Marathon Oil has an option to become the operator of Block 12A if it makes a new discovery.
