Under the terms of the agreement, MENA will acquire a 30% interest in Block 9 by repaying to Kulczyk Oil 30% of approximately $10.4m in costs incurred to date.
MENA will also fund 60% of the costs for the drilling of the first exploration well on the block and assume liability for 30% of about $6.7m bank guarantee currently backed by Kulczyk Oil.
Kulczyk Oil has previously agreed to transfer a 20% beneficial interest in the block to Triton Petroleum and a 5% beneficial interest to an unrelated party.
Accordingly, the direct interest of Kulczyk Oil in Block 9 is 75% before giving effect to the MENA agreement and 45% after giving effect to the agreement.
