Africa Oil Farm Out in Ethiopia Closes

Petroleum Africa [29/10/12]
Africa Oil Corp. has closed the previously announced farm out of an additional 25% stake in two blocks in Ethiopia toNew Age (African Global Energy) Ltd. Under the agreement New Age acquired an additional 25% interest in Africa Oil''s Blocks 7 and 8, together with operatorship of both blocks and the Adigala Area.

Following the completion of the New Age farm out transaction worth $1.5 million, the resulting interest in Blocks 7 and 8 have Africa Oil with 30%, New Age with 40%, and Afren with 30%.

Keith Hill, Africa Oil''s Ppresident and CEO, stated, "We are very pleased to have completed this farmout to New Age, an existing partner in our Ethiopian exploration program. We look forward to working together to expand on the success we have had in our East Africa exploration program to date. Africa Oil looks forward to commencing drilling operations in Ethiopia, with the Sabisa-1 well which is planned to be spud before the end of the year in the South Omo Block. Tullow Oil plc ("Tullow") holds a 50% working interest and operates the South Omo Block with Africa Oil holding the remaining 50% interest. East Africa is rapidly becoming the most prospective oil and gas province in the world and the large, strategic land portfolio we hold ensures we will be at the center of industry activity."

No comments:

Post a Comment