Africa Oil Corp. is pleased to announce that it has now closed on the final two blocks out of the previously announced five block farmout transaction with Tullow Oil plc (Tullow). The Company and Tullow have now closed farmouts related to the South Omo Block (Ethiopia) and Blocks 10A, 10BB, 12A and 13T (Kenya). Tullow has assumed the role of operator on all of these blocks. The resulting interests in the five blocks are as follows:
Block 12A (Kenya): Tullow 50%, and Africa Oil 50%
Block 13T (Kenya): Tullow 50%, and Africa Oil 50%
Block 10BB (Kenya): Tullow 50%, Africa Oil 40%, and Lion 10%
Block 10A (Kenya): Tullow 50%, Africa Oil 30%, and Afren - EAX (Black Marlin) 20%
South Omo (Ethiopia):Tullow 50%, Africa Oil 30%, and Agriterra (formerly White Nile) 20%
Tullow paid an aggregate of US$1,686,432 to Africa Oil to acquire its interest in Blocks 12A and 13T. Each party will be responsible for its working interest share of future joint venture expenditures in these blocks.
Keith Hill, Africa Oil's President and Chief Executive Officer, commented, "We are pleased to have completed our multi-block transaction with Tullow, who have arguably been the most successful exploration company in Africa, if not the world, over the past decade. We see great synergies with the use of the technical and operational expertise they have gained in their nearby Uganda Lake Albert Graben project. The transaction also means that any resultant discoveries will be operated by one of the main partners in the proposed pipeline project to export crude from this highly prospective developing region. With their proven success in Africa, combined with the East African Rift Basin assets that Africa Oil brings to the deal, we look forward to the implementation of a successful exploration program in the months and years to come."