Continental Focus, International Reach

88 Energy Finalizes Morocco Divestment

Monday, June 1, 2015

88 Energy received notification that the Moroccan Minister for Energy and Minister for Finance have signed the assignment document, finalizing the divestment of the interests of DVM International, 88’s subsidiary in Morocco, in the Tarfaya Offshore Block.

This completes the assignment process and removes a potential liability from 88 Energy’s subsidiary, DVM, to Galp Energia of $3.4 million, if the assignment had not been completed under its agreement with Galp.

Previous agreements executed by DVM, Galp and ONHYM meant that the potential liability was considered a very low risk proposition; however, with the formal completion of the assignment, this potential liability has now been removed.

Dave Wall, MD of 88 Energy said, “This formally concludes the Moroccan chapter of the company’s history and allows 88 Energy and its shareholders to firmly focus on our world class exploration asset onshore Alaska. It also completely removes a financial risk for the company’s shareholders that, while always a very low probability, is now behind us. It should be noted that the contingent liability (separate to that referenced above) between 88 Energy and Galp remains, which stipulates that Galp is entitled to a payment of $3.4million in cash or 88 Energy stock if the market capitalization of 88 Energy reaches or exceeds $50million (~A$65m) before September 2021.”


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