CAMAC Signs PSCs for Kenya

CAMAC Energy Inc. signed PSCs covering previously awarded blocks in Kenya. In addition to the previously awarded blocks CAMAC signed PSCs for two newly created deepwater blocks.

The company now has access to Block L1B onshore the Lamu Basin and Block L16 located in the Lamu transition zone. The PSCs for the newly created deepwater blocks cover Block L27 and L28, which cover a combined area of approximately 21,170 sq km

CAMAC Energy will be the operator and have a 90% interest in all four PSCs, with the government of Kenya holding a 10% carried interest prior to designation of any commercial discoveries. The company expects to partner with an indigenous company for a minority interest.

During the initial exploration phase under each contract, the company will be conducting surveys, acquiring and interpreting 2D and 3D seismic data and identifying prospects for future drilling. The execution of the PSCs represents CAMAC Energy's official entry into Kenya and the East African exploration frontier.

Segun Omidele, senior VP, Exploration and Production, commented, "Signing the PSCs for these four blocks in Kenya represents a milestone in CAMAC Energy's strategy to acquire highly prospective exploration acreage in targeted oil and gas basins in Africa. Moving forward, the Company will focus on unlocking the value from these assets as well as our positions in West Africa, as we continue to pursue additional opportunities to add to our exploration portfolio in both East and West Africa."