Petroleum Africa
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Thursday, November 28, 2013
A definitive contract was signed by Camac Energy Inc. with the Public Investment Corporation Ltd. (PIC) of South Africa for a $270 million equity investment to increase its operation in the Nigerian oil and gas industry. The investment is anticipated to come through a private placement of 376,884,422 shares of common stock, representing about 30% ownership interest in Camac Energy Inc.
Part of the contract is an agreement to list the common stock of the companies on the Johannesburg Stock Exchange.
The South African investment is aimed at funding Camac’s acquisition of the remaining economic interests in the production sharing contracts covering Oil Mining Leases 120 and 121 offshore Nigeria from Allied Energy Plc.
The company said that to acquire the interests, Camac Energy will issue 497,454,857 shares of common stock, pay $170 million in cash and issue a $50 million convertible subordinated note.
Chairman and CEO, Camac Energy, Dr. Kase Lawal said the transactions were subject to stockholder and regulatory approvals and were conditional upon the closing of the other transaction and listing on the JSE.
“We are honored that the PIC has placed their trust and confidence in us by deciding to invest in our organization. The Allied acquisition, investment by the PIC and secondary listing on the JSE will completely change the complexion of our company, and we look forward to beginning 2014 as a stronger organization with increased production, revenues and scale. Being dual-listed on the NYSE and JSE will provide increased liquidity and transparency for our shareholders. With 100 per cent economic ownership of our high-impact, deepwater offshore assets, we will be well positioned to pursue our goal of producing approximately 14,000 barrels of oil per day once Oyo-7 and Oyo-8 are completed next year.”
With the intention to achieve the post-closing share ownership percentages negotiated between the parties, Lawal said the agreement with Allied required the company to declare a dividend in the form of additional shares of CAMAC Energy common stock, equal to approximately 1.435 shares per share outstanding. He explained that the declaration of the stock dividend would not occur if the conditions to the transactions were not fulfilled.
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