CAMAC takes over Nigerian leases

Abstract

Houston-based CAMAC Energy Inc is to pay up to US $707.6 million to Allied Energy in stock, cash and convertible debt to acquire the 90% stake it didn't already own in two deepwater oil leases offshore Nigeria. Allied Energy is a wholly-owned subsidiary of CAMAC Energy Holdings Ltd, which also owns a 57.2% stake in CAMAC Energy Inc. After the acquisition, CAMAC Energy Inc will have a 100% stake in OML 120 and 121 including the Oyo field. Current production from the field is about 2,000 b/d of oil and 40 MMcf/d of natural gas. CAMAC Energy currently controls just 10%.