Energy Africa Limited - Energy Africa Announces Ag
Energy Africa Limited - Energy Africa Announces Agreement To Acquire Interest In
Release Date: 09/01/2004 17:41:00 Code(s): ENR
ENERGY AFRICA LIMITED - ENERGY AFRICA ANNOUNCES AGREEMENT TO ACQUIRE INTEREST IN
AN ONSHORE PRODUCING FIELD IN CONGO (BRAZZAVILLE
Registration number : 1995/007140/06
(Incorporated in the Republic of South Africa)
JSE code: ENR
ISIN code: ZAE000010427
ENERGY AFRICA ANNOUNCES AGREEMENT TO ACQUIRE INTEREST IN AN ONSHORE PRODUCING
FIELD IN CONGO (BRAZZAVILLE)
Energy Africa Limited is a South African-based oil and gas exploration and
production company, which is listed on the Johannesburg and Luxembourg Stock
Exchanges.
Energy Africa Limited is pleased to announce that it has signed an agreement
with Maurel & Prom, a French company listed on the Paris Stock Exchange, to
acquire an 11% interest in the M"Boundi Production Permit, onshore Congo
(Brazzaville).
The Mboundi oil field commenced production in 2002 and produced approximately
9500 bbl per day at the end of 2003. This level of production is expected to
increase substantially in 2004.
The acquisition is subject to the consent of the relevant Congolese authorities
and to the possibility of pre-emption by Maurel & Prom"s co venturer in the
Permit, Burren Energy plc. A further announcement will be made once further
information, in relation to these conditions, becomes available.
Under the agreement, Energy Africa will pay US $50 million in cash for the 11%
interest in the Permit. In addition, a cash royalty of US $1.50 per barrel will
be payable, in the event that gross production exceeds 140 million barrels. The
economic effective date of the transaction is 1st January 2004.
The pro forma effect of this acquisition, had it been included in Energy
Africa"s September 2003 interim report, on the net book value per share of
Energy Africa would not be significant. In future, the asset will be reflected
in the company"s balance sheet at cost. Based on the oil production of the
Mboundi field in the previous year and the current oil price, the pro forma
effect of this acquisition, had it been included in Energy Africa"s September
2003 interim report, on Energy Africa"s earnings and headline earnings per share
would not be significant. However this asset is expected to contribute
positively to Energy Africa"s future cash flow and earnings.
Rhidwaan Gasant, Managing Director said
"We are delighted to have been able to reach agreement with Maurel & Prom to
acquire this interest. The acquisition will greatly enhance our portfolio of
commercial interests, as we believe that the Mboundi field has significant
upside reserves."
This press release is unrelated to the Cautionary Announcements dated 20
November 2003 and 5 January 2004, which are accordingly unaffected.
Cape Town
9 January 2004
For more information about Energy Africa see: www.energyafrica.com.
Enquiries:
Energy Africa Ltd Rhidwaan Gasant +27 21 400 7618
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
