HOUSTON--(BUSINESS WIRE)--CAMAC Energy Inc. (NYSE Amex: CAK) today announced that it has signed Production Sharing Contracts (“PSCs”) with the government of The Republic of Kenya for previously awarded exploration Blocks L1B, located onshore in the Lamu Basin, and L16, located in the Lamu Basin transition zone. Block L16 is bordered on the east by Block L8, operated by Apache Corporation (NYSE: APA), and is located just northwest of Block L9, operated by Ophir Energy plc (LSE: OPHR).
In addition, the Company has signed PSCs for Block L27 and Block L28, two recently created deep water blocks. The two offshore blocks, which are contiguous, cover a combined area of approximately 21,170 square kilometers. Blocks L27 and L28 are immediately east of deep water blocks L11A and L11B, respectively, both operated by Anadarko Petroleum Corporation (NYSE: APC).
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 Vice President, 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.”
About CAMAC Energy Inc.
CAMAC Energy Inc. (NYSE Amex: CAK) is a U.S.-based energy company engaged in the exploration, development and production of oil and gas. The Company currently has operations in Nigeria and, through its Pacific Asia Petroleum subsidiaries, in China. The Company's principal assets include interests in OML 120 and OML 121, offshore oil and gas leases in deep water Nigeria which include the currently producing Oyo Oilfield, and a 100% interest in the Zijinshan Block gas asset located in the Shanxi Province, China. CAMAC Energy is currently seeking to add to its exploration portfolio in East and West Africa. The Company was founded in 2005 and has offices in Houston, Texas, Beijing, China, and Lagos, Nigeria.
Forward-Looking Statements
This press release may contain certain “forward-looking statements” relating to the business of CAMAC Energy Inc. and its subsidiaries. All statements, other than statements of historical fact included herein are “forward-looking statements” including statements regarding: the general ability of CAMAC Energy Inc. to achieve its commercial objectives; the business strategy, plans and objectives of CAMAC Energy Inc. and its subsidiaries; the completion of potential transactions; and any other statements of non-historical information. Words such as “anticipates,” “expects,” “plans,” “projects,” “believes,” “seeks,” “estimates,” and similar expressions are intended to identify such forward-looking statements. The statements are based upon management’s current expectations, estimates and projections, are not guarantees of future performance, and are subject to a variety of risks, uncertainties and other factors, some of which are beyond CAMAC Energy Inc.’s control and are difficult to predict, including those discussed in CAMAC Energy Inc.'s periodic reports that are filed with the SEC and available on its website (http://www.sec.gov). You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, CAMAC Energy Inc. undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.