HOUSTON, TX--(Marketwired - May 7, 2014) - CAMAC Energy Inc. ("CAMAC Energy") (NYSE MKT: CAK) has signed a Petroleum Agreement with the Government of Ghana covering the Expanded Shallow Water Tano (ESWT) block located in the Tano Basin offshore Ghana, about 15-35 km off the coast of Ghana.
The ESWT block size is 1,508 square kilometers (370,000 acres) in water depths ranging from 55 meters to 116 meters (180 feet to 380 feet) and contains three discovered fields: Tano North, Tano West and Tano South. Significant quantities of oil and gas have been discovered in these fields, and drill stem tests carried out also established producibility of the reservoirs. The agreement requires that the partners evaluate the feasibility of economic development of the discovered fields over the next 9 months.
The ESWT block is bounded on the north by the Ghana Coastline, on the west by the Maritime Border with Cote D'Ivoire, on the south by the Deepwater Tano Block, which hosts the Tweneboa/Enyenra/Ntomme (TEN) fields, and on the east by the West Cape Three Points Block, which hosts the Teak-Akasa discoveries as well as the largest offshore oil discovery in West Africa over the last decade, the Jubilee field. Companies currently active in the Tano Basin include Tullow Oil plc (LSE: TLW), Kosmos Energy Ltd. (NYSE: KOS), Anadarko Petroleum Corporation (NYSE: APC), and Hess Corporation (NYSE: HES), among others.
CAMAC Energy Ghana Limited, an indirect 50%-owned subsidiary of the company, is the operator of the ESWT block with a 60% participating interest. GNPC Exploration Company Limited holds a 25% participating interest and Base Energy Ghana, Ltd., an indigenous Ghanaian company, holds a 15% participating interest. Ghana National Petroleum Company ("GNPC") will initially have a 10% carried interest and have the right to acquire an additional paying interest of up to 10% following a declaration of commerciality.
"The Tano Basin offers the kind of high-reward oil prospects that we believe will enable us to build near-term value for our shareholders through the drillbit," said Kase L. Lawal, CAMAC Energy Chairman and Chief Executive Officer.
"The signing of this Petroleum Agreement is another major step in building a robust asset portfolio. We intend to pursue various development scenarios to economically develop the discovered fields on a fast track basis. We are pleased to be partnering with the Ghana National Petroleum Corporation and Base Energy to pursue this opportunity, and we look forward to building a long-term relationship with the Ghanaian government as we work towards developing this asset," Lawal added.
About CAMAC Energy
CAMAC Energy is an independent oil and gas exploration and production company focused on energy resources in Africa. Its asset portfolio consists of nine production and exploration licenses across four countries covering an area of 43,000 square kilometers (~10 million acres), including existing production and other projects offshore Nigeria, as well as exploration licenses offshore Ghana, Kenya and Gambia, and onshore Kenya. CAMAC Energy is headquartered in Houston, Texas, and is listed on the New York Stock Exchange under the ticker symbol CAK, and on the Johannesburg Stock Exchange under the ticker symbol CME. For more information, please visit www.camacenergy.com.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, concerning activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. The Company's actual results could differ materially from those anticipated in these forward-looking statements due to a variety of factors, including the Company's ability to successfully drill, complete, test and produce the wells and prospects identified in this release and risk factors discussed in the Company's periodic reports filed with the Securities and Exchange Commission. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. You should not place undue reliance on forward-looking statements, which speak only as of their respective dates. The Company undertakes no duty to update these forward-looking statements.