Cap Energy Ltd

LSE : CAPP


February 20, 2014 09:00 ET

Acquisition of Senegal Interest

                                                                                                            
                                                                                            20 February 2014
                                                                                   GB00B7KFPB91/GBP/PLUS-exn
                                                      
                                               CAP ENERGY PLC
                                          ("Cap" or the "Company")

                                                      
                                       Acquisition of Senegal Interest


Cap  Energy  PLC,  a  company listed on the ISDX Growth Market focused on the exploration,  production,  and
development  of oil and gas in sub-Saharan Africa, is pleased to announce that it has acquired  an  indirect
interest  in  the  oil and gas exploration licence on the Block Djiffere (the "Djiffere Licence"),  offshore
Senegal.

The Djiffere Licence

The Djiffere Licence area covers approximately 4,459 km² in shallow waters in the Senegal Basin off the West
African coast and is adjacent to the Block Rufisque Offshore area operated by Cairn Energy PLC.

On  19  February  2014, Sencap Limited ("Sencap"), a newly formed subsidiary of the Company,  acquired  from
Trace  Atlantic  Oil  Limited  ("TAOL") a 49 per cent interest in TAOL  Senegal  (Djiffere)  Limited  ("TAOL
Djiffere"),  the  company  holding the Djiffere Licence. TAOL is the owner of  the  remaining  51  per  cent
interest in TAOL Djiffere and also the operating partner in TAOL Djiffere. Sencap is wholly owned by Cap.

TAOL  Djiffere  is currently preparing a 2D seismic survey over 4,000 km² of the Djiffere  Licence  area  in
order to delineate its prospectivity. The results of this survey are expected to be available at the end  of
the current year.

The  total  consideration for the acquisition of the 49 per cent interest in TAOL Djiffere was USD  150,000.
Cap  has  also paid USD 461,461 to TAOL Djiffere in respect of 49% of TAOL Djiffere's historic costs.  These
amounts have been satisfied in cash from Cap's existing resources.

Commenting on the acquisition of the Djiffere Licence interest, Lina Haidar, Cap's Chief Executive, said:

"The  acquisition of the Djiffere interest is an important step forward in the development of our operations
in the sub-Saharan region and complements our existing presence offshore Guinea-Bissau.

We  continue  to  further our strategic alliance with Trace Atlantic by targeting new exploration  frontiers
through  our  combined operational, technical and commercial skills in the region and by accessing,  through
Trace  Atlantic,  the  proprietary technologies of Rex Technology Management  Ltd.  (including  Rex  Virtual
Drilling) to delineate prospective sub-Saharan acreage.

We  look  forward to updating shareholders on progress at these activities and on further expansion  of  our
portfolio in due course."

Pierantonio  Tassini, the Company's Chief Operating Officer, who has 43 years of relevant experience  within
the sector, has reviewed and approved the technical information contained in this announcement.

The Directors of Cap Energy PLC are responsible for the contents of this announcement.

For further information please contact:

Cap Energy PLC
Tim Hearley, Chairman
Tel: +44 (0) 207 491 9196
Email: tim.hearley@capenergyplc.com

Lina Haidar, Chief Executive Officer
Tel: +44 (0) 207 491 9196
Email: lina.haidar@capenergyplc.com

Peterhouse Corporate Finance Limited
Mark Anwyl and Duncan Vasey
Tel: +44 (0) 20 7469 0930
Email: duncan@pcorpfin.com

CAP Energy PLC
25 Dover Street
London W1S 4LX
Tel: +44 (0) 20 7491 9196
Email: info@capenergyplc.com

Contact Information

  • Cap Energy Ltd