SOURCE: CAMAC Energy Inc.

CAMAC Energy Inc.

January 08, 2014 08:00 ET

CAMAC Energy Secures Long-Term FPSO

FPSO ARMADA PERDANA Secured for up to Seven Years Offshore Nigeria

HOUSTON, TX--(Marketwired - Jan 8, 2014) - CAMAC Energy Inc. ("CAMAC") (NYSE MKT: CAK) today announced that a letter of intent ("LOI") has been signed regarding terms and conditions of a long-term agreement for the floating, production, storage, and offloading system ("FPSO") ARMADA PERDANA. The signed LOI provides for an initial term of five years beginning January 1, 2014, with an automatic extension for an additional term of two years unless terminated by CAMAC with prior notice. The parties are working towards executing a definitive agreement on or before January 31, 2014.

The FPSO ARMADA PERDANA can process up to 40,000 barrels of oil per day, with a storage capacity of one million barrels of oil. It currently supports our daily production of approximately 2,000 barrels of oil and 40 mmcf of natural gas from the Oyo Field offshore Nigeria in OML 120.

"FPSO ARMADA PERDANA has been instrumental in supporting our ongoing operations deepwater offshore Nigeria. It has historically provided a high utilization rate and we are pleased to have this long-term infrastructure in place that will allow us to execute our development and exploration program. Along with the previously announced multi-year drilling rig program, $270 million equity investment from the Public Investment Corporation (SOC) Limited of South Africa, and the proposed $300 million bond offering, we will be well capitalized to increase production, revenues, reserves and resources. 2014 will be a transformational and exciting year for CAMAC as we focus on bringing our attractive portfolio of investment opportunities to production and begin generating significant cash flow," said Chairman and CEO Kase Lawal.

Management has commenced the roadshow presentation to institutional investors for the proposed $300 million bond offering which will provide CAMAC the capital to complete Oyo-7, drill and complete Oyo-8, and drill and complete Oyo-9. Pro forma closing of the Allied Energy Plc transaction, these three wells will bring online a total of approximately 21,000 bopd net.

About CAMAC Energy

CAMAC Energy Inc. operates as an independent oil and gas exploration and production company focused on energy resources in Africa. Its asset portfolio consists of 8 licenses in 3 countries covering an area of 41,000 square kilometers (~10 million acres), including production and other projects offshore Nigeria, as well as exploration licenses offshore and onshore Kenya, and offshore Gambia. CAMAC Energy is headquartered in Houston, Texas. For more information about CAMAC Energy, visit www.camacenergy.com.

Forward-Looking Statements

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.

Contact Information