Octant Energy Corp.

Octant Energy Corp.

October 30, 2015 15:17 ET

Octant Energy Corp. Announces Agreements for the Purchase of Assets in Tanzania and Kenya

CALGARY, ALBERTA--(Marketwired - Oct. 30, 2015) - Octant Energy Corp. (TSX VENTURE:OEL) (the "Corporation" or "Octant") announces that it has entered into three agreements with subsidiary companies of Afren PLC to acquire assets in the Republic of Kenya and the United Republic of Tanzania (the "Proposed Transaction"). The assets include Kenya Block L17/L18, Kenya Block 1, and in Tanzania, the Tanga Block. The acquisition is important in the development of these assets for the region as it ensures that a team with extensive regional knowledge progresses the respective Production Sharing Contracts forward and raising the profile of the region through the continued delivery of near term actionable items on these assets. The Octant team is lead by Richard Schmitt, President & CEO, and Christopher McLean, Executive Chairman. Both men have a long term history in the region with experiences going back to the initial acquisition and finance of the current discoveries in Kenya and select assets in Tanzania over the last 7-10 years.

Richard Schmitt, President and CEO of Octant says, "I am encouraged to be working with assets I know well from my past experiences. This portfolio that Octant has secured is pivotal in the future development of Kenya and Tanzania as they further movement towards energy security and domestic growth in the countries. For me, being a part of East African growth and development again is a great opportunity and privilege."

The acquisition of the PSC's‚ by Octant remains conditional on customary approvals from the respective governments. Once approval is received Octant will complete the acquisition of the PSC's from Afren within 7 days. At this time Octant is evaluating its future capital requirements with respect to these PSC‚ and will provide future updates with respect the Proposed Transaction in due course.

Cautionary Statements

The Proposed Transaction is an arm's length transaction. As part of the regulatory approval process, Octant anticipates submitting for review to the Exchange an information circular or filing statement. The Octant Shares will remain halted until such time as permission to resume trading has been obtained from the Exchange and submission of required documentation to the Exchange. Prior to the commencement of trading an additional press release will be issued providing detailed information relating to the consideration for the Proposed Transaction, a prospect report in accordance with NI 51-101 on certain of the assets and such other information as the Exchange may request.

Completion of the transaction is subject to a number of conditions including, but not limited to Exchange acceptance and, if applicable pursuant to Exchange Requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Proposed Transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon.

Trading in the securities should be considered highly speculative.

The Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

This news release contains certain statements that constitute forward-looking statements under applicable securities legislation including estimates as to: completion of the transaction and future opportunities for Octant. All statements other than statements of historical fact are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of these terms or other comparable terminology. These statements are only as of the date of this document and Octant does not undertake to publicly update these forward-looking statements except in accordance with applicable securities laws. Forward-looking statement are based on current expectations, estimates, projections and assumptions, which Octant believes are reasonable but which may prove to be incorrect and therefore such forward-looking statements should not be unduly relied upon. These forward-looking statements involve known and unknown risks and uncertainties which may cause actual results or performance to be materially different from any future results or performance expressed or implied herein.

Actual timelines may vary from those anticipated in this news release and such variations may be material. Octant undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law.


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