The Oyo Oilfield is located approximately 75 miles off the Southern Nigerian coast in deep-water. The operation of the Oyo Oilfield is secured through OML 120, an oil mining lease awarded to affiliates of CAMAC in 2002 by the Federal Republic of Nigeria.
CAMAC group holds a 60% interest in OML 120, on which the Oyo Oilfield is located, with the remaining 40% held by the field’s operator, Nigerian Agip Exploration, a subsidiary of Italy’s ENI. .
The Oyo Oilfield is in the final preparation stage for the commencement of production. The Oyo Oilfield will produce into the Floating Production Storage and Offloading (FPSO) vessel, Armada Perdana.
In exchange for all of CAMAC’s interest in the PSC with respect to the Oyo Oilfield, the company has agreed to pay $38.84m in cash to retire existing debts and issue common stock to CAMAC equal to 62.74% of the company’s issued and outstanding common stock.
The transaction is expected to close during the first quarter of 2010 and is subject to certain closing conditions.
