The Company has notified The Exchange that it has signed a farm-in agreement with SacOil (a listed company on the Johannesburg Stock Exchange and has a market capitalization of approximately 105 million pounds) whereby SacOil has acquired a 20% Participating Interest in OPL 281 and under the OPL 281 PSC located onshore in the western delta region of Nigeria and adjacent to the widely published shell divestment block OML42.
SacOil’s Nigerian partner, EER 281 Nigeria Limited, a wholly owned Nigerian subsidiary of EER has also executed the same farm-in agreement to acquire an additional 20 % participating interest in OPL 281and under the OPL 281 PSR, with Transcorp retaining the remaining 60 %
The total farm-in fees of over US$30 million, in respect of the acquisition is to be paid by SacOil in several tranches following the attainment of certain milestones. The joint venture will carry 100% of the minimum work programme of 30,000 barrels of oil per day.
The effective date of the acquisition is February 28, 2011.