Africa Oil Corp Announces Farmouts in the Rift Basin Area and Adigala Blocks in Ethiopia
- Under the terms of the Marathon Oil farmout agreement, Marathon Oil will acquire a 50% interest in the Rift Basin Area in Ethiopia. Africa Oil will maintain operatorship of the block, but Marathon Oil has the right to assume operatorship if a commercial discovery is made. In consideration for the assignment of this interest, Marathon Oil will pay Africa Oil an entry payment of $3 million in respect of past costs, and has agreed to fund $15 million of Africa Oil's working interest share of joint venture expenditures in the Rift Basin Area. Africa Oil and Marathon Oil are pleased to complete the final tranche of the farmout transaction originally announced in July 2012 (press release dated July 23, 2012). Completion of this transaction is anticipated in March 2014. Following completion, Africa Oil and Marathon Oil will each hold a 50% working interest in the Rift Basin Area.
- Under the terms of the New Age farmout agreement, New Age will acquire an additional 40% working interest in the Adigala Block, in Ethiopia. Following completion, Africa Oil's interest will be reduced to 10%. In consideration of the assignment New Age will carry Africa Oil's working interest share of a planned 1,000 kilometre 2D seismic work program in the Adigala Block. Completion of this transaction is anticipated in March 2014.
- Under the terms of the New Age farmout agreement, New Age will acquire an additional 40% working interest in the Adigala Block, in Ethiopia. Following completion, Africa Oil's interest will be reduced to 10%. In consideration of the assignment New Age will carry Africa Oil's working interest share of a planned 1,000 kilometre 2D seismic work program in the Adigala Block. Completion of this transaction is anticipated in March 2014.