Africa, Business, invesment, Invesments, news, Uncategorized, World Bank, World Bank Group

Africa News November 26, 2013 at 11:11AM

this blog is spored BY reflex Eco Group

VENTURES AFRICA – CAMAC Energy, a US-based independent exploration and production company, says it plans to list its shares on the Johannesburg Stock Exchange (JSE).

The move makes it the second Nigerian oil company to list on the South African bourse after Oando Plc’s listing back in November 2005.

The decision by the company, which is also listed on the New York Stock Exchange (NYSE), comes on the back of a $270 million investment by South Africa’s Public Investment Corporation (PIC), which invests on behalf of the country’s public sector pension and social security funds.

PIC has investments in other African countries especially since its biggest client, the Government Employees Pension Fund, mandated it to invest 10 percent of its portfolio in Africa.

CAMAC, which is engaged in the acquisition and development of energy resources in Africa, intends to use PIC’s investment to fund the cash portion of its intended buyout of Allied Energy and for further development.

It has also reached a definitive agreement with PIC to pay as much as $707.6 million in stock, cash and convertible debt to acquire the 90 percent stake in two deepwater oil leases off the coast of Nigeria from Allied Energy Plc.

However, the transaction, subject to shareholders and regulatory approval, is expected to be completed by the first half of next year.

CAMAC Holdings investment in Nigeria includes a oil lease area in the operating Oyo Field and a production-sharing agreement with Nigerian Agip Exploration, which is a subsidiary of ENI of Italy. The Oyo field, located about 75 miles off the Nigerian coast is relatively deep at 200m-500m with the capacity to produce up to2 000 bpd.

The oil firm also has with other exploration blocks in Kenya and Gambia.

Speaking on the company’s JSE listing, CAMAC Energy Chairperson and CEO Dr. Kase Lawal said: “With 100 percent economic ownership of our high-impact, deep-water offshore assets, we will be well positioned to pursue our goal of producing 14 000 bbl/d of oil once Oyo-7 and Oyo-8 are completed next year.”

According to the CEO, dual-listing on the NYSE and JSE will provide increased liquidity and transparency for the company’s shareholders.

“The Allied acquisition, investment by the PIC and secondary listing on the JSE will completely change the complexion of our company, and we look forward to beginning 2014 as a stronger organisation with increased production, revenues and scale,” Lawal said.




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