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 September 17, 2009 - 5:31 PM EDT
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Artumas Executes Farm Out of Tanzanian and Mozambique Assets

Sep. 17, 2009 (Hugin AS) --

Artumas is pleased to announce that the farm out of its Mnazi Bay
Production Sharing Agreement (PSA), its Area 1 Offshore Rovuma Block
and its Onshore Rovuma Block as referenced in its press releases of
22 July 2009 and 18 August 2009 have been executed. Artumas will now
seek host government and partner approval of the transfers
contemplated by the documents. The commercial terms between the
parties include:

Mnazi Bay, Tanzania: Les Etablissements Maurel & Prom SA (M&P) will
farm in to a 38.22% participating interest in all Petroleum
Operations save for Exploration Operations where M&P will take up a
47.775% participating interest, the difference being due to Tanzanian
Petroleum Development Corporation's (TPDC) 20% participating interest
in all but Exploration Operations. Cove Energy plc (Cove) will farm
in to a 16.38% and 20.475% respectively in Petroleum Operations and
Exploration Operations. Artumas' participating interests will thus
become 25.4% and 31.75% respectively in Petroleum Operations and
Exploration Operations. Artumas' share of costs for a 200 sq. km. 3D
seismic programme and an exploration well will be carried by M&P and
Cove. In the event that a 3D seismic programme does not take place,
M&P and Cove will carry Artumas for an alternative exploration or
appraisal programme of equal cost to the seismic programme.

Artumas also may elect that M&P and Cove will fund Artumas' share of
either of two appraisal wells, in which case a further 5%
participating interest in Petroleum Operations will be assigned to
M&P and Cove per well.

M&P will assume operatorship of all Petroleum Operations under the
PSA and accordingly will undertake to fulfill the arrangements
currently in place for the supply of gas to the Mnazi Bay Gas to
Electricity Project.

Offshore Area 1 Rovuma Block, Mozambique: Cove will acquire Artumas'
entire 8.5% participating interest in the Block and will accordingly
assume all costs associated with Artumas' participating interests
from the effective date of 1 July 2009. Artumas will in consideration
receive a royalty amounting to 6.4% of Cove's profit petroleum
accruing to the 8.5% participating interest. Should Cove pay further
cash calls prior to completion of the transaction, Artumas' royalty
will reduce by 0.5% per $1m of expenditure subject to a floor of 4%
of Cove's profit petroleum.

Onshore Rovuma Block, Mozambique: M&P and Cove will respectively farm
in to a 24% and 10% participating interest in the Block. Artumas'
participating interest will thus become 15.3%. Artumas' share of
costs for the one exploration well that is an obligation well under
the Exploration and Production Concession Contract will be carried by
M&P and Cove. Should M&P and Cove pay further cash calls prior to
completion of the transaction, Artumas' participating interest will
reduce by 1% per $1m of expenditure subject to a floor of a 10%
participating interest.

In addition to the farm in considerations mentioned above Artumas
will receive a total cash consideration amounting to $10.98m for the
three transactions. All three transactions are subject to the
approval of the relevant government entities and joint venture
partners. In addition, approval by Artumas' Bondholders is required
and a Summons Letter will be posted shortly to Bondholders calling a
meeting to approve the transaction as required by the instrument
governing the Bonds. A further condition precedent is that Cove's
shareholders approve and Cove's new shares are admitted to the London
Stock Exchange by 30 October 2009.

Cam Barton, Artumas CEO stated that "this transaction has the
capacity to transform Artumas from a position of distress to one
where the company will be carried through very significant
exploration programmes in all of its assets which have a reasonable
chance to materially add value through exploration success. At the
same time the transfer of operatorship in the Tanzanian PSA to M&P
will reduce overheads whilst maintaining the obligations of the PSA
joint venturers to supply gas to the Mnazi Bay power plant which
Artumas will continue to run."


This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

http://hugin.info/136496/R/1342120/321163.pdf


Source: Thomson Reuters ONE (September 17, 2009 - 5:31 PM EDT)

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