Artumas Executes Farm Out of Tanzanian and Mozambique Assets
(Thomson Reuters ONE) - Artumas is pleased to announce that the farm out of its Mnazi BayProduction Sharing Agreement (PSA), its Area 1 Offshore Rovuma Blockand its Onshore Rovuma Block as referenced in its press releases of22 July 2009 and 18 August 2009 have been executed. Artumas will nowseek host government and partner approval of the transferscontemplated by the documents. The commercial terms between theparties include:Mnazi Bay, Tanzania: Les Etablissements Maurel & Prom SA (M&P) willfarm in to a 38.22% participating interest in all PetroleumOperations save for Exploration Operations where M&P will take up a47.775% participating interest, the difference being due to TanzanianPetroleum Development Corporation's (TPDC) 20% participating interestin all but Exploration Operations. Cove Energy plc (Cove) will farmin to a 16.38% and 20.475% respectively in Petroleum Operations andExploration Operations. Artumas' participating interests will thusbecome 25.4% and 31.75% respectively in Petroleum Operations andExploration Operations. Artumas' share of costs for a 200 sq. km. 3Dseismic programme and an exploration well will be carried by M&P andCove. In the event that a 3D seismic programme does not take place,M&P and Cove will carry Artumas for an alternative exploration orappraisal programme of equal cost to the seismic programme.Artumas also may elect that M&P and Cove will fund Artumas' share ofeither of two appraisal wells, in which case a further 5%participating interest in Petroleum Operations will be assigned toM&P and Cove per well.M&P will assume operatorship of all Petroleum Operations under thePSA and accordingly will undertake to fulfill the arrangementscurrently in place for the supply of gas to the Mnazi Bay Gas toElectricity Project.Offshore Area 1 Rovuma Block, Mozambique: Cove will acquire Artumas'entire 8.5% participating interest in the Block and will accordinglyassume all costs associated with Artumas' participating interestsfrom the effective date of 1 July 2009. Artumas will in considerationreceive a royalty amounting to 6.4% of Cove's profit petroleumaccruing to the 8.5% participating interest. Should Cove pay furthercash calls prior to completion of the transaction, Artumas' royaltywill 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 farmin to a 24% and 10% participating interest in the Block. Artumas'participating interest will thus become 15.3%. Artumas' share ofcosts for the one exploration well that is an obligation well underthe Exploration and Production Concession Contract will be carried byM&P and Cove. Should M&P and Cove pay further cash calls prior tocompletion of the transaction, Artumas' participating interest willreduce by 1% per $1m of expenditure subject to a floor of a 10%participating interest.In addition to the farm in considerations mentioned above Artumaswill receive a total cash consideration amounting to $10.98m for thethree transactions. All three transactions are subject to theapproval of the relevant government entities and joint venturepartners. In addition, approval by Artumas' Bondholders is requiredand a Summons Letter will be posted shortly to Bondholders calling ameeting to approve the transaction as required by the instrumentgoverning the Bonds. A further condition precedent is that Cove'sshareholders approve and Cove's new shares are admitted to the LondonStock Exchange by 30 October 2009.Cam Barton, Artumas CEO stated that "this transaction has thecapacity to transform Artumas from a position of distress to onewhere the company will be carried through very significantexploration programmes in all of its assets which have a reasonablechance to materially add value through exploration success. At thesame time the transfer of operatorship in the Tanzanian PSA to M&Pwill reduce overheads whilst maintaining the obligations of the PSAjoint venturers to supply gas to the Mnazi Bay power plant whichArtumas will continue to run."http://hugin.info/136496/R/1342120/321163.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 17.09.2009 - 23:30 Uhr
Sprache: Deutsch
News-ID 5947
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