Maurel & Prom Complete Acquisition of South American Oil Assets

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Map of Venezuela - Orinoco Belt
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Nanes Delorme Capital Management LLC, sole financial adviser to Etablissements Maurel & Prom (M&P), confirmed the completion of M&P's acquisition from Knightsbridge Petroleum Limited, London, of oil and gas exploration and production assets in Colombia and Venezuela. The final total consideration was $478 million.

The terms include a combination of cash and securities, 20 percent of which had been reinvested in M&P by Knightsbridge through the issue of new M&P shares priced at EUR 15.40. On August 4th, 2005, Knightsbridge received 4.5 percent of the common stock of M&P and its equivalent in voting rights.

Julien Balkany, Managing Director of Nanes Delorme, said: "This important acquisition is the largest oil and gas M&A transaction in Latin America so far this year and will substantially diversify M&P's oil and gas portfolio. Most of the company's operations prior to the acquisition were in Congo. The acquisition adds some 176 million barrels of proven and probable gross reserves, and adds 30,000 barrels per day in production."

Balkany added: "This purchase will enable M&P to become the leading independent European oil and gas company in terms of probable (2P) reserves and production by the end of 2005. The combined entity is projected to be producing 65,000 barrels per day by the end of this year.

"The acquisition will allow M&P to capitalize on the strong technical and managerial expertise of Knightsbridge and will enable them to expand geographically and secure predictable cash flows," Balkany noted.

Nanes Delorme Capital, a New York-based broker-dealer and advisory firm, was retained by Maurel & Prom to act as its sole financial adviser in this transaction. The U.S. investment boutique was asked to identify and value a key strategic target and assist in all aspects of M&P's negotiations.

About Maurel & Prom

Etablissements Maurel & Prom (Euronext Paris: MAU), formerly a diversified holding company, reorganized in 1998 to focus on oil and gas exploration and production. It operates primarily in Republic of Congo, Colombia, Venezuela, Gabon and Cuba but also has assets in Peru, Senegal, Tanzania, and Vietnam. Maurel & Prom is listed on the Paris Stock Exchange and has a market capitalization of approximately 2.25 billion Euros.


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