PAP, CAMAC Finalize Oyo Oil Field Transaction
Pacific Asia Petroleum has completed the acquisition of all the interest held by CAMAC Energy and certain of its affiliates in a Production Sharing Contract for the Oyo oil field, an offshore oil asset in Nigeria that started production in December 2009. CAMAC now owns 62.74% of the issued and outstanding capital stock of Pacific Asia Petroleum. In addition, Pacific Asia Petroleum's name has been changed, effective today, to CAMAC Energy Inc.
This announcement is made following the receipt of approval of the acquisition and related matters from Pacific Asia Petroleum's stockholders at the Company's special meeting on April 5, 2010.
New Board of Directors
With effect from the closing of this transaction, Mr. Robert Stempel and Ms. Elizabeth Smith have resigned from the Company's Board of Directors. Additionally, the number of directors on the Board has been increased from five to seven. The four vacancies created by these resignations and newly created directorships have been filled by the appointment of the following individuals:
- Dr. Kase Lawal, the Chairman and CEO of CAMAC International. Dr. Lawal is also the Chairman of Allied Energy Corporation and serves as the Commissioner on the Port of Houston Authority and as the Vice Chairman of Houston Airport Development System Corp.
- Ms. Hazel O'Leary, the President of Fisk University in Nashville, Tennessee. Ms. O'Leary formerly served as the Secretary of Energy under President Clinton.
- Mr. John Hofmeister, the Head of Citizens for Affordable Energy, a not-for-profit firm he founded in 2008. Mr. Hofmeister is the former President of Shell Oil Company.
- Dr. Lee Patrick Brown, the Chairman and CEO of Brown Group International and the Chairman of the Board of Unity National Bank. Dr. Brown, the former Mayor of Houston, also served in President Bill Clinton's Cabinet as Director of the White House Office of National Drug Control Policy from 1993 to 1996.
Commenting on the closing of the transaction, Pacific Asia Petroleum President and CEO, Frank Ingriselli, stated, "This closing caps a many months-long process and hard work by all of the parties involved in the transaction. We are now prepared to capitalize on the opportunities presented by this acquisition. We expect that the addition of the Oyo Oilfield asset, combined with our existing China assets and the wealth of experience from the new board members and CAMAC, will further enhance our capacity to achieve the Company's strategy to aggressively grow shareholder value with high-return and early cash flow assets."
Dr. Kase Lawal, Chairman and CEO of CAMAC International, and new member of the Board of Directors of Pacific Asia Petroleum, noted, "We are very excited about the possibilities our new relationship presents. We are very pleased to be a part of the next phase of the development of CAMAC Energy Inc. on the NYSE Amex platform. I look forward to working with the management and the Board to continue creating value for all our shareholders."