Volant Acquires Stake in Block 3 West Kom Ombo in Egypt

Volant Petroleum has acquired the 10% equity interest in Pan Pacific Petroleum Egypt Pty Ltd. that was held by Pan Pacific Petroleum NL. The consideration for the acquisition is the issue of 12,000,000 fully paid ordinary shares in Volant to Pac Pacific. The acquisition takes Volant's equity interest in PPPE to 100%.

PPPE's primary asset is a hydrocarbons exploration and production license for Block-3 West Kom Ombo. The WKO block is located in the relatively under-explored Nubian Desert in Upper Egypt, an it consists of the entire remaining acreage from the Kom Ombo-Kharit Basin.

Earlier this month, PPPE entered into a preliminary farm-in agreement with Groundstar Resources. Subject to the execution of formal documents within 45 days thereafter, Groundstar had committed to absorb 75% of all capital expenditure in WKO up to the maximum amount of US $7 million, in order to earn an undivided interest of 42.5% in WKO. During the course of preparing the said formal documentation, Groundstar and PPPE have agreed that Groundstar shall absorb 100% of the foregoing expenditure limit, and earn and undivided interest of 60% in WKO.