Equator and CAMAC Terminate Merger Agreement
On June 11, 2007, Equator announced that it had entered into a conditional merger agreement with CAMAC Energy EP Limited and CAMAC International Limited relating to a proposed merger of Equator and CAMAC Energy Holdings Limited, a wholly owned subsidiary of CAMAC International Limited. The Merger Agreement was conditional upon, amongst other things, the posting of the AIM Admission Document, to Equator shareholders by no later than August 31, 2007. It has not been possible to produce an Admission Document that satisfies the requirements of the AIM Rules within the prescribed timeframe and as a result, the Merger Agreement has been terminated. The parties to the Merger Agreement concluded that it would not be possible to produce an Admission Document that meets the requirements in the immediately foreseeable future either and therefore it was agreed not to extend the period in which the condition could be satisfied.
The cessation of merger discussions will permit the Company to focus on optimizing the value of its assets on a stand alone basis. The Company is reviewing the most appropriate ways in which to do this, similar to the farm out of OPL 323 to BG Exploration and Production Nigeria Limited, announced on August 17, 2007. The operating costs of the Company are expected to be adjusted commensurate with the results of the asset reviews.
In accordance with the announcement made on August 20, 2007, the Company is conducting a detailed review of its interest, commitments, prospects and financing of the Bilabri project under the terms of the Finance and Service Agreement with Peak Petroleum Industries Limited, the operator and sole license holder of Offshore Mining Lease (OML) 122, offshore Western Niger Delta, Nigeria.
The Company is finalizing an agreement with an existing lender for a short-term working capital facility. The terms are currently being negotiated and a further announcement will be made in due course.
The Company anticipates that its Annual Report and Financial Statements for 2006 will be released shortly, following which the suspension in trading of Equator shares is expected to be lifted.
- Equator Updates on Status of Offshore Nigeria Prospecting Licenses (Jan 26)
- Equator Exploration Secures Short-Term Funding (Dec 24)
- Equator & Peak Dance Around Bilabri (Jun 25)
Company: CAMAC more info
- ABS Certification Process on FPSO Armada Perdana Delays Oyo-8 Production (Apr 01)
- BGP Completes 2D Seismic Survey in Kenya's Blocks L-1B, L-16 (Feb 11)
- Northern Offshore Issues Notice to Terminate Contract for Energy Searcher (Jan 13)