Artumas Confirms Mozambique Interest Positions
Final Royalty and Royalty Participating Interest Position in Mozambique
Following the successful sale and completion of certain participating interests held in Mozambique oil and gas concessions, Artumas today confirmed its final royalty interest position in relation to the Area 1 "Offshore" of the Rovuma Block to be 0.495% and its final participating interest position in relation to the Onshore Area of the Rovuma Block to be 11.59% (subject to obtaining requisite consents).
As announced in the press release of September 17, 2009 the sales agreements with Maurel & Prom and Cove Energy plc provided Artumas the right to require the purchasers to pay cash calls on its behalf until the transaction reached financial close. In exchange, Artumas' remaining interest in the properties would be reduced as follows:
- Area 1 "Offshore" of the Rovuma Block - Artumas' royalty will be reduced by 0.5% per $1.0m USD of cash calls paid, subject to a floor of 0.4%
- Onshore Area of the Rovuma Block - Artumas' royalty will reduce by 1.0% per $1.0m USD of cash calls paid, subject to a floor of 10%.
As indicated, the final positions are higher than the floor, which could have resulted over an extended settlement period.
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