Afren to Acquire Black Marlin Energy
Afren has reached an agreement with Black Marlin Energy to acquire all of the issued and to be issued share capital of Black Marlin.
The Board of Afren believes that the Acquisition of Black Marlin enhances Afren's portfolio and delivers key exploration opportunities and a strategic entry into East Africa. In particular, the Acquisition:
- Immediately establishes a core multi-country East African platform with a high impact exploration portfolio in Ethiopia, Kenya, Madagascar and the Seychelles
- Increases Afren's net prospective resources base by 1,287 mmboe in high impact rift basins
- Adds six exploration wells expected to be drilled through 2012, targeting 910 mmboe
- Delivers a complementary portfolio extension and high growth opportunities to leverage Afren's significant production growth
- Expected to unlock further East African opportunities via the retention of Black Marlin's technical team
Holders of approximately 55% of Black Marlin shares, including all Board members and senior management, have entered into irrevocable undertakings to support and vote in favor of the transaction.
- Black Marlin shareholders to receive 0.3647 Afren shares for each Black Marlin share (approximately 76.8 million Afren shares on aggregate)
- The terms of the transaction value Black Marlin at approximately C$0.51 per share, based on the Afren volume weighted average price for the 20 trading days prior to and including June 1, 2010 of 90 pence per share, representing a premium of approximately 35% to the share price at market close on June 1, 2010 of C$0.38
- The Acquisition will be implemented by means of a scheme of arrangement such that Black Marlin will become a wholly owned subsidiary of Afren with expected closing on or about the end of September 2010
Osman Shahenshah, Chief Executive of Afren, commented, "The acquisition of Black Marlin offers a compelling strategic fit with Afren's existing portfolio and provides strong opportunities for growth. Black Marlin has exposure to numerous high impact exploration assets which, combined with Afren's cash generative West African production base and development capabilities, is a complementary extension to our established West African platform. We believe that the terms of the transaction are attractive for shareholders of both Afren and Black Marlin and we look forward to the successful completion of the Acquisition."
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