Cap Energy has entered into an agreement to acquire majority shares in Sphere Petroleum who holds interests in two offshore Guinea-Bissau exploration licences
The deal was signed on 28 February 2013 for stakes in licences for Block 1 (Corvina) and Block 5B (Becuda).
The purchase of these licences will cost US$1.1mn, payable in three tranches. In addition, Cap will pay up to a maximum of US$1.9mn for Sphere’s costs of the licences and a certain percentage of Sphere’s continuing obligations in respect of these licences.
Completion of the acquisition will be subject to certain conditions being satisfied by Sphere, however, it will be expected to take place by 31 March 2013.
Cap chairman Tim Hearley said, “This acquisition in Guinea-Bissau marks a significant first step in achieving our strategic objectives. We are very pleased with this development and are on track to further broaden our presence in the sub-Saharan region as we expand our portfolio.”
