Perth-based CityView Corporation Ltd has acquired the right to purchase 100 per cent of Petro Energy Africa Ltd, a move that would give it operational control of the North Matanda oil project in Cameroon.
If CityView elects to proceed with the 100 per cent acquisition it will pay around $5 million in cash and allot shares worth around $16.9 million to existing Petro Energy Africa shareholders
Should the acquisition go ahead, CityView would double its stake in the oilfield to 40 per cent from the 20 per cent it acquired when it bought a 28.5 per cent stake in operator Turnberry Resources Inc.
Petro Energy holds a 57 per cent stake in Turnberry.
The full text of a company announcement is pasted below
- CityView has acquired the right to own 100% of Petro Energy Africa Limited. If exercised:
- CityView's holding in the North Matanda PH72 Oilfield in Cameroon will DOUBLE from 20% to 40%.
- CityView will gain OPERATIONAL CONTROL of North Matanda Oil Project through ownership of 57% in Turnberry Resources.
- Will enable CityView to enter other larger oilfields in Cameroon presently under negotiation.
CityView Corporation Limited (CityView) is pleased to announce that it has acquired the right to purchase 100% of Petro Energy Africa Limited (Petro Energy Africa) which is the beneficial owner of 57% of Turnberry Resources Inc.
CityView's share in the North Matanda PH72 oilfield will be effectively doubled under this agreement to a net 40% interest in the project and will inturn allow CityView to gain operational control of the North Matanda oil field via its controlling interest in Turnberry Resources.
Petro Energy Africa is also in advanced negotiations with the Cameroon Government for access to other certain key oilfields in the region. The parties aim to bring these negotiations to successful conclusion within the next month.
If CityView elects to proceed with the 100% acquisition it will pay US$4.5 million in cash and allot US$15 million worth of shares to the existing shareholders of Petro Energy Africa.
CityView CEO Mr Mark Smyth said the acquisition of Petro Energy Africa will open up new opportunities in Cameroon.
"Cameroon's stable business climate has already provided world class projects such as the Mbalam Iron Ore Project for Sundance Resources Limited," he said.
"Gaining operational control of North Matanda will allow us to better dictate both the schedule and strategic direction of the project to ensure maximum shareholder return. However, more importantly, CityView will gain access to a new host of exciting resource opportunities within Cameroon."
About the North Matanda Oil Project:
The North Matanda block (1187 km2) PH-72 (former OLHP-3) is situated in the northern region of the Douala/Kribi-Campo basin covering the upper half of the Wouri Estuary and surrounding onshore areas. The block is divided between part onshore and shallow offshore. Condensate was discovered in two wells drilled to a depth of 3,000 metres in the permit by Gulf Oil USA during the 1980's.
Condensate prices from this region historically trade at a premium of US$3 to the price of Brent crude oil. West African condensate prices currently exceed US$80 per barrel.
CityView's technical team are currently conducting a feasibility study on how best to achieve commercial production from North Matanda.