CAMAC Energy to Acquire Interests From Allied Energy in Cash, Stock Deal

CAMAC Energy

today announced that it has entered into a definitive agreement to acquire the remaining economic interests that it does not currently own in the production sharing contract covering Oil Mining Leases 120 and 121 (the "OMLs") offshore Nigeria, which include the currently producing Oyo Field, from Allied Energy Plc ("Allied"). Allied is a wholly owned subsidiary of CAMAC Energy Holdings Limited ("CEHL"), the 57.2% majority stockholder of the Company. To acquire the interests, CAMAC Energy will issue 497,454,857 shares of common stock, pay US$170 million in cash and issue a US$50 million convertible subordinated note.To fund the cash portion of the consideration for the transaction with Allied and a portion of anticipated capital expenditures for development of the Oyo Field, CAMAC Energy also announced that it has entered into a definitive agreement with the Public Investment Corporation (SOC) Limited ("PIC") of South Africa for a US$270 million equity investment through a private placement of 376,884,422 shares of common stock, representing an approximate 30% ownership interest in the Company after completion of the transactions. In connection with the investment by the PIC, the