DECA

Update on South Omo Block in Ethiopia

RNS Number : 3769C
Agriterra Ltd
07 March 2011
 



Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture

7 March 2011

Agriterra Ltd ('Agriterra' or 'the Group')

Update on South Omo Block in Ethiopia

 

Agriterra Ltd, the AIM listed group focussed on the agricultural and logistics sectors in central and southern Africa, notes the recent developments regarding Tullow Oil plc's ('Tullow') farm-in transaction on the 29,465 sq km South Omo Block in Ethiopia ('South Omo' or 'the Concession'), a legacy concession in which Agriterra has a 20% interest, following the Company's farm-out agreement with Africa Oil Corp. ('Africa Oil'), announced on 17 June 2010.

 

Tullow completed a farm-in agreement on South Omo with Africa Oil on 9 December 2010 which was subsequently approved by the Ministry of Mines and Energy in Ethiopia on 22 February 2011.  This farm-in agreement has provided Tullow with a 50% interest in the Concession and full operational control of its development, leaving Africa Oil with a 30% stake, and Agriterra with the remaining 20% interest.  The South Omo Block is within the Tertiary age East African Rift, just north of Lake Turkana, located across the Ethiopian border in Kenya and within the same petroleum system as Africa Oil's Kenya Block 10BB and Tullow's Ugandan discoveries.

 

Agriterra Chairman Phil Edmonds said, "This is a significant step towards accelerating exploration on the South Omo Block, which will be guided by a leading E&P company with extensive practical experience of operating in Africa.  Tullow has an exceptional technical and operational track record, with an excellent success rate in regard to exploration.  This expertise has been demonstrated by Tullow's successful development of its Ghanaian and Ugandan blocks, and I believe that this experience, which includes expertise in the East African Rift Basin, presents Tullow as an extremely attractive operator to drive exploration on the concession.

 

"Exploration programmes on the South Omo block will be funded by Tullow and Africa Oil, as per our original farm-out agreement with Africa Oil, which included sufficient credits from Africa Oil to Agriterra to take the Concession through to drilling.  The exploration programme, which has been approved by the Ministry of Mines and Energy in Ethiopia, will commence shortly.

 

"Should a discovery be made on the block, then Agriterra's 20% interest in South Omo could prove to be very lucrative for the Company's shareholders and we look forward to future announcements regarding the South Omo concession."         

 

**ENDS**

For further information please visit www.agriterra-ltd.com or contact:

Andrew Groves

Agriterra Ltd

Tel: +44 (0) 20 7408 9200

Jonathan Wright

Seymour Pierce Ltd

Tel: +44 (0) 20 7107 8000

David Foreman

Seymour Pierce Ltd

Tel: +44 (0) 20 7107 8000

Robin Henshall

Matrix Corporate Capital LLP

Tel: +44 (0) 20 3206 7000

Nick Stone

Matrix Corporate Capital LLP

Tel: +44 (0) 20 3206 7000

Hugo de Salis

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

Susie Geliher

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

 

 


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