Oyster Oil and Gas Ltd. Finalizes Agreement to Acquire Oil and Gas Interests in Madagascar
September 06, 2013 (Source: Marketwire) — Oyster Oil and Gas Ltd. (“Oyster”) (TSX:OY) is pleased to announce it has finalized an agreement with Candax Energy Inc. to acquire its 10% Working Interest in Block 1101 onshore Madagascar (the “Transaction”). The consideration for the Transaction will be a $500,000 cash payment on closing and upon the drilling of the first exploration well commencing a further payment of $250,000 and $250,000 shares in Oyster.
Michael Wood, President & CEO commented: “Oyster is very pleased with this acquisition in Madagascar, which we believe holds strategically significant oil exploration potential. The Oyster team has a considerable understanding of Block 1101, having been responsible for the original signing of the Production Sharing Contract (“PSC”) with the Government of Madagascar in 2006. Together with Afren plc., the Operator, we will be commencing an extensive work program in 2013-2014 that includes high impact exploration activity and with a drilling program scheduled within the next 12 months”.
Background information on Block 1101, Onshore Madagascar & Afren plc.:
Block 1101 is located onshore in the north western part of Madagascar and the PSC covers an area of some 15,000km² (3.7 million acres). Since 2006 airborne gravity and magnetic surveys and some 430km 2D seismic have been acquired as well as extensive geological field work and mapping undertaken. A number of substantial prospects and leads have been identified mainly in the potential Triassic and Jurassic sandstone reservoir formations.
Afren plc. is listed on the London stock markets (LON.AFR) and is a highly successful E&P company with a strong African focus; the current market capitalization of Afren is approximately $2.5 Billion. Afren holds a 90% Working Interest in Block 1101.
About Oyster Oil and Gas Ltd.
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Oyster is an oil and gas exploration company with a focus on eastern Africa. Oyster operates four blocks onshore and offshore in the Republic of Djibouti, located in East Africa; the blocks covering some 3.5 million acres. Oyster also has the option to acquire up to a 60% interest in the Kalum Property located in British Columbia, Canada.
About Candax Energy
Candax is an international energy company with offices in Toronto and Tunis. The Candax group is engaged in exploration and the production of oil and gas in Tunisia.
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