CALGARY, ALBERTA--(Marketwire - Oct. 10, 2012) -
NOT FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW
Octant Energy Corp. (the "Corporation" or "Octant") (TSX VENTURE:OEL), is pleased to announce that it has entered into an option agreement ("Option Agreement") with Kosmos Energy Ltd. ("Kosmos"), subject to final mutual agreement and satisfaction of conditions precedent pursuant to which Kosmos will assign up to 50% of its participating equity working interest in the N'Dian River and Fako onshore licenses in Cameroon (the "Licenses") in consideration of Octant paying its share of the exploration costs, including the drilling of the Sipo-1 prospect, which is planned to commence in Q4 2012.
The Sipo Prospect is located onshore Cameroon, in the southern part of the Ndian River Block, within the Rio del Rey Basin. It is an extension of a proven offshore play and the prospect is a large structurally trapped anticline associated with multiple stacked targets within the Miocene Isongo Formation. Sipo is located in the heart of the Isongo reservoir fairway which constitutes primary reservoir in the Alba and Esmeraldas fields in Equatorial Guinea and in Bowleven plc's recent IF and IE oil and natural gas condensate discoveries in the Etinde Block to the south. Sipo is also situated along trend from the Etinde Block discoveries and in a similar trap type. The petroleum system is well established, down-dip in the offshore Douala and Rio del Rey basins and more locally in wells within the confines of the block.
The Sipo prospects have been evaluated internally by Kosmos. A similar structure down-dip from Sipo (Sipo South) represents low risk follow on potential and two additional prospects (Meme and Bamusso) provide further Lower Cretaceous potential. There are no reserves assigned to the prospects. Kosmos' disclosure regarding the Sipo prospects can be found at the following link http://investors.kosmosenergy.com.
Pursuant to the Option Agreement, Kosmos will assign up to 50% the Licenses to Octant following completion of certain conditions precedent including, but not limited to: (i) Octant completing a financing (the "Financing"); (ii) agreement of the parties to the Joint Operating Agreements covering the Licenses; and (iii) receipt of approval from the appropriate authority of the Republic of Cameroon. The transaction is subject to regulatory approval including the approval of the TSX Venture Exchange.
The Option Agreement provides that Octant shall have until November 5, 2012 to demonstrate to the satisfaction of Kosmos that Octant has sufficient funds to meet its financial obligations under the Option Agreement.
Octant also has a current option agreement with Ophir Energy plc (the "Ophir Agreement") that provides for Octant to farm into Madagascar block 2102 as operator, for up to a 50% working interest. Octant's press release of March 12, 2012 outlines the NI 51-101 gross prospective resources of the targets identified on the block. It is currently planned that the well will commence in early 2013.
Rick Schmitt, President and CEO of Octant said, "Our strategy of drilling high impact oil prospects, as part of a broad portfolio of assets in Africa, is significantly enhanced through these option agreements with highly respected industry partners."
In relation with the Kosmos Option Agreement and the Ophir Agreement, Octant has engaged a syndicate of agents to pursue financing alternatives.
Readers are cautioned not to place undue reliance on forward looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific that contributes to the possibility that the predictions, forecasts, projections in the forward-looking statements will not occur, and that the actual performance or results expressed or implied by such forward-looking statements.
Potential resources estimates are subject to certain assumptions, risks and uncertainties, including those associated with exploration for oil and gas, the drilling and completion of future wells, limited available geological data and uncertainties regarding the actual production characteristics of, and recovery efficiencies associated with, the reservoirs, all of which are being assumed. As estimates, there is no guarantee that the estimated resources will be recovered or produced. Actual resources may be greater than or less than the estimates provided in this presentation. There is no certainty that any portion of these prospective resources described above will be discovered. There is also no certainty that it will be commercially viable to produce any portion of such prospective resources, if discovered.
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by applicable securities laws, the Corporation, disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Corporation undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
This press release is not an offer of the securities for sale in the United States. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.