OY-V sees little bit of excitement today. Closed 45 cents up 10 cents on 60,353 shares changed hands.
Oyster Oil to acquire 10% WI in block 1101 from Candax Energy (CAX-T)
Sept 6, 2013 - News Release
Oyster Oil and Gas Ltd. has finalized an agreement with Candax Energy Inc. to acquire its 10-per-cent working interest in block 1101 onshore Madagascar. 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 and chief executive officer, 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 to 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, and Afren PLC
Block 1101 is located onshore in the northwestern part of Madagascar and the PSC covers an area of about 15,000 square kilometres (3.7 million acres). Since 2006 airborne gravity and magnetic surveys and about 430 km of 2-D seismic have been acquired as well as extensive geological fieldwork 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 and is a highly successful exploration and production company with a strong African focus; the current market capitalization of Afren is approximately $2.5-billion. Afren holds a 90-per-cent working interest in block 1101.
About Oyster Oil and Gas Ltd.
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 about 3.5 million acres. Oyster also has the option to acquire up to a 60-per-cent interest in the Kalum property located in British Columbia, Canada. |
