Emperor Oil Ltd. (EM.V) has entered into a Memorandum of
) with State Petroleum Overseas Inc., ("State") to acquire 85% of
their 50% working interest in a late stage oil development project
located in Block 7 in Sudan to develop the three discovered oil
fields. 'SUDAPET' (Sudan's state oil company) has the remaining 50%
interest in the project and is the Company's joint partner.
The Significant Terms of the MOU are:
-an initial cash payment to State equal to USD $400,000
-the issuance to State of that number of common shares of
Emperor equal to 19.99% of the then outstanding Emperor Shares,
after giving effect to such share issuance, to a maximum of Sixty
Million (60,000,000) Emperor Shares
-the following cash payments to State:
i.upon execution of an Exploration and Production Sharing
ii.Agreement ("EPSA") with the Republic of
iii.upon spudding of the first well on Block 7:USD$ 750,000;
iv.on the first day of the month following the month of
v.declaration of commercial production as per EPSA:US$
vi.on the first day of the month following the month in which
total production of Block 7 exceeds 2,000 BOE:US$ 750,000
Emperor will provide, for and to the satisfaction of the
Government of Sudan and State, on or before October 8, 2012,
evidence confirming Emperor's ability to pay its share of the
initial Project costs such share of the Project costs; being up to
US$15 million which includes a US$9.5 million bank guarantee to be
furnished Seven (7) days prior to the signing of the EPSA. The
remaining US$5.5 million will be used to pay EPSA signing bonuses
and any other required fees and other expenses including the work
program until December 31, 2012.
EM is now trading at 56 cents, a new yr high. It touched a
record high of 62 cents in earlier trade.
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