Emperor Oil Signs MOU with State Petroleum to Develop Sudan Oil Fields; Shares Touch New Yr High


Emperor Oil Ltd. (EM.V) has entered into a Memorandum of Understanding ( MOU ) 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 Sudan:USD$1,000,000;

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$ 750,000;

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: MOU

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