Griffiths Energy International Inc. has signed a Heads of Terms Agreement with Glencore International plc for the development of the Mangara and Badila oil fields.

Under the terms of the Agreement, Glencore will earn 25% working interest in the Mangara and Badila Exclusive Exploitation Authorizations (the "EXA's") leaving Griffiths with 50% working interest and Socie te des Hydrocarbures du Tchad ("SHT") with 25% working interest. In consideration for the working interest in Mangara and Badila, Glencore will fund US$ 300 million of the Company's working interest share of future joint venture expenditures in the Mangara and Badila oil fields up to a maximum of US$ 100 million per year (the "Carried Amount").

Tags: Griffiths Energy International Inc.