Kilimanjaro Capital has entered into a farmout agreement (“the Agreement”) with the Australian-Somali company Amsas to obtain a 5% non working interest in the Somalia Amsas-Coriole-Afgoye (ACA) Block with an opportunity to earn an additional 5% each in additional three Somali blocks.
The ACA Block is located on the coast of Somalia just south of the capital of Mogadishu and was formerly known as the “Government Block.” Amsas obtained 49% of the block in 2008 from the Somali Transitional Federal Government (TFG). The ACA Block is a 4700-square kilometer coastal parcel directly onshore opposite the offshore Block M-7 once held by a Shell unit before the Somali civil war started in 1991. Amsas estimates expect the block to contain 1 billion BOE, while optimistic estimates anticipate 5 billion BOE.
The block has a history of promising exploration. Test bores drilled in the 1960s by Sinclair Oil were followed by Somali Government drilling in 1985. A mere 40 kilometers south of Mogadishu, about 200 billion cubic feet of gas was discovered before the civil war stopped all activity in 1991.