Ophir Energy has entered into an agreement to sell to Pavilion Energy a 20 per cent. interest in Tanzanian Blocks 1, 3 and 4 for a maximum consideration of US$1,288 million.
Highlights of the Transaction
◾ Consideration payable to Ophir on completion of the Transaction of US$1,250 million with further contingent consideration of US$38 million following the final investment decision in respect of development of Blocks 1, 3 and 4, currently expected to be in 2016;
◾ Introduction into the Blocks 1, 3 and 4 Joint Venture of a strong and well financed partner with access to gas markets in Asia including Singapore. Pavilion Energy is a wholly owned subsidiary of Temasek, a Singapore investment company;
◾ The Transaction is expected to complete in the first quarter of 2014; and
◾ Ophir will remain a significant investor going forward in Tanzania through its continued stake in the Joint Venture and exploration drilling in Block 7 and East Pande.
The sale is subject to regulatory, governmental and other third party approvals and approval by Ophir's shareholders. A circular setting out further details of the Transaction, together with the notice to convene a general meeting of the Company, will be posted to Ophir's shareholders in due course.