Calima Energy Progresses Sale of Namibia PEL 90

THE BOWSER: Calima Energy (ASX: CE1) has entered into a formal sale and purchase agreement to sell the company’s interest in the Namibia PEL 90 licence (Block 2813B).

Calima Energy is selling the licence to Tullow Namibia Limited, a subsidiary of Tullow Oil plc, a leading deep-water operator with a track record of working in Africa.

Calima explained the transfer of title contemplated by the agreement is subject to customary Government and partner approvals relating to the assignment of interest and transfer of Operatorship.

Calima will receive US$2 million on completion with subsequent success bonuses totalling US$10 million to be paid in two equal tranches (US$5 million) following the grant of a production licence and then upon the commencement of commercial production.

“The completion of a binding sale and purchase agreement is a significant milestone towards completion of this transaction,” Calima Energy managing director Alan Stein said in the company’s announcement to the Australian Securities exchange.

“We shall now work with the Government and our joint venture partners to secure the necessary consents and approvals required to reach completion.”