<\/strong>M&P has signed an SPA to acquire 50% of Etu\u2019s working interests in offshore Blocks 3\/05 and 3\/05A,
consisting in a 5% non-operated working interest in Block 3\/05 and a 6.67% non-operated working interest in Block 3\/05A. The effective date of the transaction is 31 December 2023.<\/p>\n\n\n\n
The total headline cash consideration payable by M&P at completion is $23 million. This includes $22 million for the Block 3\/05 interest and $1 million for the Block 3\/05A interest. The consideration is on a cash-free, debt-free basis and is subject to customary adjustments for working capital and crude inventory balances between the effective date and completion. Based on current estimates, these adjustments are expected to result in a material reduction to the final cash consideration payable at completion.<\/p>\n\n\n\n
M&P may pay up to $6 million in contingent consideration for Block 3\/05:<\/p>\n\n\n\n
- \n
- This applies only to the years 2025 and 2026, with the annual contingent payment capped at
$3 million;<\/li>\n\n\n\n - Payments are based on a sliding scale of average annual Brent oil price between $75 per barrel and
$123 per barrel; and<\/li>\n\n\n\n - Only if average gross production exceeds 15,000 barrels of oil per day for the relevant year.
A further contingent consideration of up to $5 million may be made in connection with the Caco-Gazela and Punja discoveries on Block 3\/05A:<\/li>\n\n\n\n - Two payments of $2.5 million each are payable one year after first oil from each development;<\/li>\n\n\n\n
- Subject to a minimum Brent price of $75 per barrel and gross production averaging at least
5,000 bopd during the twelve months following first oil; and<\/li>\n\n\n\n - First oil must occur by 31 December 2029 for the contingent payments to become due.
Following completion of the Acquisition, the joint venture partners across both Blocks 3\/05 and 3\/05A will be comprised as follows:
<\/li>\n<\/ul>\n\n\n\n![\"\"](\"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2025\/06\/Block-3-05-1.png?resize=646%2C99&ssl=1\")
<\/figure>\n\n\n\n<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"