Afren Expands African Portfolio With C$107MM Acquisition Of Black Marlin Energy

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
107MM
Description

To acquire company with East Africa focus, gaining 1.3 MMBOE reserves.

Afren Plc plans to acquire East Africa-focused Black Marlin Energy Holdings Ltd. in a stock deal valued at C$106.5 million.

Afren will exchange 0.3647 shares per Black Marlin share, with approximately 76.8 million Afren shares expected to be issued. The deal values Black Marlin at approximately C$0.51 per share, representing a premium of approximately 35% over the company's closing price on June 1.

The acquisition increases Afren's prospective resources by 1.3 million barrels of oil equivalent in high-impact rift basins, adds six exploration wells and represents a strategic entry into East Africa, with non-producing assets in Ethiopia, Kenya, Madagascar and the Seychelles.

Black Marlin's board has unanimously approved the deal.

Closing is expected by the end of September 2010.

RBC Capital Markets Inc. and GMP Securities LP are financial advisors to Black Marlin.