The Vancouver-based oil and gas exploration and production company Naftex Energy Corporation and its wholly-owned subsidiary Coplex Egypt have entered into an agreement with Lukoil International (Cyprus), Vanguard Oil Corporation and Cabre Exploration (Cyprus), pursuant to which Coplex Egypt will sell all of its interests in the West Esh Al-Mallaha (WEEM) area concession in Egypt to Cabre for consideration of $7.3 million.
The transaction will result in LUKOIL and Cabre, an indirect wholly owned subsidiary of LUKOIL Overseas Holding Limited, becoming the owners of the WEEM Concession. As part of the transaction, Naftex, Coplex Egypt, Cabre, Vanguard and LUKOIL have agreed to discontinue the legal proceedings amongst certain of the parties in the Alberta Court of Queen's Bench in Canada.
The transaction is expected to close within three months and is subject to certain conditions, including receipt of all necessary Egyptian governmental and Canadian stock exchange approvals.
LUKOIL shall, as of signing, pay a refundable deposit of 10 percent of the consideration to Naftex and deposit the remaining 90 percent of the consideration in escrow. Naftex currently intends to apply the majority of the proceeds of the sale toward its obligations under its joint venture project with Petrobras.
"We regard the transaction with LUKOIL as being in the best interests of Naftex… The sale will permit us to settle amicably all legal proceedings relating to the ownership and operations of the WEEM Concession. More importantly, the sale will permit management to focus all of its attention on its joint venture with Petrobas in Brazil and will assist in financing Naftex's obligations under that joint venture," Naftex President and CEO John Dahlen said. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
