MOTOR OIL SA announces that the company MV Upstream Tanzania Limited reached an agreement in principle with the company Otto Energy for the acquisition of 25% of exploration rights and extraction of hydrocarbons in the concession .
The MV Upstream Tanzania Limited (hereafter MV Upstream - based in Cyprus) is 100% subsidiary of Motor Oil Vegas Upstream Limited (based in Cyprus). MOTOR OIL (HELLAS) SA holds 65% stake in Motor Oil Vegas Upstream Limited with the remaining 35% belonging to the company Vegas Oil and Gas Limited. For the participation of MOTOR OIL (HELLAS) SA in Motor Oil Vegas Upstream Limited was given special permission by the Annual General Meeting of 8 th June 2016 in accordance with Article 23 a of K. N. 2190/1920.
The Otto Energy (Tanzania) Pty Limited (hereinafter Otto-based Australia) is a subsidiary of Otto Energy Limited, a company listed on the Australian Stock Exchange (ASX).
The Kilosa-Kilombero is a land plot of hydrocarbon exploration, a total area of 17 625 square chiliometron.Ta exploration and extraction rights in this land available to the Consortium of Companies Otto (currently 50%), Swala Oil and Gas (Tanzania) plc, (listed company stock of Dar es salaam -25%), and Tata Petrodyne (member of the Indian Tata Group-25%). Manager of mining is Swala Oil and Gas (Tanzania) plc.
In return for this concession MV Upstream Otto will pay EUR 2.3 million. US dollars as a contribution to a portion of costs incurred for this and will now pay this expenditure corresponding to the participation of Otto the upcoming drilling up to the amount 2 million. USD. If deposit discovery and new drilling need for appreciation of the MV Upstream will bear part of the costs of Otto up to € 1 million. USD.
Completion of the transaction is subject to approval of the Tanzanian authorities and the other two partners (SWALA Energy and Tata Petrodyne).
In case of developments regarding the above, MOTOR OIL (HELLAS) SA will make announcements to fully inform the investing public.