CALGARY, ALBERTA -- (Marketwired) -- 09/30/13 -- Kilimanjaro Capital ("Kilimanjaro" or "the Company") (GXG: KCAP), the ethical investment company with acquisitions in the African mining and Oil & Gas sectors, is pleased to announce that it has entered into a farmout agreement ("the Agreement") with the Australian-Somali company Amsas to obtain a 5% non working interest in the Somalia Amsas-Coriole-Afgoye ("ACA") Block with an opportunity to earn an additional 5% each in additional three Somali blocks.
The ACA Block is located on the coast of Somalia just south of the capital of Mogadishu and was formerly known as the "Government Block." Amsas obtained 49% of the block in 2008 from the Somali Transitional Federal Government ("TFG"). The ACA Block is a 4700-square kilometer coastal parcel directly onshore opposite the offshore Block M-7 once held by a Shell unit before the Somali civil war started in 1991. Amsas estimates expect the block to contain 1 billion BOE, while optimistic estimates anticipate 5 billion BOE.
The block has a history of promising exploration. Test bores drilled in the 1960s by Sinclair Oil were followed by Somali Government drilling in 1985. A mere 40 kilometers south of Mogadishu, about 200 billion cubic feet of gas was discovered before the civil war stopped all activity in 1991.
Since 2008, Amsas and its partner Tembo Petroleum which has a 10% interest in the ACA, have had to deal with incursions by Al Shabaab, currently considered to be the most brutal terrorist gang operating in Africa and which has claimed responsibility for the Nairobi Westgate Mall atrocities.
Kilimanjaro's role is to utilize its unique structure to obtain the financing necessary for the ACA Block to begin exploration on the ground leading to a test well. According to Kilimanjaro CEO Zulfikar Rashid the ACA Agreement plays to Kilimanjaro's strengths in African frontier markets: "We are pleased to be working with a Somali owned company and in particular it's CEO Dr. Ali Abdullahi. This is African economic self determination in progress which will ultimately benefit the people of Somalia by providing an economic base and jobs. Only through economic development that benefits the people of Somalia will we defeat extremism and terrorism."
Amsas also possesses the right of first refusal, obtained from the Somalia Federal Government, for another three unclaimed blocks of its choice within the borders of pre 1991 Somalia. The choice would include blocks once allocated by the Somali Democratic Republic to Eni, Chevron, ConocoPhillips, Pecten and Amoco and potentially overrides claims by relative newcomers such as Africa Oil, Ophir, Asante, Maruader and Range Resources granted licenses by regional administrations such as Puntland and Somaliland.
Kilimanjaro anticipates supporting Amsas' bids for other blocks legally and financially and using both conventional and alternative means of financing to accomplish these goals. Kilimanjaro was advised in the Agreement by Ashmit Patel of the international law firm Brimstone & Company which helped structure Kilimanjaro's existing relationships with other African states seeking self determination. Brimstone's managing attorney and adjunct professor of international law, Dr. Jonathan Levy, also views the Amsas Agreement as consistent with Kilimanjaro's stated purpose to empower African economic self determination: "Kilimanjaro has a real chance here to strike a blow against global terrorism (Al Shabaab) and recruitment by bringing in the funds and expertise to build a stable resource and local employment base in Somalia. Amsas and Kilimanjaro unlike other players in Somalia's oil sector want to keep capital at work in Africa benefitting the inhabitants."
Dr. Ali Abdullahi will join the Kilimanjaro Advisory Panel of Experts. Dr. Abdullahi is a candidate for the Presidency of the Puntland state and a former presidential candidate for the Somalia TFG. Dr. Ali has extensive experience in mining and hydrocarbons. His political platform supports local economic and political self determination throughout Somalia as building blocks to restore stability and progress. He was one of the founders of the autonomous Puntland State and is committed to social, political, and economic progress in his homeland.
For additional information see Kilimanjaro's website at www.kilimanjarocapital.ca.
Jonathan Charles / Jessica Johnson
+44 (0) 20 3697 1209
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- Keurig Adds Peet's coffee, Alters Starbucks deal
- U.S. to Relinquish Gov't Control Over Internet
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Some California Cities Seeking Water Independence
- Quiznos Files for Chapter 11