The Company (US OTC) is a publicly traded Belize company which along with 2 affiliates has 49% interest in an area of 1,161,400 acres in Somalia with a prospective oil resource of 21 million barrels and 130 billion standard cubic feet of sales gas (Bscf) according to an independent NI 51-101 Evaluation of Prospective Resources performed by a reputable Canadian petroleum engineering firm. Conservative estimates are that the value for the Company’s share is approximately $187.5mn with an overall group net present value of $3.75 billion for the entire area.
The Company’s assigned role is to coordinate the early stage exploration leading up to the successful drilling of a test well. Upon the test well drilling, the Somali Federal Government will relinquish additional portions of its 51% interest in the block in favor of a conventional royalty.
The area was originally drilled by Somal Sinclair Oil in the 1960s and found to be extremely promising. The Company is seeking a total of $5mn in financing of which only $1.25mn is needed for the first stage of exploration which includes, security, seismic studies and the initial well.
The Company also owns majority rights of other mines in East Africa having Uranium, Platinum, gold, and diamond, which are beyond the scope of this transaction.