ERHC Energy Inc (ERHE)

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CAMAC Energy takes over Equator

Equator Exploration Equator in reverse takeover of CAMAC Energy for 172.7 mln stg

LONDON (Thomson Financial) - Equator Exploration Ltd said it has conditionally agreed to a reverse takeover of CAMAC Energy Holdings Ltd, a unit of CAMAC International Ltd, for about 172.7 mln stg.

With this, the oil and gas exploration company will acquire CAMAC
International's exploration and production interests in the territorial waters of Nigeria, it said.

Equator said it will issue consideration shares to CAMAC Energy EP Ltd, which will own 70 pct of the enlarged group with Equator shareholders holding the remaining 30 pct. CAMAC Energy EP is CAMAC International's wholly owned subsidiary.

Equator also said it has entered into two working capital facility agreements, one with the South African Oil Co, a unit of CAMAC International, and the other with a shareholder lender.

Under the agreement, South African Oil Co and the shareholder lender will each provide Equator with a 5 mln stg facility, with a maturity date of Feb 15,2009, it added.

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