FOR SALE

Award of OPL 460 License in 1993 to Peak Petroleum Industries Ltd as a Sole Risk operator - 100% Ownership

Converted to OML 122 Bilabri / Owaneri Fields in 2001 after over 7 Wells Exploration

Equator Exploration Unltd (now 78% owned by Oando Nig Ltd in 2012) partnered with Peak Petroleum in Yr 2005 but cos of an Investment error couldn't go ahead by 2007 n based on a Bilabri Settlement Agreement (BSA) in 2007 , Peak Petroleum took back their Asset from Equator inclusive of an outstanding Project debt of about $100m but wit a benefit of 5% Crude Oil carry - on , n 12.5% Gas pay - in !!!

Peak Petroleum is seeking either a Loan ($300m @ 5% interest for a 4yr tenure ) or a Financial Partner to Invest into d Asset as follows :-
* $350m - 30% Equity Stake wit a repayment plan of 70 / 30 in favor of Investor until payout n later reversed to 30 / 70 in favor of Asset Owner !!
- Reserve - 30m barrels
- Production (1st Oil within 5 months) - 12,500bpd
- Typical Cargo (Cashflow within 30 days after 1st Oil) - 500,000 barrels / Shipment monthly
- Condensate - Available
- 1st Right of Refusal to JV Partner wit Asset Owner on d Gas Development

* $500m - 40% Equity or Economic Interest wit a repayment plan of 60 / 40 in favor of Investor (asset Owner can still accept a 70/30 plan to give comfort to investor) but upon repayment d sharing ratio reverts to 40 / 60 in favor of Asset Owner !!
- Reserve - 100m barrels
- Production (on or before d 12th month) - 25,000bpd
- 1st Cargo by 12th month / Shipment - 1.0m barrels Monthly
- Condensate - Available

Note :- $350m n $500m r for purely d Crude Oil C2 reserve development !!
* Gas Development is a totally fresh Investment wit possible :-
- Gas Gathering Pipeline
- Gas Sales to Government or others
- Floating LNG (Approval in principle) Project
- Power Project
- Petrochemical Project
- etc etc etc

Note :- The Nigerian Government has no stake in d Sole Risk Operatorship arrangement !!

Pls go thru d Executive Summary n properly educate yourself of d Asset !!!

Note :- As at present about $300m has been expended to date by d Asset Owner n it's previous Partners outside of Funds expended to maintain d Asset wit d Federal Government Agencies (DPR ; Taxes ; Staff ; etc etc )

Let's realize dat , all d risk factors hv been mitigated by earlier expenditure wit over 7 Wells drilled n Capped waiting for Re-Entry to start Producing (d Asset is about 55km deep offshore in Water Depths of btw 200m to 1,000m n close to Shell / Snepco Bonga Field , dat produces over 180,000bpd) !!!

Summary :- I believe after Ur Technical Team might hv studied d documents provided n In Person interaction wit d Asset Owner (Peak Petroleum) couple wit a look at d Data Room , as an Investor U will be in a better position to make d Final Investment Decision (FID) !!!

We (F & A) as Consultants / Advisors to d Asset Owner obviously hv Our knowledge limitations n Transaction Negotiations Powers (which might change based on sequential factors like :-
* Investor - Readiness
* Investor - Financial Capacity n Capability
* Asset Owner - Comfortability
* Both Parties - Desire n Willingness to Positively move ahead


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