LONDON, UK: Wildcat Petroleum, an oil and gas exploration company, has announced the signing of a Memorandum of Understanding (MOU) with a third party expressing interest in conducting due diligence on potential deals sourced by Wildcat from Sudan.
The third party will evaluate these deals and decide whether to invest up to a maximum amount of US$25 million directly into a deal. Furthermore, the party has also shown readiness to invest in other petroleum projects in African countries sourced by Wildcat, subject to due diligence.
The MOU, while not legally binding, marks a significant development for Wildcat as it progresses towards completing its first transaction in Sudan. In October of last year, the company signed an MOU with the Sudanese government regarding four producing oil blocks. Efforts will now be concentrated on finalizing a Production Sharing Agreement (PSA) for at least one of these blocks. In the event that travel to Khartoum is restricted due to the ongoing political situation, Wildcat is prepared to negotiate remotely to secure a deal.
Mandhir Singh, Chairman of Wildcat, expressed enthusiasm about the MOU, stating, “This MOU is a significant step forward for Wildcat as we aim to complete our first transaction in Sudan. Now that we have a party that is interested in the same geographies, we are focused on closing a deal as soon as possible.”
The four oil blocks in Sudan, as highlighted in a previous RNS (Regulatory News Service) release, contain over 1 billion barrels of oil in reserves and resources. These blocks are currently in production and are connected to existing petroleum transport infrastructure and facilities, which have spare capacity to accommodate significantly increased oil production.
It is important to note that the MOU, initially set to expire on December 31, 2022, has not been extended. However, discussions between Wildcat and the Sudanese government have continued, reflecting the ongoing commitment to explore mutually beneficial opportunities in the region.
The MOU emphasizes that both parties are not bound by any obligation to invest, and the termination of the agreement can be initiated with 30 days’ notice. Wildcat remains optimistic about the potential of this collaboration and the opportunity it presents for expanding its operations in Sudan and other African countries with promising petroleum projects.
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