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Abstract
Kulczyk Oil Ventures Inc. (WARSAW:KOV) ("KOV" or the "Company") is pleased to announce that on 6 May 2011 it joined the Neconde Energy Limited ("Neconde") consortium. On April 29, 2011, Neconde entered into an Agreement for Assignment (the "AFA") and various ancillary agreements with the Shell Petroleum Development Company of Nigeria Ltd ("SPDC"), Total E&P (Nigeria) Ltd ("TEPNG") and Nigerian Agip Oil Company Ltd (NAOC") (together the "Vendors") pursuant to which Neconde will acquire a 45% participating interest (the "Asset") in Oil Mining Licence 42 ("OML 42"), a large block containing previously-discovered oil fields in the Niger Delta area of Nigeria. The remaining 55% participating interest in OML 42 is held by the Nigerian National Petroleum Company ("NNPC").
Neconde's shares are held by a consortium of companies (the "Neconde Consortium"), which includes wholly-owned subsidiaries of each of Kulczyk Oil Ventures Inc and Kulczyk Investments S.A. ("KI"), the major shareholder of KOV. KOV would be the Neconde Consortium's 'Technical Partner' and through its indirect wholly-owned special purpose vehicle, would hold 20% of Neconde's ordinary issued equity, thereby giving the Company an effective indirect 9% interest in OML 42.
Forward-looking Statements This release contains forward-looking statements made as of the date of this announcement with respect to the opportunity to invest in Neconde and the acquisition and future activities of the Company in Nigeria or related to OML 42 that are not historical facts. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable as of the date hereof and that the Company will be able to participate in the opportunity, any potential results suggested by such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors that could impair or prevent the Company from participating in the Nigerian opportunity and completing the expected activities on this project including whether the Company can raise the required funds for the Company's share of Neconde's acquisition costs to the maximum available or at all either at closing of the acquisition or through a repayment of the bridge financing from KI. The ability to raise the required funds will be dependent on the state of the national or international monetary, oil and gas, financial , political and economic markets in the jurisdictions where the Company operates or anticipates operating and other risks associated with the Company's operations identified in the Annual Information Form of the Company dated March 29, 2011. Various factors could also affect the closing and the timing of closing of the acquisition by Neconde including the regulatory approvals and whether the Company will realize the benefits expected upon completion of the acquisition and participation in Neconde. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties and actual results may vary materially from those expressed in the forward-looking statement. The Company undertakes no obligation to revise or update any forward-looking statements in this announcement to reflect events or circumstances after the date of this announcement, unless required by law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.