Worthington Group will invest US$19.9mn in CPS Energy Resources PLC, an oil and gas exploration company operating in Africa, will join forces with African oil and gas exploration company Oando
Under the new deal, Worthington will subscribe for new CPS ordinary shares totalling US$19.9mn, which equates to 27.5 per cent of the agreed likely stock market value of CPS.
According to Worthington, the principal asset of CPS is an 80.75 per cent interest in oil and gas block OPL 236 which, at more than 1,600 sq km. The block is onshore within the oil rich Niger Delta and is surrounded by oil and gas fields, including the Shell Imo River fields which are Nigeria’s largest onshore fields with oil production rates of around 25,000 barrels a day.
“Oil and gas is an attractive investment area for us. We are hopeful that this transaction and our new relationships in Africa will lead to further oil and gas opportunities in the region over the coming months. Nigeria has a thriving economy, and is now receiving international recognition as an economic powerhouse for the future,” commented WRN CEO Doug Ware.