CAMAC Energy, a US-based oil and gas firm, has been listed on the Johannesburg stock exchange (JSE) following an investment of $270m by South Africa’s Public Investment Corporation earlier this month in a deal that obliges the US interest to invest 10% of its portfolio in Africa.
The firm with was granted a listing of 1,088,396,226 shares, equivalent to the shares issued on the New York Stock Exchange (NYSE), where it is also listed, and representing the entire issued ordinary share capital of CAMAC.
“The JSE listing signifies a new chapter in our company and allows access to capital and a level of participation on the continent that we have always sought – to provide a new option for investors in terms of diversity,” said Dr Kase Lawal, chairman and CEO of CAMAC Energy, in comments echoed by Zeona Jacobs, director of issuer and investor relations at the JSE.
Meanwhile, the South African Public Investment Corporation (PIC) had secured a 30% shareholding in CAMAC Energy through its $270m placement, which has in effect allowed the firm to buy outstanding interests in the oil production-sharing contract for leases 120 and 121 at the Oyo field off the coast of Nigeria.
The leases were purchased from Allied Energy in exchange for an undisclosed sum and shares, placing Allied Energy’s share at 37% and that of CAMAC Energy Holdings at 20%, while the remaining 13% continues to be held by institutions such as RBC Capital and HSBC.
CAMAC’s attributable production has now risen from 200 barrels of oil a day to 2,000, and it plans to drill another three development wells in the next 12 months. The group also holds oil exploration licences in Kenya and Gambia.
Dr Lawal added that CAMAC was also looking at deepwater prospects around South Africa in order to reduce its reliance on oil imports. Of the 300,000 barrels of oil a day currently imported into the country, CAMAC expects to be producing around 10% of that by next year.
CAMAC Energy is the first company on the NYSE to have a secondary listing on the JSE, as well as the first company listed on the NYSE to run operations in both in Africa and America. For the JSE, it is the fourth oil and gas company listing on a bourse dominated by mining and financial stocks.
CAMAC Energy has investments in Nigeria, Gambia and Kenya, and is gradually expanding its reach in across Africa. Most recently it acquired the Armada Perdana FPSO vessel to increase oil production at its Oyo field of the southwest coast of Nigeria.