2 July 2012 – acquisition

The group has announced the acquisition of a 45% stake in a large oilfield in Nigeria for a total cost of $850m.  This acquisition is transformational for the company and gives it exposure to a significant producing asset in Nigeria, which is estimated to have the second largest reserves in Africa.  The acquisition is expected to be immediately cash generative and will help to provide other opportunities in the region.  The acquisition, which is to be purchased for cash will be funded by a combination of bank debt and a rights issue.  Following the announcement shares in the company have been suspended pending publication of the prospectus.